Factors Shaping Consumer Intentions: An In-depth Analysis of Islamic Banking Adoption in Mirpur AJK

Abstract

The present study examines factors that influence the Intention to adopt Islamic banking in the presence of fear of divine punishment and social norms. A total of 393 responses were collected from both Islamic banking users and nonusers. The study employed a cross-sectional design and utilized a convenience sampling method for data collection. Data analysis was conducted using measurement and structural model assessment through SmartPLS. The study reveals that Islamic banking’s awareness significantly influences the intention to use it, while social norms and divine punishment indirectly affect it. Raising awareness and utilizing religious/social motives promote Islamic banking. Banks should implement strategies to enhance awareness, promote religious considerations, and use social influencers to communicate Islamic banking services. Findings offer valuable insights for all stakeholders, helping them develop strategies to understand customer intentions and integrate them into their business processes.

Keywords: Intention to use, Islamic banking, PLS/SPSS, Awareness of Islamic Banking, Divine Punishment, Social norms.