Does Consumer Innovativeness Matter? Predicting Customer Behaviour of A New Financial Architecture

Abstract

Although the benefits of the marriage between Islamic principles of Shari’ah and financial services as a new financial architecture have been well documented, however, its adoption within the industry’s core markets was lesser than necessary to move the world’s economic potential. This study proposed consumer innovativeness as a marketing strategy to improve customers’ adoption of the new financial architecture. Utilizing cross sectional study, a survey questionnaire responses were elicited among Islamic banking customers in Northern Nigeria and responses were analyzed using Partial Least Square structural equation modelling (PLS-SEM). Findings indicated that consumer innovativeness, attitude, as well as subjective norm significantly predicted respondents’ intention, while perceived behavioural control was found insignificantly related to behavioural intention. Also, consumer innovativeness moderated the relationship connecting attitude and intention, while evidence for the interaction effect between consumer innovativeness and social norm was not supported. The integration of the theories of planned behaviour and diffusion of innovation in conceiving and initiating appropriate marketing strategy for the new financial architecture were provided and suggestions for future studies discussed.