determinants of islamic home financing selection…etd.uum.edu.my/4097/2/s814585_abstract.pdf ·...

DETERMINANTS OF ISLAMIC HOME FINANCING SELECTION: A STUDY IN KUALA LUMPUR

BY NURUL LABANIHUDA ABDULL RAHMAN

Research Paper Submitted to Othman Yeop Abdullah Graduate School of Business,

Universiti Utara Malaysia, in Partial Fulfillment of the Requirement for the Master in Islamic Finance and Banking

b I

D

Calon untuk ljazah Sa jana I (Candidate for the degree 00

r \

-man Yeup Abdulleh Graduate School of Business

Universlti Utara Malaysia

\ /'

PERAKUANKERJAKERTASPROJEK (Certification of Project Paper)

Saya, mengaku krtandatangan, rnemperakukan bahawa (I, the undersigned, cediiled thet) NURUL LABANIHUDA BINTI ABDULL RAHMAN (814585)

blah mengemukaken kerbs PIC#& yang bertplSuk

I (has pres- h M e r pp@ct~t ! r d fhe folmhg fiUe)

DETERMINANTS OF BtAMIC HOME FINANCING SELECTION: A STUDY IN KUAlA LUMPUR

Seperti yang ternatat di muka surat tajuk dan kulit kertas projek (as it appears on fhe Me page and front cover of fhe project paper)

Bahawa keftas projek tersebut boleh diknma dad segi bentuk serta kandungan dan meliputi bidang ilmu dengan memuaskan. (fhd the p@ect paper accepfable in the form and content and thaf a safisfacfory knowledge of fhe field is covered by the projeci paper).

1s JUNE 2014

PERMISSION TO USE

In presenting this research paper in partial fulfillment of the requirements for a Post Graduate degree from Universiti Utara Malaysia (ULIM), I agree that the University Library makes a freely available for inspection. I further agree that permission for copying of this research paper in any manner, in whole or in part, for schoIarly purposes may be granted by my supervisor or, in their absence, by the Dean of Othman Yeop Abdullah Graduate School of Business. It is understood that any copying or publication or use of this research paper or parts of it for financial gain shall not be allowed without my written permission. It is also understood that due recognition given to me and to the Universiti Utara Malaysia in any scholarly use which may be made of any material for my research paper.

Request for permission to copy or to make other use of materials in this research paper, in whole or in part should be addressed to:

Dean of Othman Yeop Abdullah Graduate School of Business Universiti Utara Malaysia

06010 UUM Sintok

ABSTRACT

IVowadays, household in Kuala Lumpur are unable to purchase a house at the market price because they have to face many difficulties. They need to undergo lot of procedures and conditions applied to obtain loan from the financial institution to support their affordability to buy a house. This research aims to investigate the determinants which influence the customer in choosing Islamic home financing including attitude, subjective norms, pricing, religious obligation, government intervention and service provision. Samples were taken from 150 respondents who have experienced purchasing house in Kuala Lumpur. The methodology used in this research is one way ANOVA, t- Test, Pearson Coefficient and Multiple Regression. Result of this study shows there is significant relationship between attitude, religious obligation, and service provision between Islamic homes financing selection. Thus, this research provides useful information to community by increasing their level of confidence towards Islamic home financing. From this study, the researcher also suggests bank managers to improve several factors such as marketing, operational and customer service in order to attract customers purchasing their products. Finally, government intervention is vital in creating new policies, to control the house prices and provide variety of scheme in order to help the household to buy their own house.

Keywords: Islamic home financing, attitude, subjective norm, pricing, religious obligation, government intervention and service provision.

ABSTRAK

Pada masa kini, penduduk di Kuala Lumpur tidak dapat membeli rumah pada harga pasaran dan menghadapi kesukaran seperti prosedur dan syarat yang perlu dipatuhi bagi mendapatkan pinjaman daripada institusi kewangan untuk menyokong kemampuan mereka membeli sebuah rumah. Kajian ini bertujuan untuk mengkaji penentu yang mempengaruhi pelanggan dalam memilih pembiayaan perumahan secara Islam termasuk sikap, norma berbentuk subjektif, harga, kewajipan memenuhi tuntutan agama, campur tangan kerajaan dan penyediaan perkhidmatan. Sampel diambil daripada 150 responden yang mempunyai pengalaman dalam membeli rumah di Kuala Lumpur. Metodologi yang digunakan dalam kajian ini adalah "ANOVA", "t-test", "Pearson Correlation" dan "Multi Regression". Hasil kajian ini menunjukkan bahawa terdapat hubungan yang signifikan antara sikap, kewajipan memenuhi tuntutan agama dan penyediaan perkhidmatan dengan pembiayaan perumahan secara Islam. Oleh itu, penyelidikan ini memberi maklumat yang berguna kepada masyarakat dalam meningkatkan tahap keyakinan mereka terhadap pembiayaan perumahan secara Islam . Kajian ini juga mencadangkan bahawa pengurus bank perlu memfokuskan beberapa faktor seperti pemasaran, operasi dan perkhidmatan pelanggan untuk menarik pelanggan membeli produk mereka. Akhir sekali, campur tangan kerajaan dengan mewujudkan dasar baru yang lebih sesuai, mengawal harga rumah serta menyediakan pelbagai skim juga penting dalam membantu isi rumah untuk membeli rumah yang mampu mereka miliki.

Kata Kunci: pembiayaan perumahan secara Islam, sikap, norma berbentuk subjektif, harga, kewajipan memenuhi tuntutan agama, campur tangan kerajaan, penyediaan perkhidmatan.

ACKNOWLEDGEMENT

In the name of Allah, the Most Gracious, the Most Merciful

Firstly, I would like to express my gratefulness to Allah Almighty. With the help and opportunity given to me to be able to finishing this research paper.Alhamdulil1ah.

Besides that, I also want to express again a grateful appreciation to my supervisor. Dr. Selamah Maamor for giving me the invaluable guidance, insights, moral support and the direction throughout the whole process of completing this research paper. Secondly, my special appreciation is also due to my respectable advisor, Assoc. Prof. Dr. Abu Bakar Hamed for his professional and untiring guidance from the beginning of the study until the end of this report. His valuable comments, suggestions, academic support and his advice have been instrumental guidance in finalizing this report.

Moreover, the credit is also given to my beloved parents, Abdull Rahman Bin Abdul Rahim and Nuwariah Bt Abdul Shukor and family who have assisted me in terms of moral support. Their understanding has allowed me to carry out my thesis in a free pressure environment and financially supports my study from the starts till the end,

Last but not least to all my fellow friends and classmates who never give up giving me their opinion, encouragements and enthusiasm. Thank you very much and best of luck to all. I would like to thank the respondents of this study as they have participated in my surveys. May Allah S.W.T reward the kindness of everyone that I mentioned above and those that my mind excaped.

TABLE OF CONTENT

CERTIFICA'TION OF RESEARCH PAPER ... . . . . . . . . . ... ... ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... .. ii

. . . I'ERMlSSION TO USE 111

ARSTRACI' ................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................... iv

ABSTRAK .. .. ... . . ... ... ..... ... .. ... ... ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , , . v

ACKNOWLEDGEMENT .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . , . . , . . . , . . , . . . . . . . . , . . , . . , , . . . . . . . . . . . . . . . . . . vi

'TABLE OF CONTENT .......... vii

LIST OF TABLES ......................................................................................................... x

LIST OF FIGURES ........................................................................................................ xi

LIST OF ABBREVIATIONS xii

CHAPTER ONE : INTRODUCTION ........................................................................ 1

I . 1 Background of Sti~dy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.2 Proble~n State~nent . . . . . . 6

1 .3 Reseal.ch Questions ....... ... .. .. . ..... .. .... ... .. . .... .... . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

1.4 Research Objectives .............. . . . ................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

. . .. 1 .5 S~gn~f~cance of the Study .. ...... ..... ... .. ... ... . . ... ... ..... ... . . . , . . . . . , . . . . . . . . . . . . 13

I .6 Scope of the Study .......................... .......................................................... ................ ..... .. 14

1 .7 Definitioi~ of Key Tenns ....... ... .. ... ... .... . . . . . . . . . . . . . . . . . . . . . . . 15

1 .8 Organization of the Study ...... ...... . . ... ... .... ............. . . . . . . , , . . . . . . . . . . . . . . . . . . . . . . 17

CI-IAPTER TWO : LITERAT1!KE REVIEW. . . . . . . . . . .. . .. . . . . . . . . . . .. . ... . . . . . . . . . . . . . . . . . 19

2.1 introdi~ction .. ..... .. ... ... . . ... ... ..... ... ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

2.2 Theoretical underpinning of Study. . . . .. .... .. . .. . .. . . .. . ........ ..... .. .... .. ........ ... ..... .,. ..... ... ... .. ... .. ..20

2.3 Overview of Islainic hoine f nancing selection .................. 22

2.3 Review 011 factors influence customer selection ..... 23

2.4.1 Demographic Factors ............................................................................................... 24

......................................................................................... 2.4.2 Attitude 26

2.4.3 Subjective Norm .................................................................................................... 27

2.4.4 Pricing ............................................................................................................... 29

2.4.5 Religious Obligation ............................................................................................... 32

2.4.6 Government Intervention ........................................................................................... 34

2.4.7 Service Provision ....................................................................................................... 36

.................................................................................................................... 2.5 Conclusion 39

CHAPTER THREE : METHODLOGY ...................................................................... 40

3.1 Introduction ............................................................................................................... 41

.......................................................................................................... 3.2 Research Design 41

3.3 Theoretical Framework ..................................................................................................... 41

................................................................................................. 3.4 Research Hypothesis -42

........................................................................ 3.5 Measurement and validity of Variables 44

................................................................................................... 3.6 Reliability of Variables 50

................................................................................... 3.7 Data Collection -52

3.8 Pilot Study .................................................................................................................... 55

................................................................................................................ 3.9 Normality Test 56

........................................................................................................... 3.10 Data Analysis 56

........................................................................................ 3.1 1 Conclusion 60

CHAPTER FOUR : DATA ANALYSIS ..................................................................... 62

.................................................................................................................... 4.1 Introduction 62

......................................................................... 4.2 Respondent Backgrounds 63

................................................... 4.2.1 Level of Selected Demographic Factors 66

viii

4.3 The Differences Between Demographic Factors and Islamic home financing selection.68

4.3.1 Differences between Gender and Race versus Islamic home financing selection ... 69

4.3.2 Differences between selected demographic factors versus Islamic home financing

selection ................................................................................................. 71

4.4 The Relationship Between the determinant factors and Islamic home financing

selection .................................................................................................. 72

4.5 The influence of the determinants factors on Islamic home financing

selection ............................................................................................................................ 74

............................................................................................................. 4.6 Conclusion 79

CHAPTER FIVE : DISCUSSION AND RECOMMENDATIONS ................................ 80

5.1 Summary of finding ..................................................................................................... 80

5.2 Contributions and Implications of the study .................................................... 82

5.2.1 Theoretical Contributions .................................................................. -82

5.2.2 Policy Implications ........................................................................... 83

5.3 Limitations and Recommendations for Future research ........................................... 84

REFERENCES ................................................................................................................... 86

APPENDIX A : QUESTIONNAIRE ................................................................ 91

.............................. APPENDIX B : NORMALITY TEST AND LINEARITY TEST 99

......................... APPENDIX C : RELIABILITY TEST AND FACTOR ANALYSIS 114

..................................................... APPENDIX D : DESCRIPTIVE ANALYSIS 123

.......................................................... APPENDIX E : T-TEST AND ANOVA 127

.......... APPENDIX F : PEARSON CORRELATION AND MULTIPLE REGRESSION I33

LIST OF TABLES

Table 1.1 : List of lslamic Home Financing product offered by lslamic

Bank In Malaysia ....................................................................... 5

Table 3.1 : Theoretical Framework of selection towards Islamic home financing.. ..... .42

Table 3.2 : The measurement of Variables.. ................................................. ..48

Table 3.3 : Rotated Component Matrix for the Variables in Factor Analysis .............. 49

Table 3.4 : Cronbach's Alpha Values for the Variables.. .................................... -5 I

.................................... Table 3.5 : The Measurements of Questionnaire Design.. 52

Table 3.6 : Summary of Data Analysis Techniques

......................................................... Table 4.1 : Profile of the Respondents.. .64

Table 4.2 : Level of selection and Factor of Respondent to select Islamic Home

........................................................................... Financing.. ..67

Table 4.3 : The Differences between gender towards Islamic Home Financing

............................................................................. Selection.. 69

Table 4.4 : The Differences between demographic towards selection to choose Islamic

.................................................................. Home Financing.. ..70

Table 4.5 : The Differences between demographic factors towards selection to choose

............................................................. Islamic Home Financing 72

Table 4.6 : Result of Pearson Correlation between Islamic home financing selection and

............................................................. independent variable.. ..73

Table 4.7 : Result of Multiple regression analysis for determinant factors on Islamic

........................................................ Home Financing Selection.. 75

LIST OF FIGURES

Figure 1.1 : Housing unit approved for construction, 2012.. ................................. .7

Figure 1.2 : Outstanding housing loan in Malaysia.. ........................................ ..8

Figure 1.3 : Level of Urbanization by State Malaysia, 2010 ................................. 10

Figure 2.1 : Theory of Reasoned Action (TRA). .............................................. .2 1

Figure 2.2 : Performance dimensions of bank branches. ...................................... 37

LIST OF ABBREVIATIONS

BB A

MM

BNM

1B1

TRA

TPB

DP

GDP

BIMB

PRIMA

Bai Bithaman Ajil

Musyarakah Mutanaqisah

Bank Negara Malaysia

Islamic Banking Institutions

Theory Reasoned Action

Theory of Planned Behaviour

Diminishing Partnership

Gross Domestic Product

Bank Islam Malaysia Berhad

l Malaysia Housing Programme Corporation

xii

CHAPTER ONE

INTRODUCTION

1.1 Background of Study

The developnlent of Islan~ic banking and iinance in Malaysia started since 1983.

Bank Islanl Malaysia Berhad (BIMB) is the first Islamic bank which introduced

Islamic products to public. During this stage, BIMB introduce several products that

compliance with Shariah si~ch as Murahahah, /jarah, Bai Bilharnun Ajil and others.

Moreover, in 201 0, Bank Negara Malaysia has set target of 20 per cent of all deposits

and financing in the banking industry. In addition, the Islamic Banking products have

their own framework and demand by the customer to the financing products as it is

higher compared to conventional banks (Amin, 2008).

Islamic Home Financing

Recently. most of the Islamic banking institutions offer lslamic home financing.

"Islamic mortgage providers" refers to the financial institution that offers Islamic

home financing using the Shariah principles such as Bai Bithaman Ajil (BBA) and

Mushurakah Mulunaqisah or known as Diminishing Partnership; however it is varied

with regard to their pricing policies (Haron et al., 1994)

The contents of

the thesis is for

internal user

only

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APPENDIX A

QUESTIONNAIRE

Pusat Pengajian Perniagaan Islam ISLAMIC BUSINESS SCHOOL &Lyl d L V 1 Z ~ J ! &$s Universit i U ta ra Malaysia

I

Dear Respondents,

I am Nurul Labanihuda Bt Abdull Rahman, student of Master in Islamic Finance and Banking (MIFB) at present conducting a research on "Determinants of Islamic Home Financing Selection: A Case Study in Kuala Lumpur". This questionnaire is divided into THREE (3) parts, namely:

Part A : Respondent's Background Part B : Information about Home Financing Part C : Perception Towards Islamic Home Financing

All of the information and respondents identity will be kept strictly confidential and will be use for academic purpose only. Thank you very much for your time and cooperation.

Kepada Responden,

Saya, Nurul Labanihuda Bt Abdull Rahman, pelajar tahun akhir Saijana Kewangan dun Perbankan Islam sedang membuat satu kajian berkenaan "Penentuan terhadap pemilihan Pembiayaan Perumahan secara Islam : Kajian Di Kuala Lumpur". Soul selidik ini terbahagi kepada TIGA bahagian utama iaitu:

Bahagian A:Latar Belakang Responden Bahagian B:Maklumat tentang Pembiayaan Perumahan Bahagian C:Pandangan terhadap Pembiayaan Perumahan

secara Islam.

Segala maklumat adalah sulit dun akan digunakan untuk tujuan akademik sahaja. Terima kasih di atas keijasama anda. Thank you/ Terima Kasih.

PART A : RESPONDENT'S BACKGROUND I

BAHAGIAN A:LATAR BELAKANG RESPONDEN

Please tick (4) your answerlSila tandakan (4) jawupan anda.

1 . Gender IJantina MalelLelaki

4. Marital statuslStatus Perkahwinan SinglelBujang 0 Married1 Berkuhwin 0 WidowlJanda@WidowerlDuda 0

5. Highest level of educationlTahap Pendidikan Tertinggi BachelorIIjazah DiplomalDiploma SPM SRPIPMR Primary SchooV Sekolah Rendah

6. Working sectorlSector pekerjaan Public sectorlSektor Kerajaan 0 Self-employedl Bekerja Sendiri 0 Private sectorlSektor Swasta

7. Personal income per monthlPendapatan bulanan:

8. Household expenses per month1 Perbelanjaan Isi Rumah bulanan:

PART B : INFORMATION ABOUT HOME FINANCING

I - BAHA GIAN B: MA KL UMA T TENTANG PEMBIA YAAN PER UMA HAN

2a. Source of financinglsumberpembiayaan: 7 2b. Amount/ Jumlah: 2c. Financing PeriodlTempoh pinjaman:

T 2d. Distance from lending Institutions1 Jarak dari institusipinjaman:

I 2e. Level of satisfaction of service offered1 Tahappuas hati terhadapperkhidmatan yang

7' ditawarkan:

I ( Strongly disagree I Disagree I Moderate Agree ( Strongly Agree 1 I

PART C : PERCEPTION TOWARDS ISLAMIC HOME FINANCING

7

em BAHAGIAN C: PANDANGAN TbRHADAP PEMBIAYAAN PERUMAHAN SECARA ISLAM

Please tick (4) your answer according to the scale outline belowlSila tandakan (4) jawapan anda berdasarkan skala di bawah:

1 Tidak setuju

2

Strongly disagree 1 Disagree 1 Moderate

1

I

1 3 1 I feel choosing lslamic home financing is beneficial. I I I

/ 3 1 4 1 5 /

Sederhana 3

Agree

I feel choosing lslamic home financing is a wise idea. Saya merasa memilih pembiayaan rumah secara Islam adalah idea yang b ijak.

2

Saya merasa melnilih pcrnhiuyulm r~~nzulz secara Islu~r IILJIIIUIZ hennar!faut.

Strongly Agree

Setuju 4

I like to choose lslamic home financing. Suyu suku mcmilih pernhiwuun rzlrnuh secara Isiorn.

Sangat setuju 5

4

1 2 3 4 5

---- I feel choosing lslamic home financing is useful. Saya merasa mernilih pernhiaj~oan rurnal? secara Islaln adulul? herguna.

1 2 3 4 5

I feel Islamic home financing is one of Saya merasa penzhiciyuu~z ?.urnoh terhuikperhunkun Lslcinz.

II. SUBJECTIVE NORMINORM SUBJEKTIF

Most people are recommended me to apply Islamic home financing. Kebanyakan orang mencadangkan saya untuk memohon pembiuyaan rumah secara Islam. 1 Most people who are important to me would think that choosing Islamic home financing is a useful. Kebanyakan orang yang penting kepada saya akan her-kir bahawa memilih pembiayaan rumah secam Islam adalah berguna.

My family influence me to choose Islanlic home linaticing. Keluarga mempengaruhi saya untuk mcrnilih prrnbiuj~uun runzuh .secara Islum. 7-

1

My friends influence me to choose Islamic honie tinancing. Rakarz-rukun rnenzpcngur~llzi su~lu unfilk nzenzililz pcmhic~yuurz rumuh securu Islam.

111. PRICINGIHARGA 1

1

It is expected by others that I should choose Islamic home financing. Iu tlijnngka oleh orang lair2 yc1n.g suvu yerhl rnemilil~ pernhiuvrrun rzmzcrh secara Lsle~ln.

- 1

Service charge for Islamic home financing are higher. C'ujperkhidtnalutz yemhic~yciun peruniuhcrn secSurvr Islci~n duluh lebih tinggi.

1

Islamic home financing offered by Islamic bank is lower. Pembiayaan perlrmahan secara Islam yang ditmarkan oleh Bank Islam adalah rendah.

1

Penalty for Islamic home financing is higher. Penalti bagi pembiayaan perurnahan secara Islam adalah tinggi.

1

Monthly payments for Islamic home financing are higher. Buyaran bulanan untukpembiuyaan rumalr secara Islam adalah tilzggi.

1

Islamic home financing offers unfair pricing Pembiayaan rumah secara Islam menawarkan harga yang tidak adil.

1

Islamic home financing not offer full financing for Islamic home financing.

1

Pembiayaan rumah secara Islam tidak menawarkan pembiayaan yang penuh.

IV. RELIGIOUS OBLIGATION1 KE WAJIPAN AGAMA

17

18

19

Islamic home financing is compliance with Islamic Law. Pembiayaan rumah secara Islam adalah berlandaskan undang-undang Islam.

Islamic home financing is free from interest. Pembiayaan rumah secara Islam adalah bebas daripada riba.

20

Islamic home financing is free from fraud. Pembiayaan rumah secara Islam adalah bebas daripada penipuan.

Islamic home financing is based on Islamic principle business implementation. Pembiayaan rumah secara Islam adalah berdasarkan aplikasiprinsip perniagaan secara Islam.

21

I I V. GOVERNMENT INTERVENTIONIPENGLIBATAN KERA JAAN 1 I I I I I

1 2

1 2

Islamic home financing don't have any doubt in their transaction. Pembiayaan rumah secara Islam tidak mempunyai tranksaksi yang meragukan.

22

3 4 5

3 4 5

1 2 3 4 5

Islamic home financing is transparency and unambiguous in their transactions. Pembiayaan perumahan secara Islam adalah telus dun jelas dalam tranksaksi mereka.

23

24

1

Bank Negara Malaysia encourages using Islamic banking facilities. Bank Negara Malaysia menggalakkan penggunaan kemudahan perbankan secara Islam.

25

2 3 4

Bank Negara Malaysia always scrutinizes the move of Islamic banking operations. Bank Negara Malaysia selalu meneliti pergerakan dalam operasi perbankan Islam.

26

1 2

Bank Negara Malaysia encourages new innovations in Islamic banking operations. Bank Negara Malaysia menggalakan inovasi baru dalam operasi perbankan Islam.

3 4

1

The Malaysian Government provides incentives to the Islamic banking industry.

1

2

1

2

3

2

4

3

3

4 5

4 5

Kerajaan Malaysia menyediakan insentif kepada industri perbankan Islam.

The Malaysian Government provides guarantees the stability of Islamic finance industry. Kerajaan Malaysia menyediakan jaminan terhadap kestabilan dalam industri perbankan Islam.

V1. SERVICE PROVISIONIPEMBERIAN PERKHIDM TAN

The service officers are friendly and knowledgeable in lslamic home financing application. Pegawai-pegawai perkhidmatan adalah mesra dun berpengetahuan luas dalam aplikasi pembiayaan perumahan secara Islam.

The service officers give advices to choose housing developer for lslamic home financing. Pegawai-pegawai perkhidmatan memberikan bimbingan untuk saya memilih memilih pemaju perumahan bagi pembiayaan perumahan secara Islam.

The service off~cers are understood the needs and wants of their customers. Pegawai-pegawai perkhidmatan memahami keperluan dun kemahuan pelanggan mereka.

The service officers are providing fast and efficient services. Pegawai-pegawai perkhidmatan menyediakan perkhidmatan yang cepat dun cekap.

The service officers are providing easy approval for financing application. Pegawai-pegawai perkhidmatan menyediakan proses kelulusan yang mudah bagi permohonan pembiayaan.

The service officers are providing information on repayment method. . ~

Pegawai-pegawai perkhidmatan menyediakan maklumat tentang pembayaratl balik.

VII. SELECTION OF ISLAMIC HOME FINANCINGIPEMILIHAN TERHADAP PEMBIAYAAN PERUM HAN SECARA ISLAM

I choose Islamic home financing because of the product advantage. Saya memilih pembiayaan perumahan secara Islam kerana kelebihan produknya.

I choose Islamic home financing because it is completely compatible with my current situation.

Suggestion about Islamic home financing offeredlpandangan mengenai pembiayaan perumahan secara lslam yang ditawarkan.

36

37

38

39

I suggest/Saya cadangkan,

THANK YOU FOR YOUR COOPERATION

TERIMA KA SIH Dl A TAS KERJASAW ANDA

Says memilih pem biayaan perumahan secara Islam kerana ia sangat serasi dengan keadaan semasa saya.

I choose Islamic home financing because it would be good for me. Saya memilih pembiayaan perumahan secara Islam kerana ia lebih baik untuk saya.

I choose Islamic home financing because it would be peace of mind to me. Saya memilih pembiayaan perumahan secara Islam kerana saya akan mendapat ketenangan fikiran.

I choose Islamic home financing because I feel comfortable with their services provided. Saya memilih pembiayaan perumahan secara Islam kerana s q a berasa selesa dengan perkhidmatan yang diberikan.

I will introduce Islamic home financing to my friends. Saya akan memperkenalkan pembiayaan perumahan secara Islam kepada rakan-rakan saya.

1 2

1

1 2

1 2

2 3

3 4 5

4

3 4 5

3 4 5

5

APPENDIX B

NORMALITY TEST

AND

LINEARITY TEST

(a) Normality Test For Islamic Home Financing Selection

Descriptives

Case Processing Summary

Selection Mean

95% Confidence Interval for Lower Bound

Mean Upper Bound

5% Trimmed Mean

Median

Variance

Std. Deviation

Minimum

Maximum

Range

lnterquartile Range

Skewness

Kurtosis

Selection

Statistic

3.731 1

3.6054

3.8568

3.7840

Std. Error

,06361

Cases

Tests of Normality

Total Valid

N

150

N

150

Missing

Selection

Percent

100.0%

Percent

100.0%

N

0

a. Lilliefors Significance Correction

Shapiro-Wilk

Percent

.O%

Statistic

,921

~olmogorov-Smirnova

df

150

Sig.

,000

Statistic

.I 52

Sig.

,000

df

150

Histogram r

k a n = 3.73 Std. Dev. = ,779 N=150

1 .00 2.00 3.00 4.00 5.00

rneansselection

Normal Q-Q Plot of meansselection

I I I I I I I 0 1 2 3 4 5 6

Observed Value

Jb) Normalitv Test For Attitude

Descriptives


Attitude Mean


Mean Upper Bound

5% Trimmed Mean

Median

Variance

Std. Deviation

Minimum

Maximum

Range

lnterquartile Range

Skewness

Attitude

Kurtosis

Statistic

4.0280

3.9006

4.1554

4.0837

4.0000

,624

,78988

1 .oo 5.00

4.00

1 .oo -.850

1.118

Cases

Std. Error

.06449

Valid

N

150

Tests of Normality

Percent

100.0%

Missing

N

0

Total

Attitude

Percent

.O%

N

150


Shapiro-Wilk

Percent

100.0%

Kolmogorov-Smirnova

Sig.

,000

Statistic

,921

Sig.

,000

df

150

Statistic

,113

df

150

Histogram

b a n = 4.03 Sld. Dev. = .79 N = 150

meanatt

Normal Q-Q Plot of meanatt

Observed Value

{c) Normality Test For Subiective Norm

Descriptives

Sub. Norm Mean


Mean Upper Bound

5% Trimmed Mean

Median

Variance

Std. Deviation

Minimum

Maximum

Range

lnterquartile Range

Skewness

Kurtosis


Tests of Normalitv

Sub. Norm

Statistic

3.5867

3.4693

3.7040

3.61 11

3.6000

,529

,72747

1.40

5.00

3.60

.80

-.523

,578

Std. Error

,05940

Cases

I I Statistic I d f I Sig. ( Statistic 1 df I Sig. I I I I I I

Valid

I


N

150

Kolmogorov-Smirnova

Percent

100.0%

Missing

Shapiro-Wilk

N

0

Total

I I I I I

Percent

.O%

N

150

Percent

100.0%

Wan = 3 Std. Dev. N = 150

meansub

2-

z 8 0- z u 0 C 0 0 0.

3 2-

-4-

Normal Q-Q Plot of meansub

I I I I I 1 2 3 4 5 6

I

Observed Value

/d) Normality Test For Pricing

Case Processina Summarv

meanpricing

Descri ptives

meanpricing Mean


Mean Upper Bound

5% Trimmed Mean

Median

Variance

Std. Deviation

Minimum

Maximum

Range

lnterquartile Range

Skewness

Kurtosis


Cases

Tests of Normality

Statistic

3.0256

2.8908

3.1603

3.0290

3.0000

,697

,83495

1.17

5.00

3.83

1.04

-. 128

-.354

Valid

Std. Error

.06817

.I98

,394

meanpricing

N

150

Shapiro-Wilk

Percent

100.0%

Missing

Statistic

.979

Kolmogorov-Smirnova

N

0

Total

Statistic

,094

Percent

.O%

N

150

df

150

Percent

100.0%

Sig.

,020

df

150

Sig.

,002

Histogram

Wan = 3.03 Std. Dev. = ,835 N= 150

meanpricing

-3

I I 1 I I I I 0 1 2 3 4 5 6

Observed Value

Je) Normalitv Test For Relipious Oblipation

Case Processing Summary I I I

Descriptives

Religious

Religious Mean


Mean Upper Bound

5% Trimmed Mean

Median

Variance

Std. Deviation

Minimum

Maximum

Range

lnterquartile Range

Skewness

Kurtosis

Statistic

3.871 1

3.7456

3.9967

3.9130

4.0000

,606

.77819

1 .oo 5.00

4.00

1.17

-.735

,885

Cases

Std. Error

,06354

.I98

,394

Valid


N

150

Tests of Normality

Percent

100.0%

Missing

N

0

Total

Religious

Percent

.O%

N

150

Shapiro-Wilk

Percent

100.0%

Statistic

.941

Kolmogorov-Smirnova

df

150

Sig.

,000

Statistic

,139

Sig.

.OOO

df

150

Histogram

Mean = 3.87 Std. Dev. = ,778 N = 150

1 .OO 2.00 3.00 4.00 5.00

meanreligious

I I I I I I I

I

0 1 2 3 4 5 6

Observed Value

Jf) Normality Test For Government Intervention

Case Processina Summarv

Descriptives

Govern.

Govern. Mean


Mean Upper Bound

5% Trimmed Mean

Median

Variance

Std. Deviation

Minimum

Maximum

Range

lnterquartile Range

Skewness

Kurtosis

Statistic

3.6960

3.5812

3.8108

3.71 19

3.8000

,507

.71183

1.40

5.00

3.60

1.20

-.309

-.089

Cases

Std. Error

Valid


N

150

Tests of Normality

Percent

100.0%

Missing

Govern.

N

0

Total

Percent

.O%

N

150

Percent

100.0%

Kolmogorov-Smirnova Shapiro-Wilk

Statistic

,969

Sig.

,000

Statistic

,112

df

150

df

150

Sig.

.002

Histogram

Wan = 3.70 Std. Dev. = ,712 N=150

meangov

Normal Q Q Plot of meangov

a Normality Test For Service Provision

Descriptives

meansewice Mean


Mean Upper Bound

5% Trimmed Mean

Median

Variance

Std. Deviation

Minimum

Maximum

Range

lnterquartile Range

Skewness

Kurtosis


Statistic

3.6333

3.5135

3.7531

3.6556

3.8333

,551

,74260

1 .oo 5.00

4.00

1.17

-.590

,917

meansewice

Std. Error

,06063

Cases

Tests of Normality

Valid

N

150

meansewice

Percent

100.0%

Missing


Shapiro-Wilk

N

0

Total

Kolmogorov-Smirnova

Percent

.O%

N

150

Sig.

.OOO

Statistic

,946

Percent

100.0%

Sig.

.OOO

df

150

Statistic

.I56

d f

150

Histogram

meanservice

Normal Q-Q Plot of meanservice

1 Mean = 3.63 Std. Dev. = ,743

1 N= 150

Observed Value

APPENDIX C

RELIABILITY TEST

AND

FACTOR ANALYSIS

(a) Attitude

Reliability Statistics I I

Cronbach's

Alpha Based on I I I Cronbach's I Standardized I I Alpha Items I N of ltems

I I

9 (b) Subjective Norm

tPI

*LP

Most people who are

important to me would think

that choosing islamic home

financing is a useful

most people are

recommended me to apply

islamic home financing

my family influence me to

choose islamic home

financing

my friend influence me to

choose islamic home

financing

it is expexted by others that

i should choose islamic

home financing

Reliability Statistics

Scale Mean if

ltem Deleted

14.25

Cronbach's

Alpha

Item-Total Stat

Scale Variance

Cronbach's

Alpha Based on

Standardized

Items

if ltem Deleted

9.090

N of Items

ics

Corrected Item-

Total

Correlation

,671

Squared

Multiple

Correlation

,508

Cronbach's

Alpha if ltem

Deleted

,834

(c) Pricing

Item-Total Statistics

service charge for islamic

home financing are higher


offered by islamic bank is

lower

penalty for islamic home

financing is higher

monthly payments for

~slamic home financing are

higher


offers unfair pricing

islamic home financing not

offer full financing for islamic

home financing

Cronbach's

Alpha Based on

I Cronbach's 1 Standardized I I Alpha I ltems I N of ltems

I I

Scale Mean if

Item Deleted

14.93

Scale Variance

if ltem Deleted

17.974

Zorrected Item-

rota1

;orrelation

660

Squared

Multiple

Correlation

,517

Sronbach's

4lpha if ltem

3eleted

853

a

(d) Religious Obligation

Alpha Based on

Cronbach's Standardized

Alpha

,910

Items

,910

N of Items

6

*II (e) Government Intervention


Bank negara malaysia

encourages using islamic

banking facilities

bank negara malaysia

always scrutinizes the move

of islamic banking

operations

bank negara malaisa

encourages new

innovations in islamic

banking operations

the malaysian goverment

provides incentives to the

islamic banking industry

the malaysia government

provides guarantees the

stability of islamic finance

industry

Reliability Statistics

I Cronbach's I Alpha Based on

Cron bach's I I Standardized

Alpha 1 ltems I N of Items I I

Jcale Mean if

tem Deleted

14.75

Scale Variance

if ltem Deleted

8.160

Corrected Item-

Total

Correlation

,750

Squared

blultiple

:orrelation

588

2ron bach's

4lpha if ltem

leleted

850

a

(f) Service Provision

Alpha Based on


Alpha I N of ltems I I


the service officers are

friendly and knowledgeable

in islamic home financing

application

the service officers give

advices to choose housing

developer for islamic home

financing


understood the need and

wants of their customers


providing fast and efficient

services


providing easy approval for

financing application

he service officers are

providing information on

repayment method

Scale Mean if

ltem Deleted

18.16

Scale Variance

f ltem Deleted

14.256

~-

Corrected Item-

Total

Correlation

Squared

Vlultiple

:orrelation

567

2ronbach's

llpha if ltem

Ieleted

90 1

(g) Islamic Home Financing Selection

Reliability Statistics I I I I

Cronbach's

Alpha Based on


Items N of Items


i choose islamic home

financing baecause of the

product advantage


finanicing because it is

completely compatible with

my current situation


financing because it would

be good for me


financing because it would

be peace of mind to me


financing because i feel

comfortable with their

sevices provided

i will introduce islamic home

financing to my friends

Scale Mean if

ltem Deleted

18.66

Scale Variance

f ltem Deleted

15.098

:orrected Item-

rota1

;orrelation

787

Squared

vlultiple

;orrelation

696

;ronbachls

4lpha if ltem

leleted

91 2

FACTOR ANALYSIS

1 1 Components I

KMO and Bartlett's Test

Islamic home financing is free from fraud

Islamic home financing is free from interest

Islamic home financing is based on Islamic principle

business implementation

lslamic home financing is transparency and unambiguous in

their transactions

lslamic home financing do not have any doubt in their

transaction

Islamic home financing is compliance with Islamic law

The service officers are understood the need of their

customers

The service officers are providing fast and efficient services

The service officers are providing easy approval for

financing application

'The service officers are providing information on

repayment method

The service officers give advices to choose housing

developer for Islamic home financing

The service officers are friendly and knowledgeable in

Islamic home financing application

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

Bartlett's Test of Sphericity Approx. Chi-square

df

,896

1260.740

66

APPENDIX D

DESCRIPTIVE ANALYSIS

Frequency Table for Gender

Gender

Frequency Table for Race

Racer

Valid Male

Female

Total

Frequency Table for Age

Acie

Frequency

77

73

150

Valid Malay

Others

Total

Percent

51.3

48.7

100.0

Valid Percent

86.7

13.3

100.0

Cumulative

Percent

86.7

100.0

Frequency

130

20

150

Cumulative

Percent

57.3

88.7

100.0

Valid 1

2

3

Total

Valid Percent

51.3

48.7

100.0

Percent

86.7

13.3

100.0

Cumulative

Percent

51.3

100.0

Frequency

86

47

17

150

-

Percent

57.3

31.3

11.3

100.0

Valid Percent

57.3

31.3

11.3

100.0

Frequency Table for Level of education

Frequency Table for Marital Status

Marital Status

Valid Single

WidowNVidower

Married

Total

Frequency Table for Working Sector

Level of Education

Frequency

65

2

83

150

Cumulative

Percent

48.0

69.3

96.7

1 00.0

Valid Bachelor

Diploma

SPMISTPM

SRPIPMR

Total

Valid Public

Private

Self Employed

Total

Percent

43.3

1.3

55.3

100.0

Frequency

72

32

41

5

150

Frequency

35

107

8

150

Valid Percent

43.3

1.3

55.3

100.0

Cumulative

Percent

43.3

44.7

100.0

Percent

48.0

21.3

27.3

3.3

100.0

Percent

23.3

71.3

5.3

100.0

Valid Percent

48.0

21.3

27.3

3.3

100.0

Valid Percent

23.3

71.3

5.3

100.0

Cumulative

Percent

23.3

94.7

100.0

(A) Frequency Table for Personal Income per month

1 Total

(B) Frequency Table for Household expenses per month

Personal Income per month

Frequency

99

39

12

150

LEVEL OF SELECTION AND FACTORS OF RESPONDENTS

Household expenses per month

Percent

66.0

26.0

8.0

100.0

Valid 1

2

3

Total

Descriptive Statistics

Valid Percent

66.0

26.0

8.0

100.0

Frequency

56

86

8

150

meansselection

meanatt

meansub

meanpricing

meanreligious

meangov

meanservice

Valid N (listwise) - - - ~

Cumulative

Percent

66.0

92.0

100.0

Percent

37.3

57.3

5.3

100.0

N

150

150

150

150

150

150

150

- 150

Valid Percent

37.3

57.3

5.3

100.0

Minimum

1 .OO

1 .OO

1.40

1.17

1 .OO

1.40

1 .OO

Cumulative

Percent

37.3

94.7

100.0

Std. Deviation

,77906

,78988

-72747

,83495

,77819

,71183

,74260

Maximum

5.00

5.00

5.00

5.00

5.00

5.00

5.00

Mean

3.731 1

4.0280

3.5867

3.0256

3.871 1

3.6960

3.6333

APPENDIX E

T-TEST AND ANOVA

(a) TEST OF DIFFERENCES BETWEEN GENDERS TOWARDS ISLAMIC HOME FINANCING SELECTION

Selection Equal variances

assumed

Equal variances

not assumed

Group Statistics

Independent Samples Test

Levene's Test for

Equality of

Gender

Selection Male

Female

ances I t-test for Equality of Me:

N

77

73

1s

Std.

Error

Differenc

e

,12751

12664

Sig.

.067

95% Confidence

Mean

3.6905

3.7740

Interval of the

t

-.655

-.659

Difference I

Std. Deviation

,87179

.67092

Std. Error Mean

,09935

,07853

df

148

142.085

Sig. (2-

tailed)

,514

,511

Mean

Difference

-.08350

-.08350

TEST OF DIFFERENCES BETWEEN RACE TOWARDS ISLAMIC HOME FINANCING SELECTION

Group Statistics

I Race N Mean Std. Deviation Std. Error Mean

Selection Malay

Others

130

20

3.7679

3.4917

.76601

,84028

.06718

.I8789

TEST OF DIFFERENCES BETWEEN DEMOGRAPHIC FACTORS TOWARDS lSLAMIC

HOME FINANCING SELECTION

ANOVA

Descriptives

rneansselection

Between Groups

Within Groups

Total

(B)Marital Status ANOVA

rneansselection

Sum of Squares

18.182

72.251

90.433

1

2

Total I 90.433 1 1 4 9 1

meansselection

df

27

1 22

149

3.9902 151 56 1 3.6689 1 4.3115 I ;:33 1 ;:6; 1 I :otal 1 1 :: 1 3.731 1 1 ,77906 62492 1 06361 3.6054 3.8568

N

86

47

Between Groups

Within Groups

Mean Square

,673

.592

Mean Square

1.514

,595

Maximum

5.00

5.00

Mean

3.6357

3.8121

Sum of Squares

3.028

87.404

F

1.137

F

2.547

df

2

147

Sig.

.310

Std.

Deviation

,84734

,67443

Sig.

,082

Std. Error

,091 37

,09838

Minimum

1 .OO

1.83

95% Confidence Interval for

Mean

Lower

Bound

3.4540

3.6140

Upper Bound

3.8173

4.0101

Descriptives

(C)Level of education

ANOVA

meansselection

Single

WidowMlidower

Married

Total

Descriptives

meansselection

N

65

2

83

150

Between Groups

Within Groups

Total

meansselection

Mean

3.5692

3.7500

3.8574

3.7311

Sum of Squares

5.335

85.098

90.433

Bachelor

Diploma

SPMISTPM

SRPIPMR

Total

Std.

Deviation

,65742

,35355

,85267

.77906

N

72

32

41

5

150

df

5

144

149

Std.

Error

.08154

,25000

,09359

,06361

F

1.806

Mean Square

1.067

.591

Sig.

,115

Mean

3.7523

3.8281

3.5854

4.0000

3.7311

Std.

Error

,09520

,13165

,11525

,42164

,06361

Std.

Deviation

,80782

,74474

,73798

,94281

,77906

95% Confidence Interval

for Mean

Minimum

2.00

3.50

1.00

1.00

Lower

Bound

3.4063

.5734

3.6712

3.6054

Maximu

m

5.00

4.00

5.00

5.00

Upper Bound

3.7321

6.9266

4.0436

3.8568

95% Confidence

Interval for Mean

Minimum

1 .OO

2.00

1 .OO

2.33

1 .OO

Lower

Bound

3.5625

3.5596

3.3524

2.8293

3.6054

Maximum

5.00

5.00

4.83

4.50

5.00

Upper Bound

3.9421

4.0966

3.8183

5.1707

3.8568

(D) Working sector

ANOVA

meansselection ~ -~ -

Between Groups

Within Groups

Total

Sum of Squares

1.737

88.695

90.433

df

3

146

149

Mean Square

,579

,608

F

,953

Sig.

,417

- APPENDIX F

4

e

PEARSON CORRELATION

* AND

MULTIPLE REGRESSION

PEARSON CORRELATION BETWEEN ISLAMIC HOME FINANNCING SELECTION

CORRELATION

Descriptive Statistics

meanpricing meansub

meanservice meangov

meansselection meanreligious

meanatt

N

150 150 150 150 150 150 150

Mean

3.0256 3.5867 3.6333 3.6960 3.731 1 3.8711 4.0280

Std. Deviation

,83495 ,72747 ,74260 ,71183 ,77906 ,77819 ,78988

Correlations

'. Correlation is significant at the 0.01 level (2-tailed).

'. Correlation is significant at the 0.05 level (2-tailed).

meansselection Pearson Correlation

Sig. (2-tailed)

N

meanatt Pearson Correlation

Sig. (2-tailed)

N

meansub Pearson Correlation

Sig. (2-tailed)

N

meanpricing Pearson Correlation

Sig. (2-tailed)

N

meanreligious Pearson Correlation

Sig. (2-tailed)

N

meangov Pearson Correlation

Sig. (2-tailed)

N

meansselection

1

150

,688

,000

150

,597

,000

150

-.Om

,286

150

,641

,000

150

,541

.OOO

150

meanatt

,688.'

.OOO

150

1

150

,578

,000

150

,001

.994

150

,527

,000

150

,369.'

,000

150

meansub

.597

.OOO

150

,578

,000

150

1

150

,051

,535

150

,516.'

,000

150

.511

,000

150

meanpricing

-.Om

,286

150

,001

.994

150

,051

,535

150

1

150

,003

,976

150

,033

,688

150

meanreligious

,641

.OOO

150

.527

,000

150

,516"

,000

150

,003

,976

150

1

150

,541

.OOO

150

meangov

,541

.OOO

150

,369..

,000

150

,511

,000

150

.033

.688

150

,541

,000

150

1

150

meanservice

,580

.OOO

150

.352

.OOO

150

,487

.OOO

150

-.I10

. I82

150

.540"

,000

150

.614

.OOO

150

MULTIPLE REGRESSION ANALYSIS TOEARDS ISLAMIC HOME FINANICNG SELECTION

Model summaryb

b. Dependent Variable: meansselection

Model

1

AN OVA^

Model

1 (Constant)

meanatt

meansub

meanpricing

meanreligious

meangov

meansewice

Model

1 Regression

Residual

Total

a. Predictors: (Constant), meansetvice, meanpricing, meanatt, meangov, meanreligious,

meansub

b. Dependent Variable: meansselection

R

.81 Oa

Standardized

Coefficients

Beta

a. Predictors: (Constant), meansetvice, meanpricing, meanatt, meangov, meanreligious, meansub

Sum of Squares

59.361

31.072

90.433

Unstandardized Coefficients

Sig.

,799

,000

,111

,134

,003

,132

,003

R Square

,656

B

-.074

,403

,116

-.070

,207

.I12

,211

df

6

143

149

Std. Error

,290

,063

,072

,047

,067

,074

,071

Adjusted R

Square

,642

Mean Square

9.893

.2 17

Std. Error of the

Estimate

,46614

Durbin-Watson

1.910

F

45.532

Sig.

,000"

determinants of islamic home financing selection…etd.uum.edu.my/4097/2/s814585_abstract.pdf ·...

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