Showing papers in "Journal of Islamic Marketing in 2018"

Purchase intention of “Halal” brands in India: the mediating effect of attitude

Abstract: The purpose of this paper is to review the existing state of research on “Halal” branding and to propose and empirically test the framework for understanding the purchase intention for “Halal” branded products in Indian context,The research design is cross-sectional in nature; convenience sampling and snowball sampling is done, and completely filled 288 questionnaires are considered for testing the conceptual framework Structural equation modeling is used to assess the fit of framework The study has incorporated attitude as a mediating variable in relation to purchase intention for “Halal” branded products The originality of the research is based on responses collected from the respondents in the form of online and offline questionnaires,Findings of the direct and indirect effects in the study show that attitude has a full mediation effect on purchase intention, ie in the presence of attitude as a mediation variable the direct effect of subjective norm and religiosity is insignificant and the effect caused through attitude is significant,In a country like India, which enjoys a sufficiently good percentage of Muslim population (142 per cent), an understanding of attitude provides enough scope for marketers to strategize techniques to reduce dissonance of non-availability of “Halal” brands,Research is atypical, as it has focused on the mediation effects of attitude toward “Halal” branded products with the help of cosmetic range of products

The perception of non-Muslim tourists towards halal tourism: Evidence from Turkey and Malaysia

Abstract: This paper aims to explore the perceptions of non-Muslim tourists towards halal tourism in Malaysia and Turkey. It also investigates the extent to which non-Muslim tourists are willing to purchase certain types of halal products and services.,Qualitative data were collected by conducting 35 semi-structured interviews with non-Muslim tourists in Malaysia and another 25 in Turkey.,Six major aspects are identified that describe the perceptions of non-Muslim tourists towards halal tourism. This paper also provides some suggestions for destination marketers on how best to cater for Western tourists and increase international arrivals.,This paper explores the perceptions of non-Muslim tourists towards halal tourism which is totally new research in destination marketing. It provides some original insights into the interactions between the religion of Islam and non-Muslim tourists. The insight should be of value to authorities, the industry and academics in both the Muslim and non-Muslim worlds.

Muslim tourist perceived value: a study on Malaysia Halal tourism

Abstract: This study aims to align the theoretical foundations of Halal tourism to conventional tourism paradigms. It investigates Muslim tourists’ perception of value in the context of tourist destinations in Malaysia.,The partial least square structural equation modelling uses SMART–PLS for 170 Muslim tourists and uses a positive research approach with a quantitative basis of enquiry. Six variables of Muslim tourist perceived value, such as price, social, emotion and quality, and Halal physical and nonphysical attributes are examined. In addition, this study also examines the mediating effect of destination experience in Malaysia’s environment (i.e. infrastructure, atmosphere and culture) and the relationship between Muslim tourist perceived value and tourist satisfaction.,Overall, the results indicate that price and social variables had no impact on tourist satisfaction, whereas other variables such as quality, emotion and Halal physical and nonphysical attributes had a direct impact on tourist satisfaction especially with the mediating effect of destination experience.,The effects of cognitive, affective and Islamic (i.e. Halal) values on tourist satisfaction were examined as also the importance of destination experience on tourist satisfaction.,This study also found that destination experience influenced tourist satisfaction significantly.

The impact of religiosity, environmental marketing orientation and practices on performance: A case of Muslim entrepreneurs in Indonesia

Abstract: This paper aims to investigate the environmental marketing orientation of Muslim entrepreneurs and looks at its relationship with environmental marketing and organizational performance in the context of small and medium enterprises in Indonesian. The study also examines the role of religiosity as a moderator on the relationship between environmental marketing orientation and green marketing.,The paper is empirical and quantitative in nature. The sample of the study is Muslim entrepreneurs in West Java and Central Java Indonesia. The data were analyzed using descriptive statistics and partial least square analysis.,Environmental orientation has a positive relationship with environmental marketing and operational and economic performance. Nonetheless, the study suggests no significant influence of environmental marketing on commercial performance due to “greenwashing” practices. Religiosity appears to moderate the relationship between environmental orientation and environmental marketing practices.,The lack of papers on Islamic marketing makes the depth of discussion somewhat limited.,The recommendation of this study provides a new path to the local government in mitigating the issue of environmental destructions occurring because of entrepreneurs’ business practices. This study has demonstrated the importance of cultivating religious values among society and specifically entrepreneurs as moral guidelines to further strengthen ethical behavior while conducting businesses. The government may endorse more teaching hours on Islamic curriculum at school to create the generation of religious entrepreneurs.,The act of preserving the environments while conducting businesses is one form of worship in Islam as such we call for the elaboration and application of strategies to instill the paradigm of excellent merchants among Muslim.,This paper is the first of its kind which empirically testing the relationship between environmental marketing and firms performance with religiosity as a moderator among Muslim entrepreneurs in Indonesia.

A qualitative investigation into consumption of halal cosmetic products: the evidence from India

Abstract: India accounts for the third-largest Muslim population in the world after Indonesia and Pakistan. The previous studies about halal consumption have focused on the “food and money industry” only. Muslim consumers are prohibited from using alcohol, pork and other items in any form; the rising awareness among Muslims has led to the rapid growth in demand of halal cosmetic products around the globe. This paper aims to present a framework of halal consumers’ purchase and explores the factors that Indian consumers consider while buying halal cosmetics.,The authors carried out qualitative research (focus group discussion and in-depth interviews) in Delhi, Mumbai and Hyderabad to gain deeper insight from the respondents.,The study found that religiosity and increasing awareness about halal products acts as an influencer for individuals’ halal products consumption along with halal certification and growing education level of Muslim consumers.,The paper has been developed based on the original research work carried out among the halal Muslim consumers in the major Muslim population in metropolitan cities of Hyderabad, Mumbai and Delhi over the past year.

Determinants of low adoption of Islamic banking in Pakistan

Abstract: The purpose of this paper is to examine the reasons behind low penetration of Islamic banking in Pakistan. Specifically, the study investigates the differentiation of Islamic banks (IBs) from conventional banks, the role of religion in choosing Islamic banking and the perception of IBs amongst the consumers.,The study uses a mixed-method approach, qualitative research along with a survey of users of conventional and Islamic banking. Factor analysis identified underlying dimensions and cluster analysis ascertained the differences between users and non-users of Islamic banking. Inferential statistics were used to test purported hypotheses.,The study finds that the users and non-users both perceive that Islamic banking is not completely interest-free. Furthermore, consumers presume that IBs are more of eyewash and are not truly practicing Islamic banking. Moreover, religion is not a major factor that attracts new users but there are also other important factors in marketing Islamic banking, such as service quality, convenience, branch network, etc.,This is one of the sparse studies in the field of Islamic banking consumer behaviour, which uses focus groups of users and non-users, and in-depth interviews of experts, to identify the issues and factors considered relevant and important by the users rather than relying only on literature review. Furthermore, it also provides a profile of users versus non-users of Islamic banking which is very useful for segmentation and targeting of customers.

Role of religiosity in purchase of green products by Muslim students: Empirical evidences from India

Abstract: This paper aims to investigate the role of religiosity in Indian Muslim students with the objective of mapping their attitude towards green products.,Data were generated from 306 Muslim students enrolled in educational institutes located in the national capital of India (i.e. New Delhi). The study sample was identified through purposive sampling, and then the questionnaire was personally administered. The data were analysed using SPSS and AMOS, and research hypotheses were validated using structural equation modelling.,The findings of the present study suggest that environmental concern is a precursor of consumer attitude towards green products, and antecedents of environmental concern are collectivism and eco-literacy. Further, the findings also suggest that religiosity significantly and positively affects collectivism values of consumers. However, religiosity was not found to be significantly associated with the level of eco-literacy of consumers.,Religiosity emerged as one of the main factors that needs to be considered while promoting green products in India. In their promotion messages, green marketers attempting to target Muslim students ought to emphasize that Islamic tenets enjoin upon them to collectively take the responsibility of preserving the environment. The natural resources and the environment may be presented as a gift of Almighty Allah, and steps towards environmental conservation may be projected as a mode of pleasing Allah.,This study is pioneering in the sense that it proposes a comprehensive and practical model for mapping attitude towards green products for young Indian Muslim consumers. In fact, the study takes a lead in examining the role of religiosity as antecedent in mapping of attitude towards green products and the role of collectivism and eco-literacy in influencing environmental concern.

The effect of entrepreneurial marketing on halal food SMEs performance

Abstract: Small and medium enterprises (SMEs) need to use specific marketing strategies and approaches due to their limited resources and capabilities. Entrepreneurial marketing (EM) is an alternative marketing management approach under the special conditions that describe SMEs. Therefore, the purpose of this paper is to investigate whether EM has a positive and significant effect on different aspects of performance of Iranian halal food SMEs.,A correlative descriptive research method is used and 384 questionnaires with five-point Likert scale are distributed among managers of Iranian halal food SME producers chosen by simple random sampling method. To analyze the data, structural equations modeling based on partial least squares is applied using SmartPLS 3.,The result of data analysis indicates a positive and significant effect of EM on the market and innovative performances of halal food SMEs. Nevertheless, the effect of EM on production performance of aforementioned companies is not confirmed. The findings also show that production, market and innovative performances of halal food SMEs result in their financial performance.,The study’s sample is limited to halal food SMEs of Iran. Although the objectives of the study have been aimed, more research can be done investigating this relationship in other companies from different sectors, contexts and countries. Similar studies can be conducted cross-culturally and in different Islamic countries.,For halal food SMEs that tend to achieve better performance, obtaining improved innovative and market performances requires using EM activities effectively. This paper suggests that halal food SMEs should be innovative, proactive, opportunist, risk-taker and customer-oriented to achieve better market and innovative performances and consequently earn higher profits.,This is one of the earliest studies investigating the effects of EM in the halal food industry. Although very few papers practically recognized the impact of EM on the performance of SMEs and entrepreneurial ventures, the effect of this concept on halal food SMEs has remained unknown.

Conceptualizing the relation between halal logo, perceived product quality and the role of consumer knowledge

Abstract: The purpose of this paper is to conceptualize the impact of halal logo as an extrinsic food packaging cue on perceived food quality moderated by the role of consumer knowledge.,An exhaustive literature review has been undertaken for the conceptual development. The nexus between halal logo and perceived food quality has been developed which provides a foundation for the further research.,The findings of this paper indicate that the halal-labelled products create a psychological impact about the quality of the food product.,This paper presents a brief overview of the lucrative opportunities in halal business for Pakistan. The findings of this paper can be adopted by the marketers for the development of proper marketing strategies. The empirical investigations of this paper could offer the base to the marketers to invest in favorable product packaging cues. The role halal logo as a food quality indicator has previously been overlooked in the literature. The impact of halal logo on food quality perception is emergent with avenues for study across various cultures and religions.,This is a useful paper which proposes a useful testable model for study in Pakistani consumer market to fill the gaps of Islamic consumer behavior literature.

Factors influencing the adoption of the crowdfunding-waqf model (CWM) in the waqf land development

Abstract: This paper aims to examine the behavioural intention of donors or crowd funders to use crowdfunding-waqf model (CWM), as this model is proposed to address the liquidity problem faced by waqf institution in Malaysia.,The primary data are collected from the survey administered to donors or crowd funders in Klang Valley and the analysis is conducted using Partial Least Squares (PLS). The model has validated its acceptance in the field by adopting the theory of Technology Acceptance Model (TAM).,This study has revealed that both the perceived usefulness and perceived easy to use are found to have a positive impact on the intention of donors or crowd funders in assisting waqf institution to develop waqf land in Malaysia. Furthermore, perceived easy to use has a positive relationship and direct effect with perceived usefulness of crowd funders to use the CWM.,The variables that have been used based on TAM in this study are constantly in flux. There are other variables such as trust, social norm, orientations that might be affecting the adoption level of donors or crowd funders in Malaysia. In addition, the current study is covering only Klang Valley, Malaysia. Future research is nevertheless still required that incorporate other variables and extend the study to other states of Malaysia.,The findings of this paper will provide waqf institution with an alternative source for raising capital to develop waqf asset. The present study also has implications for government and policy makers.,To the best of the author’s knowledge, no study has incorporated an element of crowdfunding to develop waqf land. Thus, the present study is relevant in extending the importance of crowdfunding as a source of financing for waqf institutions in developing waqf land.

Moderating effects of marketing communication and financial consideration on customer attitude and intention to purchase Islamic banking products: A conceptual framework

Abstract: The purpose of this paper is to introduce a conceptual framework that can facilitate investigations concerning the impact of marketing communication and financial consideration on the relationship between customer attitude and purchase intention of Islamic banking products and services.,This conceptual paper is structured based on the extant literature; it provides a review of theoretical perspectives, highlights the gap and illustrates the significance for developing a framework.,The authors identify notable patterns and limitations in previous empirical studies. Specifically, despite increasing interest in Islamic banking customer behavior, prior research has not given much attention to explore moderating effects on the customer attitude–intention link. This has left researchers and bank managers with very limited information to explain the conditions that enhance customers’ attitude and intentions toward Islamic banking products. Based on this backdrop, the paper displays a viable research model with propositions that assess potential moderating effects on the domain relationship.,This paper contributes to Islamic banking and management literature because prior research has predominantly focused on variables that directly influence customers’ behavior. This novel conceptual framework enables managers to better understand their customers and has implications for emerging themes, such as formulating strategies for specific customer groups and internationalization process. In addition, this paper provides a starting point to empirically examine whether and how the proposed moderators affect the link between customer attitude and behavioral intentions to purchase Islamic banking products.,To the best of knowledge, this is the first attempt to introduce relevant moderating variables for investigating the attitude and intention nexus in an Islamic banking context. Furthermore, the authors propose a new measure, namely, profit-loss sharing proportions which could enhance customers’ intention to purchase Islamic banking products.

Mediating effect of Halal image on Muslim consumers’ intention to patronize retail stores: Some insights from Malaysia

Abstract: Muslim consumers’ tendency to patronize stores with Halal images and purchase genuine Halal products is closely related to their effort to maintain Islamic identity, and this is further supported by many empirical data. Therefore, this paper aims to examine the relationships between attitude, subjective norm, perceived behavioral control and Halal principle knowledge and their effect on Muslim consumers’ behavioral intention to patronize retail stores. On top of that, the mediating effect of Halal image on these relationships is also investigated.,Data were analyzed using multiple and hierarchical regression analysis to test the model via the Statistical Package for the Social Sciences (SPSS) software among 480 valid samples of Muslim consumers.,Empirical results of the hierarchical regression analysis and the Sobel test revealed that there is a significant mediating effect of Halal image on the relationship between consumers’ attitude, subjective norm and perceived behavioral control of consumers’ behavioral intention to patronize retail stores. Consumers with high attentiveness of the stores’ Halal image have a positive impression of the stores, a high motivation to patronize and, without any conditions, may follow through their intention to patronize the retail stores.,This research study offers guidelines to the retailers, marketers and the authorities in enhancing marketing strategies and the implementation of stricter Halal consumption laws. Hence, this research puts forward the following strategies: adopting Halal marketing strategy, promoting Halal images in retail stores and reinforcing Halal principle knowledge in the mind of consumers.,The main theoretical contribution relates to the insertion of the Halal image as a mediating variable in the matter of Muslim consumers’ behavioral intention to patronize Halal stores in Malaysia. An inspection of the effect of Halal principle knowledge on Muslim consumers’ behavioral intention to patronize retail stores is also rewarding.

Consumers’ perception of usability of product packaging and impulse buying : Considering consumers’ mood and time pressure as moderating variables

Abstract: This paper aims to investigate the impact of consumers’ perception of usability of product packaging on impulse buying in terms of its shape, color, material, label and size.,A structural equation model was used for testing the conceptual model. The present research is an applied research and a descriptive survey. By using non-probability sampling, 388 customers of different malls in Shiraz City (Iran) were selected and surveyed by using questionnaires.,Results showed that appropriate material, shape and labeling of packaging have a significant positive influence on consumers’ perception of usability of product packaging, while color and size of packaging do not have an impact on consumers’ perception of a product usability. Moreover, results showed that consumers’ perception of the usability of packaging has a significant positive influence on impulse buying. Consumers’ mood and time pressure had also positive influence on impulse buying, but their moderating role in their influence of consumers’ perception on impulse buying decision was not supported.,Although this research contributes to the product management literature, it has some limitations. For instance, the research model was tested in only one city in Iran (Shiraz). Besides, it is specific to only two product categories and concentrates mainly on consumers’ mood and time pressure as moderating factors.,To the best of authors’ knowledge, this study is the first research which examines the structural relationship of packaging elements on consumers’ perception of reusability of packaging and impulse buying while considering consumers’ moods and time pressure as moderator variables.

Does gender differences play any role in intention to adopt Islamic mobile banking in Pakistan?: An empirical study

Abstract: Tremendous growth and worldwide expansion of Islamic banking industry has gained widespread attention of economist, bankers, investors and financial experts regardless of economic and political volatility in global banking industry. To compete with conventional banking, Islamic banks are setting up themselves with innovative technologies to gain competitive edge and market share. The establishment of mobile banking has been proven a technological wonder by eliminating time and space boundaries, and one can access financial services anywhere and at any time. For effective market segmentation, recognizing gender differences in factors affecting the adoption patterns of m-banking may provide competitive edge. Therefore, this paper aims to investigate how gender differences impact the intention to adopt Islamic mobile banking in Pakistan.,The study uses extended technology acceptance model (TAM) on final 243 participants from Pakistan. Confirmatory factor analysis (CFA) and structural equation modeling (SEM) methodology has been applied for data analysis using SPSS 21 and AMOS 21.,Results have identified two interesting and different models for males and females in intention to adopt Islamic mobile banking. It is inferred that males are more task driven and desire for personality, value and status, so their intention is significantly impacted by perceived usefulness and perceived self-expressiveness. Whereas, females have found lack of IT knowledge and trust; therefore, their intention is significantly impacted by perceived credibility. However, the perceived financial cost was found of no concern for both males and females and social norms influenced the adoption, but there existed no significant gender differences.,The contribution of this study to existing literature is twofold. First, the existing research on mobile banking has mainly applied TAM on conventional banking overlooking the important ethnic group, the Muslims, who prefer Islamic banking. Second, the impact of gender differences is investigated in factors affecting intention to adopt Islamic mobile banking that has not been studied previously. The study fills the gap.

Implementing air cargo halal warehouse: insight from Malaysia

Abstract: This study aims to discuss the challenges in implementing halal warehouse in the air cargo context along with the standard handling process for the storage of halal product for import and export purposes. This is vital to ensure that halal products do not get contaminated and should comply to halal logistics standard throughout the supply chain process.,This exploratory study adopts single case study to better understand the definition of halal warehouse, the challenges in implementing halal warehouse and also the standard handling process for the storage at the warehouse for import and export purposes. A well-guided case study protocol is followed.,Five categories have found to be the main challenges in implementing halal warehouse. They are coded as halal product trade, halal asset and facility, halal standard of procedure, human factor and perspectives between logistics provider and halal agencies. With regard to standard handling process for import and export purposes in airgo context with compliance to Shariah at the halal warehouse, there are seven main steps involved for import and nine steps involved for export.,As this paper is among the pioneer study that looks into halal warehouse implementation, it has some limitations. Further empirical study in a bigger context may be performed quantitatively, and multiple case study approach may also be adopted to get deeper insight in understanding halal warehouse implementation domain of study.,This study contributes to the understanding on the gap in the field with adhering or complying with the practice. It will provide input to the authority in understanding the current limitation and suggestion by the practicing companies.,Halal requirement in non-Muslim countries are not very well implemented and understood, whereby the understanding of the concept of Halalal Toyyiban throughout the supply chain process is critical. The main aim of halal logistics is to avoid cross contamination between halal and non-halal product during the transport, at the storage in warehouse and also in handling. This study contributes to the understanding of halal warehouse implementation.,There is a critical dearth of academic study that focuses on halal logistics specifically in transport and warehouse. This empirical case study provides basic understanding of implementing halal warehouse and presents the challenges and also required guidelines in handling halal product at the warehouse for both import and export purposes.

The perspective of religious and spiritual tourism research: a systematic mapping study

Abstract: Religious tourism is a form of tourism where people of a particular faith travel to visit places of religious significance in their faith. Previous research into the various aspects of religious and spiritual tourism (RST) has been noticeably extended. The purpose of this study is to perform systematic mapping to provide trends and classification regarding the recent publications in the area of RST.,This study collected 181 papers from five scientific databases, from which 122 were selected to be classified according to six properties: research type, research focus, research method, investigated religion, publication type and time.,The analysis of these data resulted in a map of the research field, which was presented under three perspectives: the distribution and trends over time of each classification property and the relationship between them. Besides the visual map, the full list of classified papers is available. The results showed that the number of publications is increasing every year, which shows a growing interest in this field. Moreover, the primary research focuses were destination, demand and marketing. Top three journals were found to be International Journal of Tourism Research, Tourism Recreation Research and Journal of Heritage Tourism. Furthermore, evaluation research, solution proposals and opinion papers were the main research types in the area. In addition, the majority of studies focused on Christianity and Islam. Finally, survey, discussion paper, interview and case study were the predominantly used research methods.,The mapping study delivers the first systematic summary of RST research.

The effect of socio-demographic variables and travel characteristics on motivation of Muslim family tourists in Malaysia

Abstract: This paper aims to investigate the socio-demographic variables that affect the motivation of Muslim tourists in Malaysia, and to examine the travel characteristics factors that affect the motivation in decision making of Muslim tourists travelling to Malaysia.,The study surveys questionnaires for data collection. Convenience sampling technique was used on the selected sample. The study was conducted in Malaysia, where the target respondents included Muslim family tourists with ages ranging from 18 to 64 years.,The findings show that motivation differs significantly among different levels of the socio-demographic characteristics except for gender and income. The result also reported that a majority of tourists’ travel behaviour was significantly different unless when it comes to seeking accommodation. Results also revealed a tendency for long holiday stays among Muslim tourists in Malaysia.,In this study, the examination of motivation on the Muslim family tourists has provided significant influence in managing the family tourist experience. On the other hand, most previous studies have shown that motivation is positively guided by general “push and pull” factors. However, this research demonstrates that components such family financial income and age of respondents has an effect on Muslim family tourists’ motivation, thus justifying the experience effect.,It is crucial for the service provider and destination management organizations to differentiate their products and services so that the packages and experience will be more meaningful.,Destination packages should be appropriately designed and positioned in the target markets to meet the needs and wants of different Muslim family groups. Communication should emphasize not only the most distinctive characteristics but also the most suitable holiday packages that the family tourist can afford to pay. This would assist the family in the decision-making process and choice processes and facilitate the family’s expectation.,This research paper related to Islamic tourism marketing which can be used to formulate appropriate marketing strategies, build a viable market segment and design practical marketing strategies to attract potential Muslims travellers.

Service quality and customer’s satisfaction in Tanzania’s Islamic banks: A case study at People’s Bank of Zanzibar (PBZ)

Abstract: This study aims to examine the relationship between service quality and customers’ satisfaction, and the effect of service quality on customers’ satisfaction in Tanzanian Islamic banking.,This study applied six service quality dimensions of CARTER model, i.e. compliance, assurance, reliability, tangible, empathy and responsiveness, to measure Tanzania Islamic banks’ service quality. The questionnaire was also used to measure the level of customers’ satisfaction to the Islamic banking services provided. A total of 384 questionnaires were randomly distributed to the customers of People’s Bank of Zanzibar Islamic banking division, whereby 255 questionnaires were returned and used for analysis. By using SPSS version 19, descriptive analysis, correlation analysis and regression analysis have been used to meet the research objectives.,The study findings indicate that customers are satisfied with the Islamic banking services provided by Tanzania banks. However, it has been found that customers are attracted by compliance, tangibility and reliability of the banks. The findings further indicate a significant relationship between service quality and customers’ satisfaction. Indeed, empathy, compliance and reliability were found to be the only significant predictors of customers’ satisfaction.,Further researches should be considered to involve more banks to generalize the findings. Again, the study has focused on the influence of service quality on customer satisfaction; however, there may be other issues that have direct or indirect influence on customers’ satisfaction on Tanzania Islamic banking. It is, therefore, suggested that future researchers may broaden their scope and conduct research in these areas.,The findings of the study suggest that there is large number of Muslim and non-Muslims communities who are interested in Islamic modes of finance and banking. Banks have potential to increase customers’ base by improving the quality of their services. Essentially, banks must focus on complying with Islamic principles, improving reliability and empathy, as they statistically influence customers’ satisfaction.,The study creates awareness about the nature of the quality of services provided by Islamic banks in Tanzania. Hence, the study may influence more customers to join Islamic banks for better services.,This study is important for Tanzania Islamic banks considering that the country has a large number of Muslim communities and non-Muslims who are interested in Islamic modes of finance and banking. While most of the other studies on customers’ preferences in Tanzania are based on conventional banking services, this study focuses on Islamic modes of finance and banking.

A comparative study of the historical and current development of the GCC insurance and takaful industry

Abstract: Purpose This paper aims to present a comparative examination of the historical and current profiles of the insurance and takaful industry in the Gulf region. Meanwhile, it will provide overview and insightful information of Gulf Cooperation Council (GCC) countries for insurance and takaful providers for their marketing strategy purpose. Design/methodology/approach This paper uses insurance and takaful sectors in Gulf region as an exploring area where the data are extracted from the regulators’ annual reports and other reports issued by research houses and market players, e.g. Islamic Financial Services Industry, Swiss Re and Milliman. Findings The comparative analysis reveals that insurance activities penetrated the Gulf region through foreign institutions. After independence and booming oil prices, local institutions established the industry in an unregulated environment. As the industry grew and matured, the sector gradually became regulated. This supported the growth of the industry, leading to the emergence of the biggest takaful market in the world, with 72 takaful operators. Almost half of the takaful operators operate in the Saudi market. Regarding business lines, general lines dominated because of compulsory motor insurance for all cars and health insurance for expatriates. Insurance penetration and insurance density recorded a low figure in GCC compared to the global market because of a lack of product development, especially in family line, which many people think the life insurance contradicts Islamic law. Furthermore, it is low due to the poor channel of distributions with depend heavily on insurance agents that fails to reach the customers. Research limitations/implications Interestingly, the takaful market share is considered very low, e.g. 9 per cent in Oman 9 and 9.2 per cent in UAE, where the majority of population is Muslim, indicating that takaful providers should focus in these countries to grab better market shares. Originality/value As takaful business is an emerging area in Islamic finance and many insurance players are interested in it, this paper provides an overview and marketing insights of insurance and takaful industries in the GCC region.

Religious symbolism in Islamic financial service advertisements

Abstract: Purpose This paper aims to examine the impact of increasing the intensity of religious cues in financial service advertisements on target and non-target groups. Design/methodology/approach To test the proposed hypotheses, a 2 (Religion: Muslims versus Non-Muslims) x 3 (Religious identity primes: Low versus Medium versus High) factorial design was used. Both target and non-target groups were randomly exposed to factitious advertisements of an Islamic bank embedded with low, medium and high intensity of religious cues. Findings The results of this study indicate that within target group the manipulation did result into a more favourable attitudes towards the advertisement (Aad) and attitudes towards the brand (Ab) for the medium intensity advertisement; however, for high intensity advertisement, only Aad was more favourable compared to low intensity advertisement. Relatively strong evidence was found in case of non-target group negative reactions in term of Aad, Ab and purchase intention. The direct comparison between target and non-target groups suggest a general pattern of more positive response from target group as compared to non-target group. Practical implications The findings of this study provide an important insight into the effectiveness of identity salience messages in financial service marketing. The study provide empirical evidence that intensifying the rhetoric beyond a certain point will generate negative results from both target and non-target respondents. Originality/value The authors integrated the research on symbolism, social identity and target and non-target effects to analyse the attitudinal and behavioural differences between and within target and non-target groups of financial service advertisements with different intensity of religious cues.

A conceptual framework for the adoption of Islamic banking in a pluralistic-secular nation: Nigerian perspective

Abstract: Islamic banking is an emerging product in Nigeria; it has evolved as a new reality in the Nigerian financial scene since 2011. Thus, the purpose of this paper is to propose a conceptual framework for the study of Islamic banking adoption behavior among bank customers in Nigeria.,This study is a literature and theoretical review of past studies to develop a comprehensive framework for the study of Islamic banking adoption behavior in Nigeria.,In this conceptual study, the researcher identified 12 independent variables, namely, relative advantage, compatibility, complexity, observability, trialability, uncertainty, promotional efforts, awareness, customer involvement, perceived information quality, profit/loss sharing and religiosity, as suitable variables for the study of Islamic bank adoption in Nigeria.,As Islamic banking is an innovative and unique product, which differs from conventional banking, it is hopeful that upon validating the framework, it will provide useful insight on the adoption behavior of Islamic bank customers in Nigeria.,This study will be useful to Islamic banks in gaining and maintaining their existing customer, and policymakers, regulators and other relevant stakeholders will be able to strategize in accordance with their respective assignments toward the development and growth of the Nigerian financial industry.,Most previous studies concentrated on product attributes of innovation adoption. But, this current study inculcated the consumers’ attitude and perception toward adoption of Islamic banking. Thus, the authors then propose several factors that can influence adoption of Islamic banking in Nigeria.

The Hijabi self: authenticity and transformation in the Hijab fashion phenomenon

Abstract: The purpose of this paper is to delve into the intricate relationships between hijab culture and consumption. The research questions whether the hijab consumption phenomenon is an icon of fashion or an authentic blend of religious and cultural tenets.,The research uses a netnographic approach in a qualitative manner similar to ethnography on the internet. An online forum is created on social media for Egyptian hijabista consumers, who reflect on their self-transformations with respect to the hijab phenomenon.,The findings of the study provide insights relevant to the consumer experiences of the hijab fashion phenomenon. The results are analyzed using Holt’s (1995) consumption parabola, where the insights show the consumption as experience, integration, play and classification metaphors in action. Most insights show that the hijab fashion experience combines authentic religious meanings with cultural ones.,The study methodology used is qualitative, thereby putting limitations on generalizing the findings to other consumers and contexts.,The findings are relevant to fashion designers and fashion marketers who aim at understanding the hijabista culture.,The results are relevant to consumer culture theorists as well as to macromarketing researchers looking at authenticity in the hijab fashion phenomenon. The research is also relevant in understanding the hijabista culture, which is a growing consumer culture around the globe.,The research combines the literatures on consumer culture theory, self-transformations and authenticity with regards to the hijab consumption phenomenon. Such relationships were not explored previously in the literature. The methodological approach is also novel.

Buying decision in the marketing of Sharia life insurance (evidence from Indonesia)

Abstract: The purpose of this study is to examine the effect of satisfaction (SAT) and trust (TRS) on word of mouth (WOM) and buying decision (BD) for Sharia life insurance in the Muslim society of Indonesia.,The research design was taken from 386 Muslim customers who held Sharia life insurance policies using the approach of purposive sampling in four cities in Indonesia, namely, Jakarta, Surabaya, Makassar and Medan. The hypothesis testing used structural equation modeling.,The research results show SAT and TRS have effects on WOM. Moreover, WOM has a significant effect on the BD of the customers of the Sharia life insurance product.,This study focused only BD of customers who bought Sharia life insurance products, so the results cannot be generalized to other types of Sharia insurance. Therefore, future research could consider other Sharia insurance products, such as Sharia general insurance.,In relation to the testing of SAT and TRS on WOM, this study examined the influence of the two variables on WOM and BD. This study can serve as reference for Sharia life insurance companies when formulating promotion strategy.,This study justified the strong association between SAT and TRS for WOM and BD in Sharia life insurance in an integrated way.

The influence of coproduction’s factors and corporate image toward attitudinal loyalty: Islamic financial banking services delivery in Malaysia

Abstract: Islamic banking system has become mainstream with the increasing popularity and demand of its products and services, including that of non-Muslims and even among the Western market. This paper aims to attempt to explore the factors that influence the co-production of services as well consumer attitudinal loyalty based on consumers’ perception of Islamic financial banking services. It also tests how co-production and customer loyalty as well as corporate image relate to each other. The present study is set up in the context of Islamic financial banking service industry in Malaysia.,The data were collected using the survey method. Convenience sampling was used to collect 502 usable responses via self-administered questionnaires.,The hierarchical regression results show that communication and commitment have a significant influence on co-production of services, but competence has an insignificant relationship. Co-production and corporate image have a significant influence on the consumer attitudinal loyalty, whereas corporate image has significant influence on consumer commitment. The study findings show that the co-production fully mediates the relationship between the communication and attitudinal loyalty, whereas it partially mediates the relationship between commitment and attitudinal loyalty.,Further research is required to determine other additional and broader range of constructs. Further testing is therefore required before any generalization of these results can be undertaken, and it would be useful to conduct future studies in other types of industries. There are four segments of Islamic financial services customers, namely, religious conviction group, religious conviction and economic group, ethical observant group and economic rationality group. It is interesting to examine these segments related to the current study on how each segment influences the co-production process and loyalty among them.,The sustainability of a service organization depends on understanding customers’ needs but it also relies on the involvement of its customers. Although similar to-production, value co-creation has been regarded as one of the most prioritized research topics in service and marketing; thus, future researchers might model the relationships based on this concept. Despite these, few studies have been conducted to understand the nature and implications of co-production concept in Islamic financial banking services. This study contributes to the knowledge, in particular, in the context of Islamic financial banking services, especially by integrating additional constructs in determining customers’ loyalty such as the corporate image. To a certain extent, it offers some important insights on the subject of co-production and customer loyalty that eventually will lead to value creation and sustainability of businesses.

Perception of the takaful operators’ performance towards customers’ intention in using medical takaful card among public sector

Abstract: This paper aims to examine the level and the relationship between the perception of the performance of takaful operators and the customers’ intention in using medical takaful card among public sectors in Kedah, Malaysia,A quantitative research methodology was advocated to answer the objectives progressively Data were collected from questionnaires and analyzed using SPSS v22 In total, 313 respondents were selected from three public sectors in Kedah, Malaysia,The review found that the level of customers’ perception of performance towards the customers’ intention in using medical takaful card was high Besides, the findings concluded that a positive moderate relationship was observed between the perception of the performance of takaful operators and the customers’ intention in using medical takaful card among public officers in Kedah, Malaysia,There were three major limitations of this paper These limitations are further explained in the conclusion,This study has provided some major implications First, on behalf of the public sector institutions, the results of this study clearly showed that the intention of the public sector officers in using medical takaful card should be increased Second, on behalf of the industry, this study could acknowledge them to improve their performance to increase efficiency, creativity and innovation to create a good impression among consumers Third, the previous theory and literature related to the perception of performance is suitable to use even in the event that the takaful industry has been proven,The paper is useful to takaful operators to provide a good perception of their performance in the process of influencing the customers, especially among the public sector officers, to enrol in the medical takaful coverage

Determinants of halal meat consumption in Germany

Abstract: The purpose of this study is to investigate the determinants of halal meat consumption within a Turkish Muslim migration population in Germany using the theory of planned behaviour (TPB) as a conceptual framework. The role of self-identity as a Muslim, dietary acculturation in the host culture, moral obligation to purchase halal food and trust on the authenticity of available halal food are explored.,A quantitative cross-sectional survey design for the current study was adopted. Purposive sampling through self-administered questionnaires was used to collect data from 517 Muslim consumers originated from Turkey and currently living in Germany. The analysis includes exploratory factor analysis, means scores, linear correlation and multiple regressions to examine the determinants of halal meat consumption.,A positive personal attitude towards the consumption of halal meat, motivation to comply with the opinion of important persons and institutions and the perceived control over consuming halal meat predict the intention to eat halal meat among Muslims.,This study used self-identity, dietary acculturation, trust and moral obligation as moderator variables. Future research should also examine the moderating effects of values such as individualism/collectivism and materialism and demographic factors such as age, country of origin, education level and income level to increase the predictive power of the current TPB model.,Practical implications can be extended to those policymakers, marketing managers and advertising agencies dealing with food-related products. They can pursue strategies based on religious self-identity, dietary acculturation, trustworthiness and moral obligation factors in their distribution and communication efforts targeted at the growing local and international market of halal food.,This is one of the few studies investigating the determinants of halal meat consumption in a Muslim population in Germany using the TPB within a food, religion and migration context.

A citation analysis of corporate social responsibility (1970-2014): insights from Islamic perspective

Abstract: Purpose The purpose of this paper is to analyse the citations of scientific research on the concept of corporate social responsibility (CSR) from 1970 to 2014. In particular, several interconnected research questions were investigated: How did the conceptualisation of CSR change from 1970 to 2014? What is the general direction of the change? How does Islamic CSR emerge? Design/methodology/approach An in-depth analysis was performed with the use of the data analysis tool available in the Web of Science. The study categorises CSR into four areas: business ethics and corporate governance; management; marketing; and others. The first three categories were based on the Chartered Association of Business Schools’ Academic Journal Guide 2010 and 2015 (UK). Findings The findings reveal that 67.19 per cent articles have been published based on the ranked journals of Academic Journal Guide 2010 and 2015. The findings of the study will help to inform future areas of CSR. The top journals which published most articles from Academic Journal Guide 2015 are Journal of Business Ethics and Corporate Social Responsibility and Environmental Management. Practical implications The findings suggest that the remit of sustainability from Islamic perspective is wider. Islamic marketing, as an area, remains largely in need of empirical research. The business communities should successfully integrate Muslim communities into their marketing strategies. Originality/value To the best of the knowledge, this is the first study to explore citation analysis of general CSR literature and Islamic CSR. The study finds that there has been an increase in interest in this subject of CSR and Islam in the recent years. Future research is needed on theory and methodological analysis of general CSR field and Islamic CSR field.

Islamic marketing: bridging the gap between research and practice

Abstract: The purpose of this study is to examine the link between research and practice within the context of Islamic marketing (IM), an issue which is controversial in the literature. It offers reasonable answers that bridge the gap between research and practice, as well as the way to mitigate it.,This study uses a critical approach to analytically review the literature on IM, and relates it to research and practice.,The study finds that the advancement of knowledge on IM necessitates research and practice. There is a gap between research and practice which evolved from decades of objectivity between researchers and practitioners in the field of IM. It is necessary to search for some practicable solutions that can narrow the gap between theory and practice.,The basic limitation of this study is that IM has not yet emerged as a distinct discipline. Hence, there is limited study on IM issues in the context of research and practice.,This study makes essential contributions to the chastisement by research and practice, a theoretically new field of IM subject.

Public relation activities in Islamic banking industry: An approach of circuit of culture (COC) model

Abstract: Purpose This paper aims to examine the role of religion in influencing the public relations activity of Islamic banking institutions in Malaysia by adopting circuit of culture (COC) model as theoretical framework. Design/methodology/approach A narrative analysis is used in this study. This analysis has basically involved the application of symbolic interactionist tenets to respective websites and relevant documents of Islamic banks in Malaysia. Findings The paper has identified six Islamic value orientations elements, especially respect for religious authority, affinity with the past, fatalism, communal kinship, attachment to the eternal life and spirituality and idealism relative to public relations practice among the Islamic banks in Malaysia. The study finds that the respective banks are embedded with Islamic values in their communication tools that reflect public relations activity. Research limitations/implications The theme of value orientations that have been generated and used in this study are constantly in flux. There are some other orientations that might be affecting the cultural value of public relations activities of Islamic banking in Malaysia. Furthermore, these value orientations are less effective in identifying dominating cultural factors that can be amended with situational flexibility, as the current study focuses on Malaysian context. Future research is required by incorporating a quantitative means of testing and measuring the effectiveness of website by using cultural-economic model for building. Practical implications The study suggests that public relations researchers should not ignore the vital relationship between religion and public relations activity. The findings of this paper provide Islamic banking institutions to improve and enhance their public relations activity. Originality/value This paper offers an additional literature related to public relations activity by using cultural-economic model. While previous studies have focused on product, brand matters and organization behavior to define cultural and public relation, very little research has been focused on the role of religion in determining public relations activity and cultural pattern. Indeed, no study has been focused explicitly on public relations activity of Islamic banks in Malaysia using COC.

Towards a better understanding of fashion clothing purchase involvement

Abstract: This study aims to concern with Malaysian consumer involvement in fashion clothing. To achieve this, materialism, fashion clothing involvement and religiosity are examined as drivers of fashion clothing purchase involvement.,Gender, race and age are explored to have better understanding of fashion clothing purchase involvement in Malaysia. Data were gathered using a Malaysian university student sample, resulting in 281 completed questionnaires.,The results support the study’s model and its hypotheses and indicate that materialism, fashion clothing involvement and religiosity are significant drivers of fashion clothing purchase involvement. Also, materialism is a significant driver of fashion clothing involvement, and fashion clothing involvement mediates the relationship between materialism and fashion clothing purchase involvement. The results also show that Malaysian youth do not possess a high level of materialistic tendencies.,This study offers enormous opportunities for the international apparel marketers to formulate relevant business policies and strategies.