IDEAS home Printed from
   My bibliography  Save this article

Customers’ Perceptions Of Islamic Hire-Purchase Facility In Malaysia: An Empirical Analysis


  • Nurdianawati Irwani Abdullah
  • Asyraf Wajdi Dusukib


One of the latest innovative products of Islamic banks is the Islamic hirepurchase facility or Al-IjOErah Thumma al-Bayc (AITAB) which is designed to meet the current demand and avoid certain risks in the financing of consumer durables and motor vehicles. AITAB can be utilized to finance a wide range of assets, either for individual or corporate customers. This paper presents empirical evidence on the customers’ perception of AITAB. A country-wide questionnaire survey has been conducted on 203 AITAB customers, aiming at eliciting their awareness and perception of AITAB facility. Overall, the results provide a strong signal to the bankers that efforts need to be intensified in educating the public about the distinctive characteristics of AITAB and how it may suit the interest of customers in financing their assets. There is a huge potential for AITAB to be marketed to various segments of customers comprising those who are concerned with the legitimacy of the facility, and those who seek convenience and less complicated transactions.

Suggested Citation

  • Nurdianawati Irwani Abdullah & Asyraf Wajdi Dusukib, 2006. "Customers’ Perceptions Of Islamic Hire-Purchase Facility In Malaysia: An Empirical Analysis," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 14(2), pages 177-204, December.
  • Handle: RePEc:ije:journl:v:14:y:2006:i:2:p:177-204

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Islamic hire-purchase; Customers’ perceptions; Customer satisfaction.;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General


    Access and download statistics


    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:ije:journl:v:14:y:2006:i:2:p:177-204. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gairuzazmi Mat Ghani). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.