Development of a Conceptual Model to Understand the Purchase Intentions of Takaful (Islamic insurance) Customers

Abstract

Despite the fact that the UAE is among the pioneers of the Takaful industry, its share of the Takaful (Islamic insurance) business is less than 10%. The main objective of this study is to develop a conceptual model that can contribute towards the robust and sustainable growth of Takaful business in the second largest economy of the Arab world. This study utilizes the Theory of Planned Behavior (TPB) to examine the impact of brand equity and customer perceptions on the purchase intentions of Health Takaful customers through the moderating role of demographic factors. This is a quantitative study and random sampling technique is adopted to collect data from 400 respondents through self-administered questionnaire. The major findings of this study confirmed that brand equity and customer perceptions have a significant positive influence on the purchase intentions of Health Takaful customers in the UAE. To the best knowledge of the researcher, this study is the pioneer attempt to propose a conceptual model to understand the purchase intentions of Takaful customers in a dynamic Arab country like the UAE. This model can be utilized and explored further by academia, industry practitioners and government bodies through its application in various businesses across the globe.

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