ISLAMIC HOME FINANCING PREFERENCE AND ATTRIBUTES IMPORTANCE AMONG POTENTIAL HOME BUYERS IN MALAYSIA

Abstract

The current study evaluates the effects of the subjective norm, pricing policy, institutional compliance on maqasid and blog influence on attitude towards Islamic home financing preference. Besides, the interaction between attitude and consumer preference of Islamic home financing is also examined. The sample includes 153 customers of Islamic banks in East Malaysia, Malaysia. Data are obtained through a self-administered questionnaire. To analyse the data, structural equation model is employed. The study reports that all determinants examined are instrumental in determining attitude towards Islamic home financing preference. In turn, the attitude is an influential predictor of Islamic home financing preference. The results obtained confirm that the Theory of Reasoned Action (TRA) should be applied for understanding and explaining consumer preference of Islamic home financing in Islamic mortgage context. Theoretically, it was found that pricing policy and institutional compliance added to the theory influence on preference in such context. This study provides valuable insights for Islamic bank managers to plan and upgrade Islamic home financing facilities for an improved consumer preference. While Islamic home financing preference is determined by various factors, this study only considers limited factors. Besides, this study is confined to a specific geography. Hence, future research should consider additional factors and to consider new settings to extend the findings.