Customers’ perceptions of Islamic hire-purchase facility in Malaysia: an empirical analysis

Dusuki, Asyraf Wajdi and Abdullah, Nurdianawati Irwani (2006) Customers’ perceptions of Islamic hire-purchase facility in Malaysia: an empirical analysis. IIUM Journal of Economics and Management , 14 (2). pp. 177-204. ISSN 1394-7680

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Abstract

One of the latest innovative products of Islamic banks is the Islamic hirepurchase facility or Al-IjOErah Thumma al-Bayc (AITAB) which is designed to meet the current demand and avoid certain risks in the financing of consumer durables and motor vehicles. AITAB can be utilized to finance a wide range of assets, either for individual or corporate customers. This paper presents empirical evidence on the customers’ perception of AITAB. A country-wide questionnaire survey has been conducted on 203 AITAB customers, aiming at eliciting their awareness and perception of AITAB facility. Overall, the results provide a strong signal to the bankers that efforts need to be intensified in educating the public about the distinctive characteristics of AITAB and how it may suit the interest of customers in financing their assets. There is a huge potential for AITAB to be marketed to various segments of customers comprising those who are concerned with the legitimacy of the facility, and those who seek convenience and less complicated transactions.

Item Type:	Article (Journal)
Additional Information:	3677/3029
Uncontrolled Keywords:	Islamic hire-purchase, Customers’ perceptions, Customer satisfaction.
Subjects:	H Social Sciences > HG Finance H Social Sciences > HG Finance > HG1501 Banking
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User:	Associate Professor Dr. NURDIANAWATI IRWANI ABDULLAH
Date Deposited:	13 Oct 2011 15:38
Last Modified:	15 Mar 2013 09:33
URI:	http://irep.iium.edu.my/id/eprint/3029

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