The Effect of Consumer Perception toward Home Financing Moderated by Religious Belief

Document Type : Research Paper

Authors

1 Faculty of Economics and Business, UIN Syarif Hidayatullah Jakarta, Jakarta, Indonesia; Department of Economics and Regional Sciences, Hungarian University of Agriculture and Life Sciences, Godollo, Hungary.

2 Faculty of Economics and Business, UIN Syarif Hidayatullah Jakarta, Jakarta, Indonesia.

3 Department of Economics and Regional Sciences, Hungarian University of Agriculture and Life Sciences, Godollo, Hungary; Darbandikhan Technical Institute, Sulaimani Polytechnic University, Sulaimani, Iraq.

4 Insitute of Agricultural and Food Economics, Hungarian University of Agriculture and Life Sciences, 2100 Gödöllo, Hungary.

5 Institute of Rural Development and Sustainable Economy, Hungarian University of Agriculture and Life Sciences, 2100 Gödöllő, Hungary.

10.22059/ier.2024.359826.1007731

Abstract

The effect of consumer perception toward home financing can be influenced by various factors, and one potential moderating factor is religious belief. Religious beliefs and values can significantly shape individuals' perceptions, attitudes, and behaviours, including their approach to financial matters such as home financing. This study objective to empirically test the role of religious believe for home financing selection. It also aims to investigate the effect of consumer perceptions (price, location, and service) toward home financing selection with sharia scheme moderated religious belief. The research method used is a questionnaire survey and structural equation modelling with moderation analysis by using software, namely SmartPLS03 in order to run the data about 325 respondents from consumer who buy house and used sharia scheme developer financing and Islamic banking. The result of the study reveals that price and location affect the home financing selection with sharia scheme, while service and religious belief are not significant or have no direct effect. Other finding also reveals that religious belief can strengthen the effect of price toward home financing selection with sharia scheme. It is also found that the key findings of religious belief has an effect toward the home financing selection with sharia scheme not direct effect but with indirect effect through strengthen price influenced, thus, a comprehensive view of the relationship between price, location, religious belief, and the home financing selection with sharia scheme is presented and become the baseline study for introducing essential factors of religious belief to ensure the growth of Islamic Banking financing.
 

Keywords

Main Subjects

References

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Iranian Economic Review
Volume 29, Issue 2
June 2025
Pages 645-673

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