Emerald | Journal of Islamic Marketing

Service quality and customer satisfaction in the banking sector: A comparative study of conventional and Islamic banks in Pakistan

Hayat Muhammad Awan, Khuram Shahzad Bukhari, Anam Iqbal — 2011-09-20 00:00:00.0

Abstract

Purpose – The purpose of this paper is to investigate the service quality and its relationship to customer satisfaction among the customers of conventional banks and Islamic banks. A modified SERVQUAL scale is utilized to ascertain the functional dimensions of service quality specific to the industry and service context under study. In addition, the study examines the differences in service quality satisfaction and its impact on the behavioral intentions of customers. Design/methodology/approach – A field survey carried out with the help of a questionnaire constructed by using a modified SERVQUAL scale. Data were collected from 200 walk-in customers conveniently drawn from three major conventional banks and three Islamic banks located in urban areas of Pakistan. Data were analyzed using the analytical hierarchy process to identify service quality and customer satisfaction-related factors for Islamic and conventional banks. Findings – By using factor analysis, 52 measurement items with a factor loading greater than (0.5) were identified to form five service quality dimensions namely empathy, service architecture, convenience service encounter, employee service criteria, customer focus and five customer satisfaction dimensions: responsiveness, competency, safe transaction, competitive services, knowledge for the overall banking industry explained 56 percent of the variance. Results from regression analysis of the relationship between multidimensional service quality dimensions and unidimensional customer satisfaction factors also validated the importance of service quality aspects for behavioral intentions (satisfaction, feelings) for customers from conventional banks and Islamic banks. Originality/value – This study has practical significance for conventional and Islamic banking policy makers for understanding the behavioral intentions of their customers and using them for effectively positioning the service quality of their banks.

The effect of national culture on service provision within Takaful industry: A comparative study in Kuwait and Egypt

Salman Alajmi, Charles Dennis, Yasser Altayab — 2011-09-20 00:00:00.0

Abstract

Purpose – The purpose of this paper is to investigate the effect of national culture in terms of power distance and uncertainty avoidance on service provision in terms of information flow and communication policy within the Takaful industry (Islamic insurance) in Kuwait and Egypt. Second, to validate Hofstede's claim regarding the homogeneity of Arab culture which he believes is dominated by the Islamic religion. Design/methodology/approach – The study was undertaken among 462 employees from three Takaful organizations in Kuwait and Egypt. The sample was randomly selected from all levels within Takful companies operating in both countries. The data were analyzed using two different statistical packages. The first tool was SPSS version 17 with which the first hypothesis of the differences between Kuwait and Egypt was tested. Second, the analysis of moments structure was utilized to find the effect of national culture based on two cultural dimensions of power distance and uncertainty avoidance on two service mechanisms of information flow and communication policy within the Takaful industry. Findings – Results demonstrate that: more differences than similarities exist between Kuwait and Egypt in terms of power distance and uncertainty avoidance, which implies that the differences in national culture between the two countries are in contrary to Hofstede's claim of homogeneity of Arab culture, and national culture in terms of power distance and uncertainty avoidance affects service provision in terms of information flow and communication policy, respectively. Originality/value – The paper contributes to the body of knowledge in service marketing literature at the theoretical and practitioner level. First, it provides empirical investigation to an existing theory that links national culture to service provision through service quality gaps. Second, it provides evidence that disputes Hofestede's claim of homogeneity in Arab culture, as it evidently proves the cultural differences between Kuwait and Egypt. On other hand, practitioners of Takaful may comprehend how power distance and uncertainty avoidance might affect information flow and communication policy for which managers can eliminate their information gap, which in turn will strengthen the Takaful operator service quality in information gathering, sharing and disseminating. Takaful Policy makers and institutions might benefit from this research by understanding the effect of national culture on service provision and taking this as an important factor when designing regulations.

Researching Islamic marketing: past and future perspectives

Özlem Sandikci — 2011-09-20 00:00:00.0

Abstract

Purpose – The purpose of this paper is to explore the reasons underlying the recent interest on Islamic marketing, discusses past research on the topic and offers a future research perspective. Design/methodology/approach – The paper is based on a critical review of the existing literature. It offers ethnoconsumerism as a way to develop a situated understanding of Muslim consumers and businesses. Findings – Two distinct phases, omission and discovery, characterize the existing literature. Omission derives from the stereotyping of Muslims as traditional and uncivilized people and Islam as incompatible with capitalist consumer ideology. Discovery relates to the identification of Muslims as an untapped and viable consumer segment and the increasing visibility of Muslim entrepreneurs. Research limitations/implications – A deeper understanding of Muslim consumers and marketers requires doing away with essentialist approaches that reify difference. Instead of focusing on differences future research needs to pay attention to how such differences play out in the daily lives of consumers and examine the religious, political, cultural and economic resources, forces and tensions that consumers experience and negotiate as they (re)construct and communicate their identities as Muslims. Practical implications – Managers should not assume Muslims to be a homogeneous and preexisting segment. They should focus on the daily practices for which the product may be relevant and generate solutions that will help Muslims live proper Islamic lives. Originality/value – The paper draws attention to the potential problems in carrying out research on Islamic marketing and highlights the dangers of an essentialist perspective.

Barriers to adoption of Islamic banking in Pakistan

2011-09-20 00:00:00.0

Abstract

Purpose – The purpose of this paper is to report the findings of a pilot study conducted in Pakistan, about the barriers perceived by users and non-users of Islamic banking when selecting Islamic banks. Design/methodology/approach – This study was conducted to include two types of banking customers, users (customers of Islamic banks only and, Islamic and conventional banks both) and non-users (customers of conventional banks only). The qualitative research included in-depth interviews with managers of Islamic banks and two focus groups with users and non-users, respectively. The survey questionnaire that was subsequently designed received 109 responses. The analysis includes hypothesis testing, factor analysis, and cluster analysis. Findings – A narrow branch network, inconvenient branch locations and perception that “Islamic banks do not completely follow Islamic principles” acted as barriers for non-users when selecting Islamic banks. Further, “a religious ruling against Islamic banks” was not considered an important barrier when selecting Islamic banks. Originality/value – This research outlines an alternative methodology of looking at bank selection criteria, by measuring the other side of the coin, i.e. the barriers perceived by users and non-users of Islamic banking when selecting Islamic banks. Compared to the prevailing literature on the subject, such an approach is enlightening and can have enormous potential as it directly measures the perceived barriers towards Islamic banking. Furthermore, this pilot study is also an important contribution to the limited literature on consumer attitudes towards Islamic banking in Pakistan, where the operations of Islamic banks are still in their formative stage.

UAE consumer concerns about halal products

John Ireland, Soha Abdollah Rajabzadeh — 2011-09-20 00:00:00.0

Abstract

Purpose – Recent reports indicate that UAE Muslim consumers desire halal certification because they are concerned about the halal status of their purchases. However, to date, research on consumer worries has been anecdotal. The purpose of this paper is to quantify consumer concerns to determine which categories, if any, are problematic as well as the nature of consumer reservations. Design/methodology/approach – The authors developed a list of categories and halal concerns with qualitative methods then presented the resulting questionnaire to a non-probability sample of 300 UAE Muslim consumers. Findings – In total, 86.5 percent of respondents felt “great concern” that at least one category was not halal. On average, subjects felt “great concern” about 5.5 categories. The categories that most distressed them were processed meat products. Indeed, 44 percent of the sample felt “great concern” about hamburgers. On average, women felt “great concern” about more categories (6.4) than men (4.2) largely because they were more worried by toiletries. Research limitations/implications – Future research should generalize results through international samples. Moreover, research should determine if concerns translate into behaviour which would give a measure of the value of halal certification or brands. Practical implications – The finding that virtually all consumers are concerned about the halal status of their products represents a great opportunity for trustworthy firms, brands and institutions. Originality/value – This is the first refereed study of Islamic consumer halal concerns in an Islamic country. The results are surprisingly similar to those to be expected in a European country: a general distrust of the system and a broad desire for assurance.

The phenomenon of immigrants' consumer behavior: Immigrants' value differences and similarities: a home versus host comparison

Hatice Kizgin — 2011-09-20 00:00:00.0

Abstract

Purpose – The purpose of this paper is to generate knowledge to understand individuals migrating from a non-Western to a Western country and fill the gap of their attitude and behavior. Design/methodology/approach – The data from the European Social Survey measure basic human values with a new 21-item instrument and are utilized for analysis. The quantitative research approach analysis measures immigrants' individual values in two directions: immigrants' value differences with the home country (Turkey) and immigrants' value similarities with the host country (Germany and The Netherlands). Second, effects of value priorities on media usage are measured. Findings – The author found that there was a change of immigrants' values priorities, whereas two value dimensions remain equal to the home and two value priorities change towards the host, such as conservation and self-transcendence and openness-to-change and self-enhancement, respectively. The effects of value priorities on media usage showed that value orientation plays a role and effects innovativeness. Research limitations/implications – This study was limited to only one group of immigrants, namely the Turkish immigrants representing the largest group in Germany and The Netherlands. Originality/value – Immigrants are a growing group in Western European society and a large new group of consumers. If manufacturers want to target this group, a better understanding of their values is a first requirement. So far, no substantial empirical research has taken a broader focus and merges the perspectives of immigrants' individual values. There is a lack of research regarding how non-Western immigrant values change and consequently affect the behavior in Western Europe. Furthermore, no existing study compares the influence of the outcomes on attitude and behavior.

Antecedents of ostentatious consumption in Kuwait

Hernan E. Riquelme, Rosa E. Rios, Nadia Al-Sharhan — 2011-09-20 00:00:00.0

Abstract

Purpose – The purpose of this paper is to improve our understanding of status-oriented Muslim consumers in Kuwait. More specifically, to study how personality traits such as materialism, susceptibility to social influence and self-monitoring explain status consumption. Design/methodology/approach – A sample of 433 consumers provided information on their status consumption orientation and the personality traits under study. Respondents expressed their opinion on the statements on a five-point Likert scale. Factor analysis was used to explore the underlying dimensions, the reliability of the measures and the components. Regression analysis was used to predict the hypothesized relationships. Findings – This paper hypothesized that the three personality traits, namely materialism, susceptibility to personal influence and self-monitoring, influence status consumption among Muslim consumers in Kuwait. Based on the results, the data supported all but the effect of self-monitoring, that is, the ability to readily alter one's behavior to fit the current situation. Also, younger consumers seem to engage in more status consumption than older ones. There is also a positive correlation between income and status consumption. Research limitations/implications – Status consumption-oriented consumers are typically susceptible to informational and normative influence and are materialistic. Practical implications – These findings can be used in market segmentation and advertising, for example, status consumers could be depicted using or consuming products in situations that imply prestige and approval from important referent groups. Originality/value – The findings contribute to enlarge the psychological profile of Muslim consumers and their orientation towards consumption.

The impact of culture on luxury consumption behaviour among Iranian consumers

Bahar Teimourpour, Kambiz Heidarzadeh Hanzaee — 2011-09-20 00:00:00.0

Abstract

Purpose – Consumer behavior will become more heterogeneous because of cultural differences. This phenomenon makes it increasingly important to understand values of national cultures and their impact on consumer behavior. The purpose of this paper is to review cultural factors with a focus on religious factors that influence the Iranian consumers' behavior during evaluation of luxury value dimensions. Design/methodology/approach – Hofstede's model of national culture and research papers pertaining to religious influence on consumer behavior are applied to understand consumers' behavior toward luxury consumption in Iran as an Islamic country. Findings – Findings support the notion that there are cultural differences between consumers in evaluating luxury value dimensions. As the study is about Iranian Muslim consumers, the role of religion in consumer behavior has also been debated. These findings are useful for domestic and international marketers toward a better understanding of Iranian consumers' luxury value perception based on cultural aspects. Practical implications – The research outcomes should assist industry and business practitioners to understand the behavior of Iranian consumers and by using the findings formulate strategies that enhance their competitiveness in the market. Similarly, the research should enrich marketing literature by providing empirical evidence on Iranian consumption behavior from the perspective of the Muslim population. Research provides a better understanding of cultural factors that affect Iranian consumer behavior toward luxury value perception. Originality/value – This is the first academic study analyzing the dimensions of luxury values, including the consideration of cultural and religious factors that influence Iranian's consumer behavior. The results can be seen as the first step for domestic and international marketers toward a better understanding of Iranian consumers' luxury value evaluation.

Introduction

2011-09-20 00:00:00.0