Volume 7, Number 3

Examine Factors that Influence a Customer’s Intention to use Interest-free Banking Products and Services of Commercial Banks in Ethiopia (The Case of Jigjiga City)

  Authors

Abdi Hassen Habib, College of Business and Economics Ambo University, Ethiopia

  Abstract

The world's banking business has recently undergone a fundamental change that affects both developing and wealthy nations: the introduction of interest-free banking systems. Analysis of the factors influencing customers' intention to use interest-free banking products and services from commercial banks in Ethiopia is the study's main goal (The case of Jigjiga city). To select 398 sample respondents from Ethiopian commercial banks, multistage stage sampling approaches were used. Both primary and secondary sources were used to gather the study's data.

Structured questionnaires and interviews were used to gather primary data.Data were used fordescriptive analysis (frequency, percentile, mean, and standard deviation), as well as econometrics (correlation and m ultiple regressions the outcomes of numerous regressions revealed that Subjective Norm, Perceived Behavioral, awareness and attitudes. The results of multiple regressions revealed that subjective norms and perceived behavioral control, land attitudes, had a substantial favorable impact on consumers' intention to use interest-free banking products and services, while awareness, had a negative impact on consumers' intention to use interest-free banking products and services in Ethiopian commercial banks.

  Keywords

Jigjiga city, Interest free banking, decomposed theory of planned behavior, commercial banks in Ethiopia.