Innovation diffusion theory and customers’ behavioral intention for Islamic credit card

Abstract

Purpose One of the main challenge when launching new banking services is to overcome resistance to change so as to accelerate market acceptance. This is the case of an Islamic credit card (ICC). Grounded in innovation diffusion theory (IDT) and theory of reasoned action (TRA), this paper aims to study the purposes and empirically tests an integrated model to explore, which factors influence of ICC. Design/methodology/approach Partial least squares and structural equation modeling was used to assess the hypotheses. Accordingly, the empirical results, obtained in a sample of 762 bank customers. Findings Intentions to use of ICC are mostly determined by relative advantage, compatibility, customer awareness, satisfaction and attitude. The combination of IDT and TRA significantly explain the ICC adoption. Originality/value This research has provided a theoretical understanding of the ICC adoption determinants with the intent of promoting a more in-depth understanding of various elements influencing acceptance and usage of this Islamic banking service.

Borrowing for health, sustainability, credit card use and ownership: a study of 74 countries

“…People may keep a credit card when their income is insufficient to meet their health expenditures. Several studies have argued that there is a need for more sophisticated studies to examine people's borrowing behavior for health or medical reasons and the relationship between the borrowing behavior of people and ownership of financial instruments (Limbu & Sato, 2019;Jamshidi & Kazemi, 2019;Xiao et al, 2011;Yang et al, 2007). This study expands the existing literature by exploring two crucial research questions.…”

“…As always, human behavior is complex, sophisticated, and difficult to understand, and out of natural curiosity, social scientists have undertaken numerous studies to understand human behavior (Limbu & Sato, 2019;Jamshidi & Kazemi, 2019). Due to the unpredictable nature of human behavior, predicting current and future events has always been difficult, but social scientists have not left their relentless quest to examine, scrutinize, and predict human behavior (Wang et al, 2021;Aboelmaged, 2021;Holdsworth, 2020).…”

“…For instance, a credit card is a lucrative facility provided by financial institutions, and customers have a positive attitude towards the ownership and use of the credit card. One of the major advantages of owning a credit card is that it will act as a major financial backup and suffice immediate, short-term financial needs during needy times (Limbu & Sato, 2019;Jamshidi & Kazemi, 2019). However, this does not necessarily imply that customers who intend to own and use a credit card would initiate this behavior.…”

“…Eventually, customers will be considering the risks associated with the ownership and use of credit cards. Financial institutions will consider the customer's financial background before deciding to approve the facility for credit card owners (Limbu & Sato, 2019;Jamshidi & Kazemi, 2019). Customers will have to encounter these hurdles before initiating and completing the final purchasing behavior and using credit cards to meet short-term immediate necessity financial needs (Limbu & Sato, 2019;Jamshidi & Kazemi, 2019)…”

“…The household's monthly expenditure bill can be easily divided into expenditures on luxury and necessity (Getzen, 2000;Dorband et al, 2019). One of the most hotly debated topics in the extant literature is the household expenditure on necessities, as the households' ability to meet their monthly expenditure is of immense interest to academics, international stakeholders, and policymakers (Limbu & Sato, 2019;Jamshidi & Kazemi, 2019). A close examination of the existing literature shows that households spend hundreds of dollars in health care expenditure, and most of the funding for this health care expenditure is channelled through the household's income.…”