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The International Journal of Applied Economics and Finance

Year: 2013 | Volume: 7 | Issue: 1 | Page No.: 37-48
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Authors

Seethaletchumy Thambiah

Hishamuddin Ismail

Elsadig Musa Ahmed

Aye Aye Khin

Keywords

This study investigated the moderating effect of religious reasons and regional differences against the intention to use Islamic Retail Banking (IRB) products and services in Malaysia, since previous researchers in the domain of Islamic banking have underscored the degree of interaction of these two factors. The intention to use IRB products and services being the dependent variable, the study comprises of eight independent variables: Customer awareness of IRB, relative advantage, compatibility, complexity, uncertainty, observability, promotional efforts and perceived information quality. The survey instrument of the study was a set of questionnaire and quota-sampling technique was used to collect data from urban and rural regions of Malaysia. Moderated multiple regression analysis was employed to anticipate the moderator effect of the variables. The findings reveal religion moderates the interaction between relative advantage, compatibility, complexity and the intention to use IRB, whilst region moderates, the interaction between awareness of IRB attributes, compatibility, complexity and the intention to use IRB. This implies religious reasons and regional differences play an important role to certain extent in influencing the Malaysian banking customers’ intention to use IRB products and services. Thus, the findings of this study are expected to be useful to the financial institutions to formulate marketing strategies considering these moderators.
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