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What’s In It for Me? Profiling Opportunity Seeking Customers in Malaysian Islamic Banking

Author

Listed:
  • Seck, Ousmane

    (The Islamic Research and Teaching Institute (IRTI))

  • Ismail, Abdul Ghafar

    (The Islamic Research and Teaching Institute (IRTI))

Abstract

This paper aims at analyzing the preferences of Malaysian bank customers with a focus on identifying characteristics of the opportunity seekers, those who only consider the economic benefit of the product offered. We also look at the determinants of consumers preferences for financial products used for resource mobilization, and for financing of business start-ups. We apply asymptotic statistical methods for estimation and comparison of binomial proportions, along with multinomial discrete choice on a survey of 1858 retail consumers, we find that although Muslims are more likely to choose Islamic banks, they are also the most likely customers to be economic value seekers. In addition, our findings support that the growth of Islamic banks in Malaysia is conditional on their ability to attract high-income earners

Suggested Citation

  • Seck, Ousmane & Ismail, Abdul Ghafar, 2016. "What’s In It for Me? Profiling Opportunity Seeking Customers in Malaysian Islamic Banking," Working Papers 2016-4, The Islamic Research and Teaching Institute (IRTI).
    • Handle: RePEc:ris:irtiwp:2016_004
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    References listed on IDEAS

    as
    1. Varian, Hal R, 1982. "The Nonparametric Approach to Demand Analysis," Econometrica, Econometric Society, vol. 50(4), pages 945-973, July.
    2. Hal R. Varian, 1983. "Non-parametric Tests of Consumer Behaviour," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(1), pages 99-110.
    3. Varian, Hal R., 1985. "Non-parametric analysis of optimizing behavior with measurement error," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 445-458.
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    More about this item

    Keywords

    Islamic Finance; Opportunity seekers; Consumer preferences; Malaysia;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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