How Religiosity Affects Purchase Behavior of Takaful in Pakistan: The Mediatory Role of Knowledge and Perceived Risk about Riba, Trust, and Attitude towards Takaful, Subjective Norms and Behavior Control

Syed Muhammad Jawad and Danish Ahmed Siddiqui

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: This study explored how religiosity affects the purchase behavior of Pakistan's takaful industry. We contend that Religiosity (RG) increases the knowledge of Riba (KR) this will in turn highlight the risk of Riba (PR). This will build trust (TT) and attitude towards takaful (ATT). TT and ATT along with Subjective Norms (SNM) and Behavioral control (BC) increase the purchase intention towards Takaful (PI), which ultimately leads to Purchase Behavior (PB). The target population for this study includes consumers who are either takaful customers or those who have some level of awareness of those products in Karachi, Pakistan. The study collected 296 responses through purposive sampling and analyzed data using PLS-SEM. The results show that religiosity positively influences knowledge about Riba, trust in takaful, attitude towards takaful, subjective norms, behavioral control, purchase intention, and purchase behavior towards takaful. Knowledge about Riba affects the perceived risk of Riba and attitude towards takaful. Perceived risk of Riba negatively impacts trust in takaful, attitude, intention, and behavior. Trust in takaful positively influences attitude, subjective norms, behavioral control, intention, and behavior. Attitude towards takaful affects subjective norms, behavioral control, intention, and behavior. Subjective norms influence behavioral control, intention, and behavior, while behavioral control positively impacts purchase intention, which in turn influences purchase behavior. Purchase intention mediates the relationship between all factors and purchase behavior. The study has recommended that managers should focus on enhancing trust, knowledge, and positive attitudes towards takaful to strengthen consumer intention and behavior while addressing perceived risks to improve overall engagement.

Keywords: Family Takaful; Theory of Planned Behavior; Trust-Commitment Theory; Pakistan; PLS-SEM (search for similar items in EconPapers)
Date: 2026
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