e-journal

Perception of Nigerian Muslim account holders in conventional banks toward Islamic banking products

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Purpose – The purpose of this study is to determine the level of perception of a Muslim account holder
in a conventional bank toward Islamic banking products and to determine the relationship between the
perception levels of Nigerian’s account holder’s and their decision to patronize Islamic banking.
Personal perception factor is operationalized as opinion or observations, which are able to influence
customer’s decision to patronize Islamic banking products and services.
Design/methodology/approach – A field survey was conducted and samples drawn using
proportionate stratified simple random sampling techniques. Out of the 500 questionnaires
distributed by hand, only 304 were returned and 286 were usable for the data analysis using SPSS
and PLS Modeling Software.
Findings – First, the means for personal perception variable was 4.91 with standard deviation of 1.007.
This indicates the good perception level of Islamic products by Muslim account holders in a
conventional bank in Kano, Nigeria. The respondents’ level of decision to patronize the Islamic banking
products and services was satisfactory. Second, the results also showed that the research framework
model, structural model and hypothesis were supported. In the measurement model, the convergent,
discriminant validity and reliability/composite reliability of the perception construct were assessed
favorably. The results revealed that perception was positively associated with a Muslim account
holder’s decision to patronize Islamic banking products.
Research limitations/implications – The study is subject to several shortcomings that limit
interpretation of findings. One of the limitations of this study is the use of cross-sectional design for
survey research and subjective self-reported perceptual measures in assessing the studies. Hence, the
findings of this study cannot be generalized in a larger context across the cultures of other countries.
Practical implications – The implication of this study is for the Islamic banking industry to focus on
the people’s level of perception, government support, quality and availability of Islamic banking
products and services that would have an impact on customer decision to patronize Islamic banking
products. The necessary suggestions on new area of research were recommended for future researchers.
Social implications – Islamic banks have the potential to exploit and market to various segments of
customers extending beyond those who are concerned with the legitimacy of the facility from the
Islamic point of view and those who seek service quality, convenience and efficient transactions. To the
practitioners in search of patronage of Islamic banking products and services, patronage studies on
Islamic banking have so far largely focused on the combination of various religious, reputation,
commercial, service satisfaction, staff, confidentiality and convenience factors.
Originality/value – The results of the present study establish the major problem that requires urgent
attention needed to strengthen public education toward the distinctive characteristics of Islamic banks
and how it may profitably suit the interest of customers in their financial dealings.

Keywords Nigeria, Perception, Patronize Islamic banking products

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Informasi Detail

Judul Seri

International Journal of Islamic and Middle Eastern Finance and Management

No. Panggil

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Penerbit

: Emerald Group., 2014

Deskripsi Fisik

International Journal of Islamic and Middle Eastern Finance and Management Vol. 7 No. 3, 2014 pp. 288-305

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

AKUNTANSI

Info Detail Spesifik

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Pernyataan Tanggungjawab

Asmawati/Syahrial

Versi lain/terkait

Lampiran Berkas

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