The purchase intention of Ar-Rahnu Islamic financing contract in Malaysia: perception of Muslim consumers

Purpose: The purpose of this paper is to investigate a distinct set of characteristics that influence Muslim customers’ intentions to purchase Ar-Rahnu Islamic financing contract in Malaysia. Design/methodology/approach: The study studied the impact of perceived value, perceived quality, perceived f...

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Published in:Journal of Islamic Marketing
Main Author: Azman Ong M.H.; Mohd Yasin N.; Ibrahim N.S.
Format: Article
Language:English
Published: Emerald Publishing 2024
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85191316744&doi=10.1108%2fJIMA-03-2022-0085&partnerID=40&md5=9cda30783c5000c8b3dae3c8e70940cf
id 2-s2.0-85191316744
spelling 2-s2.0-85191316744
Azman Ong M.H.; Mohd Yasin N.; Ibrahim N.S.
The purchase intention of Ar-Rahnu Islamic financing contract in Malaysia: perception of Muslim consumers
2024
Journal of Islamic Marketing
15
10
10.1108/JIMA-03-2022-0085
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85191316744&doi=10.1108%2fJIMA-03-2022-0085&partnerID=40&md5=9cda30783c5000c8b3dae3c8e70940cf
Purpose: The purpose of this paper is to investigate a distinct set of characteristics that influence Muslim customers’ intentions to purchase Ar-Rahnu Islamic financing contract in Malaysia. Design/methodology/approach: The study studied the impact of perceived value, perceived quality, perceived financial advantages, religious commitment and product knowledge on the purchase intention Ar-Rahnu Islamic financing contract using a quantitative research approach. A Google Form-based online survey was created and distributed through Twitter, Facebook and Instagram, among others. The survey data were analysed using structural equation modelling with a partial-least-square estimation property (PLS-SEM). Findings: The study results suggested that Muslim customers in Malaysia had a greater propensity to buy Ar-Rahnu Islamic financing contract. Analysis of the data revealed that perceived value, perceived quality, perceived financial benefits and religious commitment had direct effects on the desire to buy Ar-Rahnu Islamic financing contract in Malaysia. In addition, the results reveal that religious commitment, perceived quality and perceived financial benefit are the top three important factors in explaining Ar-Rahnu Islamic financing contract buying intentions in this country. Practical implications: Muslim customers may use Ar-Rahnu Islamic financing contract as a short-term credit alternative to enhance their financial standing. Ar-Rahnu Islamic financing contract generates a substantial quantity of credit demand and supply, which not only allows Muslim customers to adhere to Islamic standards but also contributes to the expansion of the economy. The result would aid and advise Ar-Rahnu finance resources and legislators in measuring the efficacy of the program in Malaysia, especially among Muslim customers. Originality/value: Ar-Rahnu Islamic financing contract as a financing alternative has been explored extensively, but this study takes a whole new approach to the subject by looking at dimensions of perceived value, perceived quality and perceived financial benefit along with individual product knowledge and religious commitment. Consequently, this study will contribute to the understanding of how Muslim customers will respond to the Ar-Rahnu Islamic financing contract and will assist financial institutions in increasing the possibility that Muslim consumers would acquire Ar-Rahnu Islamic financing contract. © 2024, Emerald Publishing Limited.
Emerald Publishing
17590833
English
Article

author Azman Ong M.H.; Mohd Yasin N.; Ibrahim N.S.
spellingShingle Azman Ong M.H.; Mohd Yasin N.; Ibrahim N.S.
The purchase intention of Ar-Rahnu Islamic financing contract in Malaysia: perception of Muslim consumers
author_facet Azman Ong M.H.; Mohd Yasin N.; Ibrahim N.S.
author_sort Azman Ong M.H.; Mohd Yasin N.; Ibrahim N.S.
title The purchase intention of Ar-Rahnu Islamic financing contract in Malaysia: perception of Muslim consumers
title_short The purchase intention of Ar-Rahnu Islamic financing contract in Malaysia: perception of Muslim consumers
title_full The purchase intention of Ar-Rahnu Islamic financing contract in Malaysia: perception of Muslim consumers
title_fullStr The purchase intention of Ar-Rahnu Islamic financing contract in Malaysia: perception of Muslim consumers
title_full_unstemmed The purchase intention of Ar-Rahnu Islamic financing contract in Malaysia: perception of Muslim consumers
title_sort The purchase intention of Ar-Rahnu Islamic financing contract in Malaysia: perception of Muslim consumers
publishDate 2024
container_title Journal of Islamic Marketing
container_volume 15
container_issue 10
doi_str_mv 10.1108/JIMA-03-2022-0085
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85191316744&doi=10.1108%2fJIMA-03-2022-0085&partnerID=40&md5=9cda30783c5000c8b3dae3c8e70940cf
description Purpose: The purpose of this paper is to investigate a distinct set of characteristics that influence Muslim customers’ intentions to purchase Ar-Rahnu Islamic financing contract in Malaysia. Design/methodology/approach: The study studied the impact of perceived value, perceived quality, perceived financial advantages, religious commitment and product knowledge on the purchase intention Ar-Rahnu Islamic financing contract using a quantitative research approach. A Google Form-based online survey was created and distributed through Twitter, Facebook and Instagram, among others. The survey data were analysed using structural equation modelling with a partial-least-square estimation property (PLS-SEM). Findings: The study results suggested that Muslim customers in Malaysia had a greater propensity to buy Ar-Rahnu Islamic financing contract. Analysis of the data revealed that perceived value, perceived quality, perceived financial benefits and religious commitment had direct effects on the desire to buy Ar-Rahnu Islamic financing contract in Malaysia. In addition, the results reveal that religious commitment, perceived quality and perceived financial benefit are the top three important factors in explaining Ar-Rahnu Islamic financing contract buying intentions in this country. Practical implications: Muslim customers may use Ar-Rahnu Islamic financing contract as a short-term credit alternative to enhance their financial standing. Ar-Rahnu Islamic financing contract generates a substantial quantity of credit demand and supply, which not only allows Muslim customers to adhere to Islamic standards but also contributes to the expansion of the economy. The result would aid and advise Ar-Rahnu finance resources and legislators in measuring the efficacy of the program in Malaysia, especially among Muslim customers. Originality/value: Ar-Rahnu Islamic financing contract as a financing alternative has been explored extensively, but this study takes a whole new approach to the subject by looking at dimensions of perceived value, perceived quality and perceived financial benefit along with individual product knowledge and religious commitment. Consequently, this study will contribute to the understanding of how Muslim customers will respond to the Ar-Rahnu Islamic financing contract and will assist financial institutions in increasing the possibility that Muslim consumers would acquire Ar-Rahnu Islamic financing contract. © 2024, Emerald Publishing Limited.
publisher Emerald Publishing
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language English
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