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CONSUMER AWARENESS AND ADOPTION OF ISLAMIC BANKING PRODUCTS IN MOGADISHU SOMALIA

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1.0 INTRODUCTION
The Study Aims to find out consumer awareness and adoption of Islamic banking products in Mogadishu-Somalia as statistical shows the number of users of Islamic banking are increasing last years with different user of Muslims and non-Muslims with that increasing on the other hand if we compare number of users of both conventional and Islamic banking conventional banking users are larger this leads to many contributing factor so in Somalia
The study is driven to achieve three main objectives which are:
1. to investigate the extent of consumer awareness in Islamic banking products provide by Islamic banks in Mogadishu,
2. Second is to examine the level of adoption in Islamic banking products in Mogadishu
3. To find out the relationship between consumer awareness and Adoption of Islamic banking products in Mogadishu.
According to above objectives the research questions will be:
1. What is extent that consumers aware of Islamic banking products in Mogadishu-Somalia?
2. What is level of adoption of Islamic banking products in Mogadishu-Somalia?
3. What is the relationship between consumer awareness and adoption of Islamic banking Products in Mogadishu-Somalia?

The Main Objective if this study is to find out consumer awareness and adoption of Islamic banking products in Mogadishu Somalia by identifying the degree that consumers live Mogadishu aware that Islamic banks in Mogadishu provide Islamic banking products if they are aware of much they know and describe about that Islamic products and also study aims to examine that degree of adoption of Islamic banking products in Mogadishu the capital city of Somalia how much consumers adopted the Islamic banking products provide Islamic banks operate in Mogadishu the motivate of this study is that since 1991 Somalia were lack of strong government which have strong institutions that operate significantly so from that period Islamic banks who individually established began to operate in Mogadishu and there is no string central bank that monitors, the study also aims to examine how much customer’s trust on Islamic banks in Mogadishu-Somalia.

2.0 LITERATURE REVIEW

RELATED STUDIES ABOUT CUSTOMER AWARENESS AND ISLAMIC BANKING
(Khan ; Asghar, 2012) investigated customer awareness and adoption of Islamic banking in Pakistan, the researchers used descriptive study by adopting 32 Questionnaire stuffs focusing on 5main variables which are financial service, service knowledge, sharia based, customer service, targeting demographic factors like age, gender and education, the study concluded that most of Pakistan people are positive attitude and enough awareness towards the Islamic banking this result can be satisfactory according to Pakistan the country is developing in Islamic banking and becoming a hub to Islamic banks which encouraged the investors in Pakistan to put their money in Islamic banks shifting from conventional banks which will have positive impact on Pakistan Financial sector coming future.
This Study Is important to my research because, the researchers focused on same variables like my research is intended to do and secondly they applied the same methodology I would like to use but I think they found out that that Pakistan people are aware of Islamic banking which is the reason that Pakistan people have Islamic culture and long term of government in the result of peaceful transition of power which different from my study area Somalia which suffered from civil war and lack of strong government institutions since 1991 when the military rule was ousted by rebel groups.
(Alsoud, 2013), in Kuwait studied customer awareness and satisfaction of Islamic retail products, the study used descriptive study and distributed 150 Kuwait customers a questionnaire asking whether they are ware of some Islamic products provide by Islamic banks operate in Kuwait, and how satisfied they are towards Islamic retail products they receive from Islamic banks in Kuwait, the researchers found that Kuwait customers are demanding not only compliance of sharia from but other traditional things customer request from banks the study also found that Kuwait aware of some Islamic products like Islamic credit cards but not aware of all Islamic products, on the other hand the level of satisfactory which the study aimed to explore have found it quite higher in with in the Kuwait customers in general.
In my opinion this study looks another dimension which is examining the level of satisfaction of Kuwait customers towards Islamic retail products which good part but this dimension comes after customer uses and adopts Islamic banking products provide by Islamic banks in Kuwait where the study is conducted.
(Sarbo, 2016) studied the influence of consumer’s awareness on Islamic banking in Nairobi, Kenya. The study examined how the customer’s awareness influences the Islamic banking in Nairobi County, the study used descriptive design and questionnaire by number of 196 customers live in Nairobi the capital city of Kenya, the researchers found that 64% of respondents aware of Islamic banking but only aware of basic Islamic banking like credit account and debit accounts but not the famous ones like Murabaha,Musharakah and Mudharabah.

This study is conducted east Africa where my study location is more over Kenya and Somalia are neighbors so study showed that Kenyan consumers are not that aware of Islamic banking but according to culture and religion which is the country is different from each other, Kenya most of population is Christian but in Somalia 100% of the population are Muslim which can lead to different result if the study is conducted in Mogadishu.
(Mahdzan, Zainudin, ; Au, 2017) researched the adoption of Islamic banking services in Malaysia to test the level of understand of Islamic banking and factors effecting the adoption if Islamic banking, the study used descriptive design by distributing Questionnaire to 200 MBA working student who have been selected in famous public university in Malaysia, the studied concluded that the level of understanding is below average and the Islamic banking concepts and perceived knowledge have significant effect on the adoption of Islamic banking The preliminary findings show that the respondents’ self-reported level of understanding on Riba and Shariah concepts is above average; however, their understanding on concepts such as ijarah,Mudharabah, musharakah, and Murabaha appears to be low.
This study focused factors that affect the adoption of Islamic banking in Malaysia and the level of understanding which are good dimension that needs the attention but I would recommend as further studies.
(Saini, Bick, & Abdulla, 2011) investigated consumer awareness and usage of Islamic banking products in South Africa, the researchers examined the level of consumer awareness and the use of Islamic banking products, the study used non probability sampling method and distributed 250 Questionnaire to Consumers in South Africa to test level of awareness in South Africa, the study found that Muslims are aware of Islamic banks, but their rate of use is low, as Muslim customers regard efficiency, lower bank charges, the availability of automatic teller machines and an extensive branch network as important factors when it comes to choosing a bank, rather than religious motivations for compliance with Islamic conventions. It was concluded that, if Islamic banks wanted to attract and retain customers and remain relevant in the South African context, they would have to develop relevant strategies designed to meet customers’ needs. Religion as the sole motivation for choosing Islamic banking is inadequate.

2.3 CONCEPTUAL FRAME WORK OF THE STUDY

Figure2.1

INDEPENDENT VARIABLE DEPENDENT VARIABLE

Primary data (2018)

The above conceptual framework explains in figure the variables of the study independent variable which customer awareness and dependent variable which is adoption of Islamic banking products and personal characters that intervening Variable.

3.0 METHODOLOGY
In this section it is described the kind of methodology this study will use starting with research design, sampling method and data collection instrument and data analysis
3.1 RESEARCH DESIGN
To get the purpose of this study was to examine customer awareness and adoption of Islamic banking products and achieve objectives of the study there for the study employed descriptive research design method by both qualitative and quantitative by analysis the mean and standard deviations of respondents answers and looking correlation to know the relationship between customer awareness and usage of Islamic banking products the reason to why the chose descriptive is that it best fits in this study and it also have another good benefits like it takes less time and cost to do.
3.2 POPULATION OF THE STUDY
The target population employed in this study are the customers of 3banks in Mogadishu which are DAHABSHIIL BANK, SALAAMA BANK, PREMIER BANK which are the most used banks in Mogadishu those provide Islamic banking products since the basic banks practice Islamic banking in Mogadishu is considered appropriate to achieve the purpose and objectives of the study, the exact number of population living in Mogadishu are around 2million people since this large of people cannot be reached sample of them is compulsory to use but according to banks branches in Mogadishu are 10 branches in 17 districts by reaching audience through most populated areas in the city like peace garden which is the most visited garden in the city and the Liido Beach which also a place mostly gather city residents in weekends and holidays .
3.3 SAMPLE SIZE
Since the total of study population cannot be reached for sake little time and cost sample size is appropriate to use to choose some number from the whole population, in this study a sample size of 200 customers those use three selected banks in Mogadishu a total of 200 questionnaires will be distributed to customers from these three selected Banks in Mogadishu.
3.4 SAMPLING METHOD
The Sampling Technique employed in this study wills purposive sampling technique which is non-probability sampling method since the exact number of customers of these selected Banks, a sample of 200 customers randomly selecting using non probability sampling method.

3.5 DATA COLLECTION METHOD
In research procedure or data collection method will be Questionnaire from research conducted which titled in Malaysia titled customer attitude and adoption IBPs, So that some modifications were made for that questionnaire to ensure its applicability of this context. The instrument comprised of three sections, profile of respondents (PR), level customer awareness which will be asked questions regarding how much the customers aware of this Islamic products, level of adoption of Islamic banking products. The questionnaire included close-ended questions Respondents were asked if costumer awareness have relation to adoption of Islamic banking products and level of understanding and their attitude towards adoption of Islamic Banking products provide by Selected Banks Operate in Mogadishu. This method was selected because it was easy to administer questionnaires, it saved time and it was helped to collect information that is applicable to the study.

3.6 DATA ANALYSIS
Collected data consist of quantitative data gathered by the questionnaire. The study will use Statistical Package for the Social Sciences (SPSS) program for statistical analysis as descriptive study and Correlation to describe the relationship between awareness of Islamic banking and adoption of Islamic banking products. The data will be presented in tables and counted. This study employed descriptive (Mean and Standard Deviation) and correlation statistics to analyze data, the totals will be converted into numbers to enable the readers to analyze and describe the data systematically to reach logical conclusions on the effect customer awareness on Adoption of Islamic banking.

3.8 REFERENCE

Alsoud, G. F. A. (2013). Customer Awareness and Satisfaction of Islamic Retail Products in Kuwait. Research Journal of Finance and Accounting, 4(17), 36–53.
Khan, H. N., & Asghar, N. (2012). Customer awareness and adoption of Islamic Banking in Pakistan. Interdisciplinary Journal of Contemporary Research Business, 3(9), 359–366. Retrieved from http://www.journal-archieves14.webs.com/359-366.pdf
Mahdzan, N. S., Zainudin, R., & Au, S. F. (2017). The adoption of Islamic banking services in Malaysia. Journal of Islamic Marketing, 10(2), 264–288. https://doi.org/10.1108/JIMA-08-2015-0064
Saini, Y., Bick, G., & Abdulla, L. (2011). Consumer awareness and usage of islamic banking products in South Africa. South African Journal of Economic and Management Sciences, 14(3), 298. https://doi.org/10.4102/sajems.v14i3.193
Sarbo, B. (2016). Influence of Consumer’S Awareness on Islamic Banking in Nairobi County, Kenya. European Journal of Business and Social Sciences, 4(11), 124–129. Retrieved from http://www.ejbss.com/recent.aspx-/

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