Consumer receptiveness of islamic home financing : A study of first-time house buyers in Kota Kinabalu and Labuan

Islamic home financing is one of the essential products of Islamic financing in the Islamic banking industry. However, consumer acceptance has often taken for granted whereby the significance view of consumers is neglected when Islamic banks are designing and offering the products. Furthermore, many...

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Main Author:	Islamic home financing is one of the essential products of Islam
Format:	Thesis
Language:	English English
Published:	2019
Subjects:	HG2397-3550 By region or country
Online Access:	https://eprints.ums.edu.my/id/eprint/38704/1/24%20PAGES.pdf https://eprints.ums.edu.my/id/eprint/38704/2/FULLTEXT.pdf
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id	my-ums-ep.38704
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spelling	my-ums-ep.387042024-05-17T06:01:17Z Consumer receptiveness of islamic home financing : A study of first-time house buyers in Kota Kinabalu and Labuan 2019 Islamic home financing is one of the essential products of Islam HG2397-3550 By region or country Islamic home financing is one of the essential products of Islamic financing in the Islamic banking industry. However, consumer acceptance has often taken for granted whereby the significance view of consumers is neglected when Islamic banks are designing and offering the products. Furthermore, many efforts have been directed by Islamic banks to promote Islamic home financing products, however, the acceptance of the products is still lagged behind compared with their conventional peers. Owing to this trend, there is a need to examine the factors of influencing the intention of first-time house buyers to select Islamic home financing. Examining factors that can improve consumer receptiveness will offer support for the Islamic banks to boost the marketability of Islamic home mortgage products. First-time house buyers are selected due to the fact that they are part of customer base of Islamic banks. Furthermore, this particular group is a source of profit for the Islamic banks as they are mostly working adults aged from 25 to 35 years old, thus in highly potential to invest their money and commitment to the banks exclusively for Islamic home financing products. Operating the theory of planned behaviour (TPB) as a baseline theory, this study suggests a model to examine behavioural intention of selecting Islamic home mortgage. The role of perceived consumer Taqwa as a moderator is also examined. To explore the model, a mixture of qualitative and quantitative two-stage methodological approach are used. The first stage includes literature survey, interviews as well as expert feedbacks with three Shariah experts to induce measurement items. In the second stage, a survey methodology is used to examine 353 respondents who are bank customers of full-fledged Islamic banks in Labuan and Kata Kinabalu. The banks are chosen because of their nature of purely Islamic banks with variety of Shariah products offering. Moreover, high response rate is achieved as the location of the banks are strategic. The survey data are then analysed using Structural Equation Modelling technique namely Partial Least Squares (PLS). Based on the findings, it is suggested that (a) attitude and perceived behavioural control of theory of planned behaviour are significant to the intention to choose Islamic home financing products, (b) perceived Maqasid-based mortgage, perceived consumer Taqwa and price fairness of Islamic home financing are influential in determining Islamic home financing receptivity and ( c) perceived consumer Taqwa is instrumental in moderating the relationship of consumers' attitude and their behavioural intention to select Islamic home financing products. Results are discussed in terms of implications for Islamic banks' managers to enhance the marketability and profitability of Islamic home financing and in terms of methodological and theoretical contributions. In short, this thesis contributes to the enhancement of items for TPB variables as well as generation of new measurement items for new factors reflecting Islamic home financing. 2019 Thesis https://eprints.ums.edu.my/id/eprint/38704/ https://eprints.ums.edu.my/id/eprint/38704/1/24%20PAGES.pdf text en public https://eprints.ums.edu.my/id/eprint/38704/2/FULLTEXT.pdf text en validuser masters Universiti Malaysia Sabah Fakulti Kewangan Antarabangsa Labuan
institution	Universiti Malaysia Sabah
collection	UMS Institutional Repository
language	English English
topic	HG2397-3550 By region or country
spellingShingle	HG2397-3550 By region or country Islamic home financing is one of the essential products of Islam Consumer receptiveness of islamic home financing : A study of first-time house buyers in Kota Kinabalu and Labuan
description	Islamic home financing is one of the essential products of Islamic financing in the Islamic banking industry. However, consumer acceptance has often taken for granted whereby the significance view of consumers is neglected when Islamic banks are designing and offering the products. Furthermore, many efforts have been directed by Islamic banks to promote Islamic home financing products, however, the acceptance of the products is still lagged behind compared with their conventional peers. Owing to this trend, there is a need to examine the factors of influencing the intention of first-time house buyers to select Islamic home financing. Examining factors that can improve consumer receptiveness will offer support for the Islamic banks to boost the marketability of Islamic home mortgage products. First-time house buyers are selected due to the fact that they are part of customer base of Islamic banks. Furthermore, this particular group is a source of profit for the Islamic banks as they are mostly working adults aged from 25 to 35 years old, thus in highly potential to invest their money and commitment to the banks exclusively for Islamic home financing products. Operating the theory of planned behaviour (TPB) as a baseline theory, this study suggests a model to examine behavioural intention of selecting Islamic home mortgage. The role of perceived consumer Taqwa as a moderator is also examined. To explore the model, a mixture of qualitative and quantitative two-stage methodological approach are used. The first stage includes literature survey, interviews as well as expert feedbacks with three Shariah experts to induce measurement items. In the second stage, a survey methodology is used to examine 353 respondents who are bank customers of full-fledged Islamic banks in Labuan and Kata Kinabalu. The banks are chosen because of their nature of purely Islamic banks with variety of Shariah products offering. Moreover, high response rate is achieved as the location of the banks are strategic. The survey data are then analysed using Structural Equation Modelling technique namely Partial Least Squares (PLS). Based on the findings, it is suggested that (a) attitude and perceived behavioural control of theory of planned behaviour are significant to the intention to choose Islamic home financing products, (b) perceived Maqasid-based mortgage, perceived consumer Taqwa and price fairness of Islamic home financing are influential in determining Islamic home financing receptivity and ( c) perceived consumer Taqwa is instrumental in moderating the relationship of consumers' attitude and their behavioural intention to select Islamic home financing products. Results are discussed in terms of implications for Islamic banks' managers to enhance the marketability and profitability of Islamic home financing and in terms of methodological and theoretical contributions. In short, this thesis contributes to the enhancement of items for TPB variables as well as generation of new measurement items for new factors reflecting Islamic home financing.
format	Thesis
qualification_level	Master's degree
author	Islamic home financing is one of the essential products of Islam
author_facet	Islamic home financing is one of the essential products of Islam
author_sort	Islamic home financing is one of the essential products of Islam
title	Consumer receptiveness of islamic home financing : A study of first-time house buyers in Kota Kinabalu and Labuan
title_short	Consumer receptiveness of islamic home financing : A study of first-time house buyers in Kota Kinabalu and Labuan
title_full	Consumer receptiveness of islamic home financing : A study of first-time house buyers in Kota Kinabalu and Labuan
title_fullStr	Consumer receptiveness of islamic home financing : A study of first-time house buyers in Kota Kinabalu and Labuan
title_full_unstemmed	Consumer receptiveness of islamic home financing : A study of first-time house buyers in Kota Kinabalu and Labuan
title_sort	consumer receptiveness of islamic home financing : a study of first-time house buyers in kota kinabalu and labuan
granting_institution	Universiti Malaysia Sabah
granting_department	Fakulti Kewangan Antarabangsa Labuan
publishDate	2019
url	https://eprints.ums.edu.my/id/eprint/38704/1/24%20PAGES.pdf https://eprints.ums.edu.my/id/eprint/38704/2/FULLTEXT.pdf
_version_	1804890338427404288

Consumer receptiveness of islamic home financing : A study of first-time house buyers in Kota Kinabalu and Labuan

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