The influence of attitude, subjective norms, religiosity and perception towards law enforcement on compliance behaviour to use Islamic financial products and services

Abstract

The purpose of this study is to identify the role of attitude, subjective norms, perceived behavioral control and Islamic religiosity towards compliance behavior of Islamic banking products among individual private sector business owners in Sungai Petani Kedah, Malaysia, the study adapts quantitative approach with 150 sets of questionnaires distributed amongst sample respondents. All data are analyzed using software of Statistical Package for Social Science (SPS5.17) by conducting various statistical methods to achieve the objectives of this study. A conceptual framework is constructed based on the Theory of Planned Behavior (TB) by adding one new exterior variable, namely Islamic religiosity to further explain the intention to use Islamic banking products, the results showed that all the variables are positively correlated with the compliance behavior to use Islamic bank products, meanwhile, based on the findings of the study, it has shown that Islamic religiosity is the only determinant and most significant factor than other three factors at the significant level of “0.05 > 0.047”. However, attitude, subjective norms and perceived behavioral control are found to be insignificant predictors of Islamic bank products compliance behavior, finally, the outcomes of this study may present recommendations to Islamic banks concerning adjustments and changes needed in order to increase the chances of customers choosing products offered by Islamic banks. Moreover, thus will also enable the bank managers to modify their marketing effort in line with attracting more customers in the future. Other than that. This study also assists to improve the research of Islamic banking and finance and thereby promote more discussions on this area.