A Conceptual Model of Depositors’ Trust and Loyalty on Hajj Institution - Case of Lembaga Tabung Haji Malaysia

Nur Hasnida Abd Rahman, Fatimah N. R. M. Sofian, Fadhilah Abdullah Asuhaimi and Farihana Shahari
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Nur Hasnida Abd Rahman: Department of Finance, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Malaysia.
Fatimah N. R. M. Sofian: Department of Finance, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Malaysia.
Fadhilah Abdullah Asuhaimi: Department of Finance, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Malaysia.
Farihana Shahari: Department of Finance, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Malaysia.

International Review of Management and Marketing, 2020, vol. 10, issue 1, 99-106

Abstract: Being established as a special Islamic financial institutions dedicated for managing hajj fund, Lembaga Tabung Haji (TH) plays a crucial role to ensure going concern of the institutions. Thus, it is highly important to preserve depositors trust and loyalty on the institution. Financial and management issues faced by TH, couple with the widespread use of social media reporting inaccurate information about the institutions may give impact to the depositors’ trust, evidencing by a sudden deposits withdrawal and closure of account in year 2017. As it is a special institution only for Muslims, its depositors carry different characteristics as compared to the other financial institutions. Using literature survey, this study develops a conceptual model to examine the depositors’ trust and loyalty on the institution by examining three mediating variables namely depositors’ financial literacy, depositors’ understanding about hajj and depositors’ awareness about current development of the institutions. Finally, both theoretical and practical implications were also discussed.

Keywords: Financial Literacy; Hajj; Awareness; Trust; Loyalty (search for similar items in EconPapers)
JEL-codes: G53 (search for similar items in EconPapers)
Date: 2020
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