Persuasion in Islamic finance

Saad Azmat, Haiqa Ali, Kym Brown and Michael Skully
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Haiqa Ali: Lahore University of Management Science, Lahore, Pakistan

Australian Journal of Management, 2021, vol. 46, issue 2, 272-286

Abstract: This article explores the mechanisms of persuasion in Islamic finance that may have helped support the growth of this market. Our theoretical model may explain those factors which may influence a customer to select an Islamic financial product. For complex decisions where a person may not fully understand the background concepts such as with finance or Arabic terminology, product quality may be judged based on information in advertising and prior knowledge. Our model shows that Islamic bankers can use the customer’s “coarse thinking†process when advertising products. They may be a means to make products appear more religiously (Shariah) compliant. The equilibrium level of persuasive strategies proposed help reinforces the impact of persuasion for Islamic banks. JEL Classification: G21, G11, M31

Keywords: Investment decisions; Islamic bank; marketing (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:46:y:2021:i:2:p:272-286

DOI: 10.1177/0312896220926556

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