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The Virtual University, Pakistan’s first University based completely on modern Information and Communication Technologies, was established by the Government as a public sector, not-for-profit institution with a clear mission: to provide extremely affordable world class education to aspiring students all over the country.

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A Comparative Analysis of Customer Awareness: Islamic vs. Conventional Banking Products in Pakistan

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Author: UMAIS ANWER


Citable URI : https://vspace.vu.edu.pk/detail.aspx?id=357

Publisher : Virtual University

Date Issued: 7/5/2020 12:00:00 AM


Abstract

Customer awareness plays a pivotal role in developing perceptions about products and Islamic banking products are no exception. This study was aimed at performing a comparative analysis of customer awareness levels about Islamic banking products (IBPs) vs. conventional banking products (CBPs) in Pakistan. A survey was conducted by using a structured questionnaire for this purpose, with close-ended questions adapted from previous studies, using Convenience Sampling method. A total of 285 responses were recorded from walk-in banking customers in both Islamic and Conventional branches in the two cities of Lahore and Sialkot and the data was statistically analyzed in SPSS using paired samples t-Test technique to determine if a statistically significant difference existed in the awareness level towards IBPs and that of CBPs. Overall results show that the awareness level of customers regarding IBPs was lower compared to CBPs. As regards the specific products, awareness level of Musharakah and Ijara was lower than their CBP counterparts, namely Joint Venture and leasing respectively. However, no significant difference was discovered in the awareness level of Mudarabah and Murabaha in comparison to their conventional banking counterparts, namely Passive Partnership and Deferred Payment Sale. The study will be assistive in ascertaining the role of awareness in building a favorable perception about IBPs being Shariah Compliant.


URI : https://vspace.vu.edu.pk/details.aspx?id=357

Citation: ANWER,U(2019),A Comparative Analysis of Customer Awareness: Islamic vs. Conventional Banking Products in Pakistan,VIRTUAL UNIVERSITY OF PAKISTAN.(Lahore,Pakistan).

Version : Final Version

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