Determinants Of Switching Bariers Among Oman's Retails Banking Customers

The banking sector is the backbone of any economy and Oman is of no exception. The growth of Islamic banking in Oman has raised many interests of the Omani people due to the Shariah-compliant nature that prohibits riba and gharar. However, based on recent data, the performances of the Islamic banks...

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Main Author:	Faiza Kiran
Format:	Thesis
Language:	en_US
Subjects:	Banks and banking > Oman. Islamic banking. Riba.
Online Access:	https://oarep.usim.edu.my/bitstreams/f0dbd390-1114-4557-ae91-ac1ebf25e5e7/download https://oarep.usim.edu.my/bitstreams/80334584-8dc0-4c5e-81f6-626da1c69ded/download https://oarep.usim.edu.my/bitstreams/0a8c7e74-b890-4315-8e6d-16fdc6266a2d/download https://oarep.usim.edu.my/bitstreams/3f0f80b2-8361-4c86-bc5f-36940315f953/download https://oarep.usim.edu.my/bitstreams/73c8e609-deea-4d36-9e51-86a05844aed9/download https://oarep.usim.edu.my/bitstreams/76d5de23-ffee-4f62-b4fd-daeaf621b0ce/download https://oarep.usim.edu.my/bitstreams/93685f19-2616-4c22-9cd2-a591a5a92110/download https://oarep.usim.edu.my/bitstreams/4512061d-393d-4562-b3b5-817815e8e9cf/download https://oarep.usim.edu.my/bitstreams/06612cd0-38f7-4c92-8dd1-45599eef4fe4/download https://oarep.usim.edu.my/bitstreams/dd296c8f-9f81-4649-8f8b-8e22002e3aba/download https://oarep.usim.edu.my/bitstreams/c1d79a2e-893d-4ee8-a969-e5e14876167d/download
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id	my-usim-ddms-13317
record_format	uketd_dc
institution	Universiti Sains Islam Malaysia
collection	USIM Institutional Repository
language	en_US
topic	Banks and banking--Oman. Islamic banking. Riba.
spellingShingle	Banks and banking--Oman. Islamic banking. Riba. Faiza Kiran Determinants Of Switching Bariers Among Oman's Retails Banking Customers
description	The banking sector is the backbone of any economy and Oman is of no exception. The growth of Islamic banking in Oman has raised many interests of the Omani people due to the Shariah-compliant nature that prohibits riba and gharar. However, based on recent data, the performances of the Islamic banks are not consistent with these growing interests, which trigger many burning questions. The main objective of this study is to investigate this inconsistency by studying the push and pull factors on the consumers’ decision to switch, i.e., from conventional to Islamic banking. The push factors are denoted by service quality, customer satisfaction, and trust, whilst pull factors are represented by perceived relative advantage of three dimensions consisting of price, religion, and social prestige. This study also examined the impact of mooring factors comprising of complexity, switching cost, locked-in, and apathy on the switching decision. Data was collected through a survey questionnaire from three cities (Muscat, Salalah, and Sohar) with a sample of 400 respondents. The participants were Omani nationals. The data was analyzed using Structural Equation Modelling (SEM) Analysis using SPSS and AMOS software. The data was tested for the normality, descriptive analysis, reliability, correlation, exploratory Factor Analysis (EFA), and Confirmatory Factor Analysis (CFA). The results indicate that service quality significantly influences switching decision. Similarly, interaction quality also indicates a strong association with switching decision, whereas physical environment and outcome quality remain unable to influence the switching decision. Out of the push factors, customer satisfaction and trust show a positive association with the switching decision. Perceived relative advantage also shows a positive correlation with the switching decision. From this dimension, religion indicates a significant influence on switching decision, while price and social prestige have no association with switching decision. The result of the mooring factors indicates that apathy fails to influence the direct relationship with switching decision. However, switching cost, complexity, and locked-in have a negative impact on the decision to switch that creates barriers among the customers while switching from conventional banking to Islamic banking system. The findings suggest that religion is a strong determinant of perceived relative advantage and has a positive effect on switching decision. Additionally, the people of Oman consider the quality of service, customer service, and trust prior to switching decision. The study concludes that the government, management, and Shariah board of the Islamic banks should focus on establishing a robust and dynamic Islamic banking, which caters for customers’ needs. Finally, Islamic banking products and service, along with financial and non-financial strategies should address the customers’ financial needs and provide comprehensive banking services.
format	Thesis
author	Faiza Kiran
author_facet	Faiza Kiran
author_sort	Faiza Kiran
title	Determinants Of Switching Bariers Among Oman's Retails Banking Customers
title_short	Determinants Of Switching Bariers Among Oman's Retails Banking Customers
title_full	Determinants Of Switching Bariers Among Oman's Retails Banking Customers
title_fullStr	Determinants Of Switching Bariers Among Oman's Retails Banking Customers
title_full_unstemmed	Determinants Of Switching Bariers Among Oman's Retails Banking Customers
title_sort	determinants of switching bariers among oman's retails banking customers
granting_institution	Universiti Sains Islam Malaysia
url	https://oarep.usim.edu.my/bitstreams/f0dbd390-1114-4557-ae91-ac1ebf25e5e7/download https://oarep.usim.edu.my/bitstreams/80334584-8dc0-4c5e-81f6-626da1c69ded/download https://oarep.usim.edu.my/bitstreams/0a8c7e74-b890-4315-8e6d-16fdc6266a2d/download https://oarep.usim.edu.my/bitstreams/3f0f80b2-8361-4c86-bc5f-36940315f953/download https://oarep.usim.edu.my/bitstreams/73c8e609-deea-4d36-9e51-86a05844aed9/download https://oarep.usim.edu.my/bitstreams/76d5de23-ffee-4f62-b4fd-daeaf621b0ce/download https://oarep.usim.edu.my/bitstreams/93685f19-2616-4c22-9cd2-a591a5a92110/download https://oarep.usim.edu.my/bitstreams/4512061d-393d-4562-b3b5-817815e8e9cf/download https://oarep.usim.edu.my/bitstreams/06612cd0-38f7-4c92-8dd1-45599eef4fe4/download https://oarep.usim.edu.my/bitstreams/dd296c8f-9f81-4649-8f8b-8e22002e3aba/download https://oarep.usim.edu.my/bitstreams/c1d79a2e-893d-4ee8-a969-e5e14876167d/download
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spelling	my-usim-ddms-133172024-05-29T18:02:51Z Determinants Of Switching Bariers Among Oman's Retails Banking Customers Faiza Kiran The banking sector is the backbone of any economy and Oman is of no exception. The growth of Islamic banking in Oman has raised many interests of the Omani people due to the Shariah-compliant nature that prohibits riba and gharar. However, based on recent data, the performances of the Islamic banks are not consistent with these growing interests, which trigger many burning questions. The main objective of this study is to investigate this inconsistency by studying the push and pull factors on the consumers’ decision to switch, i.e., from conventional to Islamic banking. The push factors are denoted by service quality, customer satisfaction, and trust, whilst pull factors are represented by perceived relative advantage of three dimensions consisting of price, religion, and social prestige. This study also examined the impact of mooring factors comprising of complexity, switching cost, locked-in, and apathy on the switching decision. Data was collected through a survey questionnaire from three cities (Muscat, Salalah, and Sohar) with a sample of 400 respondents. The participants were Omani nationals. The data was analyzed using Structural Equation Modelling (SEM) Analysis using SPSS and AMOS software. The data was tested for the normality, descriptive analysis, reliability, correlation, exploratory Factor Analysis (EFA), and Confirmatory Factor Analysis (CFA). The results indicate that service quality significantly influences switching decision. Similarly, interaction quality also indicates a strong association with switching decision, whereas physical environment and outcome quality remain unable to influence the switching decision. Out of the push factors, customer satisfaction and trust show a positive association with the switching decision. Perceived relative advantage also shows a positive correlation with the switching decision. From this dimension, religion indicates a significant influence on switching decision, while price and social prestige have no association with switching decision. The result of the mooring factors indicates that apathy fails to influence the direct relationship with switching decision. However, switching cost, complexity, and locked-in have a negative impact on the decision to switch that creates barriers among the customers while switching from conventional banking to Islamic banking system. The findings suggest that religion is a strong determinant of perceived relative advantage and has a positive effect on switching decision. Additionally, the people of Oman consider the quality of service, customer service, and trust prior to switching decision. The study concludes that the government, management, and Shariah board of the Islamic banks should focus on establishing a robust and dynamic Islamic banking, which caters for customers’ needs. Finally, Islamic banking products and service, along with financial and non-financial strategies should address the customers’ financial needs and provide comprehensive banking services. Universiti Sains Islam Malaysia 2022-02 Thesis en_US https://oarep.usim.edu.my/handle/123456789/13317 https://oarep.usim.edu.my/bitstreams/751ca917-2a5c-4a75-8d4b-c7277aca3fec/download 8a4605be74aa9ea9d79846c1fba20a33 https://oarep.usim.edu.my/bitstreams/f0dbd390-1114-4557-ae91-ac1ebf25e5e7/download 26b2c892724ca492693ac8a2396d634a https://oarep.usim.edu.my/bitstreams/80334584-8dc0-4c5e-81f6-626da1c69ded/download 09b531d59f03c83904b36fcbe92bab13 https://oarep.usim.edu.my/bitstreams/0a8c7e74-b890-4315-8e6d-16fdc6266a2d/download c0ff6769f7ba612d502e5ab7b93a4017 https://oarep.usim.edu.my/bitstreams/3f0f80b2-8361-4c86-bc5f-36940315f953/download 0be08b15a9f770375dc4ddcb12f33ae3 https://oarep.usim.edu.my/bitstreams/73c8e609-deea-4d36-9e51-86a05844aed9/download e0589fff1630ee400ece861faa936232 https://oarep.usim.edu.my/bitstreams/76d5de23-ffee-4f62-b4fd-daeaf621b0ce/download 8d10caa1b9f3d68362afb49d23e4cd95 https://oarep.usim.edu.my/bitstreams/93685f19-2616-4c22-9cd2-a591a5a92110/download 738c17f6e023b3f7c397fa733a2fa638 https://oarep.usim.edu.my/bitstreams/4512061d-393d-4562-b3b5-817815e8e9cf/download c18802dae514dd5761c3f6f76efdc36c https://oarep.usim.edu.my/bitstreams/06612cd0-38f7-4c92-8dd1-45599eef4fe4/download 99268190abb225a9ce13212bc74e3235 https://oarep.usim.edu.my/bitstreams/dd296c8f-9f81-4649-8f8b-8e22002e3aba/download 8f29d9b7365d4fdc643660aa37db4c9c https://oarep.usim.edu.my/bitstreams/c1d79a2e-893d-4ee8-a969-e5e14876167d/download a971bfd866b3775ff1c9a6f3d83efa90 https://oarep.usim.edu.my/bitstreams/5ee38e1a-da68-454b-9f3e-6ef67f53dce6/download 68b329da9893e34099c7d8ad5cb9c940 https://oarep.usim.edu.my/bitstreams/8072b30e-1ceb-422b-8162-daf8da013b35/download 09074c5915e62981e79b4ae73f4210d7 https://oarep.usim.edu.my/bitstreams/9add4727-f789-4820-811b-52fa85592a8b/download 22b7b1f00d2a72d7af6a9b9be195a19b https://oarep.usim.edu.my/bitstreams/f81f02b5-dcbe-40c0-830e-81bd6155ccdf/download fc9f28d8eee69e0ad69651bef5404736 https://oarep.usim.edu.my/bitstreams/88d5b34c-b7b9-4fcc-803f-570e1db635ea/download 3bf9cd74fe7506493312c3c9c000c482 https://oarep.usim.edu.my/bitstreams/ba8f8ba6-7ef4-4eef-8be0-94d6e0f0215b/download 234fd0ee119d5fee6e38e19415192f2d https://oarep.usim.edu.my/bitstreams/057d8c7b-c2a0-48bf-bad8-d16be08e180a/download 66d5c97b444d462661a1a64f8263b77c https://oarep.usim.edu.my/bitstreams/117abeeb-d06a-4d25-b47d-361a4becb58d/download 4c2a026e720db8b1147123f41450928d https://oarep.usim.edu.my/bitstreams/f0350ae1-4f83-49b1-ac81-c94c69cd77a3/download 6186e2348441286f7fcea73fb78a5ca9 https://oarep.usim.edu.my/bitstreams/0a96b046-4871-4b8d-802c-5b675d3ddd24/download 792ed171534f64f0725c8c3ac6931728 https://oarep.usim.edu.my/bitstreams/16a3ad74-069b-457a-a807-76c3aaf54c73/download 3a5b9a6c9bfaa13d2bf99d1f91e29db7 Banks and banking--Oman. Islamic banking. Riba.

Determinants Of Switching Bariers Among Oman's Retails Banking Customers

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