Customer’s Intention with Moderating Role of Pricing on Islamic Personal Financing: Evidence from Islamic Banks of Pakistan
Financial industries are rapidly accepting the Islamic banking system. Using the theory of reasoned action (TRA) model the study investigates the three factors including attitude, religiosity, and subjective norms in measuring the intention of customers to adopt Islamic banking products along with moderating the role of pricing. The sample of 220 bank consumers from two cities of Rawalpindi and Islamabad is gathered using convenient sampling. Regression results suggest that all three factors influence the intention of customers in buying Islamic banking products. Moreover, pricing moderates the relationship in developing the intention of customers to adopt Islamic personal financing in the context of religiosity. The finding of the study identifies that Islamic bankers should adopt a pricing policy based upon fair practices of Shariah. In addition awareness to people about Islamic products through marketing is essential in clearing their misconceptions towards investment in Islamic products.
Keywords - Islamic personal financing behavior, TRA model, Attitude, Religiosity, Subjective norms, Pricing, Regression, Moderation, Structural Equation Modeling.