Abstract:
Purpose
The purpose of this study is to see how attractive the Islamic activities are among the
Muslims. It is important to know that whether Muslim consumers are engaged in Islamic
financial activities or not and if they do, what are the factors which influence them? The
main puipose is to find out the variable which influence consumers while choosing Islamic
banking. There were four independent (riba factor, friends and family influence, awareness,
product and service quality) and one dependent variable (preference).
Methodology
The methodology which is used in this research to collect the data is questionnaire. The
questionnaire contains more than fifteen questions. There were two parts, one for
demographic questions and other were about the influencing factors. Total respondents were
hundred.
Findings
Four hypothesis were made out of which one was accepted. The findings of this research
shows that among four independent variables. Only one variable shows statistically that it
have a positive impact on the dependent variable. In other ways product and service quality
have positive effect on preference. Which concluded that ifthe quality of product and service
of Islamic bank is good there are more chances that people will prefer the Islamic bank
instead of conventional bank.
Practical implications
The outcomes of this research may help the Islamic banks to find out the main factor why
people attract towards Islamic bank. This research also reflects the awareness level ofpeople.
It will help them out to find out the opportunities.
The limitation of this study was that it was conducted only in Karachi. And people are not
much aware bout the Islamic banking as it requires.
