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Understanding the Drivers of Islamic Credit Card Selection Using TRA Model: Evidence from Khyber Pakhtunkhwa, Pakistan

Author

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  • Khush Dil Khan

    (Institute of Management Sciences, University of Science and Technology, Bannu, KP, Pakistan)

  • Ikram Ullah Khan

    (Institute of Management Sciences, University of Science and Technology, Bannu, KP, Pakistans)

  • Safeer Ullah Khan

    (Institute of Business Administration, Gomal University, Dera Ismail Khan, KP, Pakistan)

Abstract

This study investigates the drivers of Islamic Credit Card (ICC) adoption in Khyber Pakhtunkhwa (KP), Pakistan by using the extended Theory of Reasoned Action (TRA) model. Particularly, the study examines the impact of subjective norms, attitude, perceived financial cost, knowledge, and social influence on ICC selection. Using a convenient sampling technique, this study relied on self-administered questionnaires that were distributed among Islamic banks’ customers in Kohat and Bannu divisions. A total of 400 questionnaires were distributed, and 340 valid questionnaires were selected for the final analysis. The results from the regression analysis indicate that the factors i.e., subjective norm, customer attitudes, knowledge, and social influence have a positive and significant effect on the intentions to use the ICC, but perceived financial cost shows a negative effect on the intentions to use ICC. Among the predictors, the subjective norm was found a very influential driver to forecast the intention to use ICC. Our results provide insights to managers of Islamic banks, policymakers, and Sariah scholars to understand how to promote ICC.

Suggested Citation

  • Khush Dil Khan & Ikram Ullah Khan & Safeer Ullah Khan, 2022. "Understanding the Drivers of Islamic Credit Card Selection Using TRA Model: Evidence from Khyber Pakhtunkhwa, Pakistan," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 4(4), pages 621-632, December.
    • Handle: RePEc:ani:irdjoe:v:4:y:2022:i:4:p:621-632
    DOI: 10.52131/joe.2022.0404.0103
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    References listed on IDEAS

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    1. Fauziah & Taib & T. Ramayah & Dzuljastri Abdul Razak, 2008. "Factors influencing intention to use diminishing partnership home financing," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 1(3), pages 235-248, August.
    2. Hanudin Amin & Abdul Rahim Abdul Rahman & T. Ramayah, 2009. "What makes undergraduate students enroll into an elective course?," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 2(4), pages 289-304, November.
    3. Fauziah & Taib & T. Ramayah & Dzuljastri Abdul Razak, 2008. "Factors influencing intention to use diminishing partnership home financing," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 1(3), pages 235-248, August.
    4. Hanudin Amin & Abdul Rahim Abdul Rahman & T. Ramayah, 2009. "What makes undergraduate students enroll into an elective course?," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 2(4), pages 289-304, November.
    5. Hanudin, Amin, 2012. "Explaining intention to use the Islamic credit card: an extension of the TRA model," MPRA Paper 36957, University Library of Munich, Germany, revised 01 Jan 2012.
    6. Fauziah & Taib & T. Ramayah & Dzuljastri Abdul Razak, 2008. "Factors influencing intention to use diminishing partnership home financing," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 1(3), pages 235-248, August.
    7. Hanudin Amin & Abdul Rahim Abdul Rahman & T. Ramayah, 2009. "What makes undergraduate students enroll into an elective course?," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 2(4), pages 289-304, November.
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