PATRONAGE FACTORS OF MALAYSIAN LOCAL CUSTOMERS TOWARD ISLAMIC CREDIT CARDS

Published by the
Management Research Review

(Emerald Publishing Group)
Volume - 35, Number - 6, 2012

The author

Hanudin Amin 

Labuan School of International Business and Finance

Universiti Malaysia Sabah

IIUM Institute of Islamic Banking and Finance

International Islamic University Malaysia

Abstract

Purpose - Purpose – This study considers an analysis of probability of Islamic credit card usage intention among Islamic banks’ customers. For the purpose, financial cost, knowledge on Islamic credit card, attitude, financial recommendation and demographic items were examined in order to determine whether these factors are influencing the Islamic credit card usage intention or not.Design/methodology/approach - Design/methodology/approach – Drawing upon the theory of reasoned (TRA), this study proposes a conceptual model to examine the factors determining the Islamic credit card usage intention. The research model is evaluated using survey data from 354 respondents with the help of a questionnaire.Findings - Findings – The results reveal that "financial recommendation", "knowledge on Islamic credit card", "age (young)", "marital status", "religion" and "education level" are significantly affecting the Islamic credit card usage intention. The research also concludes that "attitude on Islamic credit card" appears to have no effect on the Islamic credit card usage intention. Research limitations/implications - Research limitations/implications – The research has two limitations. The limitations however provide support for future researches in the area of Islamic credit card. Despite the limitations, the study contributes to the body of academic knowledge by shedding more light into the factors affecting the Islamic credit card usage intention. Practical implications - Practical implications – Insights reported from this study are of particular importance to provide bank managers with an improved understanding pertaining to the Malaysian bank customers’ usage intentions for Islamic credit cards. The research helps them to better planning for Islamic credit card facilities in order to cater better the financial needs of Malaysia bank customers.Originality/value - Originality/value – The contribution of the research lies in achieving a more profound understanding on the Malaysia bank customers’ usage intentions for Islamic credit cards. The research manages to discover the factors, which are particularly determining the use of Islamic credit card. It also expands the literature on Islamic credit card particularly.

A CLUSTER ANALYSIS AMONG MALAYSIANS FOR ISLAMIC DEPOSIT PRODUCTS

Published by the
Journal of Islamic Banking and Finance
Volume - 28, Number - 3, July-Sept 2011
pp.58-74

The authors

Hanudin Amin and Mohd Zulkifli Muhammad

Labuan School of International Business and Finance

Universiti Malaysia Sabah

Abstract

The aim of this study is to obtain a better understanding of student’s selection criteria with respect to Islamic deposit products. The study presents primary data collected by self-administered questionnaires involving a sample of 154 undergraduate students in Labuan, Malaysia. Findings of the study are classified into six clusters. For cluster 1, members of this cluster were likely choose Islamic deposit products on the basis of “friendliness of banks’ staff” but not to “availability of ATM in several locations”. For cluster 2, members of this cluster expressed the greatest tendency on “availability of ATM in several locations” when selecting Islamic deposit products. For cluster 3, members of this cluster seem to have lower preference with respect to selection criteria for Islamic deposit products. For cluster 4, members of this cluster expressed a tendency to choose Islamic deposit products on the basis of “gift reward” and “family influences”. Further, members of cluster 5 were likely choose Islamic deposit products on the basis of “availability of ATM in several locations” but not to “family influences”. Finally, for cluster 6, members of this cluster preferred to choose Islamic deposit products when the rate of return offered for the products is higher. The results are primarily of its potential to bank managers who might want to bring forward specific Islamic deposit products policies for different target groups. The managers could use the outcomes of the current study for better planning of Islamic deposit products.

Keywords – Deposit products, Islamic bank, Choice Criteria, Frequency analysis, Cluster analysis, Malaysia.