Professional Documents
Culture Documents
INTRODUCTION
1.1 Background
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transactions and in Islamic banks there is a factor of bearing
the risk because risk free transaction are not allowed in Islam
and Islamic banks has to follow the compliances of Shari’ah. The
other factors include the liability taken on the transactions in
Islamic banks whereas in conventional banks only interest is
given that can attract the customers’. Hence, the main purpose
of Islamic banking system is to
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1.3 Problem Identification
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Theoretical Framework:
Attitude Influence
Social Influence
Government Support
Pricing of Islamic
Personal Financing
Hypotheses development
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H5. Pricing of Islamic personal financing will influence the use
of Islamic personal financing.
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Chapter No: 02
LITERATURE REVIEW
Study is done on the two banks one is Islamic bank and one is
conventional bank to differentiate between the performances of
both and to find out the deficiencies between the both. Research
is done for the three years on those banks that are operating
there for more than three years and few are the banks as well
those are newly established in Islamic banking. This three years
study found that both the conventional banks as well as Islamic
banks operate at the same level of efficiency and both are
equally effective although the Islamic banks are bound to manage
their operations into the limitations of all the principles on
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which the Islamic theory is based, they are proficient to keep
up their performance that is correspondent to the conventional
banks (Hisham et al. 2012).
(Asma and Omer, 2012) conclude that today the bank clients speak
towards the Islamic banks as they are not good and they want the
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location of the Islamic banks suitable for their purposes and
needs and causing the least difficulty. Islamic banks are also
the depository institutions and for this purpose the customer
needs the feeling to be secure to deal in the Islamic banks as
they have the feeling from the conventional banks and also have
same matter of problems with the quality of their services
offering to their customers and the least efficiency in
performing their operations and entertaining their customers.
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risks then the rest of the other contracts offered by the
Islamic banks. They can make use of this type of agreement as an
approach of investment. Investigations designate that
practicable agreements on the basis of Salam should be offer to
the poor farmers to so that they can attract towards the
personal Islamic financing for their crops. (Rusni et al. 2011)
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are more noticeable or important or larger in number than others
in the arrangement of Islamic and financial characters and
feature service presented by the bank. Doing something better
for the society, ease and handiness and product prices are some
of the other aspects that are also considered by the customers
while choosing the banking criteria. So Islamic banks must
follow the Shari’ah and other good deeds to improve their
standards of the service entertaining their customers and they
should have to hold the good customers service guidelines and
course of action in their arms to cut and gain their potential
as an intentional strategic instrument to accomplish the
competitive advantage, boost up their reputation and to maintain
the customer loyalty and support for their banking system.
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(Butt and Aftab, 2013) conduct the study to know the impact of
consumers on Halal banking system and their electronic
contentment, from the electronic quality service provided by the
Islamic banks in the framework of online Islamic banking. They
try to find out the correlation between electronic faith,
electronic service quality, electronic contentment and
electronic trustworthiness. Results shows that the approach in
the direction of Halal banking has positive power to have an
effect on the perceived electronic quality of the services and
on the whole electronic satisfaction with the online services of
Islamic banks and it also increase the electronic satisfaction
and loyalty of their customers. Hence, the concept of electronic
trust mediates and influences the behavior of the customers
towards the Islamic banking.
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(Mansour et al., 2010) came up with the research in the United
Kingdom on the preferences of the customers and the Islamic
banking. Finding show that irrespective of the quantity and
characteristics of customers who live in a particular area,
relation to their age, how much money they have and what they
spend on it and all other features and the religion of the
respondent the only preference is the ‘low service charges’. So
that’s why the Islamic banking system comes to the point second
because they can point out the rules and regulation and all
other principles they are following according to the Shari’ah
and least bother about their service charges. Not only the fact
of following Islamic laws can attract the customers but lenient
charges can also be the preference of the customers.
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difficulty, efficient in adopting the new technologies and
protection of their capital as well (Lee and Shakir, 2011).
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Chapter No. 3
Method
3.1 Sample
3.3 Resources
The main data sources that are used in this research are clients
of different Islamic banks. The data will gather with the help
of questionnaire. The other data resource will be the relevant
research papers.
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3.4 Procedure
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CHAPTER NO 4
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4.1 Reliability Analysis
Reliability analysis is basically used for checking the
the degree to which measures are free from errors and therefore,
RELIABILITY
ATTITUDE
Reliability
Statistics
Cronbach's
Alpha N of Items
.812 6
RELIABILITY
SOCIAL INFLUENCE
Reliability Statistics
Cronbach's
Alpha N of Items
.719 5
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RELIABILITY
RELIGIOUS OBLIGATION
Reliability Statistics
Cronbach's
Alpha N of Items
.823 5
RELIABILITY
PRICING
Reliability Statistics
Cronbach's
Alpha N of Items
.865 6
RELIABILITY
GOVERNMENT SUPPORT
Reliability Statistics
Cronbach's
Alpha N of Items
.769 5
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RELIABILITY
INTENTION TO USE
Reliability Statistics
Cronbach's
Alpha N of Items
.760 5
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4.2 Frequency Distribution
Table 4.2.1
Frequency distribution of the respondents with respect to their
gender (N=200)
Gender
Cumulative
Frequency Percent Valid Percent Percent
17.5%
82.5%
Figure 4.2.1
Table reveals that out of 200 respondents 82.5% are male and
17.5% are female.
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Frequency Table
Age
Cumulative
Frequency Percent Valid Percent Percent
31%
22.5%
11.5%
35%
Figure 4.2.2
Table 4.2.2 reveals that out of 200 respondents 22.50% are from
(Below 25) year of age whereas 11.50% are from (26-35) of age,
35.0% are from (36-45) year of age, 41.0% are from (45 Above).
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Frequency Table
Frequency distribution of the respondents with respect to their
Education (N=200) Table 4.2.3
Education
Cumulative
Frequency Percent Valid Percent Percent
29.0%
20.0%
51.0%
Figure 4.2.3
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Frequency Table
Frequency distribution of the respondents with respect to their
Marital Status (N=200) Table 4.2.4
Marital Status
Cumulative
Frequency Percent Valid Percent Percent
36.5%
63.5%
Figure 4.2.5
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Frequency Table
Frequency distribution of the respondents with respect to their
Profession (N=200) Table 4.2.5
Profession
Cumulative
Frequency Percent Valid Percent Percent
7.5%
30.5%
62.0%
Figure 4.2.5
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4.3 CORRELATION
Correlations
A S R P G ITU
Table 4.3:
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Religious Obligation, Pricing of Islamic Personal Financing, and
Government Support. Therefore, the values 0.667**, 0.687**,
0.644**, 0.640**, 0.687** shows a positive relationship between
Attitude, Social Influence, Religious Obligation, Pricing of
Islamic Personal Financing, Government Support and Intention to
use.
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4.4 REGRESSION ANALYSIS
Table 4.4.1
Model Summary
a. Predictors: (Constant), G, R, S, A, P
As seen from table 4.4.1 the R Square value which shows the
proportion of the variance in the value of the dependent
variable and independent is 94.8 percent.
Table 4.4.2
ANOVAb
a. Predictors: (Constant), G, R, S, A, P
b. Dependent Variable: ITU
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Table 4.4.3
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
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CHAPTER NO.5
5.1 CONCLUSION
This study has investigated the factors that have impact on the
customers’ use of Personal Islamic Financing. Islamic banks
should introduce new products and attractive packages to gain
more market share and to compete with the conventional banking
system. They must understand the reasons why people prefer
conventional banking system instead of Islamic. Islamic personal
financing industry will grow in the coming years if they focus
on their strategies and their working environment. They have to
realize the challenges they are facing and to come up with the
solutions to these challenges. The major challenge is to change
the perception of the customers’ because most of the customers’
have the view point that Islamic banks are not following the
rules and regulations of Shari’ah. So, the Islamic banks should
aware the customers’ by seminars and road shows and bt
advertising of their new products through proper channel. They
have to build a strong bond of customers’ relationship and
improve their services to the maximum level.
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with new and attractive Islamic products to gain more market
share in the banking industry.
5.2 RECOMMENDATIONS
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Islamic banks should increase their market share by giving the
attractive packages to the customers and making them sure that
they are following the rules and regulation of Shari’ah and
their transaction will be free from Riba.
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References
Butt, I., Saleem, N., Ahmed H., Altaf M., Jaffer K., Mahmood J.,
(2011) "Barriers to adoption of Islamic banking in
Pakistan", Journal of Islamic Marketing, Vol. 2 Iss: 3,
pp.259 - 273
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Lee K., Shakir Ullah, (2011) "Customers' attitude toward Islamic
banking in Pakistan", International Journal of Islamic and
Middle Eastern Finance and Management, Vol. 4 Iss: 2,
pp.131 – 145
Sun S., Goh T., Fam K., Xue Y., Xue Y., (2012) "The influence of
religion on Islamic mobile phone banking services
adoption", Journal of Islamic Marketing, Vol. 3 Iss: 1,
pp.81 – 98
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Sayani H., Miniaoui H., (2013) "Determinants of bank selection
in the United Arab Emirates", International Journal of Bank
Marketing, Vol. 31 Iss: 3, pp.206 – 228
Yahya M., Muhammad J., Hadi AR., (2012) "A comparative study on
the level of efficiency between Islamic and conventional
banking systems in Malaysia", International Journal of
Islamic and Middle Eastern Finance and Management, Vol. 5
Iss: 1, pp.48 – 62
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Appendix:
Questionnaire
Questionnaire Determinants of customers’ intention towards Islamic Personal Financing
Dear Respondent,
The investigator request to seek your opinion regarding the profile and problems of various Determinants of customers’
intention towards Islamic Personal Financing Please respond to all these questions according to given instructions. The
information provided by you will be used for the purpose of academic research only. Please cooperate.
Instructions
Male/Female
(Below 25) (26-35) (36-45) (45 above)
Attitude (A)
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Religious obligation (R)
Islamic personal financing is in line with an Islamic philosophy of doing
banking
business.
Islamic personal financing is based on Islamic principle business
implementation.
An introduction of Islamic personal financing is based on al-Quran and
Hadith.
Islamic personal financing is free from riba.
Islamic personal financing is free from fraud
Adopted from:
Hanudin Amin, Abdul Rahim Abdul Rahman, Stephen Laison Sondoh Jr, Ang Magdalene Chooi Hwa, (2011)
"Determinants of customers' intention to use Islamic personal financing: The case of Malaysian Islamic banks",
Journal of Islamic Accounting and Business Research, Vol. 2 Iss: 1, pp.22 - 42
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Plagiarism Report:
Similarity Index
5%
Similarity by Source
Internet Sources:
0%
Publications:
4%
Student Papers:
2%
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