IDEAS home Printed from https://ideas.repec.org/a/eco/journ3/2020-01-13.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.)

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.

Suggested Citation

  • Nur Hasnida Abd Rahman & Fatimah N. R. M. Sofian & Fadhilah Abdullah Asuhaimi & Farihana Shahari, 2020. "A Conceptual Model of Depositors’ Trust and Loyalty on Hajj Institution - Case of Lembaga Tabung Haji Malaysia," International Review of Management and Marketing, Econjournals, vol. 10(1), pages 99-106.
    • Handle: RePEc:eco:journ3:2020-01-13
    as

    Download full text from publisher

    File URL: https://econjournals.com/index.php/irmm/article/download/8315/pdf
    Download Restriction: no
    File URL: https://econjournals.com/index.php/irmm/article/view/8315/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Atkinson, Adele & Messy, Flore-Anne, 2011. "Assessing financial literacy in 12 countries: an OECD/INFE international pilot exercise," Journal of Pension Economics and Finance, Cambridge University Press, vol. 10(4), pages 657-665, October.
    2. Lauchlin Currie, 2004. "Speech at the Chicago Forum of the American Institute of Banking: The behavior of depositsFebruary 24, 1938," Journal of Economic Studies, Emerald Group Publishing, vol. 31(3/4), pages 340-346, September.
    3. Park, Eunil & Kim, Ki Joon & Kwon, Sang Jib, 2017. "Corporate social responsibility as a determinant of consumer loyalty: An examination of ethical standard, satisfaction, and trust," Journal of Business Research, Elsevier, vol. 76(C), pages 8-13.
    4. M. Taimoor Hassan & Bilal Ahmed & Saleem Ahmed & Umair Habib & Saim Riaz & Nadeem Maqbool & Abia Anwar, 2012. "Measuring Customers Loyalty of Islamic Banking in Bahawalpur Region," International Journal of Learning and Development, Macrothink Institute, vol. 2(2), pages 101-111, April.
    5. Sri Murni Setyawati & Mahardhika Cipta Raharja, 2018. "Trust Dimensions Model in Creating Loyalty Stage for Service Consumers of Sharia Rural Banking," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 507-518.
    6. Engku Nurul Solihah E. Zainudin & Wan Mohd Khairul Firdaus Wan Khairuldin, 2017. "The Concept of Istita'ah in Hajj According to Four Madhhab (Schools of Thought)," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(4), pages 44-57, April.
    7. Erin Anderson & Barton Weitz, 1989. "Determinants of Continuity in Conventional Industrial Channel Dyads," Marketing Science, INFORMS, vol. 8(4), pages 310-323.
    8. Adele Atkinson & Flore-Anne Messy, 2011. "Assessing financial literacy in 12 countries: an OECD Pilot Exercise," CeRP Working Papers 115, Center for Research on Pensions and Welfare Policies, Turin (Italy).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrej Cupák & Pirmin Fessler & Maria Silgoner & Elisabeth Ulbrich, 2021. "Exploring Differences in Financial Literacy Across Countries: The Role of Individual Characteristics and Institutions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(2), pages 409-438, December.
    2. Davoli, Maddalena & Rodríguez-Planas, Núria, 2021. "Preferences, Financial Literacy, and Economic Development," IZA Discussion Papers 14759, Institute of Labor Economics (IZA).
    3. Rob Ranyard & Simon McNair & Gianni Nicolini & Darren Duxbury, 2020. "An item response theory approach to constructing and evaluating brief and in‐depth financial literacy scales," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(3), pages 1121-1156, September.
    4. Gentjan Çera & Khurram Ajaz Khan & Jaroslav Belas & Humberto Nuno Rito Ribeiro, 2020. "The Role of Financial Capability and Culture in Financial Satisfaction," Economic Papers, The Economic Society of Australia, vol. 39(4), pages 389-406, December.
    5. Azwadi Ali & Mohd Rahman & Alif Bakar, 2015. "Financial Satisfaction and the Influence of Financial Literacy in Malaysia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(1), pages 137-156, January.
    6. Agarwal, Sumit & Amromin, Gene & Ben-David, Itzhak & Chomsisengphet, Souphala & Evanoff, Douglas D., 2015. "Financial literacy and financial planning: Evidence from India," Journal of Housing Economics, Elsevier, vol. 27(C), pages 4-21.
    7. Andrej Cupak & Pirmin Fessler & Maria Silgoner & Elisabeth Ulbrich, 2018. "Financial literacy gaps across countries: the role of individual characteristics and institutions," Working and Discussion Papers WP 2/2018, Research Department, National Bank of Slovakia.
    8. Albert Hizgilov & Jacques Silber, 2020. "On Multidimensional Approaches to Financial Literacy Measurement," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(3), pages 787-830, April.
    9. Steffen Westermann & Scott J. Niblock & Jennifer L. Harrison & Michael A. Kortt, 2020. "Financial Advice Seeking: A Review of the Barriers and Benefits," Economic Papers, The Economic Society of Australia, vol. 39(4), pages 367-388, December.
    10. Rey-Ares, Lucía & Fernández-López, Sara & Castro-González, Sandra & Rodeiro-Pazos, David, 2021. "Does self-control constitute a driver of millennials’ financial behaviors and attitudes?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 93(C).
    11. ISMANTO, Hadi & MUHARAM, Harjum & PANGESTUTI, Irene Rini Demi & WIDIASTUTI, Anna & ROFIQ, Fathur, 2019. "The Nexus Between Financial Literacy And The Credit Status In Indonesia," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 23(3), pages 49-65, September.
    12. Leiser, David & Benita, Rinat & Bourgeois-Gironde, Sacha, 2016. "Differing conceptions of the causes of the economic crisis: Effects of culture, economic training, and personal impact," Journal of Economic Psychology, Elsevier, vol. 53(C), pages 154-163.
    13. Chen, Jia & Jiang, Jiajun & Liu, Yu-jane, 2018. "Financial literacy and gender difference in loan performance," Journal of Empirical Finance, Elsevier, vol. 48(C), pages 307-320.
    14. Irina Kunovskaya & Brenda Cude & Natalia Alexeev, 2014. "Evaluation of a Financial Literacy Test Using Classical Test Theory and Item Response Theory," Journal of Family and Economic Issues, Springer, vol. 35(4), pages 516-531, December.
    15. Lupu Dan, 2014. "The Impact Of Abusive Clauses Litigations On Profitability Of Romanian Banks," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 81-87, October.
    16. Ferilli, Greta Benedetta & Palmieri, Egidio & Miani, Stefano & Stefanelli, Valeria, 2024. "The impact of FinTech innovation on digital financial literacy in Europe: Insights from the banking industry," Research in International Business and Finance, Elsevier, vol. 69(C).
    17. Amjad Khan Suri & Sonal Purohit, 2017. "An Analysis of Personal Financial Literacy among Expatriates in the United Arab Emirates," Contemporary Review of the Middle East, , vol. 4(3), pages 278-296, September.
    18. Jason Kasozi & Daniel Makina, 2021. "Analysis of financial literacy and its effects on financial inclusion in Uganda," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 10(3), pages 67-83, July.
    19. Overbeek, Lucy, 2021. "Rationale and design of the Healthy Brain Study: an accessible resource for understanding the human brain and how it dynamically and individually operates in its bio-social context," OSF Preprints fqmdu, Center for Open Science.
    20. Naseem Al Rahahleh, 2022. "Financial Literacy Levels among Saudi Citizens across Budgeting, Saving, Investment, Debt, and Insurance Dimensions," JRFM, MDPI, vol. 15(12), pages 1-18, December.

    More about this item

    Keywords

    Financial Literacy; Hajj; Awareness; Trust; Loyalty;
    All these keywords.

    JEL classification:

    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ3:2020-01-13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.