Abstract/Description
Banking system was firstly introduce in the era of Jews where large bankers use to do financial practices in the open market. In the past few decades‟ capitalistic economy gained momentum. Islamic banking was firstly introduced in Malaysia with the establishment of Islamic banks laid on the basis of SHARIAH compliance, during 1970-90 (Henry & Wilson, 2004; Iqbal &Mirakhor, 2007; Dusuki& Abdullah, 2007). Banking is as old as civilization found its way from barter economies towards market economy and price mechanism. At present the banks have an immense role in deciding the economic fate of any state. Strong banking system is vital for the growth of any country. Banking system in Pakistan can be divided into conventional banking system and Islamic banking system. Islamic banking sytem is based on the function of Islamic law; Shariah with the context of justice and partnership. Also whose sources are the Holy Quran and the Sunnah. The purpose of the study is to investigate the selection criteria of Islamic banking customers in Pakistan.The population of the study is all the customers of Islamic banks in Pakistan whereas the sample of the study is the Islamic banking customers in Lahore. The sample was chosen through convenient sampling technique. Questionnaire is the tool used to collect the data. Due to the limitation the data was collected from the customers of 17 branches of 5 different banks in Lahore. Total 250 questionnaire were distributed from which 150 questionnaire were filled and returned. Reliability of the instrument is checked through Cronbach Alpha which is satisfactory. Data is analyzed through descriptive statistics and independent sample T test using SPSS v-16. Out of the total respondents 57% respondents are male where as 43% respondents are female.The results show that people prefer Islamic banks because it offers low cost products and services as compared to conventional banks. Also it is evident from the results that people choose Islamic banks because it provides better and vide range of products as compared to conventional banks. The results have also explored that Islamic banks provide all banking facilities at competitive rates. The findings also reveal that people prefer to select Islamic banks because the personnel of Islamic banks are friendly and cooperative. The results of Independent Sample t-test has examined there is no significance difference in the selection criteria for Islamic banking among the customers on the basis of Gender. The present study adds towards the body of knowledge to identify the factors which persuade the people to become the customers of Islamic banks. Questionnaire is the tool used to collect the data.This study has practical and theoretical implications for Islamic banks‟ managerial staff, policy makers and academics. Some limitations are faced in the study which might be addressed in the future study. This study has only selected the general population to gather the data, on the same way data might also be collected from top managerial level of Islamic banks, State banks‟ Islamic banking department‟s policy makers and Shariah Scholars as well.
Location
Seminar Room, S4 1st Floor, CED Bldg
Session Theme
Session 4: Parallel Sessions
Session Type
Event
Session Chair
Dr. Amber Gul Rashid
Start Date
4-5-2014 9:00 AM
End Date
4-5-2014 11:00 AM
Recommended Citation
Khan, Z. U. (2014). Parallel Sessions (Consumer Behavior & Culture): An investigation of the selection criteria of Islamic banking in Pakistan: customers’ perspective. International Conference on Marketing. Retrieved from https://ir.iba.edu.pk/icm/2014/day2/8
Included in
Parallel Sessions (Consumer Behavior & Culture): An investigation of the selection criteria of Islamic banking in Pakistan: customers’ perspective
Seminar Room, S4 1st Floor, CED Bldg
Banking system was firstly introduce in the era of Jews where large bankers use to do financial practices in the open market. In the past few decades‟ capitalistic economy gained momentum. Islamic banking was firstly introduced in Malaysia with the establishment of Islamic banks laid on the basis of SHARIAH compliance, during 1970-90 (Henry & Wilson, 2004; Iqbal &Mirakhor, 2007; Dusuki& Abdullah, 2007). Banking is as old as civilization found its way from barter economies towards market economy and price mechanism. At present the banks have an immense role in deciding the economic fate of any state. Strong banking system is vital for the growth of any country. Banking system in Pakistan can be divided into conventional banking system and Islamic banking system. Islamic banking sytem is based on the function of Islamic law; Shariah with the context of justice and partnership. Also whose sources are the Holy Quran and the Sunnah. The purpose of the study is to investigate the selection criteria of Islamic banking customers in Pakistan.The population of the study is all the customers of Islamic banks in Pakistan whereas the sample of the study is the Islamic banking customers in Lahore. The sample was chosen through convenient sampling technique. Questionnaire is the tool used to collect the data. Due to the limitation the data was collected from the customers of 17 branches of 5 different banks in Lahore. Total 250 questionnaire were distributed from which 150 questionnaire were filled and returned. Reliability of the instrument is checked through Cronbach Alpha which is satisfactory. Data is analyzed through descriptive statistics and independent sample T test using SPSS v-16. Out of the total respondents 57% respondents are male where as 43% respondents are female.The results show that people prefer Islamic banks because it offers low cost products and services as compared to conventional banks. Also it is evident from the results that people choose Islamic banks because it provides better and vide range of products as compared to conventional banks. The results have also explored that Islamic banks provide all banking facilities at competitive rates. The findings also reveal that people prefer to select Islamic banks because the personnel of Islamic banks are friendly and cooperative. The results of Independent Sample t-test has examined there is no significance difference in the selection criteria for Islamic banking among the customers on the basis of Gender. The present study adds towards the body of knowledge to identify the factors which persuade the people to become the customers of Islamic banks. Questionnaire is the tool used to collect the data.This study has practical and theoretical implications for Islamic banks‟ managerial staff, policy makers and academics. Some limitations are faced in the study which might be addressed in the future study. This study has only selected the general population to gather the data, on the same way data might also be collected from top managerial level of Islamic banks, State banks‟ Islamic banking department‟s policy makers and Shariah Scholars as well.
