Preferences and constraints on an Islamic consumer: An analysis from Islamic perspective

Abstract

Consumption is one of the central activity of an economy. It is perhaps the ultimate aim of all economic activity. The paper investigates Muslim consumer behaviour. The question that this study answers are what Muslim consumer behaviour is and how does it differ from Nep-Classical approach. This Study has adopted a realist ontological stance and interpretivist Epistemology. Units of data collection for the study were the Quranic verses and the texts of Hadith. The study found that an optimal Muslim consumer is confined in his consumption and spending to the boundaries of Sharia i.e., to stay away from Tabzir (pre-eminence) and Israf (extravagance) and follows the balanced approach, which is moderation and unlike modern day neo-classical Consumer theory, consumption is not the ultimate aim of human being. The paper suggests that the consumption behaviour of Muslim consumer must be guided by Islamic Principles. The paper also finds that the Muslim consumer should prioritize his/her expenditure within the domain of the Halal earning and spending. Thus, the findings of the paper show a compact Islamic consumer framework.