“Individuals’ purchase intention of the Sukuk bond: A study on developing economy”

The Shariah-compliant (Sukuk) bond has been recently introduced in Muslim countries. Sukuk is getting popular among the Muslim population because of its non-in-terest feature. Thus, this study explores the impact of attitude toward the Sukuk bond, Muslim people’s religiosity, and their subjective norms on the purchase intention of the Sukuk bond in a Muslim developing country: Bangladesh. The study involved 412 individuals who were current customers of Islamic financial products at different financial institutions in Dhaka, Bangladesh. The study used a convenience sampling technique. The study used a survey questionnaire to assess the three independent variables: attitude, religiosity, and subjective norms. The dependent variable was the purchase intention of the Sukuk bond. The statistical software package, SPSS version 29.0, was utilized to test the hypotheses considering a 95% confidence interval. The findings indicate that three independent variables significantly correlated with the dependent variable. The highest correlation was found between subjective norms (r = 0.644) and purchase intention. The regression results suggest that attitude, religiosity, and subjective norms statistically impact the individuals’ purchase intention of the Sukuk bond in Bangladesh. It also shows that consumers’ attitude (β = 0.386) has a greater impact on their purchase intention. Also, consumers’ subjective norms (β = 0.302) have the second highest influence on purchase intention. These variables explain a significant proportion of the variability observed in purchase intention. Also, the t-test shows that male individuals have higher purchase intentions than females.


INTRODUCTION
The Islamic finance sector has witnessed substantial expansion in recent decades, both on a global scale and specifically within the context of Bangladesh (Alam et al., 2019).Islamic finance is guided by Shariah law's principles, encompassing regulations prohibiting interest-based transactions and emphasizing equity, risk-sharing, and ethical behavior (Abdullah & Chee, 2010).Consequently, there has been a surge in the adoption of Shariah-compliant financial instruments by Muslim investors who are actively seeking investment avenues that are in accordance with their religious principles.Shariahcompliant bonds, also known as Sukuk, constitute a fundamental element within the realm of Islamic finance.These bonds function based on the concept of asset-based financing, wherein investors obtain ownership in the underlying assets instead of providing loans and earning interest.Sukuk presents a feasible alternative to conventional bonds, appealing to investors searching for halal investment opportunities while simultaneously guaranteeing competitive financial yields (Nagano, 2016).Bangladesh, characterized by a substantial Muslim populace and a burgeoning economy, offers a distinctive setting for investigating the purchase intention of Sharia-compliant Sukuk bonds (Rahaman et al., 2022;Akhter et al., 2022;Ali et al., 2022).The nation has experienced a notable increase in interest in Islamic finance and has implemented significant measures to foster its growth.Even with these endeavors, a dearth of comprehensive knowledge exists regarding the determinants that impact investors' inclination to purchase Sharia-compliant bonds in Bangladesh.This existing research fills this gap by investigating the various determinants that influence the inclination of individuals in Bangladesh toward purchasing Sharia-compliant bonds.By examining these variables, the study will make a scholarly contribution to the current body of knowledge on Islamic finance and provide valuable perspectives for professionals, policymakers, and financial organizations.

LITERATURE REVIEW
Before looking into the empirical research findings on the Sukuk bond, it is imperative to acquire a comprehensive understanding of the Sukuk concept.The etymology of the term "sukuk" can be traced back to its Arabic root word "sakk," denoting financial instruments or investment certificates that adhere to the principles of Islamic ethics and Shari'ah (Ahmed et al., 2015).Sukuk are financial instruments in Islamic finance that conform to specific principles and can be invested in through different financial contracts, such as ijarah (lease), murabahah (sale with mark-up), musharakah (equity share with proportional profit and loss sharing based on partnership), and Mudarabah (a collaboration between a capital provider and a manager) (Zulkhibri, 2015).In contrast to traditional securities, Sukuk impose restrictions on Islamic issuers and investors, disallowing their involvement in transactions that incorporate interest rates.The concept of 'attitude' plays a crucial role in shaping an individual's behavior toward a particular action (Fishbein & Ajzen, 1975).According to Gopi and Ramayah (2007), it indicates an individual's specific purpose and the positive or negative aspirations linked to that purpose.The concept of attitude has been widely utilized in extensive research to acquire a deeper understanding of human behavior.Prior research has demonstrated the favorable impact of attitude on the inclination of consumers to adopt and employ specific products (Ali & Raza, 2017).
Moreover, a considerable amount of scholarly literature supports the notion that attitude has a noteworthy influence on intention (Ramayah & Suki, 2006).In this context, behavioral intention refers to an individual's deliberate choice to participate in a particular behavior (Ajzen, 1991).Within the realm of consumer behavior, the inclination to acquire a product is predicated upon a favorable disposition toward the said product, with the potential for attitudes toward alternative products within the available options also exerting an influence on this positive disposition (Laroche et al., 1996).Significantly, scholarly research in the field of Islamic finance has placed considerable emphasis on the significance of attitude as a crucial determinant in shaping the intention to utilize Islamic personal financing, as highlighted by Amin et al. (2010).Moreover, previous research has indicated that individuals with a positive attitude or a favorable inclination toward Islamic financing exhibit a greater intention to obtain Islamic personal financing products (Fauziah et al., 2008;Ahmed et al., 2021).Jaffar and Musa (2016) examined the inclination of non-user business owners to utilize Islamic financing.The findings indicated a positive correlation between attitude and intention to adopt Islamic finance.The extensive body of literature emphasizes the pivotal significance of attitude in influencing consumer behavior.Empirical evidence has provided substantial support for the influence of attitude on consumers' intention to adopt products or services, including those within Islamic finance.
The term "religiosity" pertains to an individual's conviction or faith in a higher power, as Khan et al. (2019) discussed.Previous studies have delved into the exploration of the concept of religiosity.According to Mathras et al. (2016), religiosity can be defined as the degree to which individuals adhere to firm beliefs and engage in specific rituals and behaviors in their everyday lives.The concept of religiosity is expounded upon by Faisal et al. (2023) as a profound belief in a higher power cou-pled with a steadfast dedication to adhering to the principles and directives established by said higher power.These definitions emphasize that religiosity encompasses an individual's subjective interpretation and adherence to their religious beliefs.The extent to which individuals adhere to divine principles can influence their social interactions, consumer behavior, and decision-making processes (Adrianto, 2021).The connection between religiosity and the inclination to utilize Islamic financing is significant, indicating that individuals who follow the Islamic faith are open to embracing innovative Islamic financial instruments (Bananuka et al., 2020).The influence of religiosity on consumer behavior is extensive and far-reaching.Moreover, scholarly research has demonstrated that the level of religiosity substantially impacts the consumer preferences of individuals who identify as Muslim (Ashraf, 2016).These individuals tend to be drawn toward products that align with their religious convictions while actively avoiding those that are perceived as conflicting with their religious values (Rehman & Shabbir, 2010).
Subjective norm is a social construct (Ajzen & Driver, 1992).According to Ajzen (1991), subjective norms can be defined as the individual's perception of the social pressure exerted on them, which can either motivate or deter their involvement in specific behaviors.This concept denotes the impact of societal elements on the formation of an individual's behavior, leading it to manifest in a particular manner.Societal influences compel individuals to conform to specific behaviors (Yadav & Pathak, 2017).Prior studies have produced diverse results concerning the impact of subjective norms on individuals' intentions.According to Ramdhony and Munien (2013), including religious beliefs in financial returns may motivate Muslim and non-Muslim bank customers to utilize Islamic financial products and services.
Moreover, Ramdhony and Munien (2013) posited that third party significantly influences the banking choices of Muslims.This implies that Muslims tend to carefully observe and imitate the behavioral patterns of their peers before making any investment decisions.Zainuddin et al. ( 2019) examined the perceptions of Malaysian bank customers regarding Islamic financial products.They discovered that the choices made by users of Islamic banks are notably impacted by their social networks, including friends, relatives, and spouses, as well as their intrinsic religious motivations.Teo and Pok (2003) provide evidence of a positive correlation between subjective norms and intentions.
The literature review presents a synthesis of prior research, offering valuable insights and establishing relationships between attitude, subjective norms, and religiosity in relation to the purchase intention of the Sukuk bond.Understanding and applying these factors remain crucial in shaping consumers' purchasing intention of Sukuk bonds.

AIM AND HYPOTHESES
This study aims to identify the factors influencing individuals' purchase intention toward the Sukuk bond (Figure 1).The study proposes a research framework based on the study hypotheses to achieve this objective: H1: Attitude toward the Sukuk bond affects purchase intention to buy the Sukuk bond.
H2: Religiosity affects purchase intention to buy the Sukuk bond.
H3: Subjective norms affect purchase intention to buy the Sukuk bond.

METHODS
The sample comprised current customers at different financial and non-financial institutions in Dhaka, Bangladesh.The study employed convenience sampling as the method for participant selection.Using a self-administered, structured questionnaire as the data collection instrument, the current study employs a quantitative research methodology.The participants' email addresses, easily obtained from the institution's records, were used to disseminate the questionnaire.600 questionnaires were sent to respondents, and 412 responses were received.The final sample size is 412.The convenience sampling method was chosen due to its practicality and ease of access to potential participants, facilitating the data collection.The present study utilized an online survey as the data-gathering tool.A meticulously designed questionnaire was developed to assess various significant variables.The survey questionnaire was inspired by relevant literature, as detailed in Table 1.The study variables were measured using Likert scale items, which enabled participants to rate their responses on a scale ranging from higher scores indicating greater agreement or disagreement with the statements.The survey was administered using a web-based platform, and the participants were emailed the survey link.The participants were given explicit instructions regarding the completion of the study and were provided with reassurances regarding the confidentiality and anonymity of their responses.
The data were subjected to analysis using quantitative methodologies.In order to investigate the associations and patterns between variables comprehensively, a variety of statistical analysis techniques were employed.Descriptive statistics were employed to summarize and present the characteristics of the data, whereas inferential statistics were used to derive conclusions and inferences about the population based on sample data.In addition, regression analysis was performed to test the proposed hypotheses and determine the relationships between the variables.The statistical software IBM SPSS Statistics was used to conduct these analyses.As interval data, the Likert scale responses were instrumental in implementing regression models for precise statistical analysis and interpretation.Table 2 shows the reliability and validity measures of the variables.All the study variables were reliable and valid.

RESULTS
Table 3 provides an extensive summary of the participant demographics.The data cast light on the gender, education, marital status, and monthly salary of the 412 individuals in the sample.The majority of the respondents were males, accounting for 72.1% of the total sample size (n = 297).In contrast, female participants comprised 27.9% (n = 115).Additionally, a regression analysis was conducted to examine the relationship between the dimensions of the independent and dependent variables.
The R-squared value, as presented in Table 5, was 0.492, signifying that the collective independent variables explain 49.2% of the variance found in the dependent variable.
Therefore, if the given values are substituted into the regression equation, it is expressed as: The p-value in Table 6 indicates whether the variables under consideration make a statistically significant and distinctive contribution to the equation.When the p-value is less than or equal to 0.05, it means a statistically significant or positive rela-tionship between the independent and dependent variables.Table 6 shows that the p-values associated with attitude toward the Sukuk bond (ATSB), religiosity (RELI), and subjective norms (SUBN) are below the threshold of 0.05.This signifies that these three factors significantly influence the purchase intention toward the Sukuk bond.
To examine the dissimilarity or correspondence of respondents' perceptions regarding their intention to purchase the Sukuk bond in Bangladesh, t-tests on independent samples were utilized (Table 7).
The independent samples t-test results reveal a statistically significant difference between male and female respondents regarding their intention to purchase Sukuk bonds (µ 4.238, t = 4.734, p < 0.05).Specifically, male respondents were more inclined to buy Sukuk bonds than their female counterparts.

DISCUSSION
The first hypothesis (H1) claims that attitude toward the Sukuk bond (ATSB) will positively affect individuals' purchase intention for the Sukuk bond (PURINT) in the context of Bangladesh.The findings of the study demonstrated a strong connection between attitude toward the Sukuk bond and the purchase intention, indicating a positive relationship (β = 0.386, t-value = 4.884, p-value < 0.05).This result agrees with previous studies, which found that

CONCLUSION
This study aimed to identify the determinants of individuals' purchase intention of Sukuk bonds in the Bangladesh market.The literature review identified three factors: attitude, religiosity, and subjective norms as significant predictors of the purchase intention of the Sukuk bond.The findings revealed that attitude toward the Sukuk bond, religiosity, and subjective norms positively and significantly affect Bangladeshi individuals' purchase intention of the Sukuk bond.Also, these three independent variables ex-plain 49.2% of the variance in purchase intention.Also, t-test results reveal no significant differences in the independent variables in the gender category.However, the purchase intention of the Sukuk bond significantly differs among male and female respondents, showing that male individuals have more purchase intention to buy the Sukuk bond.Additionally, the outcomes of this study provide actionable insights that may be utilized to improve customer purchase intention toward the Sukuk bond in Bangladesh and other countries.This study's findings have significant managerial implications for promoting and increasing the intention to purchase the Sukuk bond in Bangladesh.Identifying attitude, religiosity, and subjective norms as significant predictors highlights essential factors that can be utilized to attract and engage prospective investors.First and foremost, managers and marketers should shape and foster a favorable perception of the Sukuk bond.This can be accomplished through specific promotional efforts highlighting the benefits, ethical aspects, and conformity to Islamic principles.One can encourage positive attitudes and dispel doubts by providing plain and transparent information about the potential returns, risk profiles, and social impact of the Sukuk bond.
Secondly, managers should tailor their marketing strategies to appeal to potential investors' religious values and beliefs in recognition of the influential role of religiosity.Highlighting the Shariah-compliant nature of the Sukuk bond and emphasizing their adherence to Islamic principles can increase their appeal to more religious individuals.Collaboration with religious leaders and institutions can also aid in promoting the Sukuk bond as a financially and morally sound investment option.
Finally, subjective norms play a vital part in influencing the purchase intentions of individuals.Managers should concentrate on fostering a social milieu that promotes and endorses the adoption of the Sukuk bond.Utilizing social networks, opinion leaders, and influential individuals can facilitate the dissemination of positive word-of-mouth and the generation of social proof regarding the benefits and desirability of investing in the Sukuk bond.Overall, managers in Bangladesh can effectively increase the intention to purchase Sukuk bonds by using attitude, religiosity, and subjective norms.Strategic marketing initiatives tailored to the specific requirements and preferences of the target audience can help cultivate positive attitudes, address religious concerns, and create a supportive social environment conducive to adopting the Sukuk bond that complies with Shariah.

Table 1 .
Sources for developing a survey questionnaire

Table 2 .
Reliability and validity analysis

Table 3 .
Demographic information

Table 5 .
Model summary of regression analysis

Table 7 .
T-test (Independent samples) on gender