This study is to illustrate the difference between Islamic and traditional banks in relation to consumer decision-making. Data is taken from both banking sectors for evaluation. The difference in the term factors affecting customers and banks and the quality of service provided to the customer is examined, so this study seeks to assess the performance situation and improve the quality of service in the Islamic financial system. We are looking at this issue through a variety of methods such as the creation of a quantitative portfolio, the economic modeling of diversification advantages, the theoretical development of the quality of financial service and the qualitative analysis of semi-structured interviews on perceptions of how quality of banking will affect both performance and financial innovation in Islamic finance. Iraq is experiencing a high level of competition between Islamic and traditional banking services that use quality of service as a profitable strategy The aim of this study is to describe and understand the decision-making process for clients in terms of recognizing differences in the quality of services between Islamic and traditional banks and the extent to which customers are affected by banking services.
The following paper will help you out in this regard:
Consumer decision making in conventional banks and islamic bank based on quality of service perception
D Wulandari, A Subagio - Procedia-Social and Behavioral Sciences, 2015 - Elsevier
The key word for for customer's -Decision is (product), any bank ether Islamic or conventional investing in providing the most adequate, easy, fast and functional products that attract customers and make their decision easier.
The Islamic banks' products are limited, complected and expensive, If the Islamic Banks provide products that satisfy the customers and produce profit to bank without impact on the principle loan e.g.
- [The Bank provide a principle loan to customer on any sort of Collateral bases both bank and customer agree.
- The Bank has to have a merchants network connected to the bank's electronic payment provision.
- The Bank has to have an agreement with merchants to fund the customers purchases through direct electronic transfer, in conditional agreement terms e.g. the bank shall enjoy cash payment discount form the merchants.
- The customer pays the Bank the Principal Loan amount only.]
By that the customer shall enjoy (zero) loan interest and also fast, easy and cheaper loan as the customer can use the credit card in the merchant (s) electronic payment method.
in similar other Islamic banks' product can be developed, and quality of services develop according.
In the other hand savings interest (earning interest), can be developed as well.
See this paper
Religiosity and Muslim consumers' decision-making process in a non-Muslim society, June 2013, Journal of Islamic Marketing 4(2)
- DOI: 10.1108/17590831311329313
Decision making when religion is a factor (religiosity) is interesting. Most consumers depend on price and income in decision making. Habits formed from religion will affect consumer decision making. Jewish and Islamic consumers will stay away from non-halal products. Similarly for investment products, interest is forbidden in Islamic society to be replaced with profit sharing.
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