Consumer Behavior in Islamic Perspective: An Empirical Analysis

Abstract

Pakistan is an Islamic country and the current paper is an attempt to investigate empirically whether Islamic consumer theory is being applied in this country or not. This study has used a set of questionnaires distributed to all general consumers working in different walks of life in the city of Lahore. Cronbach Alpha test is used to check the reliability and internal consistency of all variables in the questionnaire. In order to draw conclusions, percentage of respondents’ method has been used in SPSS. Results indicated that consumers in Pakistan follow Sharia rules moderately during consumption of goods and services, embrace Halal goods and services, and prefer to live a simple life, to some extent believe in wealth accumulation and believe that excessive accumulation of wealth induces them to lead an unnecessary luxurious life. Moreover, they frequently give donations to the needy, and somewhat consider the problems being faced by other consumers. They usually do not support a luxurious life when their siblings or neighbors are poor. They sometimes consider the life hereafter and control their wants during consumption of goods and services. Most of the people consider ethics in their consumption pattern and believe that absence of ethics is the major reason of defect of modern economics. Besides, most of the respondents are of the opinion that modern economics should include religious tools to get better outcomes. It is also concluded that they believe that social, moral and religious mechanisms are important with other economic programs and instruments in order to alleviate poverty. This study is important for the national and international producers, marketers and sellers who would like to sell their goods and services in Pakistan. Producers can produce goods and services by considering widespread Islamic consumption behavior in Pakistan in their production process. Marketers and sellers can attract mainstream consumers by depicting Islamic consumption pattern while marketing their products and services. To the best of my knowledge, no research in the past has been done to find out empirically Islamic consumer behavior for Pakistan.