Factors influence switching behavior of Islamic bank customers in Malaysia

An Islamic bank is now not only facing competition from its peer Islamic banks but also from conventional banks, which offer Islamic banking products through their Islamic subsidiary. When the competition becomes tougher, customers are given more options to choose their banks and switch from their c...

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Main Authors: Abduh, Muhamad, Kassim, Salina, Dahari, Zainurin
Format: Article
Language:English
Published: IIUM Institute of Islamic Banking and Finance 2013
Subjects:
Online Access:http://irep.iium.edu.my/30084/
http://irep.iium.edu.my/30084/1/JIF-Vol-2-No-1_page_12-19.pdf
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author Abduh, Muhamad
Kassim, Salina
Dahari, Zainurin
author_facet Abduh, Muhamad
Kassim, Salina
Dahari, Zainurin
author_sort Abduh, Muhamad
building IIUM Repository
collection Online Access
description An Islamic bank is now not only facing competition from its peer Islamic banks but also from conventional banks, which offer Islamic banking products through their Islamic subsidiary. When the competition becomes tougher, customers are given more options to choose their banks and switch from their current bank to other Islamic banks. Thus, the objective of this study is to evaluate factors influence the switching behavior of Islamic banking customers, in the case of Malaysia, based on the syariah compliance issues. Using logistic regression, the results show that the customer’s religion, type of account, and whether or not they have account in conventional bank are the significant factors to influence their switching behavior when they encounter non-syariah products and practices in their Islamic bank.
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spelling iium-300842014-07-24T01:23:16Z http://irep.iium.edu.my/30084/ Factors influence switching behavior of Islamic bank customers in Malaysia Abduh, Muhamad Kassim, Salina Dahari, Zainurin BP173.75 Islam and economics HG1501 Banking An Islamic bank is now not only facing competition from its peer Islamic banks but also from conventional banks, which offer Islamic banking products through their Islamic subsidiary. When the competition becomes tougher, customers are given more options to choose their banks and switch from their current bank to other Islamic banks. Thus, the objective of this study is to evaluate factors influence the switching behavior of Islamic banking customers, in the case of Malaysia, based on the syariah compliance issues. Using logistic regression, the results show that the customer’s religion, type of account, and whether or not they have account in conventional bank are the significant factors to influence their switching behavior when they encounter non-syariah products and practices in their Islamic bank. IIUM Institute of Islamic Banking and Finance 2013-03-15 Article PeerReviewed application/pdf en http://irep.iium.edu.my/30084/1/JIF-Vol-2-No-1_page_12-19.pdf Abduh, Muhamad and Kassim, Salina and Dahari, Zainurin (2013) Factors influence switching behavior of Islamic bank customers in Malaysia. Journal of Islamic Finance, 2 (1). pp. 12-19. ISSN 2289-2117 (O), 2289-2109 (P) http://www.iium.edu.my/iiibf/research-publication/journal-1
spellingShingle BP173.75 Islam and economics
HG1501 Banking
Abduh, Muhamad
Kassim, Salina
Dahari, Zainurin
Factors influence switching behavior of Islamic bank customers in Malaysia
title Factors influence switching behavior of Islamic bank customers in Malaysia
title_full Factors influence switching behavior of Islamic bank customers in Malaysia
title_fullStr Factors influence switching behavior of Islamic bank customers in Malaysia
title_full_unstemmed Factors influence switching behavior of Islamic bank customers in Malaysia
title_short Factors influence switching behavior of Islamic bank customers in Malaysia
title_sort factors influence switching behavior of islamic bank customers in malaysia
topic BP173.75 Islam and economics
HG1501 Banking
url http://irep.iium.edu.my/30084/
http://irep.iium.edu.my/30084/
http://irep.iium.edu.my/30084/1/JIF-Vol-2-No-1_page_12-19.pdf