Abstract

<p>The purpose of this study is to examine the main factors that motivate customers to deal with Islamic banks (IBs) in State of Kuwait and explore items needed by customers to develop IBs services to improve their market position. To achieve these objectives, a self-administered questionnaire distributed among sample of IBs customers from different provinces in Kuwait.</p><p>The findings of the analysis showed that customers think that the most important items are the quality of service and low service charges offered by the bank. Moreover, the customers think that the bank mass media is the least important item. The questionnaire also asked customers what IBs need to do in order to develop their services and improve their market position. The participants attached a highest level of importance is to increase the training courses for employees to reach comprehensive employee for non-banking activities and develop practical Islamic mortgages.</p>The main contribution of current study is that it is difficult to IBs to attract customers by the religion motive only; they need to meet the expectations of prospective customer by delivering better and wide range of services and products.

Highlights

  • Islamic Banks (IBs) have witnessed the rapid growth around the world in terms of both volume and quantity

  • The current study will take the State of Kuwait as an example for Muslim country and member in the Gulf Co-operation Council (GCC) market to find out the attitudes of customers towards the five IBs namely Kuwait Finance House (KFH), Boubyan Bank (BB) and Warba Bank (WB), Kuwait International Bank (KIB) and Ahli United Bank (AUB)

  • Perhaps the possible explanation refers to the KFH is established in 1977 and becomes a market leader in Islamic banking industry in the Kuwait market

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Summary

Introduction

Islamic Banks (IBs) have witnessed the rapid growth around the world in terms of both volume and quantity. While some studies reported that religious belief is a main motive to customers in selecting the IBs, other studies provided evidence that religious motives have less influence in deciding the selection of IBs. the current study will take the State of Kuwait as an example for Muslim country and member in the Gulf Co-operation Council (GCC) market to find out the attitudes of customers towards the five IBs namely Kuwait Finance House (KFH), Boubyan Bank (BB) and Warba Bank (WB), Kuwait International Bank (KIB) and Ahli United Bank (AUB). The current study will take the State of Kuwait as an example for Muslim country and member in the Gulf Co-operation Council (GCC) market to find out the attitudes of customers towards the five IBs namely Kuwait Finance House (KFH), Boubyan Bank (BB) and Warba Bank (WB), Kuwait International Bank (KIB) and Ahli United Bank (AUB) It suggests some proposals for improving the services and products of IBs in Kuwait

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