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Modeling Consumers’ Behavior in New Dual Banking Markets: The Case of Morocco

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  • Mohamed Wail Aaminou

    (Islamic Finance Engineering Laboratory, Laboratoire d’Etude et de Recherche en Mathématiques, Mohammadia School of Engineering, Mohammed V University, Rabat, Morocco)

  • Rajae Aboulaich

    (Islamic Finance Engineering Laboratory, Laboratoire d’Etude et de Recherche en Mathématiques, Mohammadia School of Engineering, Mohammed V University, Rabat, Morocco)

Abstract

This paper aims to model the impact of retail consumers’ behavior on a new banking dual market featuring both conventional and Islamic banking products. To build the model, we conduct an empirical qualitative and quantitative survey on Moroccan market consumers in order to appraise their preferences with regard to banking products’ attributes. Then, we use conjoint analysis method to determine the consumers’ decision function. We run market simulations on a Multi-Agents Simulation platform and analyze the results. Our findings indicate that in new dual markets, and under a range of assumptions, it is predicted that Islamic banks will face excess liquidity while conventional banks will be exposed to liquidity shortage.

Suggested Citation

  • Mohamed Wail Aaminou & Rajae Aboulaich, 2017. "Modeling Consumers’ Behavior in New Dual Banking Markets: The Case of Morocco," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-24, June.
    • Handle: RePEc:wsi:rpbfmp:v:20:y:2017:i:02:n:s0219091517500096
    DOI: 10.1142/S0219091517500096
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    References listed on IDEAS

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    Cited by:

    1. Mustapha Ziky & Raja Daouah, 2019. "Exploring Small and Medium Enterprises¡¯ Perceptions Towards Islamic Banking Products in Morocco," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(10), pages 106-117, October.

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