The factors affecting customers’ decisions to adopt Islamic banking

Abstract

Attracting and retaining profitable customers to new and unfamiliar products and services is one of the challenges that the banking fraternity is faced with today. The purpose of this article is to highlight some of the important factors that influence attitude in the Islamic banking. Probability sampling was used and 250 questionnaires were distributed among participants based at a local university in Johannesburg. The results revealed that there is a positive relationship between product awareness, social norms, community influence and attitude towards Islamic banking. Also, the results indicated that most of the respondents were not aware of the Islamic banking. The bank practitioners and marketers were, therefore, recommended to take a focused approach on creating awareness of the Islamic banking. Marketers can target community leaders or opinion leaders in order to shed light on Islamic banking to the rest of their community.

Recognizing the Islamic Banking Consumer Behaviour from the Perspective of Product Knowledge, Brand Awareness and Attitude

“…These results indicate that brand awareness has an important role in influencing attitude towards Islamic banks. The results of this hypothesis are consistent with the results of a study by Bodibe et al (2016) which revealed that brand awareness has a positive relationship to attitudes, and based on research Jaffar (2013) says that brand awareness has a positive relationship to attitudes, while Sharaai's (2015) that brand awareness has a significant and positive relationship to attitudes. This means that the greater a person's brand awareness of the Islamic bank brand, the greater the positive attitude of someone to the brand of Islamic banks.…”

“…The American Marketing Association in Kotler and Keller (2012) brand is a name, sign, term, symbol, design, or a combination of all that is intended to identify an item or service from a seller or group of sellers and to distinguish it from competitors. Brand awareness becomes one of the factors that influence consumer attitude (attitude), this is in line with the results of research Bodibe et al (2016) which reveals that brand awareness has a positive relationship to attitude. Jaffar's research results (2013) say that brand awareness has a positive relationship to attitudes, while the study of Sharaai (2015) shows that brand awareness has a significant and positive relationship to attitudes.…”

“…In this respect, Bodibe, et al (2016) propose that five dimensions of awareness, product knowledge, community, social norms and religion. Consistent with the above explanation, this study aims to establish whether there are the relationships between brand awareness and product knowledge on attitudes, and whether attitudes influence the intention to save at Islamic banks.…”

Assessing the Islamic Banks Performance in the Gulf Cooperation Council Countries: An Empirical Study

“…The size of the board positively affects ROA. Bodibe et al, (2016) utilize 15 Malaysian banks for the period from 2008 to 2015. The size of the sharia board decidedly influences bank performance: the size of the sharia board emphatically influences ROA and ROE.…”

Exploring the Impediments Faced by the Banking Customers to Adopt Islamic Banking Services in Pakistan

“…Consumers may lack basic financial literacy owing to a lesser marketing activities of banks, which preclude customers to obtain financial services (e.g., Kempson & Whyley, 1999). It has been shown by various researches that customers awareness has a significant impact on their intention and attitude to use Islamic banking services (Bodibe, Chiliya, & Chikandiwa, 2016;Islam & Rahman, 2017;Thambiah, Eze, & Ismail, 2011). But Islamic banking customers commonly lack information regarding Islamic banking system (Islam & Rahman, 2017).…”