The impact of values on consumer adoption of takāful with mediating role of religiosity and moderating role of confusion
ISSN: 1759-0833
Article publication date: 16 September 2021
Issue publication date: 29 August 2022
Abstract
Purpose
This study aims to address a leading challenge of confusion about the concept of takāful confronted by existing and potential consumers of the insurance industry. There are multiple sources of confusion, including the lack of consensus among religious scholars to implement a standardized business model of takāful, the lack of knowledge or awareness and the lack of skilled or trained personnel, which prevent existing and potential consumers from adopting takāful products or services. The fundamental concept of takāful is introduced mainly to fulfill the religious, social and economic needs of Muslims. Thus, the choice of takāful activates the religious, cultural, family and tradition values of individuals. Hence, the primary purpose of this study is to determine the impact of tradition value and stimulation value on consumer adoption of takāful services. Further, the scope of this study is extended to establish the mediating role of religiosity and moderating role of confusion on the association between tradition value and consumer adoption of takāful services.
Design/methodology/approach
This study follows quantitative research methods and a cross-sectional approach for data collection. Thus, the sample is collected from 768 respondents belongs to rural and urban areas by using a close-ended questionnaire. The mediation and moderation analysis are performed by using Andrew F. Hayes process Models-4 and −5.
Findings
The result reveals that religiosity mediates and confusion moderates the relationship of tradition value and consumer adoption of takāful. However, the tradition value shows a negative effect on consumer adoption of takāful. Moreover, the confusion negatively moderates the association between tradition value and consumer adoption of takāful. Finally, the stimulation value also reflects a negative effect on consumer adoption of takāful services.
Originality/value
The findings of this study shed novel insights into the existing literature of takāful and basic human values. The outcomes of stimulation values contradict with the findings of Wang et al. (2008). The result of mediation analysis reveals that religiosity plays a vital role in activating the goals of tradition value, which motivates consumers to adopt takāful services. The present study is useful for takāful operators to understand the value priorities of prospect clients belong to rural and urban areas.
Keywords
Acknowledgements
The author would like to thank all participants for their important time and valuable input. they are also grateful for examiners for providing effective feedback to improve the quality of this research. Finally, they would also extend our gratitude to their colleagues and friends who constantly supported them throughout this study. Author’s Contribution: The idea of this research is backed by the multiple discussion sessions between both authors conducted during the last one year. The corporate experience of first author related to insurance and takaful industry motivates him to investigate the impact of basic human values on consumer adoption of takaful services. The second author contributed in this research by giving his feedback on theoretical concerns and highlighting the challenges faced by takaful industry globally. The discussion between both authors considers various perspectives of theory of planned behavior and theory of basic human values. The arguments of second author are agreed by the first author regarding the depth of values construct as compare to the construct of attitude. The data is collected by first author as he is working in insurance industry and analysis was performed by second author. The findings are summarized by both authors according to the results of this study.
Funding Information: The researchers neither applied for nor take any grant or funding from any institution or university. All expenses (e.g. printing copies of questionnaire, travel expenses incurred during data collection and other accommodation expenses) incurred during this study are equally paid/contributed by both researchers.
Citation
Sarfraz, A. and Khurshid Mian, A. (2022), "The impact of values on consumer adoption of
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited