Understanding the Drivers of Islamic Credit Card Selection Using TRA Model: Evidence from Khyber Pakhtunkhwa, Pakistan

Authors

  • Khush Dil Khan University of Science and Technology, Bannu, KP, Pakistan
  • Ikram Ullah Khan University of Science and Technology, Bannu, KP, Pakistan
  • Safeer Ullah Khan Gomal University, Dera Ismail Khan, KP, Pakistan

DOI:

https://doi.org/10.52131/joe.2022.0404.0103

Keywords:

Islamic banking, Islamic credit card, Theory of Reasoned Action, Khyber Pakhtunkhwa, Pakistan

Abstract

This study investigates the drivers of Islamic Credit Card (ICC) adoption in Khyber Pakhtunkhwa (KP), Pakistan by using the extended Theory of Reasoned Action (TRA) model. Particularly, the study examines the impact of subjective norms, attitude, perceived financial cost, knowledge, and social influence on ICC selection. Using a convenient sampling technique, this study relied on self-administered questionnaires that were distributed among Islamic banks’ customers in Kohat and Bannu divisions. A total of 400 questionnaires were distributed, and 340 valid questionnaires were selected for the final analysis. The results from the regression analysis indicate that the factors i.e., subjective norm, customer attitudes, knowledge, and social influence have a positive and significant effect on the intentions to use the ICC, but perceived financial cost shows a negative effect on the intentions to use ICC. Among the predictors, the subjective norm was found a very influential driver to forecast the intention to use ICC. Our results provide insights to managers of Islamic banks, policymakers, and Sariah scholars to understand how to promote ICC.

Author Biographies

Khush Dil Khan, University of Science and Technology, Bannu, KP, Pakistan

Institute of Management Sciences

Ikram Ullah Khan, University of Science and Technology, Bannu, KP, Pakistan

Institute of Management Sciences

Safeer Ullah Khan, Gomal University, Dera Ismail Khan, KP, Pakistan

Institute of Business Administration

Downloads

Published

2022-12-28

How to Cite

Khan, K. D., Khan, I. U., & Khan, S. U. (2022). Understanding the Drivers of Islamic Credit Card Selection Using TRA Model: Evidence from Khyber Pakhtunkhwa, Pakistan. IRASD Journal of Economics, 4(4), 621–632. https://doi.org/10.52131/joe.2022.0404.0103