IDEAS home Printed from https://ideas.repec.org/a/arp/tjssrr/2018p402-412.html
   My bibliography  Save this article

Halal Purchase Intention- A Study on Islamic Banks of Bangladesh

Author

Listed:
  • Mohsina Fatema*

    (PhD Candidate at University Malaysia Perlis, Malaysia)

  • Md. Aminul Islam

    (Associate Professor, University Malaysia Perlis, Malaysia)

  • Rosni Bakar

    (Professor, University Malaysia Perlis, Malaysia)

Abstract

Purchase intention is a term used in consumer behaviour which can influence the augmentation of the brand’s performance. Many researches done on the issue of purchase intention, brands and brand equity but this study focuses only on the Halal paradigm. We have limited our study within the Islamic banking Industry of Bangladesh. Even though Bangladesh is a Muslim major country, yet awareness and knowledge of what is Halal (allowable in Islam) and what is Haram (forbidden in Islam) is really poor. Still majority of the banks are operating in conventional i.e. interest based banking. People follow their religion as some rituals descended from their ancestors, not completely knowing about the actual rules. Purchase intention is a very important term in consumer behaviour and has positive outcome if fostered properly. Marketers thus emphasize precisely in this in order to have better business performance. Halal purchase intention is a new term in the realm of Islamic marketing and branding. There are numerous research done so far on purchase intention and its antecedents’ relationship. However, very few studies have been done on halal purchase intention. This study aims to explore the antecedents of halal purchase intention. Six IVs has been identified- brand equity, brand trust, product involvement, value consciousness, shariah compliance and attitude. To fulfil the purpose, a quantitative research study surveyed on 200 customers and potential customers of the Islamic banks in Bangladesh. Collected data were analysed using partial least squares (PLS) structural equation modelling with the help of Smart PLS 2.0 M3 software. Findings reveal that out of six variables, five namely brand equity, brand trust, product involvement, value consciousness and attitude has significant relationship with halal purchase intention. The outcome of this study devotes the Islamic bank managers to make their marketing choices with the help of purchase intention statistics associated with product demand, market segmentation as well as promotional strategies. This research thus tries to fill the gap and contribute in the literature of Islamic marketing and branding.

Suggested Citation

  • Mohsina Fatema* & Md. Aminul Islam & Rosni Bakar, 2018. "Halal Purchase Intention- A Study on Islamic Banks of Bangladesh," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 4(12), pages 402-412, 12-2018.
    • Handle: RePEc:arp:tjssrr:2018:p:402-412
    as

    Download full text from publisher

    File URL: https://www.arpgweb.com/pdf-files/jssr4(12)402-412.pdf
    Download Restriction: no
    File URL: https://www.arpgweb.com/journal/7/archive/12-2018/12/4
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sood, James & Nasu, Yukio, 1995. "Religiosity and nationality : An exploratory study of their effect on consumer behavior in Japan and the United States," Journal of Business Research, Elsevier, vol. 34(1), pages 1-9, September.
    2. Muhammad Imran Qureshi & Muhammad Aamir Khan & Khalid Zaman, 2012. "Structural Investigation of Service Quality in Conventional and Islamic Banking in Pakistan," International Review of Management and Marketing, Econjournals, vol. 2(2), pages 99-105.
    3. Macinnis, Deborah J & Park, C Whan, 1991. "The Differential Role of Characteristics of Music on High- and Low-Involvement Consumers' Processing of Ads," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(2), pages 161-173, September.
    4. Zaichkowsky, Judith Lynne, 1985. "Measuring the Involvement Construct," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 12(3), pages 341-352, December.
    5. Hasan, Syed Akif & Subhani, Muhammad Imtiaz & Osman, Ms. Amber, 2012. "Consumer Criteria for the Selection of an Islamic Bank: Evidence from Pakistan," MPRA Paper 40384, University Library of Munich, Germany.
    6. Richins, Marsha L. & Bloch, Peter H., 1991. "Post-purchase product satisfaction: Incorporating the effects of involvement and time," Journal of Business Research, Elsevier, vol. 23(2), pages 145-158, September.
    7. Bloch, Peter H & Sherrell, Daniel L & Ridgway, Nancy M, 1986. "Consumer Search: An Extended Framework," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 13(1), pages 119-126, June.
    8. Munawar Iqbal & Philip Molyneux, 2005. "Thirty Years of Islamic Banking," Palgrave Macmillan Studies in Banking and Financial Institutions, Palgrave Macmillan, number 978-0-230-50322-9, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. M. Rodríguez-Santos & Ana González-Fernández & Miguel Cervantes-Blanco, 2013. "An analysis of the construct “involvement” in consumer behaviour," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(2), pages 1105-1123, February.
    2. O'Cass, A., 2000. "An assessment of consumers product, purchase decision, advertising and consumption involvement in fashion clothing," Journal of Economic Psychology, Elsevier, vol. 21(5), pages 545-576, October.
    3. Whang, Haesung & Yong, Sunghwa & Ko, Eunju, 2016. "Pop culture, destination images, and visit intentions: Theory and research on travel motivations of Chinese and Russian tourists," Journal of Business Research, Elsevier, vol. 69(2), pages 631-641.
    4. Colleen E. McClure & Justin M. Lawrence & Todd J. Arnold & Lisa K. Scheer, 2023. "The opportunities and costs of highly involved organizational buyers," Journal of the Academy of Marketing Science, Springer, vol. 51(2), pages 480-501, March.
    5. Khan Md Raziuddin Taufique & Chamhuri Siwar & Basri Talib & Farah Hasan Sarah & Norshamliza Chamhuri, 2014. "Synthesis of Constructs for Modeling Consumers’ Understanding and Perception of Eco-Labels," Sustainability, MDPI, vol. 6(4), pages 1-25, April.
    6. Beaton, Anthony A. & Funk, Daniel C. & Ridinger, Lynn & Jordan, Jeremy, 2011. "Sport involvement: A conceptual and empirical analysis," Sport Management Review, Elsevier, vol. 14(2), pages 126-140, May.
    7. Chandrashekaran, R., 2001. "The implications of individual differences in reference price utilization for designing effective price communications," Journal of Business Research, Elsevier, vol. 53(2), pages 85-91, August.
    8. Key Pousttchi & Maik Dehnert, 2018. "Exploring the digitalization impact on consumer decision-making in retail banking," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(3), pages 265-286, August.
    9. Abhishek Dwivedi & Dean Wilkie & Lester Johnson & Jay Weerawardena, 2016. "Establishing measures and drivers of consumer brand engagement behaviours," Journal of Brand Management, Palgrave Macmillan, vol. 23(5), pages 41-69, September.
    10. Sinha, Piyush Kumar & Uniyal, Dwarika Prasad, 2016. "Impact of Store format on Shopping Involvement," IIMA Working Papers WP2016-06-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    11. Kyriakos Riskos & Paraskevi (Evi) Dekoulou & Naoum Mylonas & George Tsourvakas, 2021. "Ecolabels and the Attitude–Behavior Relationship towards Green Product Purchase: A Multiple Mediation Model," Sustainability, MDPI, vol. 13(12), pages 1-22, June.
    12. Marios Koufaris, 2002. "Applying the Technology Acceptance Model and Flow Theory to Online Consumer Behavior," Information Systems Research, INFORMS, vol. 13(2), pages 205-223, June.
    13. Spiekermann, Sarah & Strobel, Martin & Temme, Dirk, 2002. "Drivers and impediments of consumer online information search: Self-controlled versus agent-based search in a high involvement context," SFB 373 Discussion Papers 2002,37, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    14. Shwu-Ing Wu & Ya-Chen Chuang, 2018. "Effects of the Experience in Using the Third-Party Payment on the Payment Model of Online Shopping," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(7), pages 107-107, June.
    15. Pham, Michel Tuan & Geuens, Maggie & De Pelsmacker, Patrick, 2013. "The influence of ad-evoked feelings on brand evaluations: Empirical generalizations from consumer responses to more than 1000 TV commercials," International Journal of Research in Marketing, Elsevier, vol. 30(4), pages 383-394.
    16. Sinha, Piyush Kumar & Uniyal, Dwarika Prasad, 2014. "Impact of Store format on Shopping Involvement," IIMA Working Papers WP2014-03-06, Indian Institute of Management Ahmedabad, Research and Publication Department.
    17. Cahyanto, Ignatius & Pennington-Gray, Lori & Thapa, Brijesh & Srinivasan, Siva & Villegas, Jorge & Matyas, Corene & Kiousis, Spiro, 2016. "Predicting information seeking regarding hurricane evacuation in the destination," Tourism Management, Elsevier, vol. 52(C), pages 264-275.
    18. Hsu, Hsuan Yu & Tsou, Hung-Tai, 2011. "Understanding customer experiences in online blog environments," International Journal of Information Management, Elsevier, vol. 31(6), pages 510-523.
    19. Belanche, Daniel & Flavián, Carlos & Pérez-Rueda, Alfredo, 2017. "Understanding Interactive Online Advertising: Congruence and Product Involvement in Highly and Lowly Arousing, Skippable Video Ads," Journal of Interactive Marketing, Elsevier, vol. 37(C), pages 75-88.
    20. Piyush Kumar Sinha & Dwarika Prasad Uniyal, 2016. "Impact of Store Format on Shopping Involvement," Working Papers id:11281, eSocialSciences.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arp:tjssrr:2018:p:402-412. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Managing Editor (email available below). General contact details of provider: http://arpgweb.com/?ic=journal&journal=7&info=aims .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.