Credit Card Preference in Islamic Banking or Convent

Journal of Islamic Marketing
Credit cards preferences of Islamic and conventional credit card

Nuradli Ridzwan Shah Mohd Dali, Shumaila Yousafzai, Hanifah Abdul Hamid,
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JIMA
6,1
Credit cards preferences of
Islamic and conventional
credit card
72 Nuradli Ridzwan Shah Mohd Dali
Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia,
Nilai, Malaysia
Shumaila Yousafzai
Cardiff Business School, Cardiff University, Cardiff, UK, and
Hanifah Abdul Hamid
Faculty of Science and Technology, Universiti Sains Islam Malaysia,
Nilai, Malaysia
Abstract
Purpose The main aim of this paper is to identify whether certain consumers behave irrationally
when it comes to select banking products. This paper builds on one of the most significant banking
products that is the credit card.
Design/methodology/approach This is an exploratory research paper. Therefore, only descriptive
analysisonthedifferencesbetweenthreecreditcardusergroupssuchastheIslamiccreditcardusers,conventional
card users and users who decide to use both credit cards, conventional and Islamic, were presented.
Findings The demographic and psychographic factors for the three different groups differ. In
addition, there are four factors that influence the credit card selection. The factors are insurance/takaful
provided by the credit issuers, cost associated with the credit card, the reward points programme
offered and the convenience factors. Furthermore, the study found that three of the factors except
insurance/takaful are significantly different between three credit card groups.
Research limitations/implications ThispaperislimitedtothecontextofMalaysiaandtherespondents
are mostly from the same ethnic. Therefore, it could not be generalised in the context of other countries and further
studies comparing different culture or ethnic could benefit and enrich the topic of study.
Practical implications The Islamic and conventional banks could focus on several factors
influencing customers selection and could focus to improve certain lacking areas as perceived by the
consumers. The ability to increase the perceptions of the consumers regarding their credit cards will
enable their products to be chosen in the market.
Originality/value There was a significant amount of literature discussed in the Islamic banking
selection factors. However, little attention being paid to the selection of a specific banks product. This
study offers a study that looks into the selection of the credit card offered by the banks in respect to the
irrational behaviours of the religious consumers in economic activities as compared to the conventional
economists. This paper will contribute to the body of existing literature of banking selection.
Keywords Consumer behaviour, Islamic banking, Islamic credit card, Banking selection,
Conventional banking, Conventional credit card
Paper type Research paper
Journal of Islamic Marketing
Vol. 6 No. 1, 2015
pp. 72-94 The corresponding author would like to thank Universiti Sains Islam Malaysia, Malaysian Ministry of
Emerald Group Publishing Limited
1759-0833
Higher Education and Cardiff Business School for their help in providing financial grants for the
DOI 10.1108/JIMA-05-2013-0039 research.
1. Introduction Islamic and
The topic of banking selection is a focal concern for bank marketers who seek to identify conventional
its antecedents and causal structure with the aim of better understanding, predicting
and managing customer satisfaction and retention in the banking industry. Previous
credit card
banking selection research has heavily focused on the antecedents to banking selection
criteria (Erol and El-Bdour, 1989; Haron et al., 1994; Gerrard and Cunningham, 1997;
Naser et al., 1999; Ahmad and Haron, 2002; Othman and Owen, 2002; Abbas et al., 2003; 73
Dusuki and Abdullah, 2007; Khattak and Rehman, 2010) and some authors have made
comparison between the conventional and Islamic banking selection (Dusuki and
Abdullah, 2007; Kamdari et al., 2007; Wan-Ahmad et al., 2008). This study, however,
moves away from banking selection criteria approach because the association has been
shown to be relatively agreed in the literature, and instead, this study uses a specific
product of the bank, which is the credit card, and tests four variables to credit card
selection. The four variables are:
(1) insurance/takaful[1];
(2) reward points programme;
(3) convenience; and
(4) cost and benefits.
The rest of this paper is organised by presenting the Malaysian credit card industry in
the next section and a review of the literature in Section 2. It is followed by a discussion
on the research method used in Section 3. The empirical results are discussed in Section
4 and followed by the conclusion section in Section 5.
1.1 The Malaysian credit card industry

The credit card industry in Malaysia is fast growing and unique because it operates
in a dual banking system where the conventional and Islamic banking systems are
allowed to operate side by side. The credit card spending in Malaysia recorded an
increase of 120 per cent from RM30.9 billion in 2003 to RM68.1 billion in 2009 (Bank
Negara Malaysia, 2006, 2007, 2008, 2009, 2010). The uprising trend of using credit
cards by the Malaysians customers in their daily life can be attributed to an
improvement in the nations standards of living and to the advancement of the
financial system in Malaysia. However, this growth also posed a potential risk to the
banking system as credit card loans are riskier and have higher probabilities of
insolvency than other commercial banking products (Sinkey and Nash, 1993). In
Malaysia, credit card issuers can be categorised as banks and non-banks. There are
25 credit card issuers in Malaysia and the majority or 88 per cent of the credit cards
are issued by local and foreign banks, while the remaining 12 per cent are issued by
non-bank institutions.
In the Malaysian context, there are only eight banks (AmIslamic Bank Bhd., Bank
Islam (M) Bhd., Bank Simpanan Nasional, Bank Kerjasama Rakyat (M) Bhd., CIMB
Islamic Bank Bhd., HSBC Amanah (M) Bhd., Maybank Islamic Bhd. and RHB Islamic
Bank Bhd.) offering Islamic credit cards. The number of Islamic credit card issuers is
relatively small compared to their conventional counterparts. The Islamic credit card
issuers have two great challenges in ensuring that the customers select and use their
credit card facilities. Firstly, the Islamic credit card issuers have to increase the
JIMA consumer awareness of its products. Secondly, they have to educate and build good
6,1 consumers perception and attitudes towards their products and services. Therefore,
this study is interested in the credit card products specific factors such as the insurance/
takaful facilities provided by the card issuers, the cost associated with using the credit
card, the reward points programme offered and convenience.
The Islamic banking, pronounced to be different from the conventional banking
74 in terms of its theoretical foundation, is also becoming competitive by offering
conventional products such as home financing, credit cards and personal loans.
However, despite the similarities in terms of products functionalities with the
conventional banking products, the Islamic banking products derive their main
impetus from the Shariah rules and regulations, which prohibit interest. The
Islamic credit card formulates their credit card contracts using a combination of
different contracts such as sales and purchase, rentals and fees. Nevertheless, it is
interesting to investigate, on the basis of product-specific differences, whether
customers perceive the Islamic banking products as superior or inferior in
comparison to the conventional banking products.
The focus of present study is on the credit card industry for comparison due to the
uprising trend in the usage of credit cards, as mentioned earlier. Nevertheless, it is
interesting to investigate the product-specific differences to see whether the Islamic
bank products are superior or inferior as compared to its counterparts. Credit cards
are used as a convenience payment medium for purchasing online products and
services, shopping, bills settlement and many other transactions (Slocum and
Mathews, 1970; Chebat et al., 1988; Chien and DeVaney, 2001). Credit card is as a
short-term revolving credit facility provided by the banks for the consumers
(Hamilton and Khan, 2001; Lee and Kwon, 2002; Abdul-Muhmin and Umar, 2007).
The swift changes in general economic environment and in particular the banking
sector have impacted customers bank selection and patronage behaviour (Erol et al.,
1990; Owusu-Frimpong, 1999; Almossawi, 2001; Blankson et al., 2007, 2009) and have
attracted scholars attention over the past three decades and more so even today. Thus,
the need to understand the factors impinging on consumers selection of retail banks is
one of the most crucial strategic issues in the banking sector, particularly for
policy-makers such as senior bank managers and advertising executives (Blankson
et al., 2007). A sound knowledge of customers bank selection criteria is vital in
formulating marketing mix strategies to attract, satisfy and retain customers
(Owusu-Frimpong, 1999).
As the Malaysian economy continues to prosper and develop new markets in Islamic
banking, finance and takaful, customers expectations will equally evolve. This requires
a deeper understanding of the factors impinging on their selection decisions. Against
this backdrop, the objectives of this study are:
to determine whether customers characteristics influence their selection and
usage of credit cards;
to identify the criteria by which Malaysian customers select their credit cards
and determine the factors which depict the most prevalent criteria; and
to compare these credit card selection factors on the basis of various profile
characteristics of the respondents and product-specific variables.
2. Literature review Islamic and
2.1 Contradicting fundamental theories conventional
The emergence of the Islamic economic theory in the 1970s has created a surge of studies
in Islamic economics, banking, management and marketing academic literature. New
credit card
theories in economics were proposed, challenging the existing capitalist theories such as
the theory of rationality, profit maximisation and many more (Chapra, 1974, 2000). Even
though the Islamic economics movement is relatively small, the Islamic theories as an 75
alternative economic system attracted much scholarly attention due to the
sustainability flaws of the conventional economic system. The major difference between
the conventional and Islamic economics is that the Islamic economics take into
consideration spiritual aspects, whereas the conventional economic system only

acknowledges monetary or material rationality. The concept of possessions being both
tangible (product) and intangible (services), and having intrinsic and extrinsic values
which have to be maintained and rendered proactively. However, a key difference in an
Islamic system is the consideration and appraisal of possessions beyond transience,
towards a longer time horizon towards transcendence (Wilson, 2014). Thus, the
objective of conventional economic is profit maximisation, while the objective of Islamic
economics is falah maximisation (Arif, 1985). Falah, in Islam, refers to success in this
world and in the days hereafter by obeying the divine rules and regulations.
Therefore, profit might be lower in the Islamic economic system as compared to the
conventional system. This is because the time horizon for the conventional economic is
limited during ones lifetime, while in the Islamic economic, time frame goes beyond life.
Thus, a Muslim consumer can be considered as irrational in a rational market
(Kartajaya and Sula, 2006). The Muslim consumers are believed to be part of an
emotional market because they take into consideration religious and divine
interventions in their consumption patterns and are not motivated by profit or cost
motives. Nevertheless, the Islamic theorists believe that the Muslim consumers are
rational because the utility economic model has two time frames; which are during
lifetime and after death. Many religions believe there is a life after death, and their status
in the afterlife depends on their attitudes in their life or named as customer afterlifetime
values (Wilson and Hollensen, 2013). Specifically, majority of the Muslims purchase
product and services with more frequency and loyalty because of the emotional
connection and social bonds that they are afforded (Wilson, 2014). Therefore, this study
takes the challenge to see if religion plays a crucial part in selecting a specific banking
product, i.e. credit card.
2.2 Research on Islamic credit card

The literature on conventional credit cards is abundant. However, the topic of Islamic
credit cards is still under-researched. As proof/as evidence/for instance, our web search
in five major research databases (i.e. Scopus, Web of Sciences, Proquest, EbscoHost and
EconLit) resulted in only six published papers and the topics covered by these studies
were customer satisfaction (Mohd Dali and Hamid, 2008), ownership and behaviour
(Abdul-Muhmin and Umar, 2007), instruments and structure (Noor and Azli, 2009),
mobile credit card (Amin, 2007, 2008) and paper proceeding in e-commerce (Zainul et al.,
2004). The three articles mentioned above on mobile credit cards and e-commerce can be
ruled out because the articles are out of the focus of Islamic credit cards. Thus, only three
articles are related to Islamic credit cards. For instance, Abdul-Muhmin and Umar (2007)
JIMA mentioned that the empirical evidence suggests that card ownership is positively related
6,1 to income, education and age, and males are more likely to own credit cards than females
(Chan, 1997; Kaynak and Harcar, 2001).
One of the articles was a preliminary study conducted by the researcher with three
other researchers; Mohd Dali and Hamid, 2008. It was published in a peer-reviewed
journal entitled the Business Review, Cambridge and the other article was a study
76 conducted by Noor and Azli (2009) which was published in the Journal of Monetary
Economics and Finance. Both of the studies were conducted in Malaysia. There is a very
big structural gap between the number of studies conducted in the conventional credit
cards and the Islamic credit cards.
The researchers believe that there are two possible reasons contributing to the lack of
studies conducted in this area, namely:
(1) lack of knowledge about the structure of Islamic credit card among the
researchers; and
(2) the industry is relatively new compared to other IB products.
In Stage 2, the researchers have to extend the search to other studies, which were not
published in an international journal. The researchers used the Google Scholar search
and included papers which were published in conference proceedings and papers in
journals, which were not listed in the four databases used in the first stage. In addition,
the researchers reopened the focus to include conventional credit cards instead of
Islamic credit cards to give an overview of studies conducted on credit card.
The study found another seven studies, such as studies on financial management
(Husin, 2008), motivation to choose credit-card (Choo et al., 2005; Abdul-Muhmin and
Umar, 2007; Mohd Dali and Abdul Hamid, 2007; Shahwan and Mohd Dali, 2007; Amin,
2013), preferences and perceptions (Mohd Dali and Mohd Rais, 2006) and the
relationship of income and card usage (Mansor and Che Mat, 2009).
For example, Abdul-Muhmin and Umar (2007) conducted a study in Saudi Arabia on
the credit card market. It is interesting to note that the Saudi credit card banks do not
offer Islamic credit card. The authors have examined the differences between the
respondents demographic variables with the usage intensity and payment behaviours.
There is a study conducted by Subramaniam and Marimuthu (2010) determining the
conventional credit card selection in Malaysia. They examined the five selection factors
such as convenience and protection, flexibility, economy, promotion and reputation with
demographic factors of the respondents such as gender, marital status, age, education
and annual income. They also found that the five selection factors positively correlate
with satisfaction.
However, there is little attention being paid on the selection of the Islamic credit
holders based on the product specific and comparing it between conventional and
Islamic credit cards and this research will try to fill in the gap. A revisit of the literature
search until June 2012 revealed that there is only one addition to the articles published
for Islamic credit cards. For example, an article written by Amin (2012) was published in
Management Research Review focussing on the local Malaysian Islamic credit card user
acceptance. The study shows that religion was a stronger determinant for the
probability of Islamic credit card usage intention followed by financial
recommendations and knowledge about Islamic credit cards (Amin, 2012).
In addition, the American credit card industry revealed that the intensity of customer Islamic and
satisfaction can also vary across different types of credit card users and payment conventional
behaviours (Chandrashekaran et al., 2007). For instance, JD Power and Associates, a
global marketing information services company, discovered in their six years of
credit card
longitudinal credit card studies (since 2006) that credit card users can be categorised into
two distinct groups: transactors and revolvers (Block, 2007; JD_Power_&_Associates,
2012). The term transactors refers to credit card users who usually pay-off their 77
outstanding balance each month, while revolvers represents the credit card users who
typically carry a credit balance on their credit cards (JD_Power_&_Associates, 2010).
They ascertained that revolvers tend to be less satisfied than transactors are. This
implies that the credit card users can be categorised according to their payment
behaviour in the context of the American credit card industry but would this apply in
the context of Malaysia and Islamic credit cards (ICCs)?
2.3 Conceptualisation of the credit card selection factors

Several reasons or factors affect a customers bank selection. A customers bank
selection can be based on rational (e.g. costs and benefits, profit, revenues, etc.) or
emotional judgement (e.g. religious or other non-tangible and material factors). Several
factors have been identified in the Islamic banking literature to be important when
selecting a bank, which were discussed in the subsections below. The factors are cost
and benefits, size and reputation, staff factor, religion, service quality, convenience and
other factors. The empirical findings on the selection factors will be discussed to deepen
our understanding on their relationships with bank selection.
2.3.1 Insurance/takaful provided. Studies revealed that protection against fraud and
loss is an important factor for credit card selection (Slocum and Mathews, 1970). For
instance, Meidan and Davo (1994) in their study of credit card selection factors in Greece
found that protection is significantly affecting the credit card users selection. Protection
against fraud has been studied by many researchers but protection against loss by
providing insurance or takaful schemes for the credit card users such as life, medical,
investment-linked, retirement, repayment disability, car, fire and theft, health, travel,
residential or funeral insurance is very limited.
2.3.2 Reward points programme. The importance of reward programme should not
be undermined. With a superior reward programme, the card issuer would be able to
position itself in the wallet of the credit card users. The reward programme is one of the
factors that influence the choice of credit card (Ivy, 2009) This is supported by a research
conducted by Gan et al. (2008) in Singapore who stated that the main reason for a credit
card user to hold several credit cards was to benefit from the different discounts,
promotions and privileges offered by the different cards. This is also supported by
Carow and Staten (2002) and Sprenger and Stavins (2008) in the context of American
credit card industry.
2.3.3 Convenience. It refers to the consumers perception on the easiness of using the
banks products. This factor plays positive roles in banking selection (Canner and
Cyrnak, 1986; Meidan and Davo, 1994). Many consumers state convenience factor as one
of the selection criteria (Erol and El-Bdour, 1989; Haron et al., 1994; Gerrard and
Cunningham, 1997; Naser et al., 1999; Ahmad and Haron, 2002; Othman and Owen,
2002). For instance, people in higher-income economic status tend to use credit cards due
its convenience as compared to people in lower income socioeconomic status (Slocum
JIMA and Mathews, 1970; Barker and Sekerkaya, 1992). The people who use credit cards
6,1 because of convenience tend to pay all the outstanding balance in full (transactors) as
compared to the people in lower income group who choose credit card due to its lower
interest cost (revolvers) (Moschis, 1990). The revolvers tend to have a revolving balance.
Convenience was stated as the selection factor for Islamic banking users too (Mohd Dali,
2010).
78 2.3.4 Cost and benefits. Cost and benefits can be defined as the positive or negative
reaction of the consumers on the differences between Islamic banking and conventional
banking profit and interest rate (referred as product price by authors such as Dusuki and
Abdullah (2007) or cost of services by Abduh and Omar (2012)) and borrowing and
returns by Gerrard and Cunningham (1997). A study by Moschis (1990) revealed that
people who tend to be sensitive with the cost of the credit card come from the
lower-income group. They tend to have a revolving balance.
A positive reaction is consumer favouring the Islamic banking products even when
the conventional banking offers a higher deposit rate or a lower financing interest rate.
A negative reaction is a consumer not favouring the Islamic banking and thus switching
to the conventional banking if the banks offer better/lower rates for deposit/financing or
not even considering the Islamic banking at all.
Several authors have examined the relationship and found a positive relationship
between cost and benefits and the bank selection process. For instance, Dusuki and
Abdullah (2007) have found that the cost and benefits are ranked second last in terms of
its importance towards banking selection with a mean of 3.92. The reason is that the cost
and benefit is ranked second last because staff factor and service quality are deemed as
more important as compared to the price. It is also interesting to take note that Abduh
and Omar (2012) reported that the cost of services is significant for the conventional
banking users but insignificant for the Islamic banking users. However, the relationship
direction for cost is negative for both. The direction of the rate of return is positive and
significant for conventional and Islamic banking users.
As mentioned earlier in the paper, this study is more interested in examining the four
predictors (cost and benefits, convenience, insurance/takaful provided and reward
points programme) to credit card selection because of several reasons. Firstly, the
selection criteria, such as those mentioned above, are studied for banking selection,
while the focal concern of this study is the credit card selection. Many of the banking
selection studies have agreed with the relationship between the factors with banking
selections, while there are limited studies that focus on credit card selection. Secondly,
this study focuses on the selection of a banking product, while the literature focuses on
the banking selection itself. The four factors studied are categorised into two major
groups:
(1) product-specific satisfaction (i.e. cost and benefits and convenience); and
(2) loyalty (i.e. insurance/takaful and reward points programme).
Moreover, a cross-group comparison between the Islamic credit card users and
conventional credit card users is conducted to identify the major differences between the
ICC and the CCC users. Firstly, it would be beneficial for the banks to understand if
different groups have different selection criteria. Once identified, strategies
formulations in attracting the right customers can increase banks marketing efficiency.
The banks could strategise their marketing and promotional activities targeting to their
customers needs and expectations. The results from the group comparison will provide Islamic and
a big contribution to knowledge, industry and policy-makers in regulating the financial conventional
industry involving Islamic banking and conventional banking.
The hypotheses of the studies are listed below:
credit card
H1. There is a difference between the credit card groups for the demographic and
psychographic factors.
79
H2. There is a difference between the credit card groups for the four selection
factors.
H3. There is a relationship between product-specific factors with types of credit
card selections.
3. Research methodology
This section explains the research design and methodology that is used to collect and
analyse the data to answer the hypotheses proposed in the previous section.
3.1 Operationalisation of survey constructs

The survey questionnaire consisted of three sections that elicited demographic
information and evaluated the selection criteria based on four factors. The last section
evaluated the respondents religiosity level using a 15-item Islamic religiosity scale
developed by Mohd Dali et al. (2012).
3.1.1 Demographic and psychographic. Age was measured in years. Gender was
coded using a 1 or 2 categorical variables, where 1 represented men and 2 represents
women. The respondents credit card usage frequencies were measured by asking them
about the monthly frequency of use, indicated on a 10-point interval scale (1 1 time to
10 10 times or more).
3.1.2 Operationalisation of selection criteria and satisfaction constructs. Twenty one
items were developed for the selection criteria and six items were for satisfaction. Cost
and benefit factor was replicated from studies of Erol and El-Bdour (1989), Haron et al.
(1994), Gerrard and Cunningham (1997), Metawa and Al-Mossawi (1998), Naser et al.
(1999), Othman and Owen (2002), Ahmad and Haron (2002), Abbas et al. (2003) and
Dusuki and Abdullah (2007).
The convenience factor was replicated from the studies of Erol and El-Bdour (1989),
Haron et al. (1994), Gerrard and Cunningham (1997), Metawa and Al-Mossawi (1998),
Naser et al. (1999), Othman and Owen (2002), Ahmad and Haron (2002), Abbas et al.
(2003), Dusuki and Abdullah (2007), Kamdari et al. (2007), Wan-Ahmad et al. (2008) and
Mohd Dali (2010). These two factors were related to the customers selection based on
their perceived satisfaction.
The other two factors were based from the credit card loyalty programme such as
reward points and insurance programmes, which were developed by the authors. A
5-point Likert scale rating ranging from 5 for strongly agree, to 1 for strongly disagree
was used to measure respondents credit card selection decisions. Figure 1 shows the 19
items in the four factors found from the exploratory factor analysis (EFA).
3.2 Participants and data collection procedure

The study samples are credit card users who use Internet facilities in Malaysia. The
justification for selecting this target group is based on the report published by
JIMA
theft and fire
6,1 car
health Insurance/
travel Takaful
residential
funeral
80
point program score is reasonable.
use because the points reward
program.
partnership with other well known Reward Points
establishment. Program
awards/rewards given by the
reward points program.
offer promotions and discount Credit Card
Selecon
easy to use.
widely accepted.
Convenience
confident with card security
confident internet shopping
interest/profit charges
annual fee charged
Cost
Figure 1. cash withdrawal fee
The credit card annual fee redeemed
selection model
ATKearney (2012), which stated that 56 per cent of the Malaysian population is
connected to the Internet and are relatively heavy users of credit cards (approximately
1.1 cards per household). To reach out to as many credit card users as possible, an online
survey was used as the data collection vehicle. The online survey was conducted over a
period of four weeks, commencing from the 7 November 2011 to the 8 December 2011.
Two thousands respondents who own a credit card were selected from personal
contacts and contacted via Facebook and email. The respondents were asked
beforehand by a screening question whether they are credit card holders. If they own a
credit card, they can proceed to answer the rest of the survey. If their answer is no, they
will be directed to a thank you page. After elimination of the missing data (incomplete
and missing questionnaires) at the end of the fourth week, 560 completed questionnaires
were retrieved and found usable in the analysis.
3.3 Content and convergent validity

The scale utilised in this study was assessed for both content and construct (convergent)
validity. A measure can be said to possess content validity if there is a general
agreement between the subject and researchers that constituent items cover all aspects
of the variables measured (Nwokah and Maclaton, 2006).
3.3.1 Content validity. Content validity was enhanced via the conventional process of Islamic and
measure development. We created a questionnaire in English that was reviewed for conventional
content validity by a senior university staff. The survey was translated to Malay
language and administered in both languages, English and Malay. After the first draft
credit card
questionnaire was completed, the survey instrument was validated through a pre-test
and pilot test. The pre-test involved five respondents, each with more than one year of
experience using credit card. Respondents were asked to comment on the length of the 81
instrument, the format and the wording of the scales.
To ensure appropriate meanings, and to clarify ambiguous questions, the
questionnaire has gone through several rounds of revision (in the pre-test) before the
instrument was pilot tested with a sample of 30 Malaysian students and their
accompanying spouses in Cardiff. The selection of the respondents in the pilot test is
based on whether they are a credit card users issued by any Malaysian banks. Based on
respondents feedback on the pre-test and pilot test, several items were revised.
3.3.2 Convergent validity. In the initial purification stage, EFA using principal axis
factoring via Promax rotation was used as it serves to identify factors that cannot be
measured directly. Principal axis factoring is used because principal component
analysis is a data reduction method and it is computed without regard to any underlying
structure caused by latent variables; components are calculated using all of the variance
of the manifest variables (Costello and Osborne, 2005). Promax rotation is used
assuming that in reality the factors correlate with each other, while Varimax rotation
assumes that the factors are perfectly not correlated with each other (Costello and
Osborne, 2005).
All the four dimensions that emerged as determinants of credit card selection passed
the minimum coefficient alpha value of 0.70 for a newly developed scale (Nunnaly and
Bernstein, 1994) and 0.8 for basic research (Lance et al., 2006) with eigenvalues of at least
1. Item-to-total correlation was also set above 0.3 (Ferketich, 1991) and a minimum factor
loading of 0.5 (Hair et al., 2010). Based on this rule, the variables and their communalities
which have values attached to them and the 19 variables that were retained
are presented in Table I. In addition, the KaiserMeyerOlkin and Bartlett tests are
acceptable at 0.881 and significant and the cumulative variance explained extracted are
58.51.
3.3.2.1 Factor analysis. As the first step, we conducted an EFA, a principal axis factoring
analysis, to determine the underlying dimensions of the credit card selection. The chosen
solution with four factors was constructed using the Promax rotation technique and can
explain 59 per cent of the total variance. There are different opinions found in the literature
concerning what constitutes a high factor loading, e.g. as small as 0.3 (Gardner, 2001). Here,
the rotated factor loading of 0.5 was chosen as a threshold. Kaisers criterion and scree plot
were selected as technical criteria to determine the number of factors. The Kaisers criterion
(eigenvalue greater than 1) was chosen here as the minimum requirement. Additionally, the
scree test (Cattell, 1966), as cited by Bryman and Cramer (2011), which plots the eigenvalues
against the number of components, suggested in this case, four substantive factors. Table I
gives an overview of the four factors and their items. The ranking of Factors 1 to 4 reflects the
declining eigenvalues.
The four components resulting from the factor analysis are described as follows:
(1) Factor 1 insurance/takaful: A person who scores high on insurance/takaful
selects his or her credit card because of the insurance or takaful additional
JIMA Factor Corrected item-total Percentage of
6,1 Factors (Cronbachs alpha) loadings correlation variance (%)
Factor 1. Insurance/takaful ( 0.905)

Theft and fire 0.867 0.808 31.55
Car 0.851 0.788
82 Health 0.821 0.743
Travel 0.771 0.808
Residential 0.742 0.712
Funeral 0.649 0.640
Factor 2. Reward points ( 0.850)

Point programme score is reasonable 0.903 0.768 13.00
Use because the points reward programme 0.819 0.637
Partnership with other well-known establishment 0.674 0.651
Awards/rewards given by the reward points
programme 0.666 0.675
Offer promotions and discounts 0.508 0.603
Factor 3. Convenience ( 0.833)
Easy to use 0.897 0.727 6.53
Widely accepted 0.858 0.674
Confident with card security 0.721 0.708
Confident internet shopping 0.630 0.634
Factor 4. Cost ( 0.794)
Interest/profit charges 0.763 0.649 6.20
Annual fee charged 0.713 0.599
Cash withdrawal fee 0.680 0.566
Annual fee redeemed 0.637 0.607
Correlation matrix for the four factors

Factor Insurance/takaful Reward points Convenience Cost Mean SD
1. Insurance/takaful 1.000 0.451** 0.219** 0.335** 2.7583 0.97572

2. Reward points 0.451** 1.000 0.479** 0.467** 3.2050 0.89321
3. Convenience 0.219** 0.479** 1.000 0.411** 4.0293 0.70642
4. Cost 0.335** 0.467** 0.411** 1.000 2.9241 0.97362
Table I.
Factors from Notes: All of the correlation are significant at 5% level; ** p 0.05; principal axis factoring with
principal component Promax rotation; eigenvalues 1; factor loadings 0.50; factor loadings are the correlations of the
analysis items with the corresponding factor after Promax rotation
facilities provided by the credit card. Insurance refers to the insurance coverage
provided to the credit card users such as car, fire and theft, health, travel,
residential or funeral insurance. Meanwhile, takaful refers to the Islamic
insurance where it is designed according to Shariah requirements. The Islamic
scholars do not accept conventional insurance because it involves with the
elements of uncertainty (gharar), interest (riba) and investment in prohibited
products such as alcohol (khamru) and gambling (maisir) industry. These
elements are strictly prohibited in Islam. Therefore, takaful is developed using Islamic and
the concept of helping each other (taawun). conventional
(2) Factor 2 reward points: A person who scores high on reward points credit card
appreciates highly on the points received whenever they spend using their credit
cards. These points can be redeemed for gifts and vouchers. The higher the
reward points accumulated, the higher the value of gifts that can be redeemed
such as a vacation in a 5-star hotel, a 50-inch flat screen television and many 83
more.
(3) Factor 3 convenience: A person who scores high on convenience selects his or
her credit card because it is widely accepted and easy to use. In addition, the user
is confident with the security features of the card and conveniently uses it for
Internet shopping.
(4) Factor 4 cost: A person who scores high on the cost selects the credit card
because the cost associated with using the card is reasonable. The cost
associated with this factor are the interest/profit charged on balance
outstanding, the annual fee, withdrawal fee and the privilege to waive the annual
fee by reward point redemption.
In addition, the Cronbachs alphas for the factors are reliable because all factors are
above 0.70.
3.4 Respondents profiles

The respondents were 48 per cent (270) males and 52 per cent (289) females. More than
50 per cent (306) were aged 31-40 years. One hundred eighty-eight (33.2 per cent)
respondents were conventional credit card users, 220 (39.1 per cent) were Islamic credit
card users and the remaining 152 (27.7 per cent) were using both credit cards. Forty-two
per cent respondents had a postgraduate degree.
The religious education background suggests that the ICC users had a higher
percentage of religious education background. Almost 70 per cent of the respondents
had owned their credit cards for more than five years and were considered as
experienced users. In terms of monthly repayment patterns, the ICC users showed a high
percentage of repaying the total outstanding balance as compared to CCC and both
credit card users. This is in line with the Islamic teaching to avoid accumulating debt to
the best of a persons ability. Table II presents a profile of the survey respondents.
Seventy-three per cent of the respondents had their credit cards with the top six
banks, namely: Malayan Banking Berhad, CIMB Bank Berhad, Bank Islam Malaysia
Berhad, HSBC Amanah Malaysia Berhad, Citibank Berhad and Maybank Islamic
Berhad. From the results, we can estimate that competition between the cards issuers
can be divided into five different levels. The first level is the competition between the top
three popular credit card issuers. The second level most popular credit card issuers are
HSBC, Citibank and Maybank Islamic. The different popularity levels between banks
are presented in Figure 2 by the diagonal lines drawn on top of the histograms, as shown
in Figure 1. For each level, there is at least one Islamic credit card issuer competing with
the other conventional credit card issuers.
JIMA Credit card ownership type
6,1 Only CCC Only ICC Both
Profile variable (N:%) (186:33.2%) (219:39.1%) (155:27.7%)
Gender
Male (270:48) 86:48.3 109:50 75:48.4
84 Female (280:52) 100:51.7 109:50 79:51.6
Age (years)
Below 20 (1:0.2) 1:0.5 0:0 0:0
21-30 (125:22.3) 43:23.1 4721.5 35:22.6
31-40 (306:54.6) 95:51.1 122:55.7 89:57.4

41-50 (98:17.5) 33:17.7 43:19.6 22:14.2
51-60 (25:4.5) 10:5.4 6:2.7 9:5.8
Above 61 (5:0.9) 4:2.2 1:0.5 0:0
Education
High School (5:0.9) 2:1.1 2:0.9 1:0.6
Diploma (34:6.1) 13:7.0 13:5.9 8:5.2
Degree (188:33.6) 71:38.4 59:26.9 58:37.4
Master (234:41.9) 73:39.5 93:42.5 68:43.9
PhD (98:17.5) 26:14.1 52:23.7 20:12.9
Religious education
No formal education (55:9.9) 23:9.9 21:9.7 11:7.1
Primary school (48:8.6) 20:8.6 13:6.0 15:9.7
High school (246:44.2) 82:44.2 91:41.9 73:47.1
University (194:34.9) 57:31.0 84:38.7 53:34.2
Pondok education (3:0.5) 1:0.5 2:0.9 0:0
Middle east universities (10:1.8) 1:0.5 6:2.8 3:1.9
Years using credit card (year)
1 (21:3.8) 8:4.3 9:4.1 4:2.6
1-5 (168:30.1) 59:31.9 75:34.2 34:22.1
6-10 (192:34.4) 53:28.6 80:36.5 59:38.3
11-15 (103:18.5) 29:15.7 38:17.4 36:23.4
16-20 (39:7.0) 18:9.7 10:4.6 11:7.1
21 (35:6.3) 18:9.7 7:3.2 10:6.5
Total credit cards owned
One (224:40.2) 80:3.7 126:57.5 18:11.6
Two (188:33.8) 64:35.0 65:29.7 59:38.1
Three (88:15.8) 25:13.7 23:10.5 40:25.8
Four (32:5.7) 10:5.5 3:1.4 19:12.3
Five and above (25:4.5) 4:2.2 2:0.9 19:12.3
Monthly payment pattern
Pay all outstanding balance (251:45.3) 83:45.4 113:51.8 55:35.9
Table II. Pay most of the outstanding balance (219:39.5) 69:37.7 77:35.3 73:47.7
Profile of survey Pay the minimum payment (79:14.3) 29:15.8 26:11.9 24:15.7
respondents Cannot pay the minimum payment (5:0.9) 2:1.1 2:0.9 1:0.7
Islamic and
conventional
credit card
85
Figure 2.
Most popular credit
card issuers
4. Findings
This section aims to outline the results of the data analysis in answering the hypothesis
mentioned earlier in this paper.
4.1 There is a difference between the credit card groups for the demographic and
psychographic factors (H1)
Analysis of variance (ANOVA) and KruskalWallis tests were conducted to identify
whether certain factors such as credit card usage duration, the number of credit cards
owned, the frequency of usage, payment behaviour, the level of education and the level
of religious education have an effect towards the credit card usage. The results shown in
Table III below revealed that all the factors mentioned above have significant impact
on the type of credit card used. The p-value for all the factors are significant implying
that there are differences between CCC, ICC and both credit card users. The ICC users
have the lowest mean for the usage duration because the introduction of the ICC is
relatively new in the Malaysian market as compared to the conventional credit card.
The number of credit cards owned also revealed that respondents who owned both
credit cards, ICC and CCC have a higher mean and the ICC users have the lowest mean.
This implies that the respondents who own both credit cards tend to have more credit
Mean (SD)
Profile variable Only CCC Only ICC Both F value 2
Age 3.13 (0.91) 3.05 (0.75) 3.05 (0.80) 0.302 0.738

Education 5.60 (0.91) 5.80 (0.89) 5.64 (0.80) 3.19** 6.74**
Religious education 2.95 (1.02) 3.26 (1.07) 3.16 (0.95) 4.84*** 8.77**
Years using credit card 3.23 (1.350) 2.92 (1.08) 3.32 (1.17) 5.79*** 11.06***
Usage frequency 4.70 (3.22) 4.25 (2.97) 5.27 (3.14) 4.83*** 10.70***
Total credit cards owned 1.90 1.58 2.80 59.25*** 103.28*** Table III.
Monthly payment pattern 1.72 1.63 1.81 2.76* 6.77** Basic demographic
and psychographic
Notes: *** p 0.01; ** p 0.05; * p 0.10 comparisons
JIMA cards as compared to ICC and CCC users. As for the payment behaviour, the ICC users
6,1 have the lowest mean as compared to the CCC and the both users groups.
This implies that the ICC users tend to pay earlier as compared to the other two
groups. Turning now to the level of education, the ICC users have a higher mean of 5.80
as compared to the CCC and both. This also applies to the level of religious education of
the credit card users. The ICC users have a higher mean as compared to the CCC and
86 both credit card users. Therefore, H1 is accepted.
4.2 There is a difference between the credit card groups for the four selection factors (H2)
Now, from the four factors identified from the EFA, this study tries to identify whether
there are any differences between the credit card group users. Table IV shows the results
from the ANOVA and KruskalWallis tests comparing the three groups CCC, ICC, and
both credit card users.
It is interesting to take note that there are significant differences between the credit
card users for two factors, which are convenience and reward points using ANOVA, and
three factors, which are convenience, reward points and cost using the non-parametric
test. The findings show that the CCC has a higher mean score for convenience and
reward points programme as compared to ICC (lowest mean score). In contrast, the ICC
has a higher mean score for cost as compared to the CCC. The findings imply that the
CCC issuers have established their product in terms of convenience and reward points
programme but the ICC users are satisfied with the credit cost as compared to the CCC.
In addition, the study has conducted cluster analysis and found that the credit card
users in Malaysia can be divided into two major demographic groups that are
transactors and revolvers. The demographic profiles of the two groups are shown as
follows (Table V).
Mean (SD)
Factors CCC ICC Both F value Chi-square
Insurance/takaful 2.76 (1.00) 2.74 (0.99) 2.79 (0.92) 0.123 0.170

Convenient 4.18 (0.66) 3.96 (0.72) 3.94 (0.72) 6.50*** 10.83***
Table IV. Reward points 3.33 (0.85) 3.07 (0.90) 3.26 (0.91) 4.74*** 8.634**
Comparative Cost 2.84 (0.87) 3.03 (0.97) 2.89 (1.08) 2.05 4.663*
evaluation of credit
card users Notes: *** p 0.01; ** p 0.05; * p 0.10
Cluster Cluster 1 (transactors) Cluster 2 (revolvers)
Demographic Prefer ICC & CCC Prefer both & CCC

Low usage High usage
Pay all the outstanding balance Pay most of the outstanding
High education level Moderate education level
High religious education level Low religious education level
Table V. Relative new users Experienced users
Cluster analysis for One or 2 credit card(s) only More than 1 credit card
the Malaysian credit Highly religious Less religious
card users Mostly women Mostly men
Findings from the cluster analysis, as shown above, imply that the transactors prefer to use Islamic and
ICC and CCC, while the revolvers prefer to use both and CCC. The transactors are mostly conventional
women who pay all the credit outstanding balance. In addition, they use the credit card less
frequently and are relatively new credit card users. They have high education and religious
credit card
education background. Furthermore, they have high religiosity level.
In contrast, the revolvers are mostly men who pay most of their credit outstanding
balance. Therefore, they will carry a credit balance to be carried forward in the following 87
month. In addition, they are credit card users with usage experience. They have
moderate education level and low religious education level. Interestingly, they are not as
religious as the transactors. Therefore, H2 is accepted.
4.3 There is a relationship between product-specific factors with types of credit card
selections (H3)
Even though the ICC issuers have successfully differentiated in terms of cost (fees,
charges, etc.) and insurance by providing takaful, as found earlier in the previous
analysis, the results could not be used to generalise the relationships between the
product-specific factors and credit card selections. Therefore, to provide a conclusive
relationships result between the dependent and independent variable, this study
identified the relationship between the credit card selections and the product-specific
factor found in the factor analysis using multinomial logistic regression with full effect.
The results of the multinomial logistic regression revealed that the model fitting
information is significant when the independent variables were added to the model
(chi-square of 37.12, 0.00). In addition, the goodness-of-fit for Pearson is not
significant (chi-square of 1,089.66, 0.363). However, the pseudo R2 is small (Cox and
Snell 0.064). Meanwhile, the likelihood ratio test revealed that all independent
variables (convenience, chi-square of 14.37, 0.001; reward point, chi-square of 11.30,
0.004 and cost, chi-square of 14.37, 0.00) contribute significantly to the model
except for the insurance/takaful variable (chi-square of 0.482, 0.786). The
multinomial logistic regression models for ICC and both compared to CCC found from
the analysis are as follows:
P(ICC)
Ln 2.008 0.078(Insurance/Takaful) 0.527*(Convenience)
P(CCC)
0.407*(RewardPoint) 0.471*(Cost)
Note: * is significant at 0.01 level.

The result for ICC compared to CCC revealed that, Insurance/ Takaful offered by the
credit card issuers is not significant in influencing the types of credit cards. However,
convenience influences the probabilities of the credit card users to choose CCC are
greater than ICC with a coefficient of 0.527 and significant at the 0.01 level with an odd
ratio of 0.59. Similarly, reward points influence the probabilities of the credit card users
choosing the CCC are greater than ICC with a coefficient of 0.407 and significant at the
0.01 level with an odd ratio of 0.666. In contrast, cost influences the probabilities of credit
users to choose ICC are greater than CCC with a coefficient of 0.471 and significant at the
0.01 level with an odd ratio of 1.60. The results for both credit card users compared to
CCC are given below.
JIMA P(Both)
Ln 1.616 0.061(Insurance/Takaful) 0.646*(Convenience)
6,1 P(CCC)
0.020(RewardPoint) 0.196(Cost)
Note: * is significant at 0.01 level.

In contrast to ICC, the results for Both credit card users are only significant for
88 Convenience, in which the probabilities of the credit card users choosing CCC is greater
than both with a coefficient of 0.604 and significant at the 0.01 level with an odd ratio
of 0.524. Therefore, H3 is accepted.
5. Discussion
As mentioned earlier, the aims of this paper are to determine whether certain selected
demographic and psychographic factors such as education and religious education
influence credit card usage to examine the factors that affect the adoption of credit cards
and to investigate if the selection factors are different between the three different credit
card users.
Certain factors such as credit card usage duration, the number of credit cards
owned, the frequency of usage, payment behaviour, the level of education and the
level of religious education have an effect towards credit card selection. The results
revealed that all the factors mentioned above have significant impact toward the
types of credit card used. The p-value for all the factors are significant implying that
there are differences between the CCC, ICC and both credit card users for both tests.
The ICC users have the lowest mean for the usage duration since the introduction of
the ICC is relatively new in the Malaysian market. The number of credit cards owned
also revealed that respondents who owned both credit cards, ICC and CCC have a
higher mean, while the ICC users have the lowest mean. This implies that the
respondents who own both credit cards tend to have more credit cards as compared
to ICC and CCC users.
This study has identified the four factors that can be associated with credit card
selection. They are insurance/takaful offered by the credit card, convenience, reward
points programme and cost. Convenience is supported by the previous literature (Erol
and El-Bdour, 1989; Haron et al., 1994; Gerrard and Cunningham, 1997; Naser et al., 1999;
Ahmad and Haron, 2002; Othman and Owen, 2002). In addition, the cost factor or being
satisfied with the cost of using the banks credit card facility is congruent with the
previous studies (Ahmad and Haron, 2002; Othman and Owen, 2002; Abbas et al., 2003).
What would be new to the literature are the other two factors, which are the insurance/
takaful factor as provided by the credit card issuer and the reward point programme
factor. These four factors can be used to determine the credit card selection in future
research.
This is supported by the results, which show that there are significant differences
between the credit card users for three factors, which are convenience, reward point
programme and cost between the three different credit card groups. The conventional
credit card users put emphasis more than the Islamic credit card users on convenience
and reward point programme factors. This implies that the conventional banks are
established in making their products convenient and their reward point programmes are
more successful from the Islamic banks. The conventional banks are better in terms of
these factors due to years of experience and the ability of the banks to work with other
establishments in ensuring that their reward programmes are attractive to credit card Islamic and
users. However, one interesting point that needs to be emphasised is that the Islamic conventional
credit card users select the Islamic credit card because the profit being charged by the credit card
Islamic banks are acceptable (cost and benefits).
This is believed to be attributed to the successful communication from the Islamic
banks that their credit card does not charge compound interest and is free of interest. In
addition, the Islamic credit card users might not be bothered even if the Islamic banks 89
charge higher cost as compared to the conventional banks because the sense of wanting
to avoid the prohibited interest. The Islamic credit card users see the extra profit earned
from using the conventional banks products as prohibited earnings. Although seems
irrational by the conventional economists, the Islamic economists believe that the
consumers are behaving rationally because the time frame goes beyond the life time to
include a second lifetime which is the life after death or the day hereafter (Wilson, 2014).
This is in support with previous studies in the area of economics (Chapra, 1974, 2000;
Kartajaya and Sula, 2006).
5.1 Implication for research

The study contributed important implication for future research in the banking
selection research. Firstly, the specific product selection needs to be considered as
the additional factors that affect the customers selection. This study gives some
indication of why banking customers as a whole select a bank but when dealing with
a specific product they will select another banks product. For instance, the results
from this study revealed that the conventional credit card users emphasised on
convenience factors, while the Islamic credit card users emphasised on cost and
benefits. This is almost similar with Slocum and Mathews (1970) and Moschis (1990)
based on the credit card users socioeconomic status. The selection factors are
different between different demographic, psychographic and the credit card user
groups such as ICC, both and CCC.
Secondly, the education, religious education level, gender and religious level also
influence the selection of the banking products. This study provides a strong
platform for future studies to concentrate in the demographic and psychographic
factors. For instance, the ICC users tend to be more highly educated, have higher
religious education and pay the credit card balance earlier compared to both and
CCC users. This implies that the ICC users can be categorised as transactors, while
the CCC users are revolvers.
Thirdly, the study has provided evidence that there are differences between the
conventional and Islamic bank users in terms of convenience, reward points and cost
with the conventional bank users more satisfied with convenience and reward point
factors, while the Islamic banking users more satisfied with the cost factor. This,
however, contradicts with the earlier findings by Moschis (1990) who stated that people
who tend to select a credit card based on cost mostly are revolvers because this study
found that the ICC users select based on cost but they are considered as transactors. The
results of this study create future research directions on the reasons affecting the ICC
and CCC users who select credit card based on cost and benefits but at the same time
behave differently in their payment behaviour.
JIMA 5.2 Implication for practice
6,1 The Islamic and conventional banks could focus on several factors influencing customers
selection and to improve certain areas, which seem to be lacking as perceived by the
consumers. The ability of issuers to increase the perceptions of the consumers regarding
their credit cards will enable their products to be chosen in the market. The banks can
strategise their position in the market based on the product segmentation targeted to the
90 transactors and revolvers. The Islamic banks, for example, can put high marketing efforts
towards specific customer profiles such as women, relatively new credit card users, highly
educated and highly religious people. On the other hand, the conventional banks can apply
a different strategy to target the men, heavy credit card users, moderate educational level
and the less religious people. The development of the credit card structure and its features
can be based on the marketing strategies used. The application of the right strategies can
increase the profitability of the banks without having to invest in unnecessary marketing
and promotional expenses to the wrong audiences.
5.3 Research limitation

This paper is limited to the context of Malaysia and the respondents are mostly from the
same ethnic, who are the Malays. Therefore, it could not be generalised in the context of
other countries. It is interesting, however, if the study can be replicated in other
countries that offer dual banking system. In addition, further studies comparing
different cultures or ethnics could benefit and enrich the topic of study.
Note
1. Takaful simply refers to Islamic insurance.
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About the authors

Nuradli Ridzwan Shah Mohd Dali is a Senior Lecturer at the Faculty of Economics and Muamalat,
Universiti Sains Islam Malaysia (USIM). He holds a PhD from Cardiff University and MBA from
Universiti Teknologi Mara and Master of Economics from Universiti Kebangsaan Malaysia. His
research specialism is in the field of Islamic Banking and Finance, customer satisfaction and
Islamic economics. He has published in various international journals including International
Journal of Islamic and Middle Eastern Finance and Management, American Journal of Finance
and Accounting and Journal of Islamic Economics, Banking and Finance. Nuradli Ridzwan Shah
Mohd Dali is the corresponding author and can be contacted at: mohdddalins@yahoo.com
Shumaila Yousafzai is a Lecturer of Marketing and Consumer Behaviour at the Cardiff
Business School, Cardiff University, UK. She holds a PhD from Cardiff University and an MSc in
E-Commerce from Coventry University. Her research specialism is in the field of adoption and
diffusion of innovation, ethical consumption, online addictions and consumer behaviour in
general. She has published in various international journals including Journal of Business Ethics,
Psychology & Marketing, Technovation, Services Industries Journal, and Journal of Applied &
Social Psychology.
Hanifah Abdul Hamid is a Lecturer in Faculty of Science and Technology, at Universiti Sains
Islam Malaysia.
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Journal of Islamic Marketing

Credit cards preferences of Islamic and conventional credit card

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1.1 The Malaysian credit card industry

consideration spiritual aspects, whereas the conventional economic system only

2.2 Research on Islamic credit card

2.3 Conceptualisation of the credit card selection factors

3.1 Operationalisation of survey constructs

3.2 Participants and data collection procedure

3.3 Content and convergent validity

Factor 1. Insurance/takaful ( 0.905)

Factor 2. Reward points ( 0.850)

Correlation matrix for the four factors

1. Insurance/takaful 1.000 0.451** 0.219** 0.335** 2.7583 0.97572

3.4 Respondents profiles

31-40 (306:54.6) 95:51.1 122:55.7 89:57.4

Age 3.13 (0.91) 3.05 (0.75) 3.05 (0.80) 0.302 0.738

Insurance/takaful 2.76 (1.00) 2.74 (0.99) 2.79 (0.92) 0.123 0.170

Cluster Cluster 1 (transactors) Cluster 2 (revolvers)

Demographic Prefer ICC & CCC Prefer both & CCC

Note: * is significant at 0.01 level.

Note: * is significant at 0.01 level.

5.1 Implication for research

5.3 Research limitation

Health, Vol. 14 No. 2, pp. 165-168.

About the authors

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1. Insurance/takaful 1.000 0.451 0.219 0.335** 2.7583 0.97572