COUNTRY OF ORIGIN EFFECTS IN FINANCIAL SERVICE EVALUATION: THE PAKISTANI CONSUMERS' PERCEPTION TOWARDS FOREIGN ISLAMIC BANKS

This study aimed to measure the country of origin's effect on consumer purchase decisions with the moderating role of consumer knowledge in Islamic banking services. Most of the research has been directed to measure country of origin's impact on products' tangible nature while its effect on consumer decisions in financial services has not been answered satisfactorily. The present study gauges this gap and proposes a comprehensive model for Islamic banking financial services. The current study population was Islamic banking customers from Pakistan who have adequate information about Islamic banking services. A multistage cluster sampling technique was utilized. Punjab and Sindh, two leading states, were selected to collect the data. 415 useful samples were collected and analyzed using PLS-SEM to test the hypothesis and validate the study model. The study results confirmed that country-of-origin and consumer knowledge significantly influence consumer purchase decisions while acquiring Islamic financial services. The findings of the current study have some important implications for the Islamic banking sector in Pakistan to revamp competitive strategies for national and foreign banking investment by creating the awareness and benefits of Islamic banking services. Managers must try to develop a positive attitude by enhancing service delivery to potential and existing customers. This research paper provides a link between theory and practice and provides an aspect of country-of-origin for financial services.