Market segmentation and non-uniform Shariah standards in Islamic finance

Berg, Nathan; El-Komi, Mohamed; Kim, Jeong Yoo

doi:10.1016/j.jebo.2016.03.019

Cited by 36 publications

(15 citation statements)

References 28 publications

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“…Loyalty is customer commitment to survive in depth to do re-purchasing product or service with the consistency in the future. In the previous research, it found there is a correlation of Loyalty to Commitment [23]. So, it is very important in improving customer Loyalty in SMEs through the improvement of Commitment.…”

Section: B Loyaltymentioning

confidence: 89%

Commitment to the Teacher’s Loyalty as a Customer

Kusumawati¹

2020

Proceedings of the 3rd International Conference on Research of Educational Administration and Management (ICREAM 2019)

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Customer loyalty is the major importance in maintaining customer and to attract new customer at SMEs. It becomes also the important attention for Koperasi Sejahtera Bersama. In maintaining customer, it is needed Customer Relationship Management and Customer Commitment, especially for the customer who comes from school, in this case, is Teacher. Remember that the teacher can give a good recommendation to students, parents and even co-workers. Reviewing problem phenomenon, so the aim of this study is to review the correlation of Customer Relationship Management and Commitment to the teacher's loyalty as a customer. This quantitative research uses 95 respondents from a customer of Koperasi Sejahtera Bersama that mostly are Teachers, through hypothesis test. The research finding is found that there is a positive correlation between Customer Relationship Management and Commitment on Loyalty. Commitment has a stronger bond on loyalty than Customer Relationship Management. The difference seems on there is no significant correlation between Customer Relationship Management with Loyalty, in which in the previous research those correlations are found very closely. This research result explains the importance of Relationship Management on Teacher as a customer, in order to improve loyalty bonding. It is expected that those loyalties provide the impact on Teacher's recommendation to their environment

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Section: B Loyaltymentioning

confidence: 89%

Commitment to the Teacher’s Loyalty as a Customer

Kusumawati¹

2020

Proceedings of the 3rd International Conference on Research of Educational Administration and Management (ICREAM 2019)

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“…Furthermore, assuming that customers are coarse thinkers, they might overreact to the persuasive strategies of the Islamic financial institutions. The Islamic finance industry has created multiple structures of persuasion, which go beyond simply neutralizing asymmetric information and can eventually cause customers to assign a higher quality to their products (Hayat and Hassan, 2017;Abedifar et al, 2016;Berg et al, 2016). These include the use of religious terminology for its products and fatwas by Shariah scholars to persuade their customers regarding their religious legitimacy.…”

Section: Neglected Risk and Over-reactionmentioning

confidence: 99%

Religiosity, Neglected Risk and Asset Returns: Theory and Evidence from Islamic Finance Industry

et al. 2019

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This paper studies the sociological influence of religion on the risk and return in the financial markets with particular context of Islamic finance, a rapidly emerging and expanding financial industry. The paper builds a theoretical model to show how intermediaries serve their customers' religious needs by creating innovative Islamic financial instruments. The customer's emphasis on religiosity exposes the industry to a theological risk, which can increase the financial fragility of the system. In our model, the theological risk emerges as a neglected component, which can be realized in the event of a bad news challenging the religious legitimacy of (Islamic) finance structures. To corroborate our theoretical findings, we present two sets of results. First, using stock prices data for 104 Islamic bond (Sukuk) issuers, we show that Sukuk issuers experienced a significant decline in their stock prices, following multiple formal and informal announcements in 2008, which challenged the religious legitimacy of Islamic bond structures. Second, using data from 1360 newly issued Malaysian Sukuk from 2006 to 2016, we find that following the regulatory changes the Sukuk margins have increased significantly. This suggests that there may be a significant difference between what Islamic and conventional customers may be willing to pay for Sukuk, exposing the industry to a unique form of religious risk.

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“…The reviewed literature lays the foundation for the hypotheses to assess the price sensitivity towards AITAB in Malaysia, justified by Berg, El-Komi and Kim's (2016) observation that a pricing premium can be charged arising from various degrees of Shariah conformity. Bley and Kuehn (2004), Gait and Worthington (2008), Loo (2010), Omar (2012) as well as Yusoff, Kamdiri and Masri (2013) all confirmed religion as well as religious obligation as the pivotal selection criteria for Islamic banks.…”

Section: Hypothesesmentioning

confidence: 99%

The Islamic Vehicle Financing Market in Malaysia: Identification of Factors Influencing Price Sensitivity

Werner¹

2018

MARBLE

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In recent years, Islamic finance has gained increasing attention by financial corporations in countries that are marked by a considerable Muslim population. In conjunction, Malaysia's Islamic vehicle finance market has experienced a period of rapid growth and is now maturely coexisting besides conventional vehicle financing. Nonetheless, corporations question in how far it is viable to charge a price premium for Islamic products to compensate the additional effort required. As little research is in existence about the price sensitivity of customers towards these product offerings, this study aims to examine factors that influence the price sensitivity in the Islamic vehicle financing market. Potential influencing factors were identified in literature covering Islamic banking and a model is subsequently tested by an experimental survey that was distributed within Malaysia. The study concludes that not only the belongingness to Islam is influential, but also the way of practicing the religion and the knowledge about Islamic finance. The awareness of the specific Islamic vehicle financing product makes customers less price sensitive as well as the marital status. The results of this study are beneficial to corporation who perform pricing decisions according to specific customer segments. 54 Marble Research Papers This question is of high relevance to the vehicle financing sector, where 42.32% of the financing volume are financed according the principles of Islam and the eleven largest banks in the market have incorporated Islamic finance into their product portfolio (Bank Negara Malaysia, 2016). Further, the significance of a 56 Marble Research Papers

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Market segmentation and non-uniform Shariah standards in Islamic finance

Cited by 36 publications

References 28 publications

Commitment to the Teacher’s Loyalty as a Customer

Commitment to the Teacher’s Loyalty as a Customer

Religiosity, Neglected Risk and Asset Returns: Theory and Evidence from Islamic Finance Industry

The Islamic Vehicle Financing Market in Malaysia: Identification of Factors Influencing Price Sensitivity

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