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.