IDEAS home Printed from https://ideas.repec.org/a/jfr/ijfr11/v5y2014i4p22-38.html
   My bibliography  Save this article

Understanding Islamic Bank Selection of Customers: A Field Research from Turkish Participation Banks

Author

Listed:
  • Ali Polat
  • Mehmet Yesilyaprak
  • Raci Kaya

Abstract

Bank customers have a selection behavior in their banking activities. It is important to understand the factors that the customers of Islamic Banks select the banks as their financial services providers. Such understanding has many micro and macro level advantages from policy making to marketing and forecasting. This paper tries to extract important components in Islamic bank selection of the bank customers in Turkey. Principle Component Analysis (PCA) is used in exploratory data analysis to 341 customer surveys that were obtained from the customers of participation banks in Turkey. We found that three latent variables are important for the Turkish Participation Bank customers in their bank selection. The customers care for i) Islamic Banking ii) Quality Banking and iii) Fast Banking. Our literature review on Islamic bank selection and our results suggest that providing Islamic Banking is a must while alone is not enough criteria for an Islamic Bank to be selected by customers.

Suggested Citation

  • Ali Polat & Mehmet Yesilyaprak & Raci Kaya, 2014. "Understanding Islamic Bank Selection of Customers: A Field Research from Turkish Participation Banks," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 5(4), pages 22-38, October.
  • Handle: RePEc:jfr:ijfr11:v:5:y:2014:i:4:p:22-38
    as

    Download full text from publisher

    File URL: http://www.sciedu.ca/journal/index.php/ijfr/article/view/5408/3199
    Download Restriction: no

    File URL: http://www.sciedu.ca/journal/index.php/ijfr/article/view/5408
    Download Restriction: no

    References listed on IDEAS

    as
    1. Yvonne Saini & Geoff Bick, Loonat Abdulla, 2011. "Consumer awareness and usage of islamic banking products in South Africa," South African Journal of Economic and Management Sciences, University of Pretoria, Faculty of Economic and Management Sciences, vol. 14(3), pages 298-313, September.
    2. Walid Mansour & Mohamed Ben Abdelhamid & Omar Masood & G.S.K. Niazi, 2010. "Islamic banking and customers' preferences: the case of the UK," Qualitative Research in Financial Markets, Emerald Group Publishing, vol. 2(3), pages 185-199, October.
    3. Chong, Beng Soon & Liu, Ming-Hua, 2009. "Islamic banking: Interest-free or interest-based?," Pacific-Basin Finance Journal, Elsevier, vol. 17(1), pages 125-144, January.
    4. S. T. Katircioglu & S. Fethi & D. Unlucan & I. Dalci, 2011. "Bank selection factors in the banking industry: An empirical investigation from potential customers in Northern Cyprus," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 61(1), pages 77-89, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Ali & Syed Ali Raza & Chin-Hong Puah & Mohd Zaini Abd Karim, 2017. "Islamic home financing in Pakistan: a SEM-based approach using modified TPB model," Housing Studies, Taylor & Francis Journals, vol. 32(8), pages 1156-1177, November.
    2. repec:wsi:rpbfmp:v:20:y:2017:i:02:n:s0219091517500096 is not listed on IDEAS

    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:jfr:ijfr11:v:5:y:2014:i:4:p:22-38. 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: (Gina Perry). General contact details of provider: http://ijfr.sciedupress.com .

    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 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.

    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.