CHAPTER 3

RESEARCH DESIGN AND METHODOLOGY

3.1 Introduction

The literature reviews revealed about the customers’ perception towards Islamic banks in

different aspects and in different countries, the research aims to study the customers’ perception

towards Islamic banks in Kingdom of Bahrain in the following aspects Islamic knowledge,

financial facilities and products innovation, service quality, trust and satisfaction, the research

will add value in this field and will give a better view for the Islamic banks about factors that

might be out of their consideration and can play an important role to attract new customers and

maintain the loyalty of the existing customers.

3.2 Research Design

The study utilized the inductive type of research. Inductive is the general term used to take

specific pieces of the collected data to a general conclusion. Inductive reasoning is moving from

specific observations to broader generalizations and theories. Conclusion is likely to be based

on premise, involves a degree of uncertainty.

The inductive survey methodology is a quantitative process. The descriptive survey method

was used to describe the incidence, the study used five parts of self constructed questionnaire.

Part1 is the assessment on Customers’ Islamic knowledge, Part2 is the assessment of Products

Innovation and Financial Facilities, Part3 is the assessment of Customers Service Quality, Part4

is the assessment of Customer’s Satisfaction, Part5 is the assessment of Customer’s Trust. The

index values are in the range from 1 to 5, where 1 – Strongly disagree to 5 – Strongly agree.

3.3 Sources of Data

In most researches two types of data, primary and secondary are used. When the research is

done through questionnaires or survey directly to get first hand information that research is said

to be Primary research. When the information is taken from other sources like books,

newspaper, magazines, websites etc it is secondary research. In this, the researcher depends on

the questionnaire as the main source of data so the primary type was used.

3.4 Respondents of the Study

Sample size of 150 was distributed to customers of different Islamic banks in Bahrain they

are from different cultures, background, life style, and level of living.

3.5 Reliability of the Instrument

The questionnaire was pre-test with a small group of individuals. Retesting refers of using

of the questionnaire on a small group of respondents to check their understanding of the

questions (Zulueta and Costales, 2003). This pilot group was composed of individuals of five

people who are not part of the study.

3.6 Data Processing and Statistical Treatment

The collected data was encoded in preparation for analysis using the Microsoft Excel. The

means, standard deviations, and Pearson’s r coloration was used to analyze the data.

The means was calculated to determine the respondent average perception on the different

variables investigated. The standard deviation was as calculated to determine the variability of

responses among the respondents. The Pearson’s r was used to test the hypotheses and to

compare the respondents’ perceptions on the different variables leading to the rejection or

acceptant of the hypotheses.

As used the Likert scale using the following verbal interpretation: Strongly Agree, Agree,

Moderately Agree, Disagree and Strongly Disagree.

3.7 Conclusion

The main objective of the study is to find out more about Customers’ perception towards

Islamic banks in Kingdom of Bahrain in terms of Trust, Service Quality ,Customer’s

Satisfaction ,Customer’s Islamic knowledge , Financial Facilities and Products Innovation.