JIBF cluster analysis (original) (raw)
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Islamic banking and finance are areas that have attracted attention, especially after the recent global financial crisis. While the existing literature highlights a significant shift in consumers' behaviour w ith regard to bank selection, it does not invest igate the motives behind such moves. Understanding customers' preferences to deposit their money into Islamic banks are crucial for banks operating in such a highly competitive industry. Having a good understanding of the real motives behind customers' preferences will help banks to understand customers better. Besides, improving the bank's liquidity issues, it contributes to the growth of the country's economy. Thus, this paper explores the findings from a qualitative data through a face to face interview on factors influencin g customers' preferences for deposit products in Islamic banks. These results will eventually be used for developing a survey questionnaire for future empirical research. The face-to-face interview revealed that sharia compliance, returns, confidence and trust, security, transparency, flexibility of withdrawal scheme were among the determining factors that influence customers' preferences in making decisions. Safety and security , the human touch and zakat (alms) were the additional elements found to be missing from the literature. Future empirical research would include these elements as items in building up the survey instrument.
An Exploratory Study on Customers’ Selection in Choosing Islamic Banking
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Islamic banking industry is growing very rapidly by offering high quality schemes where free interest and better customer services are provided. Strong Islamic banking movements is forcing the industry to come up with new strategy to compete the market. The purpose of this study is to determine and identify the factors that influence the consumers to choose Islamic bank products or services. Data is collected using non probability simple random sampling around Selangor area. The analysis shows that bank reputation, religious and cost benefit factors are significant which influence customers’ selection on Islamic banking. Bank reputation and cost benefit has positive relationship on choosing Islamic banking. Convenient is not significant factor of influence customers’ selection on choosing Islamic banking. As a conclusion, the study prove that religion shows negative relationship on choosing Islamic banking. This shows that religion is not the main factor but the risk of selecting a ...
Preferences of Consumers in Choosing Sharia Banking Services (Case Study 4 University in Ternate)
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This study aims to analyze the factors that affect consumer preferences in choosing Islamic banking services. The data were collected by distributing questionnaires, with 186 respondents selected as the samples from four universities in Ternate. Confirmatory Factor Analysis (CPA) was used for the data analysis in which the internal and external factors existed. The interpretation on indicator numbers of each factor was devoted to increase factor interpretation factor and determine models based on loading factor. Overall, the results indicate 11 indicators affecting consumers’ preference to Islamic banking services in Ternate. For one thing, the results of research indicate that consumers’ knowledge about type of banks does not affect their preference. This implies no correlation between them due to no clear understanding about religious affiliation influences to the selection of banks. In addition, the results showed family factors affect the consumers’ preference in choosing banks....
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The number of Muslim international students studying in the Malaysian institution of Higher education is incessantly growing. The extensive numbers of Muslim international students in Malaysia have contributed not only the country’s education sector, but even the Islamic banking industry as well. Thus, the aim of the study is to examine the factors that influence Muslim international student’s selection criteria of the Islamic banking sector. This study focuses on all international students in Northern State of Malaysia, especially three public universities, namely University Utara Malaysia, University Sains Malaysia, and University Malaysia Perlis. A total of 217 questionnaires are distributed and 163 usable responses were analyzed. The outcome of the study indicates that 43 percent of the variance of Muslim international student’s selection criteria to choose Islamic banking system can be explained by the variables which are religiosity, knowledge, service, reputation. Furthermore...
Factors Influencing the Preference of Customers Towards Islamic Banking: Evidence from Malaysia
Journal of Islamic Economic Laws, 2020
The purpose of this research is to investigate the pivotal determinants influencing the consumer’s preference towards the products and services of Islamic banking, apart from reviewing previous studies that considered perceived religiosity has an intense relationship with the individual’s intention and attitude. Moreover, this study also examines the direct relationship between the preference of customers and the Service quality offered by Islamic banks. This study utilized quantitative approach through conducting a survey to 60 students of International Islamic University Malaysia from various departments. Correlation and regression will be applied for data analysis. The result of the study indicated that the Attitude and the Service quality offered by Islamic banks are the major determinants influencing the customers’ behaviour towards Islamic banking. On the other hand, the Image of the bank and the Religiosity were determining insignificantly to the intentions of customers to ch...