Global Journal of Commerce & Management Perspective
Open Access

Abstract

Customer Satisfaction towards Islamic Pawnbroking (Ar-Rahnu): Antecedents and Consequences

Syadiyah Abdul Shukor and Hisham Sabri

Islamic pawnbroking (i.e. Ar-Rahnu) was established by the Terengganu State Government in 1992 by the name of Muassasah Gadaian Islam Terengganu (MGIT). The introduction of Ar-Rahnu in Malaysia is seen as a new micro credit instrument as it provides a financial product for the lower income group and small businesses which usually have limited capital or have been excluded from the financial system. This research aims to investigate antecedents and consequences of customer satisfaction towards Ar-Rahnu. Quantitative research through survey questionnaire was conducted to achieve the research objectives. The usable questionnaire consisted of 96 respondents. Data analysis included descriptive analysis, exploratory factor analysis, and regression analysis. Findings showed that responsiveness, reliability and assurance were antecedents of customer consumer satifisfaction while repurchase intention and word of mouth were consequences of customer satisfaction. It is recommended that future researchers to extend the current research to other service sectors.