Factors contributing to customer preferences on participating in life takaful schemes: a case study in Kuantan, Pahang / Siti Syafiqah Ibrahim

Takaful in Malaysia has emerging rapidly since peoples start to have the awareness on the importance of insurance that is Shariah Compliance in their daily life. Since it is growing faster nowadays, it showed that Islamic products had a big potential than conventional products. Therefore, this study attempted to investigate the factors contributing to customer preferences on participating in Life Takaful scheme in Kuantan. There was increased number of customers who purchase Life Takaful scheme, but we do not know what factors influenced them to choose this product. From this research, the researcher wants to determine the factors of religious obligations, subjective norm and level of knowledge. In this research, customer preferences are the dependent variable. Meanwhile, religious obligation, level of knowledge and subjective norm are the independent variables. All the variables are used to find the relationship between dependent and independent variables in order to get the final result of this research. A self-administered questionnaire will be adapted from reputable journal (Nu, Htay, & Zaharin, 2012) to measure the research variables, as well as to collect demographic information. The sample for this study consisted of 18 to 60 years old Muslims in Kuantan who participate with life takaful scheme. The questionnaires will be distributed to 150 respondents. The study will use a quantitative method approach. In order to identify the factors that contribute to the customer preferences in subscribing Life Takaful schemes, the multiple regressions are used. In addition, this study conducted using SPSS statistical software. From this research, the factors that contribute to the customer preferences in subscribing Life Takaful schemes can be identified so that further recommendations can be developed in order to attract more peoples in participating with Life Takaful schemes.