Why do Malaysian customers patronise Islamic banks?
Purpose – The purpose of this paper is to examine the main factors that motivate customers to deal with Islamic banks particularly in a dual banking environment, like in the case of Malaysia. A discussion on factors relating to corporate social responsibility initiatives as part of potential custome...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Emerald Group Publishing Limited
2007
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/3038/ http://irep.iium.edu.my/3038/1/why_patronise_IB.pdf |
| _version_ | 1848776089573261312 |
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| author | Abdullah, Nurdianawati Irwani Dusuki, Asyraf Wajdi |
| author_facet | Abdullah, Nurdianawati Irwani Dusuki, Asyraf Wajdi |
| author_sort | Abdullah, Nurdianawati Irwani |
| building | IIUM Repository |
| collection | Online Access |
| description | Purpose – The purpose of this paper is to examine the main factors that motivate customers to deal with Islamic banks particularly in a dual banking environment, like in the case of Malaysia. A discussion on factors relating to corporate social responsibility initiatives as part of potential customers’ banking selection criteria is also included.
Design/methodology/approach – The paper presents primary data collected by self-administered
questionnaires involving a sample of 750 respondents from four different regions in Malaysia. The Islamic banking criteria ranking as perceived by the respondents are analysed using Friedman Test. To further explore the customers’ understanding of the banking criteria, an exploratory factor analysis is employed.
Findings – This study reveals that the selection of Islamic banks appears to be predominantly a combination of Islamic and financial reputation and quality service offered by the bank. Other factors perceived to be important include good social responsibility practices, convenience and product price.
Practical implications – The empirical evidence of this paper affects two aspects; first, Islamic banks must offer quality services while maintaining its Islamic credential and reputation; second, Islamic banks should also embrace good customers services policies to reap its potential as a strategic tool to achieve competitive advantage, enhance reputation and secure customers allegiance. This
research will be of interest to both incumbent and potential entrants into this niche market.
Originality/value – The paper reports findings from the first nationwide study carried out in the area of Islamic banking selection criteria. |
| first_indexed | 2025-11-14T14:24:33Z |
| format | Article |
| id | iium-3038 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T14:24:33Z |
| publishDate | 2007 |
| publisher | Emerald Group Publishing Limited |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-30382011-10-13T07:08:09Z http://irep.iium.edu.my/3038/ Why do Malaysian customers patronise Islamic banks? Abdullah, Nurdianawati Irwani Dusuki, Asyraf Wajdi HG Finance HG1501 Banking Purpose – The purpose of this paper is to examine the main factors that motivate customers to deal with Islamic banks particularly in a dual banking environment, like in the case of Malaysia. A discussion on factors relating to corporate social responsibility initiatives as part of potential customers’ banking selection criteria is also included. Design/methodology/approach – The paper presents primary data collected by self-administered questionnaires involving a sample of 750 respondents from four different regions in Malaysia. The Islamic banking criteria ranking as perceived by the respondents are analysed using Friedman Test. To further explore the customers’ understanding of the banking criteria, an exploratory factor analysis is employed. Findings – This study reveals that the selection of Islamic banks appears to be predominantly a combination of Islamic and financial reputation and quality service offered by the bank. Other factors perceived to be important include good social responsibility practices, convenience and product price. Practical implications – The empirical evidence of this paper affects two aspects; first, Islamic banks must offer quality services while maintaining its Islamic credential and reputation; second, Islamic banks should also embrace good customers services policies to reap its potential as a strategic tool to achieve competitive advantage, enhance reputation and secure customers allegiance. This research will be of interest to both incumbent and potential entrants into this niche market. Originality/value – The paper reports findings from the first nationwide study carried out in the area of Islamic banking selection criteria. Emerald Group Publishing Limited 2007 Article PeerReviewed application/pdf en http://irep.iium.edu.my/3038/1/why_patronise_IB.pdf Abdullah, Nurdianawati Irwani and Dusuki, Asyraf Wajdi (2007) Why do Malaysian customers patronise Islamic banks? International Journal of Bank Marketing, 25 (3). pp. 142-160. ISSN 0265-2323 http://www.emeraldinsight.com/search.htm?st1=Why+do+Malaysian+customers&ct=all&ec=1&bf=1&go=Go DOI 10.1108/02652320710739850 |
| spellingShingle | HG Finance HG1501 Banking Abdullah, Nurdianawati Irwani Dusuki, Asyraf Wajdi Why do Malaysian customers patronise Islamic banks? |
| title | Why do Malaysian customers patronise Islamic banks? |
| title_full | Why do Malaysian customers patronise Islamic banks? |
| title_fullStr | Why do Malaysian customers patronise Islamic banks? |
| title_full_unstemmed | Why do Malaysian customers patronise Islamic banks? |
| title_short | Why do Malaysian customers patronise Islamic banks? |
| title_sort | why do malaysian customers patronise islamic banks? |
| topic | HG Finance HG1501 Banking |
| url | http://irep.iium.edu.my/3038/ http://irep.iium.edu.my/3038/ http://irep.iium.edu.my/3038/ http://irep.iium.edu.my/3038/1/why_patronise_IB.pdf |