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Proceedings of the Asia Pacific Conference on Business and Social Sciences 2015, Kuala Lumpur

(in partnership with The Journal of Developing Areas)


ISBN 978-0-9925622-2-9

ISLAMIC BRANDING AND MARKETING: AN INSIGHT OF


CONSUMER PERCEPTION IN PAKISTAN
Kulsoom Malik
Iqra University, Pakistan
Malik Muhammad Sheheryar Khan
Australian Institute of Business, Australia

ABSTRACT
This thesis studies the impact of Islamic marketing and branding on consumer perception in Pakistan. Following
an extensive review of literature, Islamic marketing and Islamic branding were chosen as predictors, the impact
of which was to be seen on consumer perception. A questionnaire was constructed with several parameters using
Islamic brands and Islamic marketing practices. The target population consisted of all consumers in Karachi
who had ever experienced or had awareness of Islamic marketing and branding. Sample was drawn using the
unrestricted non-probabilistic method. A survey was carried out, and the data was processed using inferential
statistics. The results showed that while Islamic marketing is highly influential on consumer perception, the
same could not be said of Islamic branding.

JEL Classifications: M31, M37


Keywords: Brand, Marketing, Consumer Sentiment, Advertising
Corresponding Authors Email Address: malik_sherry@yahoo.com

INTRODUCTION
The Holy Quran reiterates that trust and truthfulness in the transactions are the most important factor of
business. The Prophet once proclaimed: Truthfulness leads to good deeds and the latter guides to heaven
(quoted in Al-Hashimi, (2001, p. 209)). Moreover, Islamic principles of marketing and conducting business,
prohibits the seller to hide the known defects of its products. The Prophet (SAW) instructed, A seller must not
sell an item to the buyer without stating its defects (quoted in Raghib, 1995, p. 341).
Scholastic speculation upholds that the concept of Islamic branding and marketing exist inside the
current branding frameworks. In accordance with the finding of (Fodon, 1998) and bringing about what have
been characterized as brand experiential measurements agree that, "a back idea, for example, brand learning
and cultural assimilation are experience driven". Interestingly, for Muslims (Keller, 1998) Islamic Branding is
not simply a brand component rather it is some piece of a conviction framework and good set of principles,
inside the marketing system.
1.43 billion Muslims live in financially attainable numbers in many nations on the planet. The
remaining parts have substantial Muslim populaces, in spite of the fact that Muslims are not a lion's share in
them. India then again, has a Muslim populace of 150 million however its participation into the OIC is hindered
by a few nations because of geopolitical reasons. Those 57 nations have a joined horrible household item (GDP)
of almost US$8 trillion (preceding the oil blast of 2008). On the premise of for every capita GDP, Qatar is the
wealthiest country with livelihoods exceeding US$62,299. The increase in oil prices has altogether expanded
these figures in all oil delivering Muslim nations. Items that are Shariah-agreeable speak to a critical allotment
of these nations' economies. Besides, different nations that are not parts of the OIC however have achievable
Muslim minorities likewise help the worldwide size of the Halal market, which is presently assessed at roughly
US$670 billion (Nestorovic, 2010). This market is evaluated to develop at 15 percent yearly making it the
quickest developing market on the planet.

OBJECTIVES OF THE STUDY


1. The fundamental objective of this paper is to figure out the components of Islamic marketing, branding
and advertising that have their effect on discernment of shoppers;
2. To create a reasonable model that examines the diverse perspectives influencing Muslim consumers'
recognitions and conduct heading them to blacklist an item that they were loyal to

SIGNIFICANCE OF THE STUDY


The findings of the paper will be critical for the manufacturers and marketers, who transact in items that are
Halal and the one devoured by Muslim populace, as the Muslim market has seen a developing number of items
outside of the nourishment part, clearly convey Islamic groupings. Through this paper, the manufacturers and
marketers would be able to determine the usage of the ethically adequate method for promoting from an Islamic

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Proceedings of the Asia Pacific Conference on Business and Social Sciences 2015, Kuala Lumpur
(in partnership with The Journal of Developing Areas)
ISBN 978-0-9925622-2-9
viewpoint.

LITERATURE REVIEW

Business Activities and Islam


Islam allows its believers to participate in business activities keeping in view the restrictions and principles of
trading given by Holy Quran and Sunnah. The concept of Riba, Haram and Halal should be taken into
consideration while formulating strategies. Hence, trade is something seen as vital in Islam, the length of the
procedure is parallel with Islamic instructions on working together. Since Islam is a lifestyle, one could propel a
rationale that Islam must have composed the code of behaviors in working together, among some other things.
Islam is a far reaching lifestyle which governs everything, including business exercises. Islam warns about its
devotees to abstain from taking usury and rather keep up the nature of their riches through simply exchanging.
Halal, in the existence of Muslims, comprises numerous aspects; a standout of the concept amongst the
widely recognized employments comprises nourishment items, meat items, beautifiers, individual mind items,
pharmaceuticals, sustenance fixings, and nourishment contact materials. This rule, which is collectively
acknowledged by Muslim researchers (Zuhayli, 1997) are much needed revisions to Muslims experiencing the
suffocation of unnecessary forbiddance. Research scholars agree that Istihalah is incredibly adaptable, wherein
they simply recognize regular change without any synthetics intervention. The degree that it may be adapted,
there are no open data concerning the disposition and awareness of understudies towards Istihalah or the Muslim
people with everything taken into account.
Today's interconnectedness, exchange relations and worldwide common reliance force assorted
challenges on organization strategists. These occasions demonstrate the developing hole in the middle of east
and west. Along these lines, the given paper endeavors to create a reasonable model that examines the diverse
perspectives influencing Muslim consumers' recognitions and conduct heading them to blacklist an item that
they were at one time a hard loyal to. Religion can be viewed as impulsion for client development from
dedication (Halal) to blacklist (Haram). Religion defines and clarifies the qualities that are valuable and eternal,
which thus are reflected in the values and disposition of social orders and people. Such values and demeanor
structures the conduct of foundations and parts of society. Consumers' conduct and their obtaining choice might
be arranged as indicated by the degree to which consumers stick to a specific confidence, in this manner,
religiosity term demonstrates the degree to which individuals are focused on a specific religious gathering, the
most significant social powers and a major influence in purchaser conduct These religious responsibilities and
convictions influence the emotions and mentality of individuals towards utilization. Despite distinctive degrees
of religious responsibility; religiosity are joined and related to specific consumer lifestyles. Hence, "religiosity is
a suitable consumer builds on the grounds that it is connected with lifestyle variables, for example, notion
initiative, hazard shirking, credit buy and life fulfillment". It is apparent that a consumer receives items,
practices, and practices trying to fulfill the way others take a gander at them. With the mark increment in
consumer decision, self-concept has turned into a matter of individual determination of mental self-image.
Subsequently, in social connection and to manufacture self-image of clients, striking utilization may prompt
boycott focused around clients' religiosity. The progress inside the halal business exhibit a comparative example
of occasions anyway they contrast in the way in which the fight is, no doubt battled. Add-in branding assumes
a focal part in the Muslim mind, as methods by which realness and legacy are assessed.
Thus, no doubt it is a halal fixing brand, instead of the center brand suggestion itself, which can
possibly cause inconvenience. Be that as it may, regions of investment keep on challenging experts and
scholastic. Islam is collection of implicit rules, a lifestyle and a clarification of presence as defined by God.
Notwithstanding, it is worth specifying, for instance in Islam, God made controls and licenses the making of
everything. On the other hand, underhandedness would not be viewed as Islamic. Islamic literary proof backings
this referring to Satan, an image of outright detestable, now and again having offered legitimate Islamic
direction, though with the wrong expectation. Besides, Satan and other lesser villains are manifestations of God
and this is not the slightest bit makes God unsteady.
Stating here subsequently, it could be contended that Muslims are interested in considering viewpoints
from changed sources yet these are then filtered as indicated by an Islamic ideal model. These enormous
populace sections have been normally alluded to as the billion portions. Notwithstanding these huge people
parts have been usually insinuated as the billion segments. Despite China, India, and women, researchers
starting late began saying Muslim consumers as a potential extension to the summary. Furthermore, the Muslims
population is expected to increase twice in the proportion by 2030. Moreover, the scholarly and managerial
consideration given to Asian markets specifically China and India, and in addition South American markets
basically Brazil, as an answer for the worldwide monetary emergency, examination enthusiasm toward Muslim
larger part markets is on the ascent.
The following venture of this exploratory research is to coordinate Islamic social values in the market
situated and item strategy methods of western firms and has been presented in connection to Lebanon.

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Proceedings of the Asia Pacific Conference on Business and Social Sciences 2015, Kuala Lumpur
(in partnership with The Journal of Developing Areas)
ISBN 978-0-9925622-2-9
Islamic Branding
The idea of Islamic branding is defined as: branding that is empathic to Shariah values, keeping in mind the end
goal to engage Muslim consumers, extending from essential Shariah- neighborliness to full Shariah consistence
in all parts of a brand's character, conduct, and interchanges. (Alserhan, 2010) reveals insight into brand
Islamisation, identified with global brands attempting to enter Muslim markets or engage Muslim consumers.
Also, and to date, they primarily address challenges confronted by Muslim organizations and marketers in
defining the marketing blend concurring to Quran and Sunnah standards, and thus strengthen the ethnocentric
measurement of this "infant" discipline. Islamic rules guarantee that the enthusiasm of all gatherings in a
transaction, that is, the purchasers, dealers, business accomplices and the group are defended.
Accordingly, Muslim organizations can keep up a harmony between their profit making obligations to
the organization, giving sheltered and quality items to the consumers, and guaranteeing the welfare of society.
By and by, and as far as anyone is concerned, investigate on Islamic marketing and branding demonstrates no
reference to this esteem creation outreach. The principle contention of the creators is as takes after: to fare halal
items and administrations globally to Muslim clients, firms will need to execute distinctive procedures as
contrasted with sending out the merchandise to non-Muslim clients. Their marketing systems must be adjusted
to Islamic qualities, norms and rules, thus tending to the furthest reaches of past research that essentially
endeavored to comprehend key marketing choices focused around western philosophies and standards. The
target of defining marketing procedures that are perfect with both the hierarchical society and with clients who
have different inclination for this situation, for instance, Islamic necessities (Abusulayman,1998) prompts
some perplexity as it appears to total society and authoritative structure.
Disappointment to fuse hierarchical society that embraces the Islamic practices, techniques, structures,
and qualities will then prompt disappointment in creating halal items that strictly agree to the Islamic guidelines
as needed by Muslim clients. At this stage and without exact approval, this proclamation remains subject to alert
and subsequently the inquiry of plausibility of execution is raised inside western firms working at global scale.
Given that the picked examination ground is Muslim larger part markets, and in light of the restriction of past
exploration, we accept important to analyze them inside a reference outline that would empower choice making
in light of item methodology. In that admiration, the financial quality making of firms is seen as a methodology
ensnaring an imaginative consolidation and a trade of numerous assets. This origination helps separate the
estimation of an item as saw by customers in light of the focused offers, from the methodology of creating that
esteem, which is inside to the firm, and its assessment regarding execution. This bearing is arranged as an
elusive asset, offers a reasonable social structure empowering the leveraging of consumer seeing (blandly named
as "interest"), and the focused exercises, with the point of fortifying the major capacities that ceaselessly create a
prevalent consumer saw esteem. These methodologies in this way offer a robust structure for our exploration,
with the yearning firstly to use past fill in as a beginning stage and afterward to grow their wildernesses with
late studies on Islamic marketing and branding. It is assessed that by 2010, the Muslim populace will surpass
three billion. The group has turned into an enormous market fragment and organizations are scrambling to fulfill
brand new needs they never knew existed. The developing Muslim populace is pushing the organizations to
deliver Halal items to fulfill the clients' unlimited requests. The international markets constitutes a total worth of
$150 billion per annum and only the Halal products market is expected to grow at a rate of 2.9% per annum. In
this respect, Islam, as a lifestyle, anticipates that people will ration nature's domain for a few reasons which may
be compressed as takes after: The earth is Allah's creation.

The formation of this world and all its regular resources is an indication of His shrewdness, beneence,
force and His different ascribes and therefore serves to create human mindfulness and understanding of this
inventor. (Ar-Raid, 13: 2-4). Allah says. The seven skies and the earth, and all creatures in that, announce His
greatness: There is not a thing however praises His recognition, but ye see not how they proclaim His Glory!"
(Al-Israa, 17:44) In light of the Islamic teachings, humankind is required to secure nature since no other animal
can perform this assignment. Individuals are the main ones that Allah has "endowed with the obligation of
taking care of the earth. Stress on Halal is in fact developing. Halal is influencing how marketing is constantly
done. Numerous different things, for example, milk, bread, juices, soda pops, arranged suppers and different
foodstuffs convey the mark of Halal, and the Halal logo turns into a name and image of value and religious
agreeability.
Halal items, halal candy parlor and nourishment fixings, and the Shari'ah framework have pulled in
much consideration among parts of Organization of the Islamic Conference (OIC) nations. The average market
for halal products is $US600 billion. The potential market for halal items is the world's Islamic populace, which
is of the request of 1600 million individuals. As the worlds most crowded Muslim country, Indonesia has the
possibility to wind up a real market as well as a significant maker of halal items. Extensive quantities of
Muslims don't generally settle on the choice to purchase halal nourishment. Being a Muslim does not ensure that
a singular's conduct (Haneef,1997) will dependably be Islamic, particularly in devouring halal sustenances. It is
the religious training encounters that will likewise focus the level of familiarity with halal nourishment

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Proceedings of the Asia Pacific Conference on Business and Social Sciences 2015, Kuala Lumpur
(in partnership with The Journal of Developing Areas)
ISBN 978-0-9925622-2-9
consumer conduct. The after effect of the investigation of the conduct of halal nourishment consumers is relied
upon to give significant understanding and learning and to help gauge the interest for halal sustenance, and to
help form a suitable market procedure for halal nourishment business visionaries. On the off chance that
Indonesia is to increment its financial development by putting resources into and creating halal items, it will
oblige an investigation of Muslim conduct as consumers of halal items. It was intriguing to study what are the
criteria for evaluating halal sustenances as far as consumer observations, whether halal alludes just to the
sustenance's substance or does it likewise incorporate nourishment planning et cetera. Besides, it will be
profitable to find the degree to which the level of religiosity decides the attention to halal nourishment and
influences consumer conduct. Consumer conduct, in the same way as some other conduct, is influenced by
social, social, individual and mental attributes. Social elements are thought to be predominant in affecting the
expectations and practices of consumers. A religious individual has a worth framework that contrasts from an
unreligious individual.
Religiosity is extremely vital in light of the fact that it decides singular discernment and conduct. A
religion may impact consumer conduct and conduct all in all, particularly in choices to purchase dinners and in
making nourishment propensities. The choices to purchase are subject to religious character. Religious control
of sustenance utilization examples is as far as confinements on specific nourishments: Jews, for instance, are
restricted from consuming pig meat; and hamburger is disallowed for Hindus. Since this study concentrates on
consumer conduct of Muslims in connection to halal sustenance, a hypothesis of arranged conduct is utilized as
a theoretical skeleton. The hypothesis of arranged conduct proposes that there will be at any rate three
overwhelming components impacting conduct; state of mind, subjective standard, and saw behavioral control.
Disposition is a mental penchant to assess whether something is preferred or disdained. It is a singular's certain
or negative assessment of execution toward oneself of a specific conduct. These three variables (demeanor,
subjective standards, and Behavioral control) will focus singular expectations (Alhabshi, 1987) to devour halal
sustenance and will be demonstrated in their utilization conduct. The plan is a motivational circumstance before
conduct and it shows a singular's availability to perform a given conduct. In spite of the fact that religion orders
strict laws regarding sustenance utilization, the degree to which its disciples take after those halal laws is very
prone to differ and this variety will be influenced by those three prevailing behavioral components that are
recorded in the past section. In any case, the degree to which an individual devours halal nourishment will
likewise rely on upon other related variables, for example, accessibility of halal sustenance, risk, information,
and sources including cash.

METHODOLOGY
The consumers from the locale of Karachi (N=280) were surveyed using a close-ended questionnaire. The
questionnaire was developed to determine the perception of people towards the concept of Islamic branding and
marketing was employed in this study. Cluster sampling was done by making people watch the TVCs of the
brands mentioned in the questionnaire and taking their views towards it. Independent T-test and Frequency
distribution analysis was conducted in this research. The reliability of measuring instrument calculated using
Cronbach Alpha was found to be 0.695 (See Appendix I)

HYPOTHESIS
H1: Islamic marketing positively affects consumer perception.
H2: Islamic branding positively affects consumer perception.

FINDINGS
Primary data gathering technique was used to gather the data through personally administered questionnaire.
According to the analysis requirements and data type, Independent T-Test and Frequency Distribution
techniques were been applied.

TABLE 1: ONE SAMPLE T-TEST

Test Value = 4
95% Confidence Interval
of the Difference
Sig. (2- Mean
t df tailed) Difference Lower Upper

Islamic
-9.834 280 .000 -.29039 -.3485 -.2323
Branding

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Proceedings of the Asia Pacific Conference on Business and Social Sciences 2015, Kuala Lumpur
(in partnership with The Journal of Developing Areas)
ISBN 978-0-9925622-2-9

Test Value = 4
95% Confidence Interval
of the Difference
Sig. (2- Mean
t df tailed) Difference Lower Upper

Islamic
-9.834 280 .000 -.29039 -.3485 -.2323
Branding

Islamic
4.429 280 .000 .10735 .0596 .1551
Marketing

As per Table I, first the significant value was determined, which was found to be 0.000, and is less than
0.05, so rejecting the assumption that the mean value of the variables Islamic branding and Islamic marketing is
not equal to the test value, therefore we check the Mean value for Islamic branding i.e., 3.7096 which is less
than 4 while the mean value for Islamic marketing as 4.1074 that is greater than 4, therefore we accept the first
hypothesis H1 which states that the Islamic marketing positively affects consumer perception while reject the
second hypothesis H2 which says Islamic branding positively affects consumer perception.
Further, the significance value of Levene's Test F was found to be 0.193 (See Appendix I) which is
greater than 0.05, therefore we assume that the variances are equal. Hence, since the significant value of t-test is
less than 0.05 i.e. 0.000 it can be said that the mean difference is significant and there is a difference in the
perception of consumers for Islamic branding and Islamic marketing therefore we reject H2 while accepting H1,
based on the mean value.
Moreover, the mean difference between Islamic branding and Islamic marketing is negative i.e. -.39668
showing that the consumer preference is greater for Islamic marketing hence the H2 is accepted which is,
Islamic branding positively affects consumer perception.

TABLE 2: HYPOTHESES ASSESSMENT SUMMARY

Sr. Hypotheses Mean Sig Empirical


No Value Conclusion

H1 Islamic branding positively affects 3.7096 .000 Rejected


consumer perception

H2 Islamic marketing positively affects 4.1074 .000 Accept


consumer perception

CONCLUSIONS
The findings of this study reveals that regardless, it is seen as that there are diverse components which inuence
customers buying behavior, for instance, halal usage and Islamic societys moral values and norms; particularly
in a communism society.
Customer boycotts based on Islamic values and concept of Halal and Haram, are a significant wonder
worldwide in present society. The creating number of disputes has compelled powers to see the money
related and political impact of such activities, hence multinational associations and host countries have begun to
see the critical and social perspective of these events despite the customary client conduct perspectives.
Most importantly, the impact is more far reaching since the Muslim customer gathering is not obliged to one
country, yet rather exists in fiscally viable numbers in a large portion of the countries on the planet.
Finally, disregarding the way that the rendezvous of fourth-billion Muslim purchasers social event
insurances to be a critical force driving overall fiscal advancement therefore understanding this demographic
benefit won't be basic, and it may require honest to goodness social and authentic movements.

POLICY IMPLICATIONS
This study on the understanding of consumers of Pakistan towards the Islamic marketing and branding approach
is useful for both, managers and teachers, as it effectively describes the level of consumers partiality towards
the Islamic approach in marketing. The study will also be useful for all the companies dealing in Islamic

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Proceedings of the Asia Pacific Conference on Business and Social Sciences 2015, Kuala Lumpur
(in partnership with The Journal of Developing Areas)
ISBN 978-0-9925622-2-9
products in order to understand the perception of consumers.

FUTURE RESEARCH
It is emphasized in this paper that the off base definition of Islamic marketing in the long run prompts
advertisers to practice Islamic advertising society. The explanations behind the arguments are firstly, the
connotation of the normal marketing is not able to meet the goals of Islam. Secondly, the meaning of
conventional advertising prompted the utilization of customary examination techniques which is not able to
comprehend the truth of any studies identified with Islam. In light of these constraints, more researches can be
done to create the hypothetical skeleton for Islamic advertising as per the perfect ideal model which alludes to
the Islamic turn.

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(in partnership with The Journal of Developing Areas)
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APPENDIX I: QUESTIONNAIRE

This questionnaire is part of a research study bring carried out on Islamic Marketing and Branding. All
information provided here will remain strictly confidential.
Name:______________________________________

Email:________________________________ Cell : _____________________

SECTION 1: PERSONAL INFORMATION

1. Gender: MaleFemale 2. Marital Status: Married Single

3. Age: 18 25 26 32 33 40 41 48 49 & Above

4. Monthly Household Income:

25,000 49,000 50,000 74,000 75,000 99,000 100,000 & Above

5. Education

Below Matriculation

Matriculation or Equivalent

Intermediate or Equivalent

Bachelors

Masters or above

SECTION-2
Rate your overall liking for these brand names on the following scale:
Very Very
HIGH NEUTRAL LOW
HIGH LOW

1. Qtv O O O O O

2. Peace TV O O O O O

3. Madani TV O O O O O

4. Dubai Islamic Bank O O O O O

5. Meezan Bank O O O O O

6. Bank Islami O O O O O

7. ZamZam Cola O O O O O

8. Makka Cola O O O O O

9. Ummat (Newspaper) O O O O O

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Proceedings of the Asia Pacific Conference on Business and Social Sciences 2015, Kuala Lumpur
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10. Hijab-ul-Hareem O O O O O

SECTION-3

Rate your overall liking for these ads on the following scale:
Very Very
HIGH NEUTRAL LOW
HIGH LOW

1. Tide Pods O O O O O

2. The Amber Nectar O O O O O

3. Olpers Milk O O O O O

4. Shan Foods O O O O O

5. Pepsi One O O O O O

6. DMAA Dietary Pills O O O O O

Appendix II: Output Statistics

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

Islamic Branding 281 3.7096 .49499 .02953


Islamic Marketing 281 4.1074 .40635 .02424

One-Sample Test

Test Value = 4
95% Confidence Interval of
the Difference
Mean
t df Sig. (2-tailed) Difference Lower Upper

Islamic Branding -9.834 280 .000 -.29039 -.3485 -.2323

Islamic Marketing 4.429 280 .000 .10735 .0596 .1551

Independent Samples Test

Levene's
Test for
Equality of
Variances t-test for Equality of Means
95%
Confidence
Interval of the
Difference

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Proceedings of the Asia Pacific Conference on Business and Social Sciences 2015, Kuala Lumpur
(in partnership with The Journal of Developing Areas)
ISBN 978-0-9925622-2-9
Sig.
(2- Mean Std. Error
F Sig. t df tailed) Difference Difference Lower Upper
Equal
- - -
variances 1.698 .193 544 .000 -.39668 .03897
10.178 .47324 .32012
assumed
Liking Equal
variances - - -
534.744 .000 -.39668 .03876
not 10.235 .47282 .32055
assumed
Group Statistics

Groups N Mean Std. Deviation Std. Error Mean

Islamic Brand 281 3.7096 .49499 .02953


Liking
Islamic Marketing 265 4.1063 .40866 .02510

Reliability Statistics

N %

Valid 281 50.0


Cases Excludeda 281 50.0
Total 562 100.0
a. Listwise deletion based on all variables in the procedure.

Cronbach's Alpha N of Items

.695 16

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