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Explaining intention to use the Islamic credit card: an extension of the TRA model

Author

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  • Hanudin, Amin

Abstract

Purpose – The Islamic credit card is a type of banking product offered by Islamic banks. Given the importance to the Islamic credit card to Islamic banks, the study is aimed at identifying the factors determining the Malaysian bank customers’ behavioral intention to use the Islamic credit card. Design/methodology/approach – Drawing upon the Theory of Reasoned Action (the TRA model), this study proposes a modified model to examine the acceptance factors of attitude, subjective norm and perceived financial cost within the Islamic credit card context. The study used multiple regression model in order to examine the impacts of these explanatory variables on the intention to use the Islamic credit card. The model is tested using survey data from 257 respondents. Findings – The results reveal that attitude, subjective norm and perceived financial cost significantly influence the Islamic credit card intention to use. Of these, attitude was first ranked factor explaining intention to use the Islamic credit card. Research limitations/implications – The research suffers from two limitations. The first limitation is related to the generalization of finding whilst the second limitation is related to the limited measures employed in the current work. Despite these limitations, this research is significantly contributed to the body of knowledge in the area of Islamic credit card, at least at exploratory level. Practical implications – Information gathered from the study will serve as a basis for more future works in the area of Islamic credit card. The theory developed in the current study’s model could also be generalized into other contexts of Islamic banking products and services. Practically, branch managers of Islamic banking institutions could of prime importance to extend the findings of the study for the better future planning of their Islamic credit card offerings. Originality/value – Importantly, the study extends the applicability of the TRA model into Islamic credit card context. Few studies have conducted over the years under this context in Malaysia.

Suggested Citation

  • Hanudin, Amin, 2012. "Explaining intention to use the Islamic credit card: an extension of the TRA model," MPRA Paper 36957, University Library of Munich, Germany, revised 01 Jan 2012.
  • Handle: RePEc:pra:mprapa:36957
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    Citations

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    Cited by:

    1. Merhi, Mohamed & Hone, Kate & Tarhini, Ali, 2019. "A cross-cultural study of the intention to use mobile banking between Lebanese and British consumers: Extending UTAUT2 with security, privacy and trust," Technology in Society, Elsevier, vol. 59(C).
    2. Monzer Kahf & Amiirah Nabee Mohomed, 2016. "Credit Cards: Contemporary Issues from Economic and Shariah Perspective بطاقات الائتمان: قضايا معاصرة اقتصادية وشرعية," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 29(1), pages 57-80, January.
    3. Khush Dil Khan & Ikram Ullah Khan & Safeer Ullah Khan, 2022. "Understanding the Drivers of Islamic Credit Card Selection Using TRA Model: Evidence from Khyber Pakhtunkhwa, Pakistan," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 4(4), pages 621-632, December.

    More about this item

    Keywords

    Islamic credit card; personal finance; Islamic bank; Malaysia;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods

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