Abstract:

The purpose of this study was to empirically test the effect of non-functional cues (such as country of origin, brand name, advertising, and price) on consumer purchasing decisions in Islamic banking services. Consumer use several quality cues to evaluate services. Although their effect on consumer’s decision making in the tangible nature of products has been studied, but their relevance to financial decisions has not been fully assessed. The current study assesses this disparity and proposes an integrated model for Islamic banking financial services. Data from 813 Islamic banking customers was collected and analyzed using the Partial Least Square (PLS) approach of Structural Equation Modeling (SEM). The results provided evidence of the significant influence of non-functional cues and consumer knowledge on consumer purchase decision.  It also indicated that the influence of non-functional cues on decision-making is moderated by the level of consumer knowledge. The findings of the study have important implications for the banks in terms of attracting customers.