Term Paper Perception of Islamic Banking

In: Business and Management

Submitted By bellamyz
Words 3598
Pages 15
1.0 INTRODUCTION Perception is an important aspect to understand or predict the behaviors of customers in some situation, according to Sethi, 2002. Eagly and Chaiken, 1993 in their article said that general attitudes are relatively good predictors of general behavioral likelihoods. Furthermore, customer’s attitude toward a product or service is influenced by a match of the product or service user image with the customer’s self-concept . Islamic banking which started in 1983 in Malaysia, refers to a system of banking that complies with Islamic law which also known as Shariah law. The underlying principles that govern Islamic banking are mutual risk and profit sharing between parties and the assurance of fairness for all transactions based on an underlying business activity. It does not allow any transactions based on interest (riba), gambling (maisir) and speculative trading (gharar) at all cost. In terms of products and services, there are more than 40 Islamic financial products and services that may be offered by the banks using various Islamic concepts such as Mudharabah, Musyarakah, Murabahah, Al-Bai Bithaman Ajil, Al-Ijarah, Al-Takjiri, Qard Hasan, Al- Wakalah, Al-Kafalah and Wadiah. This study was stated the most perception of Islamic banking product among the Malaysian customer. As one of the important in service industry today, Islamic banking is no longer regarded only to fulfil the religious obligation of the Muslim. It is also how the Islamic banks want to market their products towards the non-Muslim community in Malaysia.

2.0 FACTORS INFLUENCING THE PERCEPTION OF ISLAMIC BANKING
2.1 Religion The religious value includes factors like Islamic bank is not involved in any regulations or acts against shariah that could spiritually burden customers, free from doubtful transaction, no riba is charged or offered and contributes towards zakat payment,…...

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