Intention to adopt Islamic banking products and services among young adults in Selangor

• मुख्य लेखक: Mohd Zuhair Shahiran, Muhammad Najib
• स्वरूप: थीसिस
• भाषा: अंग्रेज़ी; अंग्रेज़ी
• प्रकाशित: 2016
• विषय: BP Islam. Bahaism. Theosophy, etc; HF5415.33 Consumer Behavior.; HG Finance
• ऑनलाइन पहुंच: https://etd.uum.edu.my/5918/1/s817124_01.pdf; https://etd.uum.edu.my/5918/2/s817124_02.pdf

Islamic banking is an abstract concept until the first half of the twentieth century. In Malaysia, it has been almost three decades when the first Islamic bank makes its debut. Islamic banks have to compete with its rival, conventional banks which have longer history than Islamic banks. For this competition, Islamic banks have to know the awareness, understanding and perceptions of Malaysians towards it. Islamic banks not only available for Muslims, but it also available for non-Muslims as well. In Malaysia, 40% of the population is non-Muslims and hence non-Muslims market is equally important to Islamic banks. The purpose of this study is to examine the level of awareness, understanding, perceptions and quality of Islamic banking products and services among young adults in Selangor and their intention to adopt the Islamic banking products and services. A total of 384 respondents from different areas in Selangor responded to the questionnaire in this study. In general, The results show that more most of the respondents are aware of the Islamic banking in Malaysia with an average level of understanding of the Islamic bank concepts. However they do not understand most of the Arabic terms. Both the descriptive and inferential analysis was carried out on the data collected. The correlation analysis showed that: (i) awareness is positively and significantly related to the intention with a weak realtionship (r = .114, p = < 0.025); (ii) perception is positively and significantly related to intention with weak relationship ( r = .206, p = < 0.01); (iii) understanding is positively and significantly related to 1). Through the multiple regression analysis, the intention factors has an effect of 22% (R2 = 0.22) on the intention to adopt the Islamic banking products and services with quality has the highest influence (β = 0.321, p = < 0.000) followed by perception (β = 0.200, p = < 0.000) on the intention to purchase the Islamic banking products and services among young adults in this study. The perceptions of young adult towards Islamic banks varied among themselves. This study also provides theoretical and managerial implications for the Islamic bankers on recommendations to attract young adult towards Islamic Banking products and services in the future.