Do Interest-Free Financial Organizations Offer Fair Prices to Their Customers?

This study seeks to observe whether or not the financial instruments offered by the interest-free financial institutions cause a dilemma in generating fair prices for the consumers. Additionally, it also attempts to provide a comparative framework towards cost-free and accessible financial offers in...

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Main Author: Abdullah Mesut Uçar
Format: Article
Language:English
Published: Istanbul University Press 2022-07-01
Series:İktisat Politikası Araştırmaları Dergisi
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Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/62ADCFDAA21943EDA0483C5AF7FD2AFE
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author Abdullah Mesut Uçar
author_facet Abdullah Mesut Uçar
author_sort Abdullah Mesut Uçar
collection DOAJ
description This study seeks to observe whether or not the financial instruments offered by the interest-free financial institutions cause a dilemma in generating fair prices for the consumers. Additionally, it also attempts to provide a comparative framework towards cost-free and accessible financial offers in terms of loaning by both conventional and participation banks. As part of the study, a 34-item questionnaire has been drafted to identify the consumer behaviors within the framework of a theory of fair consumer behavior. To test the validity and reliability of the scale, exploratory factor analysis and cronbach alfa tests were utilized. Based on the findings in the test, 28 items were included in the analysis. Subsequently, multiple regression analysis was performed between four factors identified in conjunction with the exploratory factor analysis. The results confirm the hypotheses offered for the theory of fair consumer behavior. In other words, the study concludes that the interest-free financial institutions, serving as alternatives to the interest-based financial system, attract the fair financial system perceptions of the consumers not just because they offer interest-free products and services, but also because of additional factors.
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series İktisat Politikası Araştırmaları Dergisi
spelling doaj-art-ebccee0de09e4b46854bfb9f20af83162025-08-20T02:57:35ZengIstanbul University Pressİktisat Politikası Araştırmaları Dergisi2148-38762022-07-019249552110.26650/JEPR1047547123456Do Interest-Free Financial Organizations Offer Fair Prices to Their Customers?Abdullah Mesut Uçarhttps://orcid.org/0000-0001-6039-2497This study seeks to observe whether or not the financial instruments offered by the interest-free financial institutions cause a dilemma in generating fair prices for the consumers. Additionally, it also attempts to provide a comparative framework towards cost-free and accessible financial offers in terms of loaning by both conventional and participation banks. As part of the study, a 34-item questionnaire has been drafted to identify the consumer behaviors within the framework of a theory of fair consumer behavior. To test the validity and reliability of the scale, exploratory factor analysis and cronbach alfa tests were utilized. Based on the findings in the test, 28 items were included in the analysis. Subsequently, multiple regression analysis was performed between four factors identified in conjunction with the exploratory factor analysis. The results confirm the hypotheses offered for the theory of fair consumer behavior. In other words, the study concludes that the interest-free financial institutions, serving as alternatives to the interest-based financial system, attract the fair financial system perceptions of the consumers not just because they offer interest-free products and services, but also because of additional factors.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/62ADCFDAA21943EDA0483C5AF7FD2AFEconsumer behaviorislamic bankingbehavioral financeexploratory factor analysisislamic finance
spellingShingle Abdullah Mesut Uçar
Do Interest-Free Financial Organizations Offer Fair Prices to Their Customers?
İktisat Politikası Araştırmaları Dergisi
consumer behavior
islamic banking
behavioral finance
exploratory factor analysis
islamic finance
title Do Interest-Free Financial Organizations Offer Fair Prices to Their Customers?
title_full Do Interest-Free Financial Organizations Offer Fair Prices to Their Customers?
title_fullStr Do Interest-Free Financial Organizations Offer Fair Prices to Their Customers?
title_full_unstemmed Do Interest-Free Financial Organizations Offer Fair Prices to Their Customers?
title_short Do Interest-Free Financial Organizations Offer Fair Prices to Their Customers?
title_sort do interest free financial organizations offer fair prices to their customers
topic consumer behavior
islamic banking
behavioral finance
exploratory factor analysis
islamic finance
url https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/62ADCFDAA21943EDA0483C5AF7FD2AFE
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