ASSIGNMENT # 1

QUANTITATIVE TECHNIQUES

Submitted By:

KEHKASHAN 13156
MEHWISH 10963
AISHA 12458
RESEARCH TOPIC:
Customer’s Satisfaction of Islamic Banking & Conventional Banking:
A Comparative Study in Pakistan

INTRODUCTION:

Islamic banking system are fast growing banking system in Karachi since few year.
Islamic banking system is different from Conventional banking system, Islamic banking
system base on Islamic Shariah& in Islamic Shariah are disallowed to interest.
(Abdullah, Sidek and Adnan, 2012).

The Conventional Bank take money from customers at low interest rate&grant loan to
other customers on high interest. (Santos. 2000).

Product & services of Islamic banking system are mostly similar to Conventional
banking system (i.e. Credit & debit cards, Current account & Loan etc).All products &
services should be according to Islamic Shariah.(Abdullah, Sidek and Adnan, 2012). In
Islamic banking system, work on profit sharing contract with customers either the
Conventional bank work on interest rate. (Zaher and Hassan, 2011)

Customer satisfaction is the main objective for both banking systems reason is that with
the help of customer bank can generate revenue for his self. Islamic banking system is
new as compare to Conventional banking system (Saad, 2012). Both banking system
have to must know how to satisfy their customer. If they fail to satisfy, they will lose the
customer. It is observed that, competition is increasing since few year in between both
banking system. Both banking system comparatively provides good service so, its more
important to know how can satisfy the customer (Bashir, 2013).

In this study we examine the customer satisfaction from Islamic and Conventional bank
of Karachi.
PROBLEM STATEMENT:

The two type of banking industry are growing in Pakistan one of them is Islamic
banking and other one is Conventional banking both kind of Bank have different
banking system i.e. (interest, profit sharing etc.) and has different types of customers.
Conventional banks offer interest base products, Islamic banks offer Interest free
products. Every Customer have different reason to select what type of banking system
with respect to Products & service.

In this research we are going to examine the customer satisfaction regarding Islamic
banking & Conventional banking of Karachi.

RESEARCH OBJECTIVE:

The purpose of the study is to examine/Understand

1- Relationship between Level of Customer Satisfaction & Islamic banking.

2- Relationship between Level of Customer Satisfaction & Conventional banking.

RESEARCHER QUESTION:

Service of Islamic banking system is better than Conventional banking system.

Service of Conventional banking system is better than Islamic banking system.
Customer considerations while selecting of banking system.
SCOPE OF THE STUDY:

This research is helpful for contribute information regarding customer satisfaction with
respect to Islamic banking system & Conventional banking in Karachi.

THEOROTICAL FRAMEWORK:

Research Model

Reliability -

Responsiveness -

Security -

Customer Satisfaction

Awareness -

Trust -

Ease of Use -
 RESEARCH METHODOLOGY

SAMPLE SELECTION & RESEARCH INSTRUMENT:

The sample were selected as per convenience technique. Primary data were collected
thorough survey. Data were collected through close ended questioner, & questioner
filled by customer of Conventional & Islamic bank both. The sample size is 50 all are
belong to Karachi. Respondent were approached in educational institute & Office.
Respondent age in between 25years to 50years & income from Rs.16,500/- to
Rs.100,000/- and above, in which some are students & some are professionals. Likert
scale has been used for measuring the data.
 Survey Questionnaire

Gender
a- Male ( ) b- Female ( )

Age (Year)
a- B/w 20-30 ( ) b- B/w 31-40 ( )
c- B/w 41-50 ( ) d- 50 and above ( )

Level of education
a- Secondary ( ) b- College ( )
c- Postgraduate ( ) d- Master ( )

You are customer of

a- Conventional Bank ( ) b- Islamic Bank

For Conventional Bank Customer For Islamic Bank Customer

Stongly Disagree

Stongly Disagree
Strongly Agree

Strongly Agree
Disagree

Disagree
Reliability
Netural

Netural
Agree

Agree
1 The Bank promise to do some thing as they do.
2 The Bank promise are providing service on time as promise.
3 Bank provide service as you expected from bank.

For Conventional Bank Customer For Islamic Bank Customer

Stongly Disagree

Stongly Disagree
Strongly Agree

Strongly Agree
Disagree

Disagree

Responsiveness
Netural

Netural
Agree

Agree

1 Bank Employees will give prompt services to customer.

2 Bank Employees always willing to help customer.
3 Bank Employees never too busy to respond to customer's request
 For Conventional Bank Customer For Islamic Bank Customer

Stongly Disagree

Stongly Disagree
Strongly Agree

Strongly Agree
Disagree

Disagree
Security

Netural

Netural
Agree

Agree
1 Bank Should be on convince location.
2 Bank should have strong security system.
3 Bank should have secure online system.

For Conventional Bank Customer For Islamic Bank Customer

Stongly Disagree

Stongly Disagree
Strongly Agree

Strongly Agree
Disagree

Disagree
Awareness

Netural

Netural
Agree

Agree
1 You are well aware about bank's all product & services.
2 Bank kept up to date regarding new information.
You are aware about how to utilize bank serivces.
3
(i.e. mobile banking, internet banking)

For Conventional Bank Customer For Islamic Bank Customer

Stongly Disagree

Stongly Disagree
Strongly Agree

Strongly Agree
Disagree

Disagree
Trust
Netural

Netural
Agree

Agree
Bank indicate sensitive factors.
1
(i.e. clauses in account opening form)
You haven't any fear to provide your personal information
2
to bank.
3 You have trust on bank, bank never fraude with you.

For Conventional Bank Customer For Islamic Bank Customer

Stongly Disagree

Stongly Disagree
Strongly Agree

Strongly Agree
Disagree

Disagree

Ease of use
Netural

Netural
Agree

Agree

1 Bank has user friendly appearances. (i.e. internet banking options)

2 You are feel easy to use and operate bank services.

3 Bank lunch new technological feature is easy to use.