Customers' perception of Islamic Financing products pricing in Eastern Malaysia: an empirical investigation

Hanudin Amin, and Suddin Lada, and Mohd Zulkifli Muhammad, and Mohd Fahmi Ghazali, (2009) Customers' perception of Islamic Financing products pricing in Eastern Malaysia: an empirical investigation. (Unpublished)

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Abstract

Purpose - The main purpose of this study is to investigate bank customers' perception with regard to the pricing issuesof Islamic financing products in Eastern Malaysia. The study is intended to extend the work by Rosly (1999), Abdullah and Dusuki (2006), and a more recent study by Amin (2008). Rationality, these studies provide a research background with regard to the pricing issues in Islamic banking, not only in Islamic financing products but also to Islamic deposit products. Design/methodology/approach - The data for the research were collected using selfadministered questionnaires. A total of 400 questionnaires were distributed, and finalIy only 362 questionnaires were usable for the analysis purposes. The data were analyzed using Statistical Package for Social Science (SPSS) 17. Findings - All of the research objectives, certainly, were tested using survey data. Surprisingly, the majority of the respondents were of the opinion that Islamic financing products were not that of expensive as what was argued by previous works relevant to the pricing of Islamic financing products. On the other hand, there were also a number of respondents were still not clear about the pricing of Islamic financing products as proven to their responds to Islamic home financing, Islamic personal financing, Islamic car financing and Islamic credit card. It is therefore important to inculcate a dedicated support and further education to public with regard to the pricing concern in these products, which should be consistently and continuously done by Islamic bank managers in order to improve the pricing image of Islamic banking institutions in the eyes of bank customers. Research limitations/implications - The limitation of the study is the narrow focus on two cities in addition to the limited variables used in the research instrument. Notwithstanding, the research is important to provide insights on the pricing issues oflslamic financing products. The findings of this study shed some lights on the bank customers' perception level of Islamic financing products. Originality/value- This research is the first of its kind that examined bank customers' perception with regard to the pricing issues in Islamic financing products, which has limited previously been investigated

Item Type: Research Report
Uncontrolled Keywords: Personal finance, Islamic financing, Survey, Islamic bank, Malaysia
Depositing User: Noraini
Date Deposited: 16 Aug 2019 00:53
Last Modified: 16 Aug 2019 00:53
URI: http://eprints.ums.edu.my/id/eprint/23338

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