Antecedent of Selection of Islamic Home Finance : Empirical Evidence from Pakistan

Abstract

This thesis examines the selection criteria used by consumers when choosing Islamic home financing options and investigates the impact of these criteria on consumer decision-making processes. The study focuses on the Easy Home financing product in Pakistan, aiming to provide evidence-based insights into the factors influencing consumer choices and their subsequent impact on the housing market in the country. Islamic home financing has gained significant popularity in Muslim-majority nations, including Pakistan. However, limited research exists on the specific factors that consumers consider when selecting Islamic home financing options. By conducting a comprehensive literature review, this study establishes a conceptual framework that encompasses principles of Islamic finance, consumer decision-making processes, and the various models of Islamic home financing. The research methodology involves the collection of primary data through a survey questionnaire administered to a representative sample of individuals who have utilized the Easy Home financing product in Pakistan. The questionnaire focuses on identifying the key criteria influencing consumers' choice of Islamic home financing, including financial considerations, Islamic compliance factors, service quality factors, and convenience factors. The findings and analysis of the study provide a comprehensive understanding of the selection criteria employed by consumers when opting for Easy Home financing. The descriptive statistics shed light on the relative importance of each criterion, while the analysis explores the relationship between these criteria and consumer satisfaction, loyalty, and market segmentation. The study's results have implications for both theoretical and practical aspects. The findings contribute to the existing literature by filling the research gap related to consumer Islamic home financing selection criteria. Moreover, the outcomes have practical implications for financial institutions offering Islamic home financing products, helping them better understand and cater to consumer preferences. The thesis concludes with recommendations for future research directions, emphasizing the need for further exploration of consumer behavior in Islamic home financing across different demographics and regions. Overall, this study provides valuable insights into the selection criteria employed by consumers in the context of Islamic home financing, highlighting their impact on consumer decision-making processes and the housing market in Pakistan. Keywords: Consumer, Islamic Home Financing, Selection Criteria, Impact, Easy Home, Pakistan, Evidence, Consumer Decision-Making Processes, Housing Market, Islamic Finance