International Journal of Engineering & Technology, 7 (3.

28) (2018) 189-190

International Journal of Engineering & Technology

Website: www.sciencepubco.com/index.php/IJET

Research paper

Critical Success Factor of Demand Towards New Product of

Islamic Home Financing: A Pilot Test
Puspa Liza Ghazali1, Dede Ansyari Guci2*, Sharifah Arni Syed Jaaffar1, Ramadona Simbolon3, Sri Elviani3, Sayid
Abas4, Susi Ekalestari5, Fajrillah6, Nik Hazimi Mohammed Foziah1, Mustafa Mamat7
1Faculty of Economic and Management Sciences, Universiti Sultan Zainal Abidin. 21300 Kuala Nerus. Terengganu. Malaysia
2Faculty of Economic, Al-Azhar University, Medan, Indonesia
3
Faculty of Economic, Islamic University North Sumatera, Indonesia
4Faculty of Economic, Muhammadiyah University of Ponorogo, Indonesia
5Faculty of Literature, Islamic University North Sumatera, Indonesia
6Sekolah Tinggi Ilmu Ekonomi IBBI, Medan, Indonesia
7Faculty of Informatics and Computing, Universiti Sultan Zainal Abidin, 22200 Besut, Terengganu, Malaysia

*Corresponding author E-mail: [email protected]

Abstract

This research focuses on the new product of home financing in Malaysia. The purpose of the research is to examine if there is any rela-
tionship between knowledge, benefit, marketing and quality towards new constructed product of home financing. A hundred respondents
of people who have home financing have been chosen in the field of research in Kuala Terengganu and Kuala Nerus, Malaysia. The
method of instrument was using questionnaires and made up of five variables. Reliability analysis was the statistic for found the result.
There were six variables got high Cronbach’s-alpha, which was greater than 0.6 means accepted. It can be concluded that the suitability
test of the instruments which was adapted from previous study to the population and situation of the research was accepted. Yet, by using
Kolmogrov Smirnov test, it was found that the entire variables were distributed normally. Researcher concluded that the analyze data by
using parametric technique analysis.

Keywords: Home Financing; Knowledge; Benefit; Quality; Marketing; Islamic Bank.

an Islamic country, Malaysia has an excellent infrastructure to

1. Introduction assist the inception of an Islamic-banking hub in the Islamic-
region.
In Islamic Banking practice, the Islamic aspect is contemplating as There were several previous studies on home financing related
main essential factors in differentiating it from its conventional product. In [4] found that perceived control, subjective-norm,
complement. Therefore, in participating in the present dual market attitude and Islamic product were involved in determining the
system, it is essential for Islamic Banks to keep aligned with the acceptance of customer on Islamic-home-financing products. In
shariah-principles that appear for the very concentrate of the Is- [5] said that Islamic banks throughout the years, developed several
lamic rules. In fact, those banks that planned to move into the modes of finances, which are more or less similar to their conven-
Islamic market need to design a shariah-board or a shariah- tional parts.
counselor to make sure its shariah compliance and minimize sha-
riah-risk [1].
During the Malaysia’s economy crisis in 1997, many houseowner
3. Methodology
felt burdened with the existing conventional loan. In the conven-
tional system, there was no ceiling rate to maximize the fluctua- The Barakah house financing is affordable and transperant in term
tion rate if the economy became worst. Starting from that, people of the contract details regarding the profits gains by the company
get more aware with product offered by the bank as it is a major [6-9]. The actual concept of buying the house with the price is P
commitment that is made out in a life. and the profit is not more than the 1/3 of the price. According to
Prof. Dr. Wahbah Az-Zuhaili as quoted by [10] in Ar-Risalah,
Islam basically has no standard restrictions or standards on profit-
2. Literature Review making. The merchant is free to determine the desired profit of an
item. However, a blessing benefit (Barakah Model) is a profit that
According to [2], the main objective is to explore the option of does not exceed one-third of the price of capital.
Islamic-home-financing criteria in Islamic Banks of Malaysia In 12] survey that a research domain was managed to examine the
found that shariah-principle had less-high monthly income relationship between knowledge, benefit, marketing and quality
through its interest free practicing towards new product of home financing in Malaysia. The ques-
According to [3] the objective is to evaluation the Islamic-banking tionnaires for pilot test were 100 questionnaires, which were de-
history in Malaysia from 1963 until 2010. The result shown that as livered in Kuala Terengganu and Kuala Nerus. Respondents were
Copyright © 2018 Authors. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted
use, distribution, and reproduction in any medium, provided the original work is properly cited.
190 International Journal of Engineering & Technology

chosen among the people who had home financing. The question- the assumption of normality distribution. Due to the violation of
naire was adopted from [13-14]. The questionnaire has 5 construct, normality distribution, it suggested to use parametric technique
where 4 construct were independence variables. By using ten Lik- analysis [17].
ert-Scale for each question of the questionnaire. The responds
from respondents for this pilot study, then analyzed using Statisti- 5. Conclusion
cal-Packages for Social-Science (SPSS) version 21 to find the
result of reliability-analysis and Kolmogrov-Smirnov.
From the reliability test result for pilot test, it shown that all of the
six variables got high Cronbach’s-alpha, the Cronbach’s-alpha is
4. Results and Discussion bigger than 0.6 means accepted [16]. So that, the adopted instru-
ments to the population and situation of the study are accepted.
In Barakah, we used a quarter profit from principal financing be- From the normality test by using 0ne-sample Kolmogrov-Smirnov
cause to make sure the profit gain does not exceed one third of the test, the result show that the collected data were normally distrib-
principal. Only the profit the formula will be derivation by [11] as uted.
follows:
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a. Test distribution is Normal.
b. Calculated from data.

The p-value = >0.05 on the one-sample Kolmogrov-Smirnov test

statistics output on Table 2 shows that the data collected violate