Determinant of customers’ preference in selecting Islamic banks

Shahrinaz, Irwan; Kasuma, Jati; Naim, Abang Sulaiman Abang; Rahim, Emelia Abdul; Arabi, Arrominy; Ismawi, Norlelawati; Rosli, Rosmiyati

International Journal of Advanced and Applied Sciences

Int. j. adv. appl. sci.

EISSN: 2313-3724

Print ISSN: 2313-626X

Volume 4, Issue 3 (March 2017), Pages: 117-121

Title: Determinant of customers’ preference in selecting Islamic banks

Author(s): Irwan Shahrinaz, Jati Kasuma *, Abang Sulaiman Abang Naim, Emelia Abdul Rahim, Arrominy Arabi, Norlelawati Ismawi, Rosmiyati Rosli

Affiliation(s):

Faculty of Business Management, Universiti Teknologi MARA, 94300 Kota Samarahan, Sarawak, Malaysia

https://doi.org/10.21833/ijaas.2017.03.018

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Abstract:

The presence of conventional bank and Islamic bank in Malaysia has created a competition in capturing customer. Customer of Islamic bank maintained their account with the bank if they are satisfied with the product and services offered to them. Other research reveals that the reasons for Muslim to choose Islamic banking are mostly due to religious concern and motives. This study investigates the relationship between religions; influence by family and friend and finally service quality with customers’ behavior towards bank selection preferences. Data was collected from 380 customers using self-administered questionnaires from various Islamic banks in Miri. Results reveal that service quality and preference of choosing Islamic bank in Miri has a strong and positive relationship. Ultimately, friends and family has more impact towards preference in choosing Islamic bank. Recommendation for future study also discussed.

This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

Keywords: Islamic banking, Customer preferences, Religion, Service quality, Friends and family

Article History: Received 6 November 2016, Received in revised form 7 January 2017, Accepted 11 January 2017

Digital Object Identifier:

https://doi.org/10.21833/ijaas.2017.03.018

Citation:

Shahrinaz I, Kasuma J, Naim ASA, Rahim EA, Arabi A, Ismawi N, and Rosli R (2017). Determinant of customers’ preference in selecting Islamic banks. International Journal of Advanced and Applied Sciences, 4(3): 117-121

http://www.science-gate.com/IJAAS/V4I3/Shahrinaz.html

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