IDEAS home Printed from https://ideas.repec.org/a/pal/jofsma/v24y2019i1d10.1057_s41264-019-00060-x.html
   My bibliography  Save this article

Factors affecting Islamic banking behavioral intention: the moderating effects of customer marketing practices and financial considerations

Author

Listed:
  • Mohammad Enamul Hoque

    (Universiti Kebangsaan Malaysia
    University of Creative Technology)

  • M. Kabir Hassan

    (University of New Orleans)

  • Nik Mohd Hazrul Nik Hashim

    (Universiti Kebangsaan Malaysia)

  • Tarek Zaher

    (Indiana State University)

Abstract

This paper examines the determinants of potential customers’ intention to purchase products and services from Islamic banks and the moderating effects of customer marketing practices and financial considerations. A research framework is developed which links communication considerations, financial considerations, customer attitudes, and behaviors. The questionnaire approach, confirmatory factor analysis, and hierarchical regression are used to examine the extent and direction of the relationship within the conceptualized research framework. We find, apart from perceived ease of online banking, that all conceptualized factors are important determinants of customers’ behavioral intention in Islamic banking. This study also finds that, with the exception of perceived risk, all moderators (namely customer–bank relationship, advertising, perceived ease of online banking, perceived potential benefits, and profit–loss sharing approach) intensify the customer attitude–behavioral intention nexus. Islamic banks should adopt various customer–bank relationship strategies and advertising to attract more customers. Further, Islamic banks may use simplified Arabic terms for products and services on their Web sites and online banking portals to convey their intended massage to non-Muslim customers as well.

Suggested Citation

  • Mohammad Enamul Hoque & M. Kabir Hassan & Nik Mohd Hazrul Nik Hashim & Tarek Zaher, 2019. "Factors affecting Islamic banking behavioral intention: the moderating effects of customer marketing practices and financial considerations," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 24(1), pages 44-58, June.
    • Handle: RePEc:pal:jofsma:v:24:y:2019:i:1:d:10.1057_s41264-019-00060-x
    DOI: 10.1057/s41264-019-00060-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41264-019-00060-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41264-019-00060-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gordon L Clark & Ashby H B Monk, 2013. "Financial Institutions, Information, and Investing-At-A-Distance," Environment and Planning A, , vol. 45(6), pages 1318-1336, June.
    2. Rajagopal, 2014. "The Human Factors," Palgrave Macmillan Books, in: Architecting Enterprise, chapter 9, pages 225-249, Palgrave Macmillan.
    3. Kassim, Salina, 2016. "Islamic finance and economic growth: The Malaysian experience," Global Finance Journal, Elsevier, vol. 30(C), pages 66-76.
    4. Walid Ali Albashir & Yuserrie Zainuddin & Shrikant Krupasindhu Panigrahi, 2018. "The Acceptance of Islamic Banking Products in Libya: A Theory of Planned Behavior Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 105-111.
    5. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    6. M. Kabir Hassan & Mervyn K. Lewis (ed.), 2007. "Handbook of Islamic Banking," Books, Edward Elgar Publishing, number 3621.
    7. Muslim Amin & Sajad Rezaei & Maryam Abolghasemi, 2014. "User satisfaction with mobile websites: the impact of perceived usefulness (PU), perceived ease of use (PEOU) and trust," Nankai Business Review International, Emerald Group Publishing Limited, vol. 5(3), pages 258-274, July.
    8. Olson, Dennis & Zoubi, Taisier A., 2008. "Using accounting ratios to distinguish between Islamic and conventional banks in the GCC region," The International Journal of Accounting, Elsevier, vol. 43(1), pages 45-65, March.
    9. Nelson Lajuni & Winnie Wong Poh Ming & Yusman Yacob & Hiram Ting & Alfera Jausin, 2017. "Intention to Use Islamic Banking Products and Its Determinants," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 329-333.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ahmed Hassanein & Mohamed M. Mostafa, 2023. "Bibliometric network analysis of thirty years of islamic banking and finance scholarly research," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(3), pages 1961-1989, June.
    2. Krisna Nugraha & Muhtosim Arief & Sri Bramantoro Abdinagoro & Pantri Heriyati, 2022. "Factors Influencing Bank Customers’ Orientations toward Islamic Banks: Indonesian Banking Perspective," Sustainability, MDPI, vol. 14(19), pages 1-18, September.
    3. Negar Jalilian & Seyed Mahmoud Zanjirchi & Alireza Naser Sadrabadi & Ahmadreza Asgharpourmasouleh & Mark Goh, 2021. "Agent-Based Approach to Configure Processes in Iran’s Banking Service Supply Chain," Sustainability, MDPI, vol. 13(14), pages 1-23, July.
    4. Kaushik Mukerjee, 2024. "Augmented reality and customer engagement in the context of e-banking," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(4), pages 1559-1571, December.
    5. Hind Lebdaoui & Youssef Chetioui & Tahar Harkat, 2024. "Propensity towards Islamic banking among non-users: a mixed-methods analysis," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(1), pages 45-66, March.

    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. Nouman Khurram & Umair Saeed, 2015. "Factors Influencing the Intention of People to Use Islamic Banking: An Evidence from Lahore, Pakistan," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(8), pages 411-418, August.
    2. Bilgihan, Anil & Barreda, Albert & Okumus, Fevzi & Nusair, Khaldoon, 2016. "Consumer perception of knowledge-sharing in travel-related Online Social Networks," Tourism Management, Elsevier, vol. 52(C), pages 287-296.
    3. Jia Guo & Yusak Susilo & Constantinos Antoniou & Anna Pernestål Brenden, 2020. "Influence of Individual Perceptions on the Decision to Adopt Automated Bus Services," Sustainability, MDPI, vol. 12(16), pages 1-13, August.
    4. Muhammad Ali & Syed Ali Raza & Chin-Hong Puah & Mohd Zaini Abd Karim, 2017. "Islamic home financing in Pakistan: a SEM-based approach using modified TPB model," Housing Studies, Taylor & Francis Journals, vol. 32(8), pages 1156-1177, November.
    5. Donmez, Birsen & Matson, Zannah & Savan, Beth & Farahani, Ellie & Photiadis, David & Dafoe, Joanna, 2014. "Interruption management and office norms: Technology adoption lessons from a product commercialization study," International Journal of Information Management, Elsevier, vol. 34(6), pages 741-750.
    6. Ketelaar, Paul E. & Bernritter, Stefan F. & van Woudenberg, Thabo J. & Rozendaal, Esther & Konig, Ruben P. & Hühn, Arief Ernst & Van Gisbergen, Marnix S. & Janssen, Loes, 2018. "“Opening” location-based mobile ads: How openness and location congruency of location-based ads weaken negative effects of intrusiveness on brand choice," Journal of Business Research, Elsevier, vol. 91(C), pages 277-285.
    7. Oguz YILDIZ & Hakan KITAPCI, 2018. "Exploring Factors Affecting Consumers¡¯ Adoption of Shopping via Mobile Applications in Turkey," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 10(2), pages 60-75, June.
    8. Antonio Paone & Jean-Philippe Bacher, 2018. "The Impact of Building Occupant Behavior on Energy Efficiency and Methods to Influence It: A Review of the State of the Art," Energies, MDPI, vol. 11(4), pages 1-19, April.
    9. Chen Wei, 2021. "The influence of Consumers’ Purchase intention on Smart Wearable Device: A study of Consumers in East China," International Journal of Science and Business, IJSAB International, vol. 5(8), pages 46-72.
    10. Roberto PATUELLI & Enrico SANTARELLI & Annie TUBADJI, 2020. "Entrepreneurial intention among high-school students: the importance of parents, peers and neighbors," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 225-251, June.
    11. Neifar, Malika, 2020. "Different dimensions Bank performance comparisons IBs vs CBs – Quatar case," MPRA Paper 101375, University Library of Munich, Germany.
    12. Changsok Yoo & Shinhye Kwon & Hyunsoo Na & Byenghee Chang, 2017. "Factors Affecting the Adoption of Gamified Smart Tourism Applications: An Integrative Approach," Sustainability, MDPI, vol. 9(12), pages 1-21, November.
    13. Arghashi, Vahideh & Yuksel, Cenk Arsun, 2022. "Interactivity, Inspiration, and Perceived Usefulness! How retailers’ AR-apps improve consumer engagement through flow," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    14. Ali Saleh Alshebami, 2021. "The Influence of Psychological Capital on Employees’ Innovative Behavior: Mediating Role of Employees’ Innovative Intention and Employees’ Job Satisfaction," SAGE Open, , vol. 11(3), pages 21582440211, August.
    15. Diego Casado-Mansilla & Apostolos C. Tsolakis & Cruz E. Borges & Oihane Kamara-Esteban & Stelios Krinidis & Jose Manuel Avila & Dimitrios Tzovaras & Diego López-de-Ipiña, 2020. "Socio-Economic Effect on ICT-Based Persuasive Interventions Towards Energy Efficiency in Tertiary Buildings," Energies, MDPI, vol. 13(7), pages 1-26, April.
    16. The Ninh Nguyen & Tuan Khanh Cao & Phuong Linh Dang & Hien Anh Nguyen, 2016. "Predicting Consumer Intention to Use Mobile Payment Services: Empirical Evidence from Vietnam," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 8(1), pages 117-124, February.
    17. Johanna Kallio & Elena Vildjiounaite & Julia Kantorovitch & Atte Kinnula & Miguel Bordallo López, 2021. "Unobtrusive Continuous Stress Detection in Knowledge Work—Statistical Analysis on User Acceptance," Sustainability, MDPI, vol. 13(4), pages 1-16, February.
    18. Shahla Asadi & Mehrbakhsh Nilashi & Abd Razak Che Husin & Elaheh Yadegaridehkordi, 2017. "Customers perspectives on adoption of cloud computing in banking sector," Information Technology and Management, Springer, vol. 18(4), pages 305-330, December.
    19. Feryel OUERGHI, 2014. "Are Islamic Banks More Resilient To Global Financial Crisis Than Conventional Banks?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(7), pages 941-955, July.
    20. Fahad Asmi & Rongting Zhou & Liu Lu, 2017. "E-government Adoption in Developing Countries: Need of Customer-centric Approach: A Case of Pakistan," International Business Research, Canadian Center of Science and Education, vol. 10(1), pages 42-58, January.

    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:pal:jofsma:v:24:y:2019:i:1:d:10.1057_s41264-019-00060-x. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.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.