RELIGION, PRICING AND BANK CUSTOMER ACCEPTABILITY OF ISLAMIC HIRE PURCHASE
By: Hanudin Amin
Journal of Islamic Banking & Finance July-Sept 2009
Abstract
This study is aimed to explore the influence of religion and pricing on Islamic hire purchase. Owing to this fact, the study is also proposed a model that would serve as a basis for all new researches in the area of Islamic finance. To the author knowledge, there exists a paucity of evidence of documenting a model for Islamic hire purchase in which it is motivated the current study to be undertaken. The study was based on a survey of 150 bank customers. Out of these responses, only 126 were usable to qualify for the further analysis of the data. Linear regression, bivariate correlation and structural equation modeling (SEM) using Analysis of Moment Structures (AMOS) were used to analyse the data. The study found that religion factor and price factor were the pivotal factors for Islamic hire purchase acceptance. Further, religion factor and price factor were also significantly correlated. Moreover, the study also reported that the proposed model was acceptable as in line with the AMOS requirements. The findings of this study to be a valuable tool for bank managers. It addresses the importance of religion factor and price factor in guiding the managers for further planning Islamic hire purchase in order to make it in line with the teaching of Shariah Islamiyyah and offers at the very competitive price.
Contents
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