Patronage Factors In Islamic Banks In Pakistan

Abstract

Islamic banking has been developing and expanding its network across Pakistan. The study aimed at evaluation of the selection criteria for Islamic banking in Pakistan. To get this aim, pragmatic research design was incorporated. More specifically, qualitative and quantitative study methods were used in the study to explore the selection criteria for Islamic banking in Pakistan. A close ended questionnaire was incorporated to collect data from a sample of 300 customers of Islamic banks in Pakistan. The sample generated 81% response rate. It was found that rate of return, Islamic teachings and bank's reputation influence behavior of customers towards Islamic banks. Specifically, it was found that bank's reputation, rate of return and Islamic teachings strongly influence the general behavior of customers towards Islamic banks. Finally, it has been recommended that marketers of Islamic banks need to promote their good reputation to attract new customers. They can also promote the religious traditions in their advertisements to attract customers who are motivated to avail interest free banking services.