Abstract:
Although Pakistani Islamic banks offered consumers of Islamic banking and the country at
large desirable opportunities, customer adoption remained low in Pakistan. Rogers' (2003)
Diffusion of Innovation Theory was used in this study to examine the effects of relative
advantage and compatibility on customer adoption of Islamic banking goods and services
in Pakistan. The study looked at how adoption is directly impacted by relative advantage
and compatibility. Relative advantage and compatibility were found to have a considerable
impact on adoption, supporting hypotheses H1 and H2.
