Factors Influencing Customers Intention to Use Islamic Personal Financing: Moderated by Religious Obligations

Abstract

The purpose of this dissertation is to explore the factors that influence consumer intention to adopt Islamic products for their personal financing. For this purpose; subjective norm, pricing of Islamic finance and trust have been taken to assess its influence of intention to adopt Islamic financing. Furthermore, religious affiliation has been taken as moderator variable to determine its moderating effect on the relationship between subjective norm, pricing of Islamic finance and trust and intention to use Islamic financing. To achieve these objectives a self-administered survey questionnaire has been distributed among 200 participants. Where, 186 questionnaires have been returned fill making a response rate of 93 per cent. To test the hypotheses of the study; regression analysis and process macro moderating analysis have been carried out on the data set. The regression findings for the four hypotheses revealed that subjective norm, trust and religious affiliation, were shown to be positively associated to the intention to employ Islamic personal financing, whereas, pricing Islamic finance have no significant on intention employ Islamic personal financing. Moreover, religious affiliation has a significant moderating effect for pricing of Islamic finance and trust, and insignificant moderating effect for subjective norm.  The findings have practical consequences for bank executives as well as theoretical ones for future academics.