Patronage factors of Islamic and conventional banks: an empirical study in Malaysia

Mohd. Shariff, Ros Aniza (2017) Patronage factors of Islamic and conventional banks: an empirical study in Malaysia. In: First International Conference Integrating Contemporary Economics and Management Sciences with the Islamic Worldview, organised by Alneelain University, Khartoum, Sudan, 29-30 November 2017., Khartoum , Sudan. (Unpublished)

	PDF (Acceptance letter) - Supplemental Material Restricted to Repository staff only Download (356kB) | Request a copy
	PDF (Tentative program) - Supplemental Material Restricted to Repository staff only Download (1MB) | Request a copy
	PDF - Draft Version Restricted to Registered users only Download (685kB) | Request a copy

Abstract

Purpose-The purpose of this study is to explore and identify the main factors that motivate customers to deal with either an Islamic bank or a conventional bank. Design/ Methodology-Questionnaire survey was utilised with 941 respondents. In analysing the data, descriptive and inferential statistics analyses were employed to analyse the factors influencing the banking selection. Findings- The finding on the factors influencing banking selection criteria revealed that ‘Religious obligation’ factor was the most important criterion for the Islamic banks’ customers, while ‘Courteous and competence personnel’ factor was identified as the most important criterion for conventional banks’ customers. Furthermore, the finding on the factor analysis showed that for Islamic banks, the factors could be grouped into 3 components namely; ‘Service oriented factors’, ‘Financial oriented factors’, and ‘Religious obligation and image factors’. On the other hand, the factors for the conventional banks were ‘Service oriented factors’, ‘Financial oriented factors’, and ‘Marketing and Internet oriented factors’. Research limitations-This study comprises an exploratory study on patronage factors of Malaysian Islamic and conventional banks, implying a need for future research conducting this method in other countries. Practical implications- The research offers significant implications for banks’ customers and participating banks to improve their marketing strategy and to become more customer-focused, which is crucial for Malaysian banking in general and for Islamic banking in particular. Social implications- Improved and customized service could increases customers’ enthusiasm to deal with the bank on one hand, and raises the productivity of the employees on the other hand. Originality/Value-This study offers practical help to researchers and practitioners in providing a direction for sustainability of the banking industry due to the change in the cultural and country contexts. It is hoped that the study would facilitate the management of the banks in developing their marketing strategies which is very important for the survival of the bank specifically due to the intense competition arising from the foreign banks.

Item Type:	Conference or Workshop Item (Invited Papers)
Uncontrolled Keywords:	Patronage factors, Islamic banking, Malaysia.
Subjects:	BPH Islamic Economics H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Accounting
Depositing User:	Dr Ros Aniza Mohd Shariff
Date Deposited:	22 Dec 2020 07:56
Last Modified:	22 Dec 2020 07:56
URI:	http://irep.iium.edu.my/id/eprint/86606

Actions (login required)

View Item