Consumer behavior towards the acceptance of Islamic home financing.

Abstract

Purpose - The purpose of this study is to examine whether consumers in Pakistan are aware of Islamic home financing and to identify the factors that influence customers to choose Islamic home finance facilities. The basic model employed is the Theory of Planned Behavior (TPB) to measure consumer acceptance of Islamic home finance. This study also analyzes the factors related to the Islamicity of the product.

Design- The design of this study adopted qualitative analysis and aimed to conclude the results with the help of academia, households, and small businessmen through live interviews. The analysis focused on the factors that influenced the acceptance of Islamic home finance.

Finding- The core finding of this study is that factors such as attitude, subjective norm, perceived control, and Islamicity of the product, along with demographic factors like age, gender, job, and income, influence consumer acceptance of Islamic home financing.

Research limitation/implication- There are some limitations to this study. It is conducted only in Lahore, Pakistan. Currently, only four major Islamic banks are operating in Pakistan. Another limitation is that conventional banks offering Islamic services through branches and Islamic windows are excluded. The practical implication of this study is to support the growth of the Islamic home financing sector in Pakistan and to identify the issues faced by people adopting Islamic home financing. This study will also help to determine the demand for Islamic home financing.