Hanudin, Amin (2012): Explaining intention to use the Islamic credit card: an extension of the TRA model.
Download (185kB) | Preview
Abstract Purpose – The Islamic credit card is a type of banking product offered by Islamic banks. Given the importance to the Islamic credit card to Islamic banks, the study is aimed at identifying the factors determining the Malaysian bank customers’ behavioral intention to use the Islamic credit card.
Design/methodology/approach – Drawing upon the Theory of Reasoned Action (the TRA model), this study proposes a modified model to examine the acceptance factors of attitude, subjective norm and perceived financial cost within the Islamic credit card context. The study used multiple regression model in order to examine the impacts of these explanatory variables on the intention to use the Islamic credit card. The model is tested using survey data from 257 respondents.
Findings – The results reveal that attitude, subjective norm and perceived financial cost significantly influence the Islamic credit card intention to use. Of these, attitude was first ranked factor explaining intention to use the Islamic credit card.
Research limitations/implications – The research suffers from two limitations. The first limitation is related to the generalization of finding whilst the second limitation is related to the limited measures employed in the current work. Despite these limitations, this research is significantly contributed to the body of knowledge in the area of Islamic credit card, at least at exploratory level.
Practical implications – Information gathered from the study will serve as a basis for more future works in the area of Islamic credit card. The theory developed in the current study’s model could also be generalized into other contexts of Islamic banking products and services. Practically, branch managers of Islamic banking institutions could of prime importance to extend the findings of the study for the better future planning of their Islamic credit card offerings.
Originality/value – Importantly, the study extends the applicability of the TRA model into Islamic credit card context. Few studies have conducted over the years under this context in Malaysia.
|Item Type:||MPRA Paper|
|Original Title:||Explaining intention to use the Islamic credit card: an extension of the TRA model|
|Keywords:||Islamic credit card, personal finance, Islamic bank, Malaysia|
|Subjects:||D - Microeconomics > D1 - Household Behavior and Family Economics > D11 - Consumer Economics: Theory
?? C42 ??
|Depositing User:||Hanudin Amin|
|Date Deposited:||26. Feb 2012 20:42|
|Last Modified:||12. Feb 2013 06:42|
Abdul-Rahman, A R (2007), “Islamic microfinance: a missing component in Islamic banking”, Kyoto Bull. of Islamic Area Studies, Vol. 1 No.2, pp. 38-53.
Ajzen I. and Fishbein M (1980). Understanding Attitudes and Predicting Social Behaviour, Prentice Hall, New Jersey, NJ.
Amin H. and Ramayah T (2010), “SMS banking: explaining the effects of attitude, social norms and perceived security and privacy”, Electronic Journal of Information System for Developing Countries, Vol.41 No.2, pp.1-15.
Billah, M M (2003). Islamic Credit Card in Practice, [Online] Available: http://islamicmortgages.org.uk/index.php?id=262.
Black, T R (1999). Doing Quantitative Research in the Social Sciences – An Integrated Approach to the Research Design: Measurement and Statistics, Sage Publications: London.
Chatfield C, Collins A J (1992). Introduction to Multivariate Analysis, Chapman and Hall: London.
Choo S Y, Lim H E, Sanusi N A (2007). The consumer choice of Islamic-based credit card: an analysis of bivariate probit model, In Sanusi, N.A., Harun, M. and Samsudin, S. (eds), Readings in Islamic economics and finance, Sintok, Universiti Utara Malaysia Press. Ekonomi dan Kewangan Islam 2005, Sintok: UUM.
Darwish A F (2003). Can a Credit Card ever be Halal? [Online] Available: http://www.baankerme.com/bme/2003/mar/islamic_banking.asp.
Fishbein M. and Ajzen I (1975). Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research, Addison-Wesley, Reading, MA.
Gopi M, Ramayah T (2007). Applicability of theory of planned behavior in predicting intention to trade online: Some evidence from a developing country. Int. J. of Emerging Markets, 2(4):348-360.
Hair J F, Black W C, Babin B J, Anderson R E. and Latham R L (2006). Multivariate Data Analysis, 6th ed., Upper Saddle River, New Jersey: Prentice-Hall.
International Law Book Services (2002). Akta Bank Islam (IBA) 1983 (Akta 276), Percetakan Maziza Sdn Bhd, Kuala Lumpur.
International Law Book Services (2004). Banking and Financial Institution Act (BAFIA) 1989, Syarikat Percetakan Ihsan, Selangor.
Kazi, M. (2002). Malaysian Banks Launches first Islamic Credit Card in Asia, [Online]Available:http://www.islam-online.net/English/news/2002-07/25/articles06.shtml.
Luarn, P. and Lin, H. H. (2005). “Toward an understanding of the behavioural intention to use mobile banking”, Computer in Human Behaviour, Vol. 21, pp. 873-891.
Mansor, N. (2005). Islamic credit card: Are demographic factors a good indicator? Prosiding Seminar Ekonomi dan Kewangan Islam 2005, Sintok: UUM.
Mansor,N. and Che-Mat. A. (2009). “Islamic credit card: are demographic factors a good indicator”, Asian Social Science, Vol.5 No.12, pp.17-26.
Mathieson, K., Peacock, E. and Chin, W. W. (2001), “Extending the technology acceptance model: the influence of perceived user resources”, DATABASE for Advance in Information System, Vol.32 No.3, pp.86-112.
Mohd-Dali, N. R. S., Abdul-Hamid, H., Shahimi, S. and Wahid, H. (2008), “Factors influencing the Islamic credit cards holders satisfaction”, The Business Review, Vol.11 No.2, pp.298-304.
Nunnally J C (1978). Psychometric Theory, McGraw-Hill: New York.
Pallant J (2005). SPSS Survival Manual: A Step by Step Guide to Data Analysis Using SPSS for Windows, ver. 12, Allen Unwin, Australia.
Pikkarainen, T., Pikkarainen, K., Karjaluoto, H., and Pahnila, S. (2004), “Consumer acceptance of online banking: an extension of the technology acceptance model”, Internet Research, Vol.14 No. 3, pp.224-235.
Ramayah, T., Md-Taib, F. and Ling, K. P. (2003), “Classifying users and non-users of Internet banking in northern Malaysia”, Journal of Internet Banking and Commerce, Vol. 11 No.2, pp.1-13.
Ramayah T, Jantan M, Noor M N M, Ling K P (2003). Receptiveness of internet banking by Malaysian consumers. Asian Academy of Manage. J. 8(2):1-29.
Ramayah T, Mohd-Suki N M (2006). Intention to use mobile PC among MBA students: Implications for technology integration in the learning curriculum. UNITAR e-J. 1(2):1-10.
Ramayah T, Mohd-Suki N M (2005).Intention to shop online amongst MBA students: Comparing theory of reasoned action (TRA) and the technology acceptance model (TAM), APMC Conference 2005, UNIMAS, Sarawak.
Shahwan S, Mohd Dali N R S, Salleh S (2008). Factors determining the ownership of Islamic credit card in Malaysia: An analytical study. Proceedings of the MFA Conference 2008, 504-513.
Tabachnick B G, Fidell L S (1996). Using Multivariate Statistics, 3rd ed.,Harper Collins Publisher: New York.
Md-Taib F M, Ramayah T, Razak D A (2008).Factor influencing intention to use diminishing partnership home financing. Int. J. of Islamic and Middle Eastern Finance and Manage. 1(3):235-248.
Zainuddin Z, Noresma J, Ramayah T (2004). Perception of Islamic banking: Does it differ among users and non users. J. Manaje. dan Bisnis, 6(2):135-149.