Factors affecting to select Islamic Credit Cards in Pakistan: The TRA Model

This study investigates the factors affecting intentions to select Islamic credit cards in Pakistan by employing the Theory of Reasoned Action (TRA) model. In general, bank customers generally aware of credit card facility, but the leading factors to select Islamic credit cards are particularly unexplored. Due to this fact, the study examined the effect of Subjective norm, Attitude and Perceived financial cost on the customers’ intention of Pakistani banks to select Islamic credit cards. The study uses a survey of 466 respondents. Exploratory factor analysis (EFA) and multiple regression were used to attain the study objectives. Findings from regression analysis suggest that subjective norms (SN) and attitudes (ATT) show positive and significant impact on intentions to select an Islamic credit card, while perceived financial cost (PFC) has a negative impact on intentions to select Islamic credit cards. On the other hand, subjective norms were found to be the most influential factor to predict the selection of an Islamic credit card. It is recommended that, Islamic bank should educate their customers about Islamic credit cards to compete with conventional credit cards and develop marketing strategies through social media and other marketing channels to change consumer’s attitude in favor of Islamic credit cards. The TRA model applicability extends into Islamic credit cards context while perceived financial cost is integrated on the intention to select Islamic credit cards. The present study also offers an insight view of one’s decision to select Islamic credit cards.