Vol 22, 2019

Regular Articles

Service Quality Perception and its Impact on Customer Satisfaction in Islamic Banks of Malaysia
Hasnan Baber, Woosong University
Page 1-18   |      Download PDF   |   ABSTRACT PREVIEW


The study is aimed to investigate the gap between the level of service quality expectations and perception and its impact on customer satisfaction in Islamic banks of Malaysia. Shariah Compliance dimension was included in the SERVQUAL model of service quality. A 29 item questionnaire was employed to collect data from 721 customers of selected banks of Malaysia. In this study, data were statistically analysed through reliability analysis, paired sample t-test, exploratory factor analysis, regression analysis and followed by confirmed factor analysis. Structural equation modelling was used to measure service quality perception and customer satisfaction. This study revealed that there is a partial significant gap between expected and perceived service quality level except in Shariah Compliance and tangibility. The study suggested that there is a positive and significant impact of modified multidimensional SERVQUAL quality scale on customer satisfaction. Addition of Shariah compliance dimension showed the highest contributing factor among all dimensions and thus its inclusion was justified. The study was original and novel to find a quality gap and its impact on Malaysian Islamic bank customers and it will help policymakers of Malaysia and other countries to improve to meet customer expectations. 

Service quality, Quality gap, Islamic banks, Malaysia

Millennial Urban Generations: Does Become “A Current Generation” Shift Their Attention to Financial Literacy?
Deden Mulyana, Mohammad Soleh Soeaidy, Adhitya Rahmat Taufiq, Siliwangi University
Page 19-27   |      Download PDF   |   ABSTRACT PREVIEW


This study attempted to understand the roles of social behaviour and “new trend” lifestyle of the community of millennial urban generation, particularly the new employees towards their financial literacy levels. The data were analyzed utilizing Multilevel Confirmatory Factor Analysis within Structural Equation Modelling (SEM) analysis framework to identify how the effects of lifestyle variable on financial literacy. Besides, this study aimed at examining the significance of Attention, Interest, and Opinion (AIO) and Food Relation Lifestyle (FRL) concepts as the construct of lifestyle variable. Additionally, it scrutinized how financial knowledge, financial behaviours, and financial attitudes played their roles as the constructs of financial literacy. The findings indicated that lifestyle significantly influenced the financial literacy of urban millennial generations. This was reinforced by the empirical evidence showing that financial literacy resulted from knowledge, attitudes, and behaviours determined by the “new trend” lifestyle of millennial urban generations. Moreover, AIO and FRL can reflect the “new trend” lifestyle of millennial urban generations. Overall, financial knowledge, financial attitudes, financial behaviours reflected the financial literacy of millennial urban generations. 

Financial attitudes, Financial behaviours, Financial knowledge, Financial literacy, Lifestyle

Shariah View on Consumption Tax: Malaysian GST and SST as Case Studies
Mahadi Ahmad, Burhanuddin Lukman, International Shariah Research Academy for Islamic Finance
Saba’ Radwan Jamal Elatrash, International Islamic University Malaysia

Page 28-41   |      Download PDF   |   ABSTRACT PREVIEW


A consumption tax is a levy on the purchase of goods and services made by consumers as a source of revenues for the governments. This research aims at investigating the Shariah point of view on the compatibility of imposing a consumption tax like the GST and SST on goods and services purchased by consumers. The research used a qualitative method and relied on Islamic primary, secondary sources, relevant laws of Malaysia and other relevant materials. The findings of the research showed that tax is permissible with conditions, but consumption tax is not encouraged in Islam, whether on goods and service bought by the end-users except if the government is compelled by necessity to resort to it. 

Consumption tax, SST, GST, Imam al-Haramayn

Exploring Challenges in Providing Muslim Friendly Tourism Services in Northern Japan: A Case Study in Akita Prefecture
Nor Zafir Md Salleh, Roshazlizawati Md Nor, Nurul Azhani Mohd Azmin, Universiti Teknologi Malaysia
Zakiah Samori, Norazmi Anas, Universiti Teknologi MARA

Page 42-53   |      Download PDF   |   ABSTRACT PREVIEW


This study attempts to explore the challenges and hurdles in providing Muslim friendly facilities in a non-Muslim tourist destination with special attention given to Akita Prefecture, Japan. Every challenge is identified and carefully examined. This study adopts a qualitative approach where the conceptual authoritative literature in the related field is utilized based on content analysis. Also, it employs semi-structured expert interviews to gather views from the supply side of tourism activities at Akita Prefecture using purposive sampling technique. This study further reveals that, several difficulties including the language barrier, missing link between tour companies in destination and origin countries and lack of information on Muslim tourist needs are amongst the major obstacles to develop Akita Prefecture as Muslim friendly tourist destination and thus recommends further viable reforms and action plan could be taken to overcome this hindrance. 

Islamic tourism, Muslim tourists needs, Muslim friendly services, Akita Prefecture, non-Muslim tourists destination

Customers Intention Towards Green Hotel Practice in Malaysia
Kai Chen Goh, Nur Syahidah Said, Hui Hwang Goh, Ta Wee Seow, Sulzakimin Mohamed, Universiti Tun Hussein Onn Malaysia
Md Asrul Nasid Masrom
Page 54-65   |      Download PDF   |   ABSTRACT PREVIEW


Tourism industry in Malaysia has experienced continued growth due to Malaysia’s beautiful natural assets over decades. Tourism is largely depending on the clean environment, so the issues of operational hotel waste cannot be ignored. It is expected that customer behaviour while staying at the hotel can produce tonnes of waste. As a result, becoming a green customer is a step to cope with this problem. Green customers are people who committed about going green that will help to create a better environment. This concept is widely used in other countries but “limited” in Malaysia especially on green customers’ intention. Therefore, the theory of planned behaviour has been tested to define which factor is influencing the customer intention to practice green while staying at the hotel. This paper aimed to define which measurement items represent the factors of (attitude, subjective norm, perceived behaviour control and overall image). Confirmatory Factor Analysis (CFA) is used to validate the measurement model. The questionnaires are distributed and 210 respondents are received. The respondents are focussed to hotel customers in Malaysia. Data analysing is using Analysis of Moments Structures (AMOS) to confirm the unidimensional, validity and reliability for measurement model. Findings indicate most respondents perceived positive perception toward participating in green campaign favourably affect to practice green while staying at the hotel while the other factors were found no significantly generalise the finding. This highlighted the finding as to the emerging of group green customer in Malaysia still a long way to go. 

Hotel customer, Theory of Planned Behaviour, Confirmatory factor analysis, Hotel, Behavioural intention

Halal logo and Loyalty of Muslim Consumers: Reflection for Kopitiam Owners
Rohani Mohd, Badrul Hisham Kamaruddin, Anizah Zainuddin, Azimah Daud, Rozita Naina Mohamad, Universiti Teknologi MARA
Page 66-80 |      Download PDF   |   ABSTRACT PREVIEW


This study proposed to measure the level of loyalty of Muslim consumers in Kopitiam restaurants. As such, 250 questionnaires were administered to 250 of the consumers who visited the restaurant located in Klang Valley. The survey instrument measuring loyalty was adopted and adapted from past studies. The data was analyzed by using Rasch analysis. The findings revealed that generally, the level of loyalty towards Kopitiam was moderately high as indicated by the loyalty ruler whereby the majority of the respondents were at high logit of the ruler. Specifically, those who were found to be very loyal were those who perceived the halal logo as being true or original. The implications of the findings to owners of Kopitiam restaurants were provided. 

Halal certification logo, Kopitiam, restaurant loyalty, Muslim consumers, Absolute consumer experiential value

The Impact of Microcredit Programme on Participants’ Quality of Life: Evidence from Amanah Ikhtiar Malaysia
Zuraidah Binti Mohamed Isa, Norhidayah Binti Ali, Dahlia Binti Ibrahim, Universiti Teknologi MARA
Page 81-102   |      Download PDF   |   ABSTRACT PREVIEW


Since the inception of the microcredit programmes, various studies have been carried out to assess their impacts. Earlier studies seemed to focus on the impact of microcredit programmes on the participants’ income, and consequently on poverty. However, recent impact studies of microcredit programme have looked into the participants’ well-being instead of their income to measure their quality of life. Thus, this study attempts to investigate the impact of Amanah Ikhtiar Malaysia (AIM)’s microcredit programmes on the participants’ quality of life using a more comprehensive measure. Different from earlier research, this study takes on a different perspective by examining aspects of personal attitude, subjective norm, perceived behavioural control, entrepreneurial intention and entrepreneurial behaviour in assessing the impact that the microcredit programmes have on the participants’ quality of life. In this study, the hypotheses are tested using a cross-sectional data of 638 participants of Amanah Ikhtiar Malaysia (AIM). The findings of the study show that all hypotheses are significant and supported, where there was a positive and significant influence between participants’ attitude and entrepreneurial intention; participants’ subjective norm and entrepreneurial intention; participants’ perceived behavioural control and entrepreneurial intention; participants’ perceived behavioural control and entrepreneurial behaviour; participants’ entrepreneurial intention and entrepreneurial behaviour; and participants’ entrepreneurial behaviour and quality of life. 

Amanah Ikhtiar Malaysia’s Microcredit Programme, Entrepreneurial intention, Entrepreneurial behavior personal attitude, Participants’ quality of life, Perceived behavioral control, Subjective norm

Mobile Marketing Services: What’s influence Gen Y Consumers to accept it?
Mohammad Ismail, Razli Che Razak, Universiti Malaysia Kelantan
Fakhrul Anwar Zainol, Universiti Sultan Zainal Abidin
Hasimi Sallehudin, Universiti Kebangsaan Malaysia

Page 103- 118   |      Download PDF   |   ABSTRACT PREVIEW


This study is examined the acceptance of mobile marketing services by measuring the consumers’ intention and actual usage of mobile marketing services. Grounded upon extended Theory of Planned Behaviour, this study develops the conceptual framework by examining the attitude, subjective norm, perceived behavioural control, intention and their actual usage. This study also attempts to identify the effects of risk perception on actual usage, which still scarcity of explanation in mobile marketing usage among Gen Y. A total of 800 questionnaires were distributed to the full-time university students of four universities in the Northern Region of Malaysia. Structural Equation Modelling (SEM) with AMOS is the main statistical technique used in this study. The study has revealed that attitude, subjective norm, perceived behavioural control, perceived risk and behavioural intention tend to influence generation Y usage of mobile marketing services. Based on the findings, the theoretical and practical implications of the study as well as limitations and suggestions for future studies are also discussed. 

Mobile marketing services, Acceptance, Attitude, Subjective norm, Perceived behavioural control, Perceived risk, Actual use

Social Commerce an Extended Technology Acceptance Model: The Mediating Effect of Perceived Ease of Use and Perceived Usefulness
Nurkhalida Makmor, Norzalita Abd Aziz, Universiti Kebangsaan Malaysia
Syed Shah Alam, Mahsa University

Page 119-136   |      Download PDF   |   ABSTRACT PREVIEW


The social commerce websites have been growing rapidly with the advancement of information communication technology. Recently, the social interaction of Malaysians during leisure time has gradually changed due to the expansion of social networking sites. Thus, the consumers encounter a big challenge in understanding the information sources as the information sources could potentially lead to biases and rumours. To analyse the determinants impacting consumer’s purchase intention in social commerce websites, therefore, this study is to suggests a new model by extending social commerce constructs (SCCs) come into the Technology Acceptance Model (TAM) to examine the influence of SCCs and the perception of new technological website (i.e. perceived ease of use and perceived usefulness) on purchase intention. The current study uses non-probability (convenience sampling) by using a questionnaire survey to gain Malaysian online consumers respondents. The Partial least square structural equation modelling (PLS-SEM) technique was used for this study. As a result, a total of 100 respondents’ useable questionnaires. The finding of the study revealed that SCCs significantly affect purchase intention. Moreover, the TAM was discovered as a partial mediation between the relationship of SCCs and purchase intention. Furthermore, based on the samples analysed, the proposed model seems to be fitted considerably well. Therefore, while encouraging further extension and integration constructs, the proposed extended model of TAM may good and serve as new beginner research. Other practices should improve new marketing strategies to comprehend the social commerce landscape better. 

Social commerce constructs, Technology Acceptance Model (TAM), Purchase intention

The Effect of Optimism Bias and Perceived Risk on the Continuance Usage Intention of E-Government Service
T.Santhanamery, Universiti Teknologi MARA
Page 137-1
51   |      Download PDF   |   ABSTRACT PREVIEW


The introduction of e-hailing or ride-sharing services in Malaysia has revolutionized the personal transportation industry. However, early adopters were skeptical and unsure on acceptance of such services due to issues including lack of regulatory control, driver credibility, competition and resistance from conventional taxi drivers. E-hailing was unheard until recently and this is a new area of study to understand passenger ride perception and behavior. Hence, this study aims to determine factors influencing passenger ride intention towards e-hailing. Methodology utilised data collected through personal interviews with the manager of an e-hailing company. Self-administered and online surveys on 200 respondents selected via convenience sampling were conducted. Analysis using Smart PLS generated findings on perceived price, safety, convenience, accessibility and content marketing as significant factors in predicting passenger ride intention. Implications in terms of passenger safety on policy making to authorities and e-hailing companies are discussed as major concerns in this relatively new hail and ride service. 

E-hailing, Ride-sharing, Passenger ride intention, Perceived price, Accessibility, Safety, Content marketing, Convenience

Continuance Intention in Mobile Commerce Usage Activities Among Young Malaysian Consumers
Azyanee Luqman, Cheam Chai Li, Universiti Teknologi MARA
Razli Che Razak, Mohammad Ismail, Mohd Afifie Mohd Alwi, Universiti Malaysia Kelantan
Page 152- 166
  |      Download PDF   |   ABSTRACT PREVIEW


Recent statistics revealed that mobile commerce usage activities were dominated by young consumers from the age group of 20 to 24 years old. Therefore, in the interest of long-term growth and profitability, mobile commerce application developers and service providers heavily compete with each other to ascertain the continued usage among the target users. However, unlike initial acceptance decision, the research in the context of continuance intention is still in its early stage. Continuance intention is equally important and depends on various factors that affect the individuals’ decision to continue using a particular technology. Hence, grounded by the Expectation-Confirmation Model, this study aims to examine the continuance intention of mobile commerce usage activities among young Malaysian consumers. Data were collected from 632 full-time university students and analysed using Partial Least Squares structural equation modelling technique. The result shows a significant relationship between the entire variable in the study. Perceived usefulness and satisfaction were found to be significantly related to continuance intention, explaining 29.6% of the variance. In detail, satisfaction was found to be the strongest predictor of continuance intention. Thus, to facilitate continuance intention among young consumers, it is suggested that mobile commerce application developers and service providers need to focus on building and providing mobile applications that would satisfy the consumers’ expectations to bring out the positive experiences among the consumers when engaging in mobile commerce usage activities. 

Continuance intention, Mobile commerce, Young Malaysian consumers, Perceived usefulness, Satisfaction