DOES CONSUMER INNOVATIVENESS MATTER? PREDICTING CUSTOMER BEHAVIOR OF A NEW FINANCIAL ARCHITECTURE IN NIGERIA

Year 2018, Volume: 5 Issue: 2, 145 - 172, 15.08.2018

Ahmad Muhammad Gumel

Abstract

Although the benefits
of the marriage between Islamic principles of Shari’ah and financial services as a new financial architecture has
been well documented, however, its adoption within the industry’s core markets was lower than necessary to move the world’s economic
potential. This study proposed consumer innovativeness as a marketing strategy
to improve customers’ adoption of the new financial architecture. Using a cross
sectional study, a
survey questionnaires were distributed among Islamic banking customers in
Northern Nigeria and was analyzed using Partial Least Square - structural
equation modeling (PLS-SEM). Findings indicated that consumer innovativeness,
attitude and subjective norm significantly predicted customers’ intention,
while perceived behavioral control was found insignificantly related to behavioral
intention. Also, consumer innovativeness moderated the relationship between
attitude and intention, while evidence for the interaction effect between
consumer innovativeness and social norm was not supported. The integration of diffusion
of innovation theory and the theory of planned behavior in conceiving and
initiating appropriate marketing strategy for the new financial architecture are
provided and suggestions for future studies were discussed.

Keywords

ISLAMIC BANKING, CUSTOMER BEHAVIOR, THEORY OF PLANNED BEHAVIOR, DIFFUSION OF INNOVATION THEORY

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