Islamic Bank Customers: Analysis and Implication on Marketing

This is an important study towards understanding customers' behavior of an emerging industry of Islamic financial services.The aim of this study is to examine the bank selection criteria being employed by the consumers group in Malaysia. The selection factors by customers are extracted from relevant literature, personal experience and interviews with some bank officials and potential customers. The study has analyzed mean factor analysis and then factor analysis to enhance the quality of result by the empirical survey. Previous literature suggests that factors such as banks' strong Islamic reputation as well as better financial return and banking services are to be among the leading factors in the selection criteria of the respective Islamic bank. The main implication of this study is to help marketing executives in the Islamic banks to craft better marketing strategies that would attract new customers as well as retain the existing ones in today's highly competitive environment dominating the alternative financial industry.