Corporate Image and the Degree of Elaboration Towards Preference in Islamic Banking

The development of Islamic banks in Malaysia is increasingly challenging with more banks offering products and services based on Islamic principles. This study explores customers' perceptions towards corporate image and its relationship pertaining to the degree of elaboration in the selection of Islamic banks, as well as brand identification towards their most preferred Islamic bank in Malaysia. Elaboration likelihood model was exploited as the underpinning theory for developing the conceptual model. Accordingly, data was collected through firstly, interviews with customers, Shari'ah supervisors, practitioners and lecturers of Islamic banking. Next, self-administered questionnaires were distributed among 420 customers of Islamic banks through purposive sampling. Analysis of data was then conducted through descriptive, exploratory and confirmatory factor analysis. Subsequently, structural equation modeling with 420 respondents was then conducted to test the hypothesized relationships among the construct, as postulated in the model. Expectantly, this study facilitates the development of corporate image in Islamic banks, particularly with intense competition from many players of the industry.