Determinants of customers' intention to use Islamic banking products : a study of consumers in Kota Kinabalu, Sabah
Nowadays, intense competition that exists in the financial market has cause a big challenge on profitability in banking institutions of all sizes. As Malaysia is a Muslim country where both Islamic banks and conventional banks are operated, it is crucial to understand the main factors that encourage...
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| Format: | Thesis |
| Language: | English English |
| Published: |
2016
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| Online Access: | https://eprints.ums.edu.my/id/eprint/37579/1/24%20PAGES.pdf https://eprints.ums.edu.my/id/eprint/37579/2/FULLTEXT.pdf |
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| Summary: | Nowadays, intense competition that exists in the financial market has cause a big challenge on profitability in banking institutions of all sizes. As Malaysia is a Muslim country where both Islamic banks and conventional banks are operated, it is crucial to understand the main factors that encourage customers to use Islamic banking products, thus enable the marketing effort could be done efficiently. The main purpose of the study is to examine the relationship between attitude, subjective norm, knowledge, compatibility and government support with the intention to use Islamic banking product among bank customers in Kata Kinabalu, Sabah. In addition, this study looked into the role of generational group as the moderator between the relationship on determinants and intention to use Islamic banking products. Theory of Reasoned Action by Fishbein and Ajzen (1975) was used as the foundation in this study. By using a survey method, a total of 250 questionnaires were distributed physically at seven selected commercial banks in Kata Kinabalu. From 250 questionnaires distributed, 212 were usable for data analysis. This study used Partial Least Squares Structural Equation Modeling (PLS-SEM) version 2.0 for hypothesis testing. The findings indicated that attitude, subjective norm, knowledge and compatibility were found to have significant positive relationship with the intention to use Islamic banking products. However, government support was found to have a negative relationship with the intention to use Islamic banking product but not significant. There are no generational group differences in the ways those determinants influences intention among Generation X and Generation Y customers. The findings have theoretical and managerial implications and suggestions for future studies are provided to overcome limitations of the current study. |
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