Vol 22 (S2), 2019

Regular Articles

Green Sukuk: Malaysia Taking The Lead
J.S. Keshminder, Gurmit Kaur Bariam Singh, Zainora AB. Wahid, Mohammad Syafiq Abdullah, Universiti Teknologi MARA
Page 1-22   |      Download PDF   |   ABSTRACT PREVIEW


Green Sukuk serves as an alternative form of finance which is equipped with both climate mitigation and Shariah compliance features compared to conventional finance. Acknowledging the superiority of green Sukuk to raise funds to mitigate climate change, the World Bank took the lead to promote it globally by making Malaysia the premier green Sukuk hub. This study seeks to assess the development of green Sukuk from the aspect of issuance and Shariah principle used in Malaysia since its inception in 2014. The study reveals that the development in the green Sukuk market is slow but is robust in moving from the energy industry to the building industry, while Shariah contracts used are based on the issuers’ underlying assets. The study concludes that the green Sukuk market is still small and liquidity constraint makes it difficult for investors to gain access. For the government to increase green Sukuk issuance, information about the performance, challenges, risks, and opportunities in the realm of green Sukuk must be made available to both issuers and investors. 

Green sukuk, Green energy, Socially responsible investment, Sukuk structure

The Intensity of Consumer Education and Consumer Empowerment Among Malaysian Consumers
Nurul Nadiah Syahida Tajurahim, Elistina Abu Bakar, Zuroni Md Jusoh, Afida Mastura Muhammad Arif, Sa’odah Ahmad, Universiti Putra Malaysia
Page 23-42   |      Download PDF   |   ABSTRACT PREVIEW


Today, in the era of globalization, the evolution of internet technology has caused market conditions to become complicated and complex. Consumers of all ages are exposed to a wealth of information and commerce 24 hours a day. Also, a variety of choices and offers to consumers make the decision making more complicated. Thus, consumers need to be empowered to protect themselves in the market. Utilizing Empowerment Theory, this paper seeks to analyze the influence of intensity of consumer education on consumer empowerment among Malaysian consumers. A total of 400 respondents had participated in this research where they were selected using multistage probability sampling. The data were collected using a self-administered questionnaire and were analyzed using SPSS software. Pearson Correlation Test is conducted to examine the relationship between the variables. The t-test is then used to examine the differences in consumers’ level of empowerment among urban and rural consumers. The findings reveal that the intensity of consumer educations was positively related to consumer empowerment. Moreover, there is no significant difference between urban and rural consumers regarding the level of consumer empowerment. The results can significantly contribute to improving the current consumer policy and consumer education in Malaysia. 

Consumer education, Empowerment, Policy

Factors Influencing Muslim Credit Card Holders’ Impulse Buying Behaviour in Malaysia
Siti Hajar Salwa Binti Ahmad Musadik, Universiti Utara Malaysia
Ilhaamie Binti Abdul Ghani Azmi, Universiti Malaya
Page 43-57   |      Download PDF   |   ABSTRACT PREVIEW


Studies on impulse buying have been substantially conducted in developing countries by vast researchers. Nevertheless, such studies are in scarcity amidst Asian countries, particularly Malaysia. Besides, studies that have looked into the variables of materialism, sale promotion, money and time availability, and hedonic motivation are also rather sparsely carried out in the light of impulse buying behaviour. As such, this study examined the correlations between situational variables (sale promotion, money and time availability) and individual variable (materialism and hedonic motivation) with impulse buying behaviour among Muslim credit cardholders in Malaysia. In terms of instrument development, this study instrument consisted of 44 items adopted and adapted from prior studies. Questionnaires were distributed to 1,000 Muslim credit cardholders in Malaysia via purposive and snowball sampling techniques and only 635 were usable for final data analysis. The analysis was performed via Partial Least Square (PLS-SEM) analysis. The outcomes revealed that materialism, sale promotion, money and time availability, and hedonic motivation displayed significant positive correlations with impulse buying behaviour. 

Impulse buying behaviour, Consumer decision making, Credit card, Partial least square

The Influence of Product Attributes on Young Consumers’ Purchase Decision of Makeups among Malaysian: The Mediating Effects of Perceived Brand Image, CEO’s Image, and Quality
Khalilah Abd Hafiz, Universiti Kebangsaan Malaysia
Khairul Anuar Mohd Ali, Universiti Utara Malaysia
Page 58-72   |      Download PDF   |   ABSTRACT PREVIEW


In recent years, the young generation has developing an interest in makeups. Makeups are not only just a popular trend but have a meaningful impact particularly in boosting their self-esteem, self-confidence, and personality. The purpose of this study is (1) to examine the influence of product attributes on young consumer purchase decision; (2) to examine the influence of product attributes on perceived brand image, perceived CEO’s image and perceived quality, (3) to examine the influence of perceived brand image, perceived CEO’s image and perceived quality on young consumer purchase decision and (4) to examine the mediating effects of perceived brand image, perceived CEO’s image and perceived quality in the relationship between product attributes and young consumer purchase decision of makeups among Malaysian. A total of 475 useable surveys (69.75% response rate) and data was collected using a self-administered survey in a shopping mall in Klang Valley, Kuala Lumpur. Store-intercept technique was used to determine the sample, and the instrument adapted from the prior studies based on seven-point Likert-scale. Covariance Based-Structural Equation Modeling (CB-SEM) technique was employed. The empirical results confirm that product attributes the perceived brand image, perceived CEO’s image and perceived quality have significant influences on the young consumer purchase decision. Additionally, the results indicate that there are no mediating effects of the perceived brand image, perceived CEO’s image and perceived quality in the relationship of product attributes and the young consumers’ purchase decision of makeups. The managerial implications discussed in the context of practical contribution to marketers in the cosmetic industry. 

Consumer purchase decision, Product attributes, Perceived brand image, Perceived CEO’s image, Perceived quality

Does Advertisement and Celebrity Endorsements Influence the Korean Cosmetic Products Purchase Intention? Empirical Evidence Among Netizen in Kota Samarahan, Sarawak
Pressca Neging, Jati Kasuma, Nur Azizah Aqilah Muhic, Aimi Nuraida Ali Hassan, Aisyah Nazamud- din,
Universiti Teknologi MARA
Page 73-85   |      Download PDF   |   ABSTRACT PREVIEW


Celebrity endorsement will create profound brand awareness. Sensible and passionate appeals are related to the advertisement. In sensible appeals, the item is accentuated principally on its advantages and passionate appeals meet the consumer’s psychology, enthusiasm, and social prerequisites. Thus, this study would like to examine the relationship of advertisement’s influence and celebrity’s endorsements in purchase intention of Korean cosmetic products. The result reveals that both advertisement and celebrity endorsement has a strong relationship with purchase intention. Ultimately, celebrity endorsement has a strong influence in convincing netizen purchase intention towards Korean cosmetic product. 

Advertisement, Celebrity endorsement, Korean cosmetic products, Purchase intention

Income management of newly married couple: Case of the urban Malay community
Leylawati Joremi, Universiti Teknologi MARA
Nurul Huda Mohd Satar, Roza Hazli Zakaria, Universiti Malaya
Page 86-103 |      Download PDF   |   ABSTRACT PREVIEW


The Department of Islamic Development Malaysia reported high divorce rates among Malays with a marriage duration of fewer than five years. It appears that financial hardship is the main cause. To address this problem, in-depth interviews on five newly married couples were conducted. The phenomenological method was used to expose the approach taken in managing household income. Findings showed that independent money management allocation system was the preferred practice. However, to meet religious claims, husbands also allocated housekeeping allowances to their wives. Besides, despite being married and having the responsibility of their own family, responsibility towards parents was not neglected. Economic instability is not a reason for these couples to ignore the needs of parents and other family members. Indeed, for Muslim couples, religion and cultures affected the management of household income. 

Family values, Financial hardship, Household income management, Muslim couples, Qualitative method

Disentangling the Effectiveness of Advertisement Content: Evidence from Eye Tracker Data
Noreldzaihan Mohd Rais, Rosidah Musa, Universiti Teknologi MARA
Page 104-113   |      Download PDF   |   ABSTRACT PREVIEW


In this 21st century, the advertising industry is focusing more on the online environment, which could be found on websites and social media, rather than the offline environment. With the fast emergence of digital online presence worldwide, marketing managers must ensure that the design and content of their advertisement can attract customers’ attention. As attention is captured, these advertisements will be able to convert it into purchase consideration, subsequently leading to actual purchases. The first ten seconds is the most critical part of an advertisement to capture customers’ attention. However, it is a challenge to understand what customers are looking for in advertisements. Further, from which aspect do customers look into, that would have more influence towards purchase consideration? This study thus intends to explore what and where customers of different genders look for within the first ten seconds of an advertisement; and to unravel its influence towards customers’ purchase consideration. Car advertisements published on Facebook during April 2018 from four brands in Malaysia; which includes Perodua, Honda, Proton, and Nissan; were used as stimuli. Eye tracker device was used to conduct heat map analysis and fixation counts. The data collected was based on a total of thirty participants, fifteen male and /fifteen female participants, aged between 20 to 50 years old. The result was quite surprising; it appears that both male and female participants look at similar angles from Facebook advertisements. Also, it was found that the message conveyed in the promotional text becomes an overall focus for both male and female customers when they look at these advertisements. Thus, it implies that promotional text is more influential in determining purchase consideration. 

Decision making process, Advertisement, Eye tracking

The Role of Environmental Education in Waste Segregation-at-Source Behaviour among Households in Putrajaya
Kai Wah Cheng, Syuhaily Osman, Universiti Putra Malaysia
Page 114- 136   |      Download PDF   |   ABSTRACT PREVIEW


Fast population, rapidly changing lifestyle, great urbanization along with aggressive economic development and the rapid changes in consumption rate have accelerated the daily generation and volume rate of municipal solid wastes. Efficient solid waste management has become one of the daunting national challenges, typically in developing countries, including Malaysia, to cope with the solutions for many serious environmental problems. The main purpose of this research is to examine the moderating effect of environmental education in relationships between households’ attitude, perceived behavioural control and subjective norm with waste segregation-atsource behaviour. The subject of this research was households who are living in Putrajaya and the sample was selected via multistage sampling and systematic sampling method. It was quantitative research by distributing a self-administrative questionnaire. The measurements were adapted from different sources to examine participants’ attitude, perceived behavioural control, subjective norm and environmental education with waste segregation-at-source behaviour. The results reveal that environmental education does moderate the relationships between attitude and perceived behavioural control with waste segregation-at-source behaviour positively. However, environmental education does not moderate the relationship between subjective norm with waste segregation-at-source behaviour positively. The findings provide an insight particularly for the local pro-environmental groups on factors that they should consider in developing pro-environmental policies. Furthermore, future research recommended using the online questionnaire in a bid to further improve the respond’s rate and be more cost-effective in various aspects. 

Attitude, Environmental education, Perceived behavioural control, Subjective norm, Waste segregation-at-source behaviour

Financial Stress Predictors for Civil Service Sector Employees
Husniyah, A. R., Mohd. Amim, O., Mohamad Fazli, S., Roziah, M. R., Amirah Shazana, M., Universiti Putra Malaysia
Page 137-151   |      Download PDF   |   ABSTRACT PREVIEW


The service provided for the public may be affected by financially stress employees. This study aims at identifying financial stress predictors among 470 Malaysian civil servants via a multi-stage random sampling through a cross-sectional survey. Financial problem was revealed to be the most influencing on financial stress followed by financial adequacy and work-life balance. Investment and health status also contribute to financial stress. The results will assist employers to develop financial education or coping with stress programs in enhancing the quality of services. Time can thus be used efficiently and productively by both parties enabling the growth in the economy. 

Financial adequacy, Financial problem, Financial stress, investment, Work-life balance

Are the Orang Asli ready for the Digital Economy?
Doris Padmini Selvaratnam, Zaini Embong, Kamarul Baraini Keliwon, Universiti Kebangsaan Malaysia
Page 152-1
66   |      Download PDF   |   ABSTRACT PREVIEW


The world economy is moving forward at a fast pace due to digitalization. New modes of work and production have created different types of jobs and also impacting the way people choose and decide to purchase items in their daily life. Consumption of goods is being influenced by social media. For the digital economy to be effective and have a high impact it requires that people, business, data and processes to be connected online. This is a tall order for the Orang Asli, who are mainly residing in rural areas and have a low data connection. This paper uses document analysis and supplemented with field survey at Pos Legap, Perak. Although only two of the Orang Asli youths interviewed do any online purchases, the majority are active users of social media. About 50 % have own business and all are interested to learn about digital marketing strategies. Distance from the market and the nearby town makes the social media an attractive entertainment and a business tool. Nevertheless, more concerted efforts need to be done regularly to get the Orang Asli to be more aggressively involved in the digital economy and capitalize on the income-generating opportunities that arise from it. 

Digital economy, Orang Asli, Online purchase, Pos Legap Perak

Examining the Source Credibility of User-Generated Beauty Contents (UGBC) on YouTube in Influencing Consumers’ Purchase Intention
Mazzini Muda, Universiti Teknologi MARA
Page 167- 184
  |      Download PDF   |   ABSTRACT PREVIEW


User-generated content (UGC) shared on YouTube is gaining popularity. Consumers view the videos and rely on product reviews to assist in their buying decisions. Yet empirical research on the credibility of UGC on YouTube is still lacking. This paper aims to investigate consumers’ perception of the source credibility of UGC and whether this perception will influence their purchase decisions. 372 questionnaires were collected using purposive sampling. Multiple regression analysis reveals that all three dimensions of source credibility (i.e. attractiveness, expertise, and trustworthiness) have a significant relationship with purchase intention, with source expertise as the main predictor. The findings can enhance the understanding of UGC and vloggers’ role in marketing. 

Beauty products, Purchase intention, Source credibility, UGC, YouTube

Developing a Shariah-Compliant Equity-based Crowdfunding Model towards a Malaysian Low- Carbon Consumer Society
Rafia Afroz, Mohammad Niaz Morshed, Jarita Duasa, Md Muhibbullah, The International Islamic University of Malaysia
Rabaah Tudin, UCSI University
Page 185-202   |      Download PDF   |   ABSTRACT PREVIEW


Malaysian households’ energy consumption increased by 6.9%. Meanwhile, energy supply increased by 6.1% from 1991 to 2006. If energy consumption continues to increase, it will put significant strain on the energy supply. The steady growth of electricity consumption in Malaysia is directly linked to CO2 emissions and climate change, which directly increases annual temperature and temperature-related health problems. The development of a low-carbon society is important as Malaysia is experiencing increasing CO2 emissions. A low-carbon society aims to reduce CO2 and improve life. The use of PV solar energy can be an effective solution, but Malaysian households face several barriers to using solar energy in their homes, such as high price, lack of physical and financial means, in addition to a lack of awareness and social support. This study proposes a model that will benefit from PV solar panels with Shariah-compliant equity-based crowd financing. In this study, electricity usage and energy usage of households, their interest in solar energy and the obstacles they encounter in the use of solar energy are discussed. A total of 260 participants from Kuala Lumpur were surveyed. The majority of respondents (74%) claimed that electricity usage was between 0-3000 KWh. The findings of this study show that high initial costs, limited knowledge of renewable energy technologies, lack of the best possible price, and lack of awareness are the biggest obstacles to sustainable renewable energy development. Besides, 47% of respondents were willing to accept the proposed model to help them in using solar energy in their homes. Furthermore, a logit model was estimated to investigate the factors that may affect the willingness of the households to accept the model. The results of the logit model reveal that income, household size and knowledge about climate change affect significantly and positively the willingness of the households to accept the model. This study suggests that the government can take the initiative to raise awareness of the households about the need for renewable energy and low-carbon consumer society. 

Shariah-compliant equity-based crowdfunding, Solar energy, Low-carbon consumer society, Obstacles

Smart Partnership and Women Micro-Entrepreneurs in Tanjung Karang- A Rasch Model Analysis
Salwana Hassan, Rohani Mohd, Geetha Subramaniam, Badrul Hisham Kamaruddin, Universiti Teknologi MARA
Page 203-219   |      Download PDF   |   ABSTRACT PREVIEW


Micro-enterprises in Malaysia have contributed a great deal to the economy, specifically to income generation and quality of life. However, many of them continue to face challenges when they want to expand their businesses and become sustainable. The main reason is due to insufficient capital. The purpose of this study is to examine whether a smart partnership between women microentrepreneurs and major retailers brings any impact on the quality of life. A case study was conducted in Tanjung Karang, a predominantly rural paddy field area in Selangor. A group of 17 women micro-entrepreneurs participated in a project in which they collaborated with local major retailers. Self-administered questionnaires were distributed to the participants and Rasch analysis was used. Based on the analysis, five groups of micro-entrepreneurs were identified based on the strata scores. Two rulers, needed for profiling and gaps, were also generated from the analysis. Regarding the level of satisfaction on the different aspects of quality of life, the ruler that functions to profile had identified five groups. Meanwhile, the ruler for effectiveness measured the level of effectiveness of the program. Taking into consideration the size of the gap between items, both before and after project showed that the collaboration has successfully transformed the quality of life of the women micro-entrepreneurs. This result verified the significance of the collaborative effort. This effort ensures the expansion and sustainability of micro-enterprise businesses. 

Women entrepreneurs, Collaborative, Partnership, Quality of life

Likelihood of using online banking services among consumers: Application of the Logit model
Jarita Duasa, Nurul Jannah Zainan Nazri, International Islamic University Malaysia
Nur Hidayah Zainal, Universiti Teknologi MARA
Page 220-232   |      Download PDF   |   ABSTRACT PREVIEW


Research on the area of internet banking has been extensively studied in developing countries since internet banking resumed from the new millennium. Most studies on this topic were conducted in Asian countries. Most methods adopted are attempted to analyze the ‘perception’ among respondents or consumers on this technology. Very limited studies were using logit or probit regression to explore the ‘probability’ or ‘likelihood’ of consumers using internet banking, in particular among Malaysian consumers. The current study aims to analyze the probability of using digital banking services among consumers in Malaysia using survey data collected in the area of Klang Valley. Responses from the survey are analyzed empirically using logistic regression and the study finds that regardless of the choice of consumers on banks whether it is local or foreign, Islamic or conventional and regardless of how often they visit the bank(s), the likelihood of using online banking is significantly determined by the level of education they have, gender and category of employment. There is a higher probability of choosing online banking services among those who are highly educated, females and those who are not working in the government sector. 

Internet banking, Consumers, Logistic regression, Malaysia

Criteria and Priorities of Secondary School Students in Choosing Their Educational Pathway: A Selection Process by Analytic Hierarchy Process
Adidinizar Zia, Peck-Leong Tan, Geetha Subramaniam, Universiti Teknologi MARA
Page 233-247   |      Download PDF   |   ABSTRACT PREVIEW


Malaysia has been striving to become a high-income country and paving the road to rise to rank top 20 nations in the world in terms of economics, social and innovation by 2050. However, the participation of secondary school students in technical and vocational education and training (TVET) has been low throughout the years, even with the rise of awareness on the importance of TVET in producing skilled workers towards sustainable economic growth. Therefore, this paper determines the criteria and priority that secondary school students consider in choosing their educational pathways. This study administered a pair-wise comparison survey to 80 secondary school students through Malaysia. Their responses were analyzed using by a multicriteria decision-making method, i.e. the Analytical Hierarchy Process (AHP). Three main criteria which were identified were ‘Internal Factors’, ‘External Factors’ and ‘Social Influence Factors’ and each had five sub-criteria. The results found that ‘Aptitude’, ‘Career’, ‘Parent’, ‘Courses’ and ‘Financial Aid’ sub-criteria are the top five priorities in choosing the educational pathways. Therefore, in alignment with Industrial Revolution 4.0, stakeholders especially parents should be able to give early identification of technical and vocational aptitude of their children with the help of teachers while encouraging them to go into TVET. At the same time, parents and teachers ought to provide accurate information and advice on TVET-related careers, courses, and financial aid should be made available for students who are interested in TVET-related fields. Prioritizing on these criteria will ensure a high enrolment of TVET students and will hopefully lead to more skilled Malaysian workers in the future. 

TVET, Secondary school students, Decision making, Priorities Analytic Hierarchy Process, AHP

Effects Of Risk Reducer, Choice Enhancer And Shopping Experience Enhancer On Store Patronage In Grocery Retailing
Carol Boon-Chui Teo, Universiti Teknologi MARA
Nor Amalina Binti Mohd Kamal, Nursyafiqah Binti Mohd Rafee, Khadijah Maulad Bahrol
Page 248-270   |      Download PDF   |   ABSTRACT PREVIEW


The Malaysian retailing environment has undergone changes in the retail format notably in grocery retailing. Grocery retail formats from large-scale multinational and local retail stores dominate the Malaysian retail scene. Premium grocers have gained popularity in the urban areas to cater to upscale clientele such as BIG, Jaya Grocer, Jasons Food Hall, Village Grocer and SAM Groceria. Shoppers are faced with a myriad choice of grocery retail format. More changes to grocery stores are expected as the industry adapts to new competitive pressures and millennial shopping habits. Faced with technology and e-commerce, physical stores have to continue to focus on improving store attributes to increase store patronage and fight for shopper traffic. This paper examines the influence of risk reducers, choice enhancers and shopping experience enhancers on store patronage of grocers. There is a vast scope for study into grocery as the environment changes rapidly, leading to changed shopper expectations and realignment of choice set of stores. The methodology utilized a survey questionnaire approach on 200 shoppers together with store observation and personal interview with a grocery chain. Findings found risk reducer in terms of location proximity and quality of merchandise and shopping experience enhancers under store ambience and employee assistance as strong predictors of store patronage. However, choice enhancers were not significant. Findings had implications for retail management and strategies for premium grocers in the evolving and changing grocery retailing landscape. 

Risk reducer, Choice enhancer, Shopping experience enhancer, Store patronage, Grocery retailing