Effect of credit cards on customers' spending behavior: a comparative analysis of Islamic and conventional credit cards

Purpose – The main purpose of this paper is to understand the attitude of Malaysian credit card holders towards spending and settlement behavior. It also attempts to highlight the effect of Islamic credit cards on the spending behavior of customers in comparison to that of conventional credit cards....

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Main Authors:	Idris, Umar Muhammed, Jan, Muhammad Tahir
Format:	Conference or Workshop Item
Language:	English
Published:	2013
Subjects:	HF Commerce HF5001 Business. Business Administration HF5410 Marketing. Distribution of products
Online Access:	http://irep.iium.edu.my/35080/ http://irep.iium.edu.my/35080/ http://irep.iium.edu.my/35080/1/Effect_of_Credit_Cards_on_Customers.pdf

id	iium-35080
recordtype	eprints
spelling	iium-350802014-01-29T04:41:45Z http://irep.iium.edu.my/35080/ Effect of credit cards on customers' spending behavior: a comparative analysis of Islamic and conventional credit cards Idris, Umar Muhammed Jan, Muhammad Tahir HF Commerce HF5001 Business. Business Administration HF5410 Marketing. Distribution of products Purpose – The main purpose of this paper is to understand the attitude of Malaysian credit card holders towards spending and settlement behavior. It also attempts to highlight the effect of Islamic credit cards on the spending behavior of customers in comparison to that of conventional credit cards. Design/methodology/ approach – Data were collected using a structured questionnaire, distributed among the holders of conventional and Islamic credit card holders. A total of 200 questionnaires were distributed among the respondents in Klang Valley of Malaysia. The data collected were analyzed using Statistical Package for Social Science (SPSS). First, descriptive analyses were conducted followed by reliability tests and factor analysis. Findings – The findings of this research revealed that there is no effect of religion on the usage of credit card whether Islamic or conventional. Further, it is also found that conventional credit cards outweigh Islamic credit cards. It might be due the fact that Islamic credit cards are new compared to conventional counterpart. Research limitations/ implications - Given that this research is quantitative, there is a need to embark on in-depth study (qualitative) to understand the effect of credit cards on customers’ spending behavior in much better way. Practical implications – The results of this study give clear indications that there is a great need for the Islamic banks to enhance their credit card marketing in terms of the benefits it offers to the customers, particularly, the consideration to avoid riba in the transactions. Originality/ value – This study is a novel attempt to test the impact of credit cards on spending behavior of customers along with the comparison of Islamic cards with conventional cards. 2013-06-10 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/35080/1/Effect_of_Credit_Cards_on_Customers.pdf Idris, Umar Muhammed and Jan, Muhammad Tahir (2013) Effect of credit cards on customers' spending behavior: a comparative analysis of Islamic and conventional credit cards. In: 3rd International Conference on Management (3rd ICM 2013), 10 - 11 June 2013, Pulau Pinang, Malaysia. http://www.internationalconference.com.my/proceeding/icm2013_proceeding/034_117_3rdICM2013_Proceeding_p500.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF Commerce HF5001 Business. Business Administration HF5410 Marketing. Distribution of products
spellingShingle	HF Commerce HF5001 Business. Business Administration HF5410 Marketing. Distribution of products Idris, Umar Muhammed Jan, Muhammad Tahir Effect of credit cards on customers' spending behavior: a comparative analysis of Islamic and conventional credit cards
description	Purpose – The main purpose of this paper is to understand the attitude of Malaysian credit card holders towards spending and settlement behavior. It also attempts to highlight the effect of Islamic credit cards on the spending behavior of customers in comparison to that of conventional credit cards. Design/methodology/ approach – Data were collected using a structured questionnaire, distributed among the holders of conventional and Islamic credit card holders. A total of 200 questionnaires were distributed among the respondents in Klang Valley of Malaysia. The data collected were analyzed using Statistical Package for Social Science (SPSS). First, descriptive analyses were conducted followed by reliability tests and factor analysis. Findings – The findings of this research revealed that there is no effect of religion on the usage of credit card whether Islamic or conventional. Further, it is also found that conventional credit cards outweigh Islamic credit cards. It might be due the fact that Islamic credit cards are new compared to conventional counterpart. Research limitations/ implications - Given that this research is quantitative, there is a need to embark on in-depth study (qualitative) to understand the effect of credit cards on customers’ spending behavior in much better way. Practical implications – The results of this study give clear indications that there is a great need for the Islamic banks to enhance their credit card marketing in terms of the benefits it offers to the customers, particularly, the consideration to avoid riba in the transactions. Originality/ value – This study is a novel attempt to test the impact of credit cards on spending behavior of customers along with the comparison of Islamic cards with conventional cards.
format	Conference or Workshop Item
author	Idris, Umar Muhammed Jan, Muhammad Tahir
author_facet	Idris, Umar Muhammed Jan, Muhammad Tahir
author_sort	Idris, Umar Muhammed
title	Effect of credit cards on customers' spending behavior: a comparative analysis of Islamic and conventional credit cards
title_short	Effect of credit cards on customers' spending behavior: a comparative analysis of Islamic and conventional credit cards
title_full	Effect of credit cards on customers' spending behavior: a comparative analysis of Islamic and conventional credit cards
title_fullStr	Effect of credit cards on customers' spending behavior: a comparative analysis of Islamic and conventional credit cards
title_full_unstemmed	Effect of credit cards on customers' spending behavior: a comparative analysis of Islamic and conventional credit cards
title_sort	effect of credit cards on customers' spending behavior: a comparative analysis of islamic and conventional credit cards
publishDate	2013
url	http://irep.iium.edu.my/35080/ http://irep.iium.edu.my/35080/ http://irep.iium.edu.my/35080/1/Effect_of_Credit_Cards_on_Customers.pdf
first_indexed	2023-09-18T20:50:24Z
last_indexed	2023-09-18T20:50:24Z
_version_	1777409955246112768

Effect of credit cards on customers' spending behavior: a comparative analysis of Islamic and conventional credit cards

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