CHAPTER NO: 01

INTRODUCTION

1.1 Background

Islamic personal financing is basically choosing the right way

of financing that is done by fulfilling the rules and
regulations of Islam. It was the banking system that was
introduced into the Muslim countries when they are politically
and economically very low to eliminate the interest from their
economies. It is interest free banking in which there is no
fixed return on your investment is decided at the time of
financing. The banking sector is growing rapidly all over the
world. Basically Islamic banking system is based on the
compliance of the rules and regulations of Shari’ah. In Islamic
banking system Islamization is adopted in their process and they
can assure their customers’ that their transactions are fully
free from Riba (interest). Conventional banking system was
already very famous in the world but the reason of the origin of
Islamic banking system is to remove the concept of interest from
the economy and make the economy totally interest free. Till now
there is hardly any development in the Islamic banking system in
some of the countries because there is a tough competition
between Islamic banks and conventional banks. There is less
number of customers’ attracted towards the Islamic banking
system because they are enjoying the offerings of conventional
banks where there is an elimination of risk in their

1
transactions and in Islamic banks there is a factor of bearing
the risk because risk free transaction are not allowed in Islam
and Islamic banks has to follow the compliances of Shari’ah. The
other factors include the liability taken on the transactions in
Islamic banks whereas in conventional banks only interest is
given that can attract the customers’. Hence, the main purpose
of Islamic banking system is to

 Eliminate the concept of interest (Riba) from the economy

and make the economy interest free.
 Take the transactions that are fair and not a part of
oppression(zulm) for someone because charging interest on
loans and earning profit is haraam.
 To stay away from those transaction that involves
speculation (gharrar).
 Not to charge the interest but getting the zakat as per
Islamic law.
 Deterrent the manufacturing of goods and other things that
are not allowed in Islam like gambling, bars etc.
 They can promote the concept of sharing the jeopardy/risks
among shareholder and entrepreneurs.
 There is no concept of charging heavy interest on the
defaulters, but for the compensation they can get an amount
that can easily be paid by the defaulter for the purpose of
charity incase of any defaults occur.

1.2 Rationale of the Study

More than 24% of Pakistani population have the bank accounts

now, which make Pakistan as potential market in banking sector;
this study will help to understand the intention of the
customers to adopt the Islamic banking in Pakistan.

2
1.3 Problem Identification

Banking Sector is increasing its space in Pakistan economy. As

the Islamic banking system is increasing, the other conventional
banks are also offering the Islamic banking products to attract
the customers and maintain their loyalty to their bank. The
competition is tough and banks are exploring the factors that
can influence the behavior and intentions of the customers
towards personal Islamic financing.

1.4 Problem Statement

Islamic banking is getting famous in Pakistan and there are

potential customers who are willing to avail these services.
This research will help to understand what is perception and
intention of non-users of Islamic banking which are specially
the conventional bank customers for this research.

1.5 Research Question

What are the determinants that can affect the customers’

intention to use Islamic personal financing?

1.6 Objectives of the Research

The objectives of this study are:

 To study the Islamic personal financing products offered by

Islamic banks in Pakistan.
 To study the affect of attitude, social influence,
religious obligation, government support, and pricing of
Islamic personal financing.

3
 Theoretical Framework:

Independent variables Dependent variable

Attitude Influence

Social Influence

Intention to use Islamic

Religious Obligation
personal financing

Government Support

Pricing of Islamic
Personal Financing

Hypotheses development

H1. Attitude will influence the use of Islamic personal

financing.

H2. Social influence will influence the use of Islamic personal

financing.

H3. Religious obligation will influence the use of Islamic

personal financing.

H4. Government support will influence the use of Islamic

personal financing

4
H5. Pricing of Islamic personal financing will influence the use
of Islamic personal financing.

Scope of the Research

With development in technology people are willing to invest on

those technologies which are efficient and take less time. The
banking sector has changed its image from traditional channel to
more professional and quick channel where the customers can make
any kind transaction in minutes. The Islamic banking will help
the customers of perform different types of operation on the go
where they do not have to worry about the interest and any type
of Usury which is haraam in Islam from any of their Islamic bank
branch. In Pakistan there are more than 22 percent of Pakistani
people who have bank account and if we talk about the population
of youth in Pakistan it is more than 54.3 million this study
will help to understand the perception and intention of
customers to use the Islamic personal financing in Pakistan.

5
 Chapter No: 02

LITERATURE REVIEW

Butt et al. (2011) conducted a study by having information from

the clients and non clients of the Islamic banks. This is the
qualitative researched based on the comprehensively discussion
with the administrators of the Islamic and non Islamic banks in
Pakistan. Getting more than the hundred responses result found
that there is contracted branch set of connections, problematic
division locality's and there is also an opinion of the
customers that Islamic banks in Pakistan don't follow the
Islamic standards absolutely and this fact act as a major
obstruction for the non-users when they decide to choose the
Islamic personal financing. These can be the factors that can
change the consumer behavior and customers are preferring the
conventional banking systems as from their point of view Islamic
banks are not fulfilling the rules and regulations of Islam in
their banks and then as compared to them conventional banks are
more reliable and easy to access and these factors can change
the intention of the customers when they decide to choose the
Islamic banks.

Study is done on the two banks one is Islamic bank and one is
conventional bank to differentiate between the performances of
both and to find out the deficiencies between the both. Research
is done for the three years on those banks that are operating
there for more than three years and few are the banks as well
those are newly established in Islamic banking. This three years
study found that both the conventional banks as well as Islamic
banks operate at the same level of efficiency and both are
equally effective although the Islamic banks are bound to manage
their operations into the limitations of all the principles on

6
which the Islamic theory is based, they are proficient to keep
up their performance that is correspondent to the conventional
banks (Hisham et al. 2012).

As the globalization takes place the banking sector is also

increasing rapidly around the world which shows that most of the
customers of the Islamic banks are now attracted toward the
Islamic personal financing and the Islamic banks are offering
the same services as compared to the conventional banks and are
equally efficient to them but the belief in old and traditional
forms of the religion presents the problems for the Islamic
banks and the western banks to provide the services in the
Muslim states and countries with a huge Muslim population. In
Muslim countries Islamic banks face the marketing problems
(Dixon, 1992).

Khan, 2008 examined that the academic, institutional,

practical, political and the top guiding principle makers of the
countries should renovate the banking structure of the country,
Shariah, that is very important for the interest free economy.
The interest institutions are now getting very rigid roots in
the economic sector and strongly supported by those agents who
have concern with themselves only and did unfairly with else and
the organizations that get control or influence in the socio-
economic existence of the countries. There is an extreme need to
take steps that can change the way in which the financial
institutions are governed to differentiate the interest and
interest-free economy systems with a public and political shore
up and promise to uproot the interest from the economy and a
society of a country.

(Asma and Omer, 2012) conclude that today the bank clients speak
towards the Islamic banks as they are not good and they want the

7
location of the Islamic banks suitable for their purposes and
needs and causing the least difficulty. Islamic banks are also
the depository institutions and for this purpose the customer
needs the feeling to be secure to deal in the Islamic banks as
they have the feeling from the conventional banks and also have
same matter of problems with the quality of their services
offering to their customers and the least efficiency in
performing their operations and entertaining their customers.

(Mansour and Ishaq, 2006) investigated the reason behind the

failure of interest free economy in the Pakistan. They noticed
that the interest can never be uprooted from the economy and all
the intellectual, political, constitutional and legal efforts to
eliminate the interest from the economy of Pakistan are not done
in order to be helpful in earnest and as a result they caused to
be endured a very severe damage to the foundation of Islam and
Islamic banking. Interest is strictly banned in Islam for its
destructive characteristics. Interest institutions are not only
extremely established but powerfully interconnected with other
destructive utensils that exist commonly in the hands of some of
those personalities that have total control over the economic,
political, and socio spheres of Pakistan. The practical and
successful implementation of Islamic banking in Pakistan is not
possible until or unless interest along with its allied forces
can be eliminated from the politics of this country. Islamic
banking and Islamic financing can only be materialized when
there is an implementation of Islamic rules and regulation in
the policy making and polity.

Banks can attract the customers more, by applying the Islamic

banking concept on the agriculture financing to the farmers. The
contract based on the ‘Salam’ is more easily predisposed the

8
risks then the rest of the other contracts offered by the
Islamic banks. They can make use of this type of agreement as an
approach of investment. Investigations designate that
practicable agreements on the basis of Salam should be offer to
the poor farmers to so that they can attract towards the
personal Islamic financing for their crops. (Rusni et al. 2011)

(Jamal et al., 1999) conducted a study and come to the

conclusion by getting the responses from the customers of
banking industry that most of the customers are attracted to the
Islamic personal financing but some of them are not satisfy from
Islamic financial goods Murabahah, Musharakah etc. but the
Islamic banking system is rapidly increasing into the entire
banking industry of the world. They are giving the hard time to
the other conventional banks by the application of Islamic laws
of Shariah in Islamic countries. They have to bear the huge
competition from the other competitor Islamic banks as well as
from the banks offering the products and services according to
the principle of Shari’ah, but by root the banks are well
establish and running conventional banking system. Study
evaluates the level of customers’ contentment and understanding
about the Islamic banks, which has a big impact on the market
share in the banking industry. There is a need to understand the
customers’ behavior about the different banking system according
to the rules and regulation of Islam that can influence their
behavior.

(Dusuki and Abdullah, 2007) come up with their findings on how

to encourage the client’s to do transactions within the dual
banking surroundings. Corporate Social Responsibility plays an
important role in influencing the behavior as a part of the
customers while selecting the banking criterion. Islamic banks

9
are more noticeable or important or larger in number than others
in the arrangement of Islamic and financial characters and
feature service presented by the bank. Doing something better
for the society, ease and handiness and product prices are some
of the other aspects that are also considered by the customers
while choosing the banking criteria. So Islamic banks must
follow the Shari’ah and other good deeds to improve their
standards of the service entertaining their customers and they
should have to hold the good customers service guidelines and
course of action in their arms to cut and gain their potential
as an intentional strategic instrument to accomplish the
competitive advantage, boost up their reputation and to maintain
the customer loyalty and support for their banking system.

There is a problem faced by Islamic banks to offer their

products and services on mobile Islamic banking system. This
idea is considered as something that is being new, interesting
and has not been experienced and practiced before but is unusual
and has less or no wakefulness and awareness among the customers
of the banking industry. Effectual stratagem of dividing the
concept in affiliation with the religion and dedication to know
the intentions of the Muslim and Non-Muslim customers to adopt
these services as well as those believe strongly and obeying all
the rules and regulations of Islam and casually religious
Muslims. So the customers who are strongly believed on Islam and
obeying rules were socially oriented with their acceptance
criterion but on the other side Non Muslims have a trust on the
utilitarian quality or characteristic products. So the
customers’ religious commitment is another intention segment of
adopting Islamic mobile phone banking (Fam, et al. 2012).

10
(Butt and Aftab, 2013) conduct the study to know the impact of
consumers on Halal banking system and their electronic
contentment, from the electronic quality service provided by the
Islamic banks in the framework of online Islamic banking. They
try to find out the correlation between electronic faith,
electronic service quality, electronic contentment and
electronic trustworthiness. Results shows that the approach in
the direction of Halal banking has positive power to have an
effect on the perceived electronic quality of the services and
on the whole electronic satisfaction with the online services of
Islamic banks and it also increase the electronic satisfaction
and loyalty of their customers. Hence, the concept of electronic
trust mediates and influences the behavior of the customers
towards the Islamic banking.

(Sayani and Miniaoui, 2013) did research and findings revealed

the factors that can influence the behavior of the customers in
selecting the banking service and make them to decide the
Islamic banking system or Conventional banking system. They
bring to a close summary of the research that the dynamics that
can control or effect the selection of the banks are more
noticeable and understandable between the customers of the
Islamic banks. The opinion that in general have about the bank
or how much respect and admiration banks receives based on past
services, and probability of profit and deposits doesn’t matter
and are not the factors that can control the attitude of the
customers in the selection of the banks. On the other hand the
act of thinking about the religious aspects is more important
factors that can motivate the customers to select the Islamic
personal financing.

11
(Mansour et al., 2010) came up with the research in the United
Kingdom on the preferences of the customers and the Islamic
banking. Finding show that irrespective of the quantity and
characteristics of customers who live in a particular area,
relation to their age, how much money they have and what they
spend on it and all other features and the religion of the
respondent the only preference is the ‘low service charges’. So
that’s why the Islamic banking system comes to the point second
because they can point out the rules and regulation and all
other principles they are following according to the Shari’ah
and least bother about their service charges. Not only the fact
of following Islamic laws can attract the customers but lenient
charges can also be the preference of the customers.

The competition between the Islamic and conventional banks is

increasing day by day in Pakistan. There is a need to know the
real factors that are the preferences of the customers because
of which they take decision of selecting the banking system for
their personal financing and security for their deposits. Some
findings reveal that the customers of Islamic bank highly give
importance to the act of obeying rules and principles of
Shari’ah so the Islamic banks must be in the state of being
willing to do what their customers wants so that they can
develop the strong relationship bond with their customers. Those
banks who work with non compliance with Shari’ah principles
become the reason of disappointment, unhappy and annoyed of
their customers and can also lose the customer loyalty. If the
Islamic banks keep on acting wrong according to their customers,
they can lose customers and market share and market value and
their customers can switch to some other bank. Findings also
disclose that Islamic banks customers’ also want their banks to
be suitable for their purposes and needs and causing the least

12
difficulty, efficient in adopting the new technologies and
protection of their capital as well (Lee and Shakir, 2011).

13
 Chapter No. 3

Method

3.1 Sample

The questionnaire will be distributed among 200 customers of

different Islamic banks of Islamabad and Rawalpindi. The
customers will be selected randomly and will be asked to fill a
questionnaire.

3.2 Instrument and measure

The research for this study will be Questionnaire based; the

questionnaire will be adopted from the research paper “Hanudin
Amin, Abdul Rahim Abdul Rahman, Stephen Laison Sondoh Jr, Ang
Magdalene Chooi Hwa, (2011) "Determinants of customers'
intention to use Islamic personal financing: The case of
Malaysian Islamic banks", Journal of Islamic Accounting and
Business Research, Vol. 2 Iss: 1, pp.22 – 42” and will be given
to customer of different Islamic banks of Islamabad and
Rawalpindi. The questionnaire is divided into different parts;
this method will help the researcher to understand how each
independent variable can affect the behavior of customer to use
the Islamic personal financing.

3.3 Resources

The main data sources that are used in this research are clients
of different Islamic banks. The data will gather with the help
of questionnaire. The other data resource will be the relevant
research papers.

14
3.4 Procedure

The primary data obtained from the questionnaire will be compile

in excel file for analysis. The secondary data will be obtained
from the relevant research papers. The data will then be entered
in the SPSS software for analysis of the data.

15
 CHAPTER NO 4

RESULTS AND DISCUSSION

In this chapter the results of the statistical analysis are

presented. The Statistical Analysis has been done by SPSS
software, the discussion of the research finding are based on
the research objectives and hypotheses that have been identified
in the study, it discusses Customer Satisfaction of Islamic
banks, and then some suggestions are given according to the
results. A total of 200 questionnaires were gathered from the
survey for the purpose of this study. In questionnaire, the
respondents were asked for some general information. The data is
gathered from Islamabad Rawalpindi. The demographic
representation of male and female are shown in table 4.2.1

16
4.1 Reliability Analysis
Reliability analysis is basically used for checking the

significance of the questions of the questionnaire because the

end results will only depend on the responses of the

respondents. Reliability is the degree to which experimentation,

test, or some gauging technique yields the same result on

frequent trials. Also reliability, simply, could be defined as

the degree to which measures are free from errors and therefore,

yield consistent results.

RELIABILITY

ATTITUDE

Reliability
Statistics

Cronbach's
Alpha N of Items

.812 6

RELIABILITY
SOCIAL INFLUENCE

Reliability Statistics

Cronbach's
Alpha N of Items

.719 5

17
 RELIABILITY
RELIGIOUS OBLIGATION

Reliability Statistics

Cronbach's
Alpha N of Items

.823 5

RELIABILITY
PRICING

Reliability Statistics

Cronbach's
Alpha N of Items

.865 6

RELIABILITY
GOVERNMENT SUPPORT

Reliability Statistics

Cronbach's
Alpha N of Items

.769 5

18
 RELIABILITY
INTENTION TO USE

Reliability Statistics

Cronbach's
Alpha N of Items

.760 5

The reliability analysis indicates the reliability statistics of

all variables. The cronbach’s alpha value is greater than 0.6
from the total 32 items, which means that the questionnaire and
their outcomes are reliable and are acceptable.

19
4.2 Frequency Distribution
Table 4.2.1
Frequency distribution of the respondents with respect to their
gender (N=200)

Gender

Cumulative
Frequency Percent Valid Percent Percent

Valid Male 165 82.5 82.5 82.5

Female 35 17.5 17.5 100.0

Total 200 100.0 100.0

17.5%

82.5%

Figure 4.2.1
Table reveals that out of 200 respondents 82.5% are male and
17.5% are female.

20
 Frequency Table

Frequency distribution of the respondents with respect to their

age (N=200) Table 4.2.2

Age

Cumulative
Frequency Percent Valid Percent Percent

Valid Below 25 45 22.5 22.5 22.5

26-35 23 11.5 11.5 34.0

36-45 70 35.0 35.0 69.0

Above 45 62 31.0 31.0 100.0

Total 200 100.0 100.0

31%
22.5%

11.5%

35%

Figure 4.2.2

Table 4.2.2 reveals that out of 200 respondents 22.50% are from
(Below 25) year of age whereas 11.50% are from (26-35) of age,
35.0% are from (36-45) year of age, 41.0% are from (45 Above).

21
 Frequency Table
Frequency distribution of the respondents with respect to their
Education (N=200) Table 4.2.3

Education

Cumulative
Frequency Percent Valid Percent Percent

Valid Graduation 58 29.0 29.0 29.0

Masters 102 51.0 51.0 80.0

Diploma 40 20.0 20.0 100.0

Total 200 100.0 100.0

29.0%
20.0%

51.0%

Figure 4.2.3

Figure shows the education level of the total 200 respondents.

20% did Diploma, 29% did graduation and rests of the 51% have
done masters.

22
 Frequency Table
Frequency distribution of the respondents with respect to their
Marital Status (N=200) Table 4.2.4

Marital Status

Cumulative
Frequency Percent Valid Percent Percent

Valid Single 127 63.5 63.5 63.5

Married 73 36.5 36.5 100.0

Total 200 100.0 100.0

36.5%

63.5%

Figure 4.2.5

Figure shows that out of total 200 respondents 36.5% were

married and 63.5% were single.

23
 Frequency Table
Frequency distribution of the respondents with respect to their
Profession (N=200) Table 4.2.5

Profession

Cumulative
Frequency Percent Valid Percent Percent

Valid Student 124 62.0 62.0 62.0

Business 61 30.5 30.5 92.5

Employee 15 7.5 7.5 100.0

Total 200 100.0 100.0

7.5%

30.5%
62.0%

Figure 4.2.5

Figure shows that out of total 200 respondents 7.5% were

employee, 30.5% were business man and 62% were student by
profession.

24
4.3 CORRELATION

Correlations

A S R P G ITU

A Pearson Correlation 1 .760** -.024 -.013 .693** .667**

Sig. (2-tailed) .000 .736 .850 .000 .000

N 200 200 200 200 200 200

S Pearson Correlation .760** 1 .067 .090 .691** .687**
Sig. (2-tailed) .000 .347 .204 .000 .000
N 200 200 200 200 200 200
R Pearson Correlation -.024 .067 1 .972** .074 .644**
Sig. (2-tailed) .736 .347 .000 .300 .000
N 200 200 200 200 200 200
P Pearson Correlation -.013 .090 .972** 1 .081 .640**
Sig. (2-tailed) .850 .204 .000 .253 .000
N 200 200 200 200 200 200
G Pearson Correlation .693** .691** .074 .081 1 .687**
Sig. (2-tailed) .000 .000 .300 .253 .000
N 200 200 200 200 200 200
ITU Pearson Correlation .667** .687** .644** .640** .687** 1

Sig. (2-tailed) .000 .000 .000 .000 .000

N 200 200 200 200 200 200

**. Correlation is significant at the 0.01 level (2-tailed).

Table 4.3:

Pearson correlation is used to validate the impact of Attitude,

Social Influence, Religious Obligation, Pricing of Islamic
Personal Financing, and Government Support on Intention to use
Islamic Personal Financing.

Table shows that correlation analysis were used to validate the

relations between the dependent variable i-e Intention to Use
and independent variables that are Attitude, Social Influence,

25
Religious Obligation, Pricing of Islamic Personal Financing, and
Government Support. Therefore, the values 0.667**, 0.687**,
0.644**, 0.640**, 0.687** shows a positive relationship between
Attitude, Social Influence, Religious Obligation, Pricing of
Islamic Personal Financing, Government Support and Intention to
use.

26
4.4 REGRESSION ANALYSIS
Table 4.4.1

Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 .974a .948 .947 .10008

a. Predictors: (Constant), G, R, S, A, P

In Table 4.4.1, R value shows relationship of dependent

variables (Intention to Use) with independent variables (Attitude,
Social Influence, Religious Obligation, Pricing of Islamic
Personal Financing, Government Support) and the relationship is
97.4% percent which is a significant relationship.

As seen from table 4.4.1 the R Square value which shows the
proportion of the variance in the value of the dependent
variable and independent is 94.8 percent.

Table 4.4.2

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 35.366 5 7.073 706.259 .000a

Residual 1.943 194 .010

Total 37.309 199

a. Predictors: (Constant), G, R, S, A, P
b. Dependent Variable: ITU

Table 4.4.2 shows significance value is less than .05, so we

conclude that there is a statistically significant relationship
between dependent variable and independent variables.

27
 Table 4.4.3

Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) -.023 .030 -.773 .441

A .235 .018 .349 12.776 .000

S .141 .019 .197 7.253 .000

R .370 .046 .569 8.052 .000

P .029 .040 .052 .732 .465

G .185 .017 .263 10.798 .000

a. Dependent Variable: ITU

Table 4.4.3 shows that all the variables Attitude, Social

Influence, Religious Obligation, Pricing and Government Support
are significant.

28
 CHAPTER NO.5

5.1 CONCLUSION

This study has investigated the factors that have impact on the
customers’ use of Personal Islamic Financing. Islamic banks
should introduce new products and attractive packages to gain
more market share and to compete with the conventional banking
system. They must understand the reasons why people prefer
conventional banking system instead of Islamic. Islamic personal
financing industry will grow in the coming years if they focus
on their strategies and their working environment. They have to
realize the challenges they are facing and to come up with the
solutions to these challenges. The major challenge is to change
the perception of the customers’ because most of the customers’
have the view point that Islamic banks are not following the
rules and regulations of Shari’ah. So, the Islamic banks should
aware the customers’ by seminars and road shows and bt
advertising of their new products through proper channel. They
have to build a strong bond of customers’ relationship and
improve their services to the maximum level.

For data to be calculated properly, correlation and regression

tests were used. This research has few limitations in which one
of the limitations was that it includes only people of Islamabad
and Rawalpindi. Some of the more variables should be added for
the future research also. By looking at the aspects of Attitude,
Social Influence, Religious Obligations, Pricing, and Government
Support this study has scrutinize the intention to use of
Islamic personal financing. Worldwide banking industry has
tremendous growth and Islamic banking industry should come up

29
with new and attractive Islamic products to gain more market
share in the banking industry.

5.2 RECOMMENDATIONS

The result of this research presents the following

recommendation’s to an Islamic bank for attracting the customers
towards Islamic banking:

 Islamic banks should use different marketing strategies to

introduce their new products so that the customers can have
know-how about the Islamic products of their banking system.

 Most of the customers don’t know the differences between the

Islamic banking system and conventional banking system, hence
education should be provided to them through proper channel
like seminars etc.

 Communication system should be very strong between the

managers of the Islamic banks and their customers so they have
good view point for the Islamic banks and their word of mouth
will become the main marketing for the Islamic banking system.

 They should introduce their new products through road shows,

television advertisements, exhibitions etc.

 Islamic banks should improve their communication system and

customers relationship by stay in contact with them and time
to time get a feedback by phone calls, letters etc.

 There should be frequents surveys on the complaints of the

customers and their perception about the Islamic bank products
and their offerings.

30
 Islamic banks should increase their market share by giving the
attractive packages to the customers and making them sure that
they are following the rules and regulation of Shari’ah and
their transaction will be free from Riba.

31
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34
 Appendix:
Questionnaire
Questionnaire Determinants of customers’ intention towards Islamic Personal Financing
Dear Respondent,
The investigator request to seek your opinion regarding the profile and problems of various Determinants of customers’
intention towards Islamic Personal Financing Please respond to all these questions according to given instructions. The
information provided by you will be used for the purpose of academic research only. Please cooperate.
Instructions

I. In each question, tick the relevant options applicable to you

II. Note: Abbreviations: 1. Strongly Agree, 2. Agree , 3. Neutral, 4. Disagree, 5. Strongly Disagree

Male/Female
(Below 25) (26-35) (36-45) (45 above)

Graduation Masters Diploma Other

Profession Student Business Employee
Marital Status Married Single

Strongly Agree Neutral Disagree Strongly

Agree Disagree

Attitude (A)

Choosing Islamic personal financing is a good idea.

Choosing Islamic personal financing is useful.

Choosing Islamic personal financing is beneficial.

I appreciate Islamic personal financing.

Islamic personal financing is one of the best Islamic banking products.

Islamic personal financing is positive.

Social influence (S)

Most people who are close to me think that I have to choose Islamic
personal financing.
It is expected by others that I should choose Islamic personal financing.
Most people who are important to me think that Islamic personal
financing is useful.
Most of people who are important to me think that Islamic personal
financing is
beneficial.
Most people are assume me familiar with the need of Shariah.

35
Religious obligation (R)
Islamic personal financing is in line with an Islamic philosophy of doing
banking
business.
Islamic personal financing is based on Islamic principle business
implementation.
An introduction of Islamic personal financing is based on al-Quran and
Hadith.
Islamic personal financing is free from riba.
Islamic personal financing is free from fraud

Pricing of Islamic personal financing (P)

Service charges are higher.
Penalty for Islamic personal financing is higher.
Fees obtained from Islamic personal financing are higher.
Islamic personal financing offers unjust pricing.
Monthly payments for Islamic personal financing are higher.
Overall, Islamic personal financing is higher
Government support (G)
Islamic banks encourages both the use of Islamic and conventional
banking
financing facilities.
The Pakistani Government provides incentives to the Islamic banking
industry.
The Pakistani Government guarantees the stability of Islamic finance
industry.
Islamic banks always scrutinizes the move of Islamic banking operations.
Islamic banks encourages new innovations in Islamic banking operations.
Intention to use (ITU)
I am interested to use Islamic personal financing.
I am interested to use Islamic personal financing in the future.
I will use Islamic personal financing someday.
I like to use Islamic personal financing.
I will definitely recommend Islamic personal financing to others.

Adopted from:

Hanudin Amin, Abdul Rahim Abdul Rahman, Stephen Laison Sondoh Jr, Ang Magdalene Chooi Hwa, (2011)
"Determinants of customers' intention to use Islamic personal financing: The case of Malaysian Islamic banks",
Journal of Islamic Accounting and Business Research, Vol. 2 Iss: 1, pp.22 - 42

36
Plagiarism Report:

Turnitin Originality Report

Faizan Report by Faizan Ch
From Plagiarism Reports (IUIC Faculty, Management Sciences)

 Processed on 08-Jul-2013 10:48 PKT

 ID: 339775198
 Word Count: 3107

Similarity Index
5%
Similarity by Source
Internet Sources:
0%
Publications:
4%
Student Papers:
2%

37