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Malaysian consumers' preferences for Islamic banking attributes

Author

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  • Abdelghani Echchabi
  • Oladokun Nafiu Olaniyi

Abstract

Purpose - The purpose of this paper is to shed light on the preferences of Malaysian banks' customers for Islamic banking attributes. Design/methodology/approach - The paper uses mixed methodology. The quantitative approach consists of the collection of primary data through a self‐administered questionnaire distributed to 500 Islamic banks' customers in Malaysia. The data gathered were analysed using factor analysis as well as Friedman test. In parallel, qualitative approach was used, in forms of semi structured interviews with ten Islamic banks' customers. The results of both approaches were then reported accordingly. Findings - The quantitative approach reveals that the preference for Islamic banking attributes in Malaysia is a combination of the quality of services offered by the Islamic banks, as well as the convenience associated with it. On the other hand, the qualitative approach revealed that choosing Islamic banks was mainly due to the religious motivation of the customers. Originality/value - This paper is one of the few that has used a qualitative approach to study consumer preferences for Islamic banking attributes. Furthermore, the paper employs this methodology in the context of Malaysia, which enriches the studies done in this context and area.

Suggested Citation

  • Abdelghani Echchabi & Oladokun Nafiu Olaniyi, 2012. "Malaysian consumers' preferences for Islamic banking attributes," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 39(11), pages 859-874, September.
    • Handle: RePEc:eme:ijsepp:v:39:y:2012:i:11:p:859-874
    DOI: 10.1108/03068291211263907
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    References listed on IDEAS

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    1. B. Tijjani & S.G.M. Fifield & D.M. Power, 2009. "The appraisal of equity investments by Nigerian investors," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 1(1), pages 6-26, March.
    2. Jasim Al‐Ajmi & Hameeda Abo Hussain & Nadhem Al‐Saleh, 2009. "Clients of conventional and Islamic banks in Bahrain," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 36(11), pages 1086-1112, September.
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    Cited by:

    1. Amina Hachimi & M. My Abdelouhab Salahddine, 2019. "The Acceptability of Participatory Banking Products by SMES: A Conceptual Framework," International Journal of Economics and Financial Issues, Econjournals, vol. 9(4), pages 259-266.
    2. Burhan Ali Shah & Ghulam Shabbir Khan Niazi & Abdul Majid, 2016. "Employees' Perceptions about Islamic Banking and its Growth Potential in Pakistan," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 8(1), pages 53-76, April.
    3. Talla Aldeehani, 2018. "Efficiency and client satisfaction of Islamic and conventional banks: A bilateral effect," Business and Economic Horizons (BEH), Prague Development Center, vol. 14(2), pages 282-299, April.
    4. repec:arp:sjbmms:2021:p:27-34 is not listed on IDEAS

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