Customer Intention on Islamic Home Financing Products: An Application of Theory of Planned Behavior (TPB)

Islamic home financing products are completely different from conventional home loan. Conventional home loan is based on lending and working on regime of interest which is prohibited by Shari’ah. This research aims to investigate the relationship between attitude, subjective norm, perceived behavioral control, level of knowledge or awareness and religiosity with customer’s intention in choosing Islamic home financing products. In addition, this study also hopes to identify the most influential factors that affect the customer’s intention in choosing Islamic home financing products. A total of 421 sets of questionnaires were returned by respondents among bank customers in Alor Setar, Kedah. The data was analysed using the Statistical Package for the Social Sciences (SPSS software version 18). The results of this study reveals that there is a significant relationship between attitude, subjective norm, perceived behavioral control, level of knowledge or awareness and religiosity with customer’s intention in choosing Islamic home financing products. This research also verifies that religiosity is the most important factor that affects the customer’s intention in choosing Islamic home financing products.