2.

1: Defining Variables:

2.1.1: Demographic factors:

“An individual’s personal values and beliefs about what to look for when shopping

various products and services reflect that shopper’s personality and may be

determined by such personal traits as sex, age, race and religion.” (Sheth, 2011)

2.2: Relationship between Variables:

2.2.1 Age In Relation To Awareness Understanding and perception:

According to (Khattak & Rehman, 2010) the age bracket between 21 to 40 years

there is more emphasis on saving rather than consuming which is a dominant part

of a society of Pakistan. An investigation conducted in Borneo recommended

opposite to what (Khattak & Rehman, 2010) said, which is buyers are same as far

as their age in relation to their awareness and usage is concerned. Age and

mentality are two different aspects (Amin, 2007). According to (Haque, Osman, &

Ismail , 2009), 95% of the Malaysia clients there is no significant relationship

between the age and general discernment towards Islamic banking. But also (Khan,

Hassan, & Shahid , 2008), notify that age between 25 to 35 years which is in

Bangladesh 58% of population use Islamic banking system which signify that age

has some impact over understanding and perception. . Insights in the UK

demonstrate half of the UK Muslim populace to be beneath the age of 21. This
would recommend that the future clients of Islamic saving (Kharbhari, Naser, &

Shahin, 2004).

2.2.2 Religions In Relation To Awareness Understanding and Perception:

Being religiously connected with Islam and its values awareness and understanding

among the people are getting affected because of which Islamic banking are

mainly adopt by Muslims due to their easily understandable approach than non-

Muslims (Run & Yeo). According to the findings of (Haque, Osman, & Ismail ,

2009), religious factor greatly influence the adoption and understanding of Islamic

banking system. Which means it will eventually effect the awareness

understanding and will change the perception of Malaysians in respect to religious

aspect. (Loo, 2010) Signifies that in his study 100% of Muslims said that Islamic

banking doesn’t conflict with their religion although one third of the non-Muslim

said that Islamic banking system conflict with their belief.

2.2.3 Education Level In Relation To Awareness Understanding and

Perception:

The study conducted in Pakistan by (Khattak & Rehman, 2010) suggested that

there is a relationship between the education and awareness of different product.

Another study conducted by (Amin, 2007) said that there is a significant

relationship between education and understanding of the customers. As per (Run &
Yeo) Islamic banking system and their product and services are quite complex

education has a fair amount of impact over its understanding. Whereas, education

level doesn’t have created much difference in perception suggested in study held

up by (Haque, Osman, & Ismail , 2009).

2.2.4 Occupation In Relation To Awareness Understanding and Perception:

Occupation and Islamic banking has a significant relationship according to

(Khattak & Rehman, 2010). In Bangladesh, the majority of the Islamic banks

clients are professionals and executives both in the private and public sectors

(Khan, Hassan, & Shahid , 2008). But as result to their perception there is no

significant relationship between adoption of Islamic banking system and

occupation in Malaysia (Haque, Osman, & Ismail , 2009). This demonstrates

occupation will impact the awareness and usage of Islamic banking product and

services it will not change the perception of the customers.. In Malaysia, it was

discovered that a work in the government employees have an altogether different

level of understanding of Islamic financing. In any case, these outcomes are

contradicted to the study done by (Amin, 2007) in Borneo, which demonstrates

that occupation has no association with awareness and usage.

2.2.5 Income Level In Relation To Awareness Understanding and Perception:

As per (Amin, 2007), income plays vital role in awareness of Islamic banking in

Borneo. But their perception varies due to their income level because of the reason

that charges and confidentiality varied from system to system due to which

perception changes (Khattak & Rehman, 2010) . According to (Run & Yeo)

middle income level have different level of understanding about Islamic banking.

In spite different understanding perception did not get affected so altogether

perception towards Islamic banking system is favorable (Haque, Osman, & Ismail ,

2009). According to (Khan, Hassan, & Shahid , 2008) about half of the customers

under study fall in the income category of middle income level. Customers ‘high

concentration in this income category is consistent with the findings of age

category since entry and mid-level executives and professionals both in the private

and public sector of the age category 25-35 years tend to have a similar level of

basic monthly income..

Hypothesis:

2.2.1:

H1: “To check is there any significant relationship between age and awareness of

Islamic banking products and services in Pakistan”

H2: “To check is there any significant relationship between educational level and

awareness of Islamic banking products and services in Pakistan”.

H3: “To check is there any significant relationship between income level and

awareness of Islamic banking products and services in Pakistan”.

H4: “To check is there any significant relationship between gender and awareness

of Islamic banking products and services in Pakistan”.

H5: “To check is there any significant relationship between religion and awareness

of Islamic banking products and services in Pakistan”.

2.2.2:

H1: “To check is there any significant relationship between age and understanding

of Islamic banking products and services in Pakistan”.

H2: “To check is there any significant relationship between religion and

understanding of Islamic banking products and services in Pakistan”.

H3: “To check is there any significant relationship between gender and

understanding of Islamic banking products and services in Pakistan”.

H4: “To check is there any significant relationship between income level and

understanding of Islamic banking products and services in Pakistan”.

H5: “To check is there any significant relationship between educational level and

understanding of Islamic banking products and services in Pakistan”.

2.2.3:

H1: “To check is there any significant relationship between age and perceptions of

Islamic banking products and services in Pakistan”.

H2: “To check is there any significant relationship between gender and

perceptions of Islamic banking products and services in Pakistan”.

H3: “To check is there any significant relationship between religion and

perceptions of Islamic banking products and services in Pakistan”.

H4: “To check is there any significant relationship between educational level and

perceptions of Islamic banking products and services in Pakistan”.

H5: “To check is there any significant relationship between income level and

perceptions of Islamic banking products and services in Pakistan”.

2.2.4:

H1: “To check is there any significant relationship between age and product and

service complexity of Islamic banking products and services in Pakistan”.

H1: “To check is there any significant relationship between gender and product

and service complexity of Islamic banking products and services in Pakistan”.

H1: “To check is there any significant relationship between religion and product

and service complexity of Islamic banking products and services in Pakistan”.

H1: “To check is there any significant relationship between educational level and

product and service complexity of Islamic banking products and services in

Pakistan”.

H1: “To check is there any significant relationship between income level and

product and service complexity of Islamic banking products and services in

Pakistan”.