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Beyond-money framing and customer decision to patronise Islamic banking: an experimental study

Beyond-money framing and customer decision to patronise Islamic banking: an experimental study
Beyond-money framing and customer decision to patronise Islamic banking: an experimental study

Purpose: The recent growth of Islamic bank (IB) assets in Indonesia has been mainly driven by government interventions rather than the organic development on the demand side. A novel approach to attract new consumers, increase market share and accelerate its development is the need of the hour. This study aims to propose beyond-money framing that promotes the Shari’ah and social dimensions of IB’s products on top of its contemporary marketing strategy. This paper examines whether this technique can advance IBs selection. Design/methodology/approach: This paper uses the (online) laboratory experiment involving 192 high- and low-literate participants from Generation Z (Gen Z). Using difference tests and Logit regression, this paper examines the impact of beyond-money framing on customers decision-making. Findings: Beyond-money framing has a significant impact in influencing customers decisions to select profit-and-loss sharing (PLS) products offered by IBs. The effect of the framing accelerates in the high-literate customers. Research limitations/implications: The contract examined is only the PLS one (mudharabah). Respondents are also restricted to Gen Z. This study does not separate the effect of Shari’ah and social aspects from beyond money framing. Practical implications: To attract new customers, IBs should emphasise their products’ social and Shari’ah features rather than relying solely on a low-price strategy. Originality/value: To the best of the authors’ knowledge, this paper is the first study proposing the framing strategy for IBs and examining its impact on IB’s product acceptance in Indonesia.

Beyond-money framing, Consumer decision making, Experimental design, Islamic banking, Religious and ethical consumption
1759-0833
Azizon, A.
57aab63b-d76f-4332-820c-cb8ba34ecfee
Kasri, Rahmatina Awaliyah
8b89e424-caff-4c65-a6d4-dbda533092bd
Indraswari, Kenny Devita
4be238a2-d610-47dd-94e8-d0e21633966b
Jatmiko, Wahyu
77c12c27-492a-4683-802a-a02a89025ce7
Azizon, A.
57aab63b-d76f-4332-820c-cb8ba34ecfee
Kasri, Rahmatina Awaliyah
8b89e424-caff-4c65-a6d4-dbda533092bd
Indraswari, Kenny Devita
4be238a2-d610-47dd-94e8-d0e21633966b
Jatmiko, Wahyu
77c12c27-492a-4683-802a-a02a89025ce7

Azizon, A., Kasri, Rahmatina Awaliyah, Indraswari, Kenny Devita and Jatmiko, Wahyu (2024) Beyond-money framing and customer decision to patronise Islamic banking: an experimental study. Journal of Islamic Marketing. (doi:10.1108/JIMA-09-2021-0322).

Record type: Article

Abstract

Purpose: The recent growth of Islamic bank (IB) assets in Indonesia has been mainly driven by government interventions rather than the organic development on the demand side. A novel approach to attract new consumers, increase market share and accelerate its development is the need of the hour. This study aims to propose beyond-money framing that promotes the Shari’ah and social dimensions of IB’s products on top of its contemporary marketing strategy. This paper examines whether this technique can advance IBs selection. Design/methodology/approach: This paper uses the (online) laboratory experiment involving 192 high- and low-literate participants from Generation Z (Gen Z). Using difference tests and Logit regression, this paper examines the impact of beyond-money framing on customers decision-making. Findings: Beyond-money framing has a significant impact in influencing customers decisions to select profit-and-loss sharing (PLS) products offered by IBs. The effect of the framing accelerates in the high-literate customers. Research limitations/implications: The contract examined is only the PLS one (mudharabah). Respondents are also restricted to Gen Z. This study does not separate the effect of Shari’ah and social aspects from beyond money framing. Practical implications: To attract new customers, IBs should emphasise their products’ social and Shari’ah features rather than relying solely on a low-price strategy. Originality/value: To the best of the authors’ knowledge, this paper is the first study proposing the framing strategy for IBs and examining its impact on IB’s product acceptance in Indonesia.

Text
Accepted JIMA - Beyond Money Framing and Customer Decision to Patronise Islamic Banking - Accepted Manuscript
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More information

Accepted/In Press date: 14 January 2024
e-pub ahead of print date: 2 July 2024
Published date: 2 July 2024
Additional Information: Publisher Copyright: © 2024, Emerald Publishing Limited.
Keywords: Beyond-money framing, Consumer decision making, Experimental design, Islamic banking, Religious and ethical consumption

Identifiers

Local EPrints ID: 491363
URI: http://eprints.soton.ac.uk/id/eprint/491363
ISSN: 1759-0833
PURE UUID: 51f89d19-e750-45d1-a519-b2dd88fd6062
ORCID for Wahyu Jatmiko: ORCID iD orcid.org/0000-0002-4626-3258

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Date deposited: 20 Jun 2024 17:04
Last modified: 16 Jul 2024 02:08

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Contributors

Author: A. Azizon
Author: Rahmatina Awaliyah Kasri
Author: Kenny Devita Indraswari
Author: Wahyu Jatmiko ORCID iD

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