Consumers' loyalty toward Islamic banking system: does halal brand awareness mater? International Journal of Economics, Management and Accounting, 24 (2). pp. 209-226. ISSN 2462-1420 (2016)
Abstract
In a competitive market structure, brand awareness helps to create a basis of trust and acceptance. Brand awareness is the first step to creating brand equity, an asset that provides companies with sustainable competitive advantages. However, in the Islamic banking context, the majority of consumers are still unable to distinguish between Islamic and conventional
banks despite their awareness of the Islamic banking existence. This concern is critical to be addressed particularly in a dual banking environment such as in Malaysia, where consumers have choices between the Islamic and the conventional banking systems. Accordingly, this paper aims at investigating the influence of hạ lā l brand awareness on consumer loyalty toward the Islamic banking system. The model also includes brand loyalty as it is the core asset of brand equity. Using survey method, data of 454 respondents
have been analyzed using PLS-SEM. The findings reveal that hạ lā l brand awareness shows greater influence on consumer loyalty toward the Islamic banking system than brand loyalty. Thus, Islamic bank managers must operationalize effective marketing communication strategies by promoting the Islamic banking products with simplicity to facilitate greater consumer understanding. This is not merely for enhancing organizational competitiveness, but more importantly is to ensure long term Islamic banking industry resilience.
| Item Type: | Article |
|---|---|
| Keywords: | Islamic banking, Brand equity, Halal brand awareness, PLS-SEM |
| Taxonomy: | By Niche > Islamic Banking > Banks and Banking > Customer Services By Niche > Islamic Banking > Banks and Banking > Finance By Niche > Islamic Banking > Banks and Banking > Religious Aspects |
| Local Content Hub: | Niche > Islamic Banking |
| Depositing User: | Ilya Nur Fateen Othman |
| Date Deposited: | 29 Apr 2024 08:21 |
| Last Modified: | 29 Apr 2024 08:21 |
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