Abstract
The study investigated to remedy the research gap of measuring the moderating effect
of advertising spend on consumer adoption behavior of Islamic banking at the bottom of
the pyramid (BOP) market of Pakistan. Cross-sectional research data collected from a
total of 300 respondents of which 267 (89%) were useful to analyze the test on the
framework of the research. SEM approach was used to test the hypothesized relationship
of the framework in two sequential steps wherein the 1st step the reliability and validity
analysis was performed and in the 2nd step sequential structural analysis among the
variables were conducted with and without moderation. The empirical analysis
confirmed a positive direct relationship of Perceived Usefulness (PU), Perceived Ease
of Use (PEOU), and Advertising Spend (AS) on the adoption of Islamic banking (AIB)
in the Bottom of the Pyramid Market. AS further confirmed the hypothesized
relationships of the variables through increased individual predicting power of the PU
and PEOU on the AIB with an overall effect size of f
2
value of 0.565. The overall
adoption value of the r2
increased from simple moderation of 0.482 to moderating r2
value of 0.669 thus depicting 18.7 percent interaction effect of the AS. The study
suggests that the advertising spends on marketing communication practices should be
well-focused by the managers to penetrate in the BOP market of Pakistan. Moreover,
future research can eliminate the limitation of the cross-sectional analysis and
generalizability of the results as a functional probability in the other regional settings
and industrial sectors by adding more variables to predict the adoption behavior with
different roles. The consumer adoption behavior of the low-income markets has not yet
been examined for Islamic banking in Pakistan. The research is useful for the industry
to keep pace with the competition by focusing on the advertising and communication
practices in this industry
Muhammad Taimoor Hassan, Safia Nosheen. (2020) ADVERTISING SPEND: ADOPTION OF ISLAMIC BANKING IN THE BOTTOM OF THE PYRAMID MARKET OF PAKISTAN, International Journal of Management Research and Emerging Sciences, Volume 10, Issue 1.
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