A Research on Consumer Behavior Towards Interestfree Financing with Special Reference to Planned Behavior Theory: An Empirical Analysis

Abstract

This study seeks to empirically analyze the validity of consumer tendency/ behavior towards the interest-free financing models with reference to the planned behavior theory (PBT). Additionally, the research further tests the validity of the hypotheses on the consumer tendencies towards interest-free financing via PBT in Turkey and other predominantly Muslim countries. To this end, the main variables of the theory, attitude, subjective norm, and perceived behavioral control, have been redefined through certain factors spelled out in the literature. Subsequently, they have been analyzed through the Cronbach Alpha test in the relevant parts of the survey done with the participation of 235 persons. The study concludes that the attitude variable, redefined through the factors of desire for a fair financial system and cost advantage, determines the consumer behavior towards interest-free financial models. Additionally, it has also been observed that the avoidance from interest, one of the factors that define the subjective norm variable, underscores the consumer behavior towards these financial methods. However, the chi-square test results suggest that the subjective norm and perceived behavioral control variables do not provide consistent outcomes. Also, it can be said that the work is original due to a special reference to PBT in the sample of Turkey, even though it is similar to interest-free finance studies made with PBT.

Keywords

• Consumer behavior,interest-free financing,planned behavior theory,fair financial system,cost advantage

Planlı Davranış Kuramına Özel Bir Atıfla Faizsiz Finansmana Yönelik Tüketici Davranışı Üzerine Bir Araştırma: Ampirik Analiz

Abstract

Bu çalışma, tüketici eğilimi / davranışının faizsiz finansman modellerine yönelik planlı davranış teorisi (PDK) referans alınarak geçerliliğini ampirik olarak analiz etmeyi amaçlamaktadır. Ayrıca araştırma, Türkiye’de ve diğer ağırlıklı olarak Müslüman ülkelerde PDK yoluyla faizsiz finansmana yönelik tüketici eğilimlerine ilişkin hipotezlerin geçerliliğini test etmektedir. Bunun için teorinin ana değişkenleri olan tutum, öznel norm ve algılanan davranış kontrol değişkenleri literatürde dile getirilen ilgili faktörlerle yeniden tanımlanmıştır. Daha sonra, 235’in katılımıyla yapılan anketin ilgili bölümleri Cronbach Alpha testi ile analiz edilmiştir. Çalışma, adil finansal sistem ve maliyet avantajı arzusu faktörleri aracılığıyla yeniden tanımlanmış tutum değişkeninin, faizsiz finansal modellere yönelik tüketici davranışını belirlediğini saptamıştır. Ek olarak, öznel norm değişkenini tanımlayan faktörlerden biri olan faizden kaçınmanın tüketici davranışını bu finansal modellere yönelik olarak etkilediği de gözlenmiştir. Ancak ki-kare test sonuçları, öznel norm ve algılanan davranışsal kontrol değişkenlerinin tutarlı sonuçlar sağlamadığını göstermiştir. Ayrıca, PDK ile yapılan faizsiz finans çalışmalarına benzese de çalışmanın Türkiye örneğindeki PDK’ye yapılan özel bir referans nedeniyle orijinal olduğu söylenebilir.

References

1. Ajzen, I. (1989). Attitude structure and behavior. In Attitude, Structure and Function, Erlbaum.
2. Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211.
3. Al Ajmi, J., Abo Hussain, H., & Al Saleh, N. (2009). Clients of conventional and Islamic banks in Bahrain. International Journal of Social Economics, 36(11), 1086–1112. https://doi.org/10.1108/03068290910992642
4. Alam, S. S., Janor, H., Zanariah, Wel, C. A. C., & Ahsan, M. N. (2012). Is Religiosity an important factor in influencing the intention to undertake Islamic home financing in Klang Valley? World Applied Sciences Journal, 19(7), 1030–1041. https://doi.org/10.5829/idosi.wasj.2012.19.07.392
5. Ali, M., Raza, S. A., Puah, C. H., & Karim, M. Z. A. (2017). Islamic home financing in Pakistan: a SEM-based approach using modified TPB model. Housing Studies, 32(8), 1156–1177. https://doi.org/10.1080/02673037.2017.1302079
6. Allport, G. W. (1935). Attitudes. In C. M. Murchison (Ed.), Handbook of Social Psychology. Winchester, MA: Clark University Press. Almossawi, M. (2001). Bank selection criteria employed by college students in Bahrain: an empirical analysis. International Journal of Bank Marketing, 19(3), 115–125. https://doi.org/10.1108/02652320110388540
7. Amin, H. (2008). Choice criteria for Islamic home financing. International Journal of Housing Markets and Analysis, 1(3), 256–274. https://doi.org/10.1108/17538270810895105
8. Amin, H. (2013). Factors influencing Malaysian bank customers to choose Islamic credit cards. Journal of Islamic Marketing, 4(3), 245–263. https://doi.org/10.1108/JIMA-02-2012-0013

9. Amin, H., Abdul Rahman, A. R., Abdul Razak, D., & Rizal, H. (2017). Consumer attitude and preference in the Islamic mortgage sector: a study of Malaysian consumers. Management Research Review. https://doi. org/10.1108/MRR-07-2015-0159
10. Amin, H., Rahim Abdul Rahman, A., Laison Sondoh, S., & Magdalene Chooi Hwa, A. (2011). Determinants of customers’ intention to use Islamic personal financing. Journal of Islamic Accounting and Business Research, 2(1), 22–42. https://doi.org/10.1108/17590811111129490
11. Asdullah, M. A., & Yazdifar, H. (2016). Evaluation of factors influencing youth towards Islamic Banking in Pakistan. ICTACT Journal on Management Studies, 2(1), 217–223. https://doi.org/10.21917/ijms.2016.0030
12. Åström, Z. H. O. (2013). Survey on customer related studies in Islamic banking. Journal of Islamic Marketing, 4(3), 294–305. https://doi.org/10.1108/JIMA-07-2012-0040
13. Aziz, S., & Afaq, Z. (2018). Adoption of Islamic banking in Pakistan an empirical investigation. Cogent Business and Management, 5(1), 1–18. https://doi.org/10.1080/23311975.2018.1548050
14. Bizri, R., Jardali, R., & Bizri, M. F. (2018). Financing family firms in the Middle East: the choice between Islamic and conventional finance. International Journal of Entrepreneurial Behaviour and Research, 24(4), 842–865. https://doi.org/10.1108/IJEBR-10-2016-0349
15. Bley, J., & Kuehn, K. (2004). Conventional versus Islamic Finance: Student Kowledge and Perception in the United Arab Emirates. International Journal of Islamic Financial Services, 5(4), 1–13.
16. Bogardus, E. S. (1931). Fundamentals of social psychology. New York: Century.
17. Bonne, K., Vermeir, I., Bergeaud-Blackler, F., & Verbeke, W. (2007). Determinants of halal meat consumption in France. British Food Journal, 109(5), 367–386. https://doi.org/10.1108/0070700710746786
18. Butt, I., Saleem, N., Ahmed, H., Altaf, M., Jaffer, K., & Mahmood, J. (2011). Barriers to adoption of Islamic banking in Pakistan. Journal of Islamic Marketing, 2(3), 259–273. https://doi.org/10.1108/17590831111164787
19. Devlin, J. F. (2002). An analysis of choice criteria in the home loans market. International Journal of Bank Marketing, 20(5), 212–226.
20. Eagly, A. H., & Chaiken, S. (1993). Psychology of attitudes. In Psychology of attitudes.
21. Echchabi, Abdelghani and Azouzi, D. (2015). Predicting customers ’ adoption of Islamic banking services in Tunisia : A Decomposed Theory of Planned Behaviour approach. Tazkia Islamic Finance and Business Review, 9(1), 19–40.
22. Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention and behavior: An introduction to theory and research. London: Addison-Wesley Publishing Company.
23. Gençtürk, M., & Çobankaya, F. T. (2015). Katılım bankalarının Batı Akdeniz bölgesindeki farkındalık düzeyinin tespiti. Bankacılar Dergisi, 93, 82–105.
24. Haque, A., Osman, J., & Hj Ismail, A. Z. (2009). Factor influences selection of Islamic Banking: a study on Malaysian customer preferences. American Journal of Applied Sciences, 6(5), 922–928. https://doi. org/10.3844/ajas.2009.922.928
25. Haron, S., Ahmad, N., & Planisek, S. L. (1994). Bank patronage factors of Muslim and non-Muslim customers. International Journal of Bank Marketing, 12(1), 32–40.
26. Husin, M. M., & Rahman, A. A. (2016). Predicting intention to participate in family takaful scheme using decomposed theory of planned behaviour. International Journal of Social Economics, 43(12), 1351–1366. https://doi.org/10.1108/IJSE-03-2015-0074
27. Idris, A. R., Nik, K., Naziman, M., Januri, S. S., Abu Hassan Asari, F. F., Muhammad, N., Jusoff, K. (2011). Religious value as the main influencing factor to customers patronizing Islamic Bank. World Applied Sciences Journal, 12(1), 8–13.
28. Kashif, M., Zarkada, A., & Thurasamy, R. (2017). The moderating effect of religiosity on ethical behavioural intentions: An application of the extended theory of planned behaviour to Pakistani bank employees. Personnel Review, 46(2), 429–448. https://doi.org/10.1108/PR-10-2015-0256
29. Khan, M. S. N., Hassan, M. K., & Shahid, A. I. (2007). Banking behavior of Islamic Bank customers in Bangladesh. Journal of Islamic Economics, Banking and Finance, 3(2), 159–194.
30. Khoirunissa, D. (2003). Consumers’ Preference toward Islamic Banking (Case Study in Bank Muamalat Indonesia and Bank BNI Syariah). IQTISAD Journal of Islamic Economics, 4(2), 145–168. https://doi.org/10.20885/ iqtisad.vol4.iss2.art3
31. LaPiere, R. T. (1934). Attitudes vs. actions. Social Forces, 1(1), 230–237.
32. Manzoor, M. M., Aqeel, M., & Sattar, A. (2010). Factors paving the way towards Islamic banking in Pakistan. World Academy of Science, Engineering and Technology.
33. Marimuthu, M., Wai Jing, C., Phei Gie, L., Pey Mun, L., & Yew Ping, T. (2010). Islamic Banking: selection criteria and implications. Global Journal of Human Social Science GJHSS Classification-C, 10(4), 52–62.
34. Metawa, S. A., & Almossawi, M. (1998). Banking behavior of Islamic bank customers: perspectives and implications. International Journal of Bank Marketing, 16(7), 299–313. https://doi. org/10.1108/02652329810246028
35. Naqvi, S. N. H. (2016). Perspectives on morality and human well-being: a contribution to Islamic Economics. Kube Publishing Ltd.
36. Naser, K., Jamal, A., & Al-Khatib, K. (1999). Islamic banking: A study of customer satisfaction and preferences in Jordan. International Journal of Bank Marketing, 17(3), 135–151. https://doi.org/10.1108/02652329910269275
37. Nugroho, A. P., Hidayat, A., & Kusuma, H. (2017). The influence of religiosity and self-efficacy on the saving behavior of the Іslamic Banks. Banks and Bank Systems. https://doi.org/10.21511/bbs.12(3).2017.03
38. Okumuş, Ş. (2005). Interest-Free Banking in Turkey: A study of customer satisfaction and bank selection criteria. Journal of Economic Cooperation, 26(4), 51–86.
39. Okumus, S., & Genc, E. G. (2013). Interest free banking in Turkey: A study of customer satisfaction and bank selection criteria. European Scientific Journal, 9(16), 144–166.
40. Othman, N., Mohamad, A. M., Ismail, N., & Al Shami, A. M. (2018). Predicting factors affecting Muslims ’ Family Takaful Participation : Theory of planned behaviour. Global Business and Management Research: An International Journal, 10(3), 1054–1063.
41. Özen, E., Şenyıldız, L., & Akarbulut, K. (2016). Faizsiz bankacılık algısı: Uşak ili örneği. Journal of Accounting, Finance and Auditing Studies, 2(4), 1–19.
42. Peter, J. P., & Olson, J. C. (2009). Consumer Behavior & Marketing Strategy (Ninth). New York: McGraw-Hill Irwin.
43. Petty, R. E., Briñol, P., & DeMarree, K. G. (2007). The Meta–Cognitive Model (MCM) of attitudes: implications for attitude measurement, change, and strength. Social Cognition, 25(5), 657–686. https://doi.org/10.1521/ soco.2007.25.5.657
44. Sakallı-Uğurlu, N. (2018). Sosyal Psikolojide tutumlar ve tutum Değişimi (1. Baskı). Ankara: İmge Kitapevi Yayınları.
45. Salehudin, I., & Luthfi, B. A. (2013). Marketing impact of halal labeling toward Indonesian Muslim consumer’s behavioral intention based on Ajzen’s Planned Behavior Theory: policy capturing studies on five different product categories. ASEAN Marketing Journal, 3(1), 35–44. https://doi.org/10.21002/amj.v3i1.2013
46. Sığındı, T. (2010). Tutum, öznel norm ve algılanan davranışsal kontrol değişkenlerinin tüketicilerin satın alma niyetlerine olan etkisinin Copeland’ın Ürün Sınıflandırması için araştırılması. Hacettepe Üniversitesi. Taib,
47. F. M., Ramayah, T., & Razak, D. A. (2008). Factors influencing intention to use diminishing partnership home financing. International Journal of Islamic and Middle Eastern Finance and Management, 1(3), 235–248. https://doi.org/10.1108/17538390810901168
48. Thambiah, S., Santhapparaj, A. J., & Ismail, H. (2011). An empirical analysis on Islamic Retail Banking adoption in Malaysia. Innovation and Knowledge Management: A Global Competitive Advantage, Vols 1-4.
49. Toroman, C., Ata, H. A., & Buğan, M. F. (2015). İslami bankacılık faaliyetlerine yönelik muşteri algısı uzerine bir araştırma. Gaziantep University Journal of Social Sciences, 14(4), 761–779.
50. Usman, H., Tjiptoherijanto, P., Balqiah, T. E., & Agung, I. G. N. (2017). The role of religious norms, trust, importance of attributes and information sources in the relationship between religiosity and selection of the Islamic Bank. Journal of Islamic Marketing, 8(2), 158–186. https://doi.org/10.1108/JIMA-01-2015-0004
51. Ustaoğlu, M. (2018). Empirically analyzing public views on participation banks in Turkey. International Journal of Ethics and Systems, 34(4), 510–526. https://doi.org/10.1108/ijoes-04-2018-0062
52. Wajdi Dusuki, A., & Irwani Abdullah, N. (2007). Why do Malaysian customers patronise Islamic Banks? International Journal of Bank Marketing, 25(3), 142–160. https://doi.org/10.1108/02652320710739850
53. Warde, I. (2000). Islamic finance in the global economy. Edinburgh: Edinburgh University Press.
54. Zinser, B. A. (2015). Determinants of United States Muslims’ intentions to use retail Islamic banking and financial services: An application of the theory of planned behavior. ProQuest Dissertations and Theses.