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2017 | OriginalPaper | Buchkapitel

4. Marketing Effectiveness of Islamic and Conventional Banks: Evidence from Malaysia

verfasst von : Baharom Abdul Hamid, Syed Najibullah, Muzafar Shah Habibullah

Erschienen in: Islamic Banking

Verlag: Springer International Publishing

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Abstract

The study aims to address marketing effectiveness of both Islamic banks and conventional banks (CBs) by using a modified “chain-of-effect” framework. Against current literature, which is based on customer surveys, reports do not include marketing activities by the Islamic banks (IB); this study adopts a bank perspective to explore the IB’s behavior in this regard. Applying fixed-effect panel regression on the quarterly data of five IBs and five CBs in Malaysia, the study aims to explore the influence of marketing efforts on performance (both financial and nonfinancial) and if such relation varies by the type of banks in Malaysia. The findings of the study show that IBs are performing well in using marketing efforts to generate meaningful financial and nonfinancial performance.

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Vorheriges Kapitel Role of Islamic Banking in Financial Inclusion: Prospects and Performance

Nächstes Kapitel Contracts, Structures, and Computation Mechanisms of Islamic Bank Retail Financing Products: A Critical Assessment

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Three locally owned Islamic banks, namely Bank Rakyat, Bank Islam, and Bank Muamalat share around 27 % of the Islamic Banking industry in Malaysia, whereas the Islamic Subsidiary of Maybank, CIMB, and Public Banking Group dominate with around 41 % thereof. Notably, Bank Rakyat operates under Development Financial Institutions Act 2002. (Source: BNM Website, Bankscope, and Author)

Based on the chain-of-effect model, the marketing activities of the firms are expected to create the consumers’ awareness (the marketing assets), which creates immediate short-term market impact (sales and market share), and the market impact in fact affects the firms bottom-line creating a financial impact. The study separates sales and market share based on other studies that reported of mediating relationships among marketing effort, sales, market share, and financial performance.

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Titel: Marketing Effectiveness of Islamic and Conventional Banks: Evidence from Malaysia
verfasst von: Baharom Abdul Hamid
Syed Najibullah
Muzafar Shah Habibullah
Verlag: Springer International Publishing
Buch: Islamic Banking
Print ISBN: 978-3-319-45909-7

Electronic ISBN: 978-3-319-45910-3

Copyright-Jahr: 2017
DOI: https://doi.org/10.1007/978-3-319-45910-3_4