Determinants of Customers’ Intention to Use Interest Free Banking Products and Factors Affecting Employees’ Product Knowledge: the Case of Commercial Bank of Ethiopia
| dc.contributor.advisor | Takele, Yitbarek (PhD) | |
| dc.contributor.author | Redi, Abraham | |
| dc.date.accessioned | 2018-07-06T12:32:21Z | |
| dc.date.accessioned | 2023-11-04T10:20:18Z | |
| dc.date.available | 2018-07-06T12:32:21Z | |
| dc.date.available | 2023-11-04T10:20:18Z | |
| dc.date.issued | 2017-06 | |
| dc.description.abstract | The capacity of Interest Free Banks to gain substantial market share in a challenging financial environment, particularly in a dual-banking system like Ethiopia, will primarily hinge on the ability of IFB’s to formulate and implement successful marketing strategies. This will require a clear understanding of the attitudes of the potential consumers. On the other hand, in coping with customers need, it is always questionable whether the employees of the bank are having adequate training and knowledge on Islamic banking practices. In addressing the stated problems, this thesis, therefore, examines the determinants of customers’ intention to use interest free banking products and factors affecting employees’ product knowledge, in the context of Commercial Bank of Ethiopia. A survey approach was used to investigate intention to use and products knowledge of IFB customers and employees respectively. Unstructured questionnaire was used to collect qualitative data on customers’ use intention. In general, eight and three hypotheses were developed and tested on customers’ intention and employees’ product knowledge of the CBE with a sample size of 369 and 77 individuals respectively. Both descriptive and inferential analytical techniques were used. To analyze the relationships among the variables, on the other hand, multiple regression and structural equation modeling (SEM) were employed. The findings of the study on customers’ intention showed that, except for Knowledge, all the other variables: Attitude, Social Influence, Perceived Financial Cost and Religious Belief have significant effect on IFB use intention. Moreover, except for Underlying Arabic Terminology, the other two variables: Underlying Sharia’ Principles and Training have significant effect on Product Knowledge of employees. Furthermore, chi-square test was used to analyze the association between selected demographic factors and IFB usage intention. The findings of this study have shown that, except for educational level, all other demographic factors found to have an insignificant effect on IFB adoption intention. To sum up, the study on customers’ intention contributes towards a better understanding of the customers’ expectation. The management of the bank can now comprehend better the factors that influence customers’ decision in adopting IFB in order to devise effective marketing strategies to attract customers. Not to mention, the findings of this study should be of value to IFBs in terms of expanding customer base. On the other hand, the study on employees’ product knowledge suggests that the bank should train well its employees in order to cope with the current dynamics of the banking industry. Keywords: Intention to Use, Product Knowledge, Commercial Bank of Ethiopia, Interest Free Banking | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/7078 | |
| dc.language.iso | en_US | en_US |
| dc.publisher | Addis Ababa University | en_US |
| dc.subject | Intention to use | en_US |
| dc.subject | Product knowledge | en_US |
| dc.subject | Commercial bank of ethiopia | en_US |
| dc.subject | Interest free banking | en_US |
| dc.title | Determinants of Customers’ Intention to Use Interest Free Banking Products and Factors Affecting Employees’ Product Knowledge: the Case of Commercial Bank of Ethiopia | en_US |
| dc.type | Thesis | en_US |