Intention to Use Islamic Banking Products and Its Determinants

Nelson Lajuni, Winnie Wong Poh Ming, Yusman Yacob, Hiram Ting and Alfera Jausin
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Nelson Lajuni: Faculty of Business, Economics and Accountancy, University of Malaysia Sabah, Kota Kinabalu, Malaysia
Winnie Wong Poh Ming: School of Business and Management, University College of Technology Sarawak, Sibu, Malaysia
Yusman Yacob: Faculty of Business Management, University of Technology MARA, Kota Samarahan, Malaysia,
Hiram Ting: Institute of Borneo Studies, University of Malaysia Sarawak, Kota Samarahan, Malaysia
Alfera Jausin: Faculty of Business, Economics and Accountancy, University of Malaysia Sabah, Kota Kinabalu, Malaysia.

International Journal of Economics and Financial Issues, 2017, vol. 7, issue 1, 329-333

Abstract: As there is an increasing trend of Muslims and non-Muslims accepting Islamic banking, it is crucial to reconnoiter customers' intention to use Islamic banking products. Such rationale is based on theoretical foundation and empirical evidence that customers' perception towards a particular product would lead to their intention to choose that product. The purpose of this study is to examine the determinants of intention to use Islamic banking products in an emerging and vibrant market. 200 copies of questionnaires were distributed, 131 usable copies were subsequently collected. The data were then analyzed using partial least squares-structural equation modeling. The findings show that attitude, government support, and social influence possess explanatory and predictive capacity to envisage customers' intention to use Islamic banking products. As banking service is localized to better serve the customers, this study extends the literature by providing insights into the subject matter in emerging markets.

Keywords: Islamic Bank; Intention; Attitude; Social Influence; Government Support; Product Pricing; Religious Obligation; Partial Least SquaresStructural Equation Modeling (search for similar items in EconPapers)
JEL-codes: G2 Z1 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (6)

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