This study is to determine the intention of the current customer or potential customer to use Islamic credit card. The survey was conducted to determine their most intention to use or to have an Islamic credit card. This study deals with a few factors such as attitude, knowledge, religious obligation, financial benefits, social influence and also bank services.
To see how far that Islamic credit card can be fully accepted and requested, the survey questionnaires were distributed and a total of 177 respondents returned the questionnaires. For the collection of data, a survey questionnaire with closed-ended questions and five points likert scale was employed. The survey questionnaire was designed into two sections (Profile, which is demographic data; and also factors of intention). This study found that these six factors namely attitude, knowledge, religious obligation, financial benefits, social influence and also bank services has a relationship that influenced customers or potential customers towards owned and requested by their intention on Islamic credit card.
The result of this study can be reached in this paper. However, there was a limitation in get the respondents. It's a bit difficult to get same amount of respondents of each state within Peninsular Malaysia. So, the respondents in this study were not balance for each state. The Pearson Correlation is used to identify positive significant relationship between independent variables and dependable variables.
ACKNOWLEDGEMENT
In the Name of Allah, the Beneficent, Most Merciful
First praise is to Allah, the Almighty, on whom I ultimately depend for guidance and forgiveness. Nevertheless, my efforts would have been just a futile attempt without the enormous support and assistance from many individuals and organizations. I would like to extend my sincere thanks to all of them.
This final project paper would not have been possible without the guidance and advisor of my supervisor. Associate Professor Dr. Aisyah binti Abdul Rahman, whose guidance, wisdom, constructive comments and her patient were most valuable in helping me create the final product. I express my sincerest gratitude and appreciation to Associate Professor Dr. Aisyah for all the help and guidance she has provided to me thus far.
I also wish to record my thanks to UKM - Graduate Business School (UKM-GSB) for its leadership, its employees and all the lecturers who has provided me the opportunity to absorb new knowledge and by providing me an academic base to enable the success of my studies. Last but not least, I cordially thank you and gratitude to my respective parents, families, classmates and virtual friends for their undiminished encouragement and support to ensure the completion of my ZF6043 project paper.
TABLE OF CONTENT
Item Page
Abstract 4
Acknowledgement 5
Introduction 7
Literature Review 11
Methodology 18
Findings 20
Discussion and Conclusion 27
References 28
Appendix 30
1.0 Introduction
This study considers an Islamic credit card usage intention as a research focus. By definition, a credit card is termed as "plastic money" which involves the buy first pay later option (Choo, 2007). So do as Islamic credit card. It is also "plastic money" which involves "buy first and pay later" option; however it is strictly based on Sharia values, principles and objectives. Most of the credit cards are allowed able only in halal or prohibited product or transaction (Amin, 2012).
The spread of credit card ownership and usage across developing Asia Pacific countries has been awesome. A review of literature on credit card reveals that most studies have been carry out in developed country settings. First credit cards were issued in USA, early twentieth century. Since then, they have become a major system for exchange of transactions (or payments) that encourages household and personal spending even in many developing countries of the world (Ahmed 2010, Watkins 2000).
In Malaysia, cards were first introduced in the mid-1970s (Loke, 2007). At the early stage, credit cards were only issued to professionals or those considered successful businesspersons by card issuing companies. By the end of 1970s, an estimated 20,000 cards were issued. During that time, owing a credit card was considered a symbol of prestige (Ahmed 2010).
This research has benefited for bank managers where they can improved understanding of the factors, which prompt the probability of Islamic credit card usage intention. This also enables them to tailor their marketing efforts towards attracting the prospective Islamic credit card users. For research and development department, they can create or do some innovative to their product based on the research. For customers, once bank have developed a suitable Islamic Credit Card, they can choose it and used it without thinking twice by comparing it with conventional product.
1.1 Problem Statement
Nowadays, there are so many credit cards out there; you can choose either Islamic credit card or conventional credit card. However, for some users out there, they apply for a credit card for various purposes and intentions. The purpose that always been heard is for urgent used, for their needs, and also for shopping. Previous study has been done by Gan, Maysami and Koh (2008) shows that most usage patterns are for spending it at restaurants, clothing and shoes, entertainment, travel services and petrol. Currently, dumping credit card uses make a high debt to the bank. They used it, swipe it, and no payment been done. Some of them reported that the card is lost; even they have it to protect themselves to pay the debt. Meanwhile, some cardholders have more than one credit card.
Only few studies have examined the Islamic credit card usage intention (Hanudin, 2012; Mansor and Che-Mat, 2009; Mohd-Dali et al., 2008; Cho et al., 2007). The magnitude to investigate the Islamic credit card usage intention in Peninsular Malaysia is a worthy undertaking in order to fill the research gap. Two main reasons for the study of Islamic credit cards usage: first, it promotes Islamic financial transactions, particularly for transactions related to halal goods amongst customers. Second, previous studies have creates mixed results concerning the factors determining the use of Islamic credit cards. Hanudin (2012) examined patronage factors toward Islamic credit cards, where the factors affecting the probability of Islamic credit card usage intention were financial recommendation, knowledge of Islamic credit card, age level, marital status, and religion and education level. However, his studies were suffered owing to the limited numbers of predictors used to determine their impacts on the Islamic credit card usage intention. For this purpose, this research will use a richer set of variables, not only the social factors, but also others factors.
Amin, Abdul Rahim, Stephen and Ang (2011) have determined customers' intention to use Islamic personal financing where the factors are attitude and social influence, which these factors are not tested by previous study. Therefore, this research will determine the intention to use Islamic credit cards by using additional both factors, which fulfill the gap where the study before was suffered owing to the limited numbers of predictors used to determine their impacts on Islamic credit card.
Item
2010
(Jan-Jun)
2010
(Jul-Dec)
2011
(Jan-Jun)
2011
(Jul-Dec)
2012
(Jan-Jun)
RM (Million)
Commercial Banks
10,045.7
15,394.6
12,200.0
13,727.4
8,798.7
Islamic Banks
1,692.9
1,770.9
1,361.6
2,862.2
1,207.5
(Resource: Monthly Statistical Bulletin June 2012)
Table 1: Number of Credit Cards Applied
Item
2010
(Jan-Jun)
2010
(Jul-Dec)
2011
(Jan-Jun)
2011
(Jul-Dec)
2012
(Jan-Jun)
RM (Million)
Commercial Banks
6,579.6
8,752.8
9,758.4
8,560.4
5,779.5
Islamic Banks
561.6
804.4
526.5
1,260.7
529.0
(Resource: Monthly Statistical Bulletin June 2012)
Table 2: Number of Credit Cards Approved
From table 1, it shows that the value of credit card applied for commercial banks and Islamic banks. It is indirectly reflect the numbers of conventional credit card which issued by the commercial banks, and also indirectly shows the numbers of Islamic credit card that issued by the Islamic Banks. From there, it can be found that most Malaysians are comfortable by choosing services by commercial banks instead of Islamic banks.
From table 2, the figure shows the numbers of credit cards approved. It can be summarize that from 100 percent application, only 66 percent was approved by the commercial banks, and 41 percent was approved by the Islamic Banks. This issue can be a future research, where to determine approval amount for Islamic Banks that lower or slower than commercial banks, and also to do a comparison why Malaysians preferred commercial bank the most.
1.2 Research Question
The current study is aimed at explaining the factors determining the probability of Islamic credit card usage intention from the perspective of Malaysian customers or potential customers. This topic is of chief interest owing to the fact that it has received little empirical support in past research. It is therefore important to scrutinize the following questions:
What are the determinants of customers' decisions to use an Islamic credit card?
What are the potential recommendations that can improve customers' selection towards Islamic credit card use?
Figure 2 represents the conceptual framework for this study.
Research objective of this paper is to determine the factors that influence customers' intention to use Islamic credit card. The present studies were used a quantitative approach to satisfy research questions.
In addition to an academic contribution, my findings will be interest to bank managers where they can improve understanding of the factors, which prompt the probability of Islamic credit card usage intention. This also enables them to tailor their marketing efforts towards attracting the prospective Islamic credit card users. For research and development department, they can create or do some innovative to their current product based on this research. For customers, once bank have developed a suitable Islamic credit card, they can choose it and used it without thinking twice by comparing it with conventional product.
2.0 Literature Review
2.1 Islamic Credit Card
Islamic credit card provides a revolving credit facility within the credit limit and credit period determined by the issuer of the card, normally a bank. It is also a means of payment. The holder of a credit card is able to pay for purchases of goods and services and to withdraw cash, within the approved limit. The amount of the purchase becomes the cardholder's debt to the credit card issuer. The card issuer determines the credit limit and taking into account customer's salary and previous credit rating when deciding on how much credit to give.
When purchasing goods or services, the cardholder is billed on a monthly basis and is given a free credit period during which the amount due should be paid and no interest is chargeable. The cardholder is also allowed to defer paying the amount due and is charged interest for the duration of the credit. In the case of a cash withdrawal, there is no free credit period. If using the card overseas, foreign exchange charges and transaction charges may also be applicable.
Card networks, such as Visa, MasterCard, DinersClub etc. are accepted worldwide and allow a cardholder to purchase goods directly without paying it first. Credit cards can be used online, which is on the internet, also they can be used to withdraw cash from a bank or ATM. Having a credit card is safer and more practical than carrying large amounts of cash when traveling, or for buying high value items such as jewelry.
Credit cards are also useful to make direct debit arrangement for regular bills such as utilities and telephony charges, and for paying in foreign currency when traveling abroad. Some cards come with additional services such as medical cover for international holidays, purchase protection and a variety of promotional offers. The interest charges on credit cards are compound and usually much higher than on normal bank loans. As a result, credit cards are considered to be not a good way of financing purchases over a long period of time. Come credit cards changes an annual fee and a membership fee, to entitle a consumer the use of the card.
2.2 Shariah concept
Islamic credit card has been recognized as the Shariah compliant product by Shariah Advisory Council of Bank Negara Malaysia (BNM). It was constituted by the BNM under the Guidelines of Islamic Credit Card dated on 1st August 2004. In Malaysia, the Islamic credit card commonly using the concept of Tawarruq, Ujrah and Bay' Al'Inah.
The Tawarruq model has been introduced by Bank Rakyat and this practice is followed by Bank Islam Malaysia Berhad (BIMB) by the end of 2008. Tawarruq is defined as the type of transaction where a person buys a commodity with a deferred price, then sells it to a third party (other than the original seller) for an immediate cash price. The purpose of this contract is to obtain cash immediately and it is considered a reprehensible sale in the opinion of Malik and one of the two opinions narrated on behalf of Ahmad (Al-Zuhayli, 2003).
The model of Ujrah (fee) has been introduced on 2010. It was introduced by the HSBC Amanah and EON CAP Islamic Bank Berhad. Nowadays, many of the current credit cards were changed to Ujrah model. The cardholder is imposed with Ujrah as a consideration for the services provided as well as the benefits and privileges offered by the Islamic financial institutions to the cardholders. In SAC 77th meeting dated 3rd July 2008 and 78th meeting dated 30th July 2008, has resolved that the proposed credit card structured based on the concept of Ujrah is permissible. Ujrah refer to a fee that is permissible in Islam based on sources from the verse of al-Quran and hadith as follows:
Allah SWT says:
"……….the best of men for you to hire is the strong, the trustworthy"
Surah al-Qasas, verse 26
A hadith of Rasulullah SAW provides:
"Pay the worker his wages before his sweat dries off"
Al-Baihaqi, Al-Sunan al-Kubra, Maktabah Dar al-Baz, 1994, v. 6, p. 120, hadith no. 11434
Meanwhile, the concept of Bay' Al'Inah has been introduced by four Islamic financial institutions which are Am Bank "Al-Taslif Credit Card" launched in December 2001, Bank Islam Malaysia Berhad "Bank Islam Card" launched in July 2002, Bank Simpanan Nasional "Al-Amin Card" launched in December 2006 and Maybank Islamic "Ikhwan Card-I" launched in 2008. Recently, most of them were changed to Ujrah concept. Bay' Al'Inah has been defined as to sell a commodity and buy it back or the bank purchases a commodity from its client on a spot basis and sells it back to the client at a cost-plus price and on a deferred basis.
Previously Bay' Al'Inah is permissible and has been widely used in the issuance of Islamic credit card in Malaysia. However, based on the information collected, most of the product nowadays used Ujrah concept.
Bank
Name of product
Principle
Bank Islam
Bank Islam Card-i
Tawarruq
Bank Rakyat
Credit Card-i
Tawarruq
CIMB
CIMB Islamic MasterCard
Ujrah
AmIslamic Bank
Al Taslif Platinum Card-i
Ujrah
HSBC Amanah
Credit Card-i
Ujrah
Maybank Islamic
Petronas Ikhwan
Bay' Al 'Inah
RHB Islamic
Platinum Credit Card-i
Ujrah
Table 3: Concept or Model used for Islamic credit card
2.3 Research framework
The previous study has been done by Hanudin Amin (2012) which he developed it based on Fishbein and Ajzen (1975) known as the theory of reasoned action (TRA). Fishbein and Ajzen (1975) introduced TRA in an effort to create a relationship among beliefs, attitudes, intentions and behavior. In TRA, two unique factors that contribute to intended behavior or behavioral intention are determined by attitude towards the behavior and subjective norm (Figure 1). He developed five variables that relevant to the Malaysia setting, namely financial cost, knowledge of Islamic credit card, attitude on Islamic credit card, financial recommendation and also demographic item.
Attitude toward Behavior
Behavioral Beliefs and Evaluation of Outcomes
Actual Behavior
Behavioral Intention
Subjective Norm
Normative Beliefs and Motivation to Comply
Figure 1: Theory of reasoned action
The current research model is particularly a simplified from previous model. The model excludes financial cost and financial recommendation. To study the intention to use Islamic credit card, measurement was added five new variables which is independent variable that consist of religious obligation, financial benefit, social influence and bank services, while dependent variable is intention to use. (Figure 2)
The model was filling up the gap on previous study which is 'religion' and 'financial benefit'. Religion was a stronger determinant for the probability of Islamic credit card usage intention. Typically, Islamic financial transactions are conducted based on the teachings of the Quran and the Sunnah. This explains that muslim transaction must strictly be Islamic, honest, fair and acceptable. (Amin 2012)
According to Olson and Zoubi (2008), Islamic banks use profit and loss sharing in charging for the financial transactions services. The concept of interest, however, is prohibited in Islamic banking model. Dusuki and Abdullah (2006) debated that Islamic hire purchase was expensive while other systems just looked confusing. Similarly, Amin (2008) found "lower monthly payments" was ranked second behind "transparency practice", suggesting that lower pricing was one of the motivations for customers to deal with Islamic banks. (Amin 2011). Thus this study also viewed 'financial benefit' to be one of the variables for the intention to use Islamic credit card.
For 'social influence', this variable was add on based on TRA model, which one of the factors is a subjective norm. Subjective norm is a function of normative beliefs. It is defined as a person's perception that most people who are important to him or her think that he or she should or should not perform the behavior and his or her motivation to comply with the specific references (Taib 2008, Ajzen abd Fishbein 1980).
Awan and Bukhari (2011) found that in various aspect analysis, the customer selection criteria are the characteristics of product attributes and services that provided by the bank itself. Therefore, variable of 'service' were developed. This variable is the great one not only for Islamic banks, but also for conventional bank who provide Islamic product.
Between developed countries, many credit card holders are residents of the city, where most of them have a higher level of education and working in professional field. In previous study by Schaninger's (1982) and Labich (1994) suggest that social stratification based on income has significant influence the usage of credit card. Further evidence on the profile in terms of education, income, residence, family and age (Meidan & Davo, 1994) support the same findings.
Attitude
Knowledge
Religious obligation
Intention to
use Islamic
Credit Card
Financial benefit
Social influence
Bank service
Figure 2: Framework of research
The null hypothesis is assumed true until statistical evidence, in the form of hypothesis rest indicates otherwise. The purpose of test is to determine accurately if the null hypothesis can be rejected in favor of the alternate hypothesis. The following hypotheses are null hypothesis:-
H1: Attitude will influence the use of Islamic credit card
H2: Knowledge will influence the use of Islamic credit card
H3: Religious obligation will influence the use of Islamic credit card
H4: Financial benefits will influence the use of Islamic credit card
H5: Social influence will influence the use of Islamic credit card
H6: Bank services will influence the use of Islamic credit card
H7: Intention to use will influence the use of Islamic credit card
The above relationship will be analysed using the multiple regression model to determine which variables are determinants of the customers' intention or potential customers' intention to use Islamic credit card. The study assumed the linearity of the phenomenon measured with constant variance and independence of the error terms. The normality of the error-term distribution is also assumed. Thus, the following regression formula is used:
Y = ß0 + ß1X1 + ß2X2 + ß3X3 + ß4X4 + ß5X5 + ß6X6 + e
Where Y is the dependent variable of the respondents' "intention to use Islamic credit card"; X1, X2, X3,X4, X5 and X6 represent the independent variables; and e denoted the error terms.
3.0 Methodology
3.1 Sample
A survey will be conducted within individual person in Peninsular Malaysia. My population is for Malaysian that currently used credit card issued by Malaysia Financial Institution or potential Islamic credit card owner. The quota sampling will be 9% from each state within Peninsular Malaysia. Which is around 30-35 respondents for each of it. The link of survey will be spread within working people randomly via email or any social media (e.g facebook, twitter etc). I will choose for respondent who feedback early for each state. First come, first in data.
3.2 Data collection
This study used a self-administered questionnaire for data collection. The questionnaire was doing by online method. The link of questionnaire was delivered to respondents via email and Facebook. The survey was conducted in September 2012. The questionnaires consist of two sections. Section A about profile of respondent, which include demographic item. Section B about factors (independent variable) that influence intention to use Islamic credit card.
3.3 Research instrument
The questionnaire was divided into two sections. The first section consists of demographic data while the second section consists of the measurement of independent variables. In the second section of questionnaire, a total of seven measures were constructed. Two of these measures were adapted from past research, another two were adapted from past research regarding Islamic personal financing, while the rest were self-developed:
attitude (Amin, 2012);
knowledge (Amin, 2012);
religious obligation (Amin, Rahman, Sondoh Jr & Hwa. C, 2012);
financial benefit (self-developed);
social influence (Amin, Rahman, Sondoh Jr & Hwa. C, 2012);
bank service (self-developed); and
intention to use (self-developed).
The above items were phrased in the form of statements as part of the survey to investigate the respondents' perceptions. To measure the respondents' perceptions, the study used the five-point Likert-type ranking scale from "1" - strongly disagree to "5" - strongly agree. The questionnaire was written in English languages. Prior to the actual survey, pilot study was conducted on 10 respondents using the developed questionnaire. The reason for the pilot test was to identify any problems associated with the study instrument, as well as any other relevant issues. Internal consistency using Cronbach's Alpha method has also been sought to test the reliability of the data.
The results are shown in the table 4. It shows that all items were significant since their Cronbach Alpha is more than 0.6. Except for 'knowledge', the Cronbach alpha only .346 and the item should be deleted. Based on this finding, it is found that the questionnaire is reliable and can be used for the actual survey.
Variables / Factors
Cronbach Alpha (α)
Attitude
.804
Knowledge
.346
Religious obligation
.851
Financial benefits
.653
Social influence
.767
Bank service
.927
Intention to use
.850
Table 4: Internal consistency of the variables
4.0 Findings
The current study had successfully collected a total of 177 questionnaires. Profile of the respondents is presented in two tables. Table 5 provides the overall breakdown of the sampled respondents while Table 6 presents breakdowns on the demographic item for each state.
As can be seen in Table 5, the sampled respondents comprised 62.7 percent females and 37.3 percent males, and at the time of the survey, 68.4 percent of the respondents were married with children or without children. The majority of the respondents was Muslim, and between 26 and 30 years (65.0 percent), followed by the 31-35 years (11.3 percent) and 36-40 years (9.6 percent). In term of the ownership of any credit card, most of the respondents currently don't have any, so they are probability one of the potential of credit card owner with 43.5 percent, followed by already have Conventional credit card (27.1 percent), already have Islamic credit card (18.6 percent) and also some of the have both, Islamic and Conventional credit card (10.7 percent).
Table 6 presents the profiles of respondents for all states within Peninsular Malaysia. Here, there is a limitation where the target respondents for each state are not reached. The majority respondents are from Negeri Sembilan (19.8 percent) and Selangor (18.6 percent). In both states, majority of them don't have any card credit (49 percent). However, in Perlis and Pahang, majority of them already have Islamic credit card only, followed by Perlis and Wilayah Persekutuan where they conquered in Conventional credit card only.
No.
Demographic items
Frequency
Percentile
1
Living state / current state
Johor
Kedah
Kelantan
Melaka
Negeri Sembilan
Pahang
Perak
Perlis
Pulau Pinang
Selangor
Terengganu
Wilayah Persekutuan
9
11
7
12
35
7
11
14
9
33
9
20
5.1
6.2
4.0
6.8
19.8
4.0
6.2
7.9
5.1
18.6
5.1
11.3
2
Gender
Female
Male
111
66
62.7
37.3
3
Age
19 - 25
26 - 30
31 - 35
36 - 40
41 - 45
46 and above
14
115
20
17
9
2
7.9
65.0
11.3
9.6
5.1
1.1
4
Religion
Muslim
Non-Muslim
176
1
99.4
0.6
5
Marital status
Divorced
Married with children
Married without children
Single
8
85
36
48
4.5
48.0
20.3
27.1
6
Educational level
Certificate
Diploma
Degree
Master
15
15
109
38
8.5
8.5
61.6
21.5
7
Income level
less than RM3,000
RM 3,001 - 5,000
RM 5,000 above
96
59
22
54.2
33.3
12.4
8
Owned credit card
No
Yes, Both
Yes, Conventional
Yes, Islamic
77
19
48
33
43.5
10.7
27.1
18.6
Table 5: Overall profile of respondents (177)
Since this research was to determine intention to use Islamic credit card, this survey identify all states within Peninsular Malaysia that at least owned Islamic credit card, either they only have Islamic credit card, or have both, Islamic and Conventional. Most of the owner of Islamic credit card is Perlis (50 percent), followed by Kedah (45.5 percent), Pahang (42.9 percent), Melaka (41.7 percent), Johor and Pulau Pinang (33.3 percent), Kelantan (28.6 percent), Selangor (27.3 percent), Negeri Sembilan (25.7 percent), Terengganu (22.2 percent), Perak (18.2 percent) and Wilayah Persekutuan (10 percent).
From these findings, the marketing team can work more in lowest area where the potential is wide and they need to do research on what their potential needs.
SPSS version 19.0 was used to analyse the data. A number of statistical analyses were performed. The Appendix provides the full list of questionnaire items.
The study used Cronbach's alpha test in order to assess the reliability of the scales employed in this study. The Cronbach's coefficient alpha is reported in Table 7. The Cronbach's α values for all dimensions ranged from 0.692 to 0.952, exceeding the minimum α of 0.6 (Hair et al., 1998), thus the constructs measured were deemed reliable. Consequently, items which have values higher than 0.6 are retained for further regression analysis.
Variables / Factors
Cronbach Alpha (α)
Attitude
.929
Knowledge
.692
Religious obligation
.839
Financial benefits
.813
Social influence
.927
Bank service
.907
Intention to use
.952
Table 7: Cronbach Alpha
Correlation analysis was employed to test the relationships between the variables. More importantly, regression analysis was used to examine the relationship between the independent variables (i.e. attitude, knowledge, religious obligation, financial benefits, social influence, bank service and intention to use) and the dependent variable, "the intention to use Islamic credit card".
Table 8 presents the correlations of the major variables used in this study. The results indicate that attitude, knowledge, religious obligation, financial benefits, social influence and bank services are positively correlated with the intention to use Islamic credit card (p < 0.01). This means the stronger attitude, knowledge, religious obligation, financial benefits, social influence and bank services, the greater the use of Islamic credit card.
Mean Religious Obligation
Mean Financial Benefits
Mean Social Influence
Mean Bank Service
Mean Intention
Mean Attitude
Mean Knowledge
Mean
Religious
Obligation
Pearson Correlation
1
.359**
.254**
.341**
.290**
.455**
.719**
Sig. (2-tailed)
.000
.001
.000
.000
.000
.000
N
177
177
177
177
177
177
177
Mean
Financial
Benefits
Pearson Correlation
.359**
1
.133
.040
.078
.153*
.401**
Sig. (2-tailed)
.000
.077
.593
.304
.042
.000
N
177
177
177
177
177
177
177
Mean
Social
Influence
Pearson Correlation
.254**
.133
1
.381**
.383**
.306**
.269**
Sig. (2-tailed)
.001
.077
.000
.000
.000
.000
N
177
177
177
177
177
177
177
Mean
Bank
Service
Pearson Correlation
.341**
.040
.381**
1
.440**
.253**
.291**
Sig. (2-tailed)
.000
.593
.000
.000
.001
.000
N
177
177
177
177
177
177
177
Mean
Attitude
Pearson Correlation
.455**
.153*
.306**
.253**
.643**
1
.444**
Sig. (2-tailed)
.000
.042
.000
.001
.000
.000
N
177
177
177
177
177
177
177
Mean
Knowledge
Pearson Correlation
.719**
.401**
.269**
.291**
.381**
.444**
1
Sig. (2-tailed)
.000
.000
.000
.000
.000
.000
N
177
177
177
177
177
177
177
Mean
Intention
Pearson Correlation
.290**
.078
.383**
.440**
1
.643**
.381**
Sig. (2-tailed)
.000
.304
.000
.000
.000
.000
N
177
177
177
177
177
177
177
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Table 8: Bivariate correlation
Regression is used to examine the relationship between one dependent and independent variable. After performing an analysis the regression can be used to predict the dependent variable when the independent variable is known. In this case, Adjusted R square is 0.513 (51.3%) for independent variables and dependable variables. As such, it is means that all the independent variables (attitude, knowledge, religious obligation, financial benefits, and social influence and bank services) have a relationship with dependable variable (intention to use Islamic credit card). The Table 9 as presented below.
Model Summary
Model
R
R Square
Adjusted R Square
1
.728
.530
.513
ANOVA
Model
Sum of Squares
df
Mean Square
F
1
Regression
130.205
6
21.701
31.888
Residual
115.690
170
.681
Total
245.895
176
Table 9: Regression analysis
5.0 Discussion and conclusion
Based on this study and findings, it can be analyzed the probability of Islamic credit card usage intention using the data of 177 Malaysian in Peninsular Malaysia. The factors affecting the probability of intention to use Islamic credit card were attitude, bank services, social influence, knowledge, religions obligation and financial benefits.
Recommendations that can be given for those respective person in improving customers' selection towards Islamic credit card is, for bank managers where they can improve understanding of the factors, which prompt the probability of Islamic credit card usage intention. It also enables them to tailor their marketing efforts towards attracting the prospective Islamic credit card users. For research and development department, they can create or do some innovative to their current product based on this research. For customers, once bank have developed a suitable Islamic credit card, they can choose it and used it without thinking twice by comparing it with conventional product.
However, there was a limitation while doing this research. The balance number of respondents for each state was unable reached. This can be suggested for future research to fulfill this gap by doing a survey state by state. It also recommended too by doing this survey by self-administered questionnaire rather than online survey.
Overall, this study ascertained the determinants of the intention to use Islamic credit card among current customers and also potential customers. It is hoped that more similar and detailed research can be conducted on the use of this important and the emerging Islamic financial product.
REFERENCES
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