Shari, Wahidah and Mohamed Naim, Asmadi and Isa, Mohamad Yazid and Sofi, Mohd Fikri and Muhamed, Nurul Aini and Maamor, Selamah and Ahmad, Shahrul Nizam (2026) Consumers’ perception of distribution channel for the Malaysian Microtakaful Scheme: an exploratory study. Journal of Islamic Accounting and Business Research, 17 (5). pp. 1025-1050. ISSN 17590817

Preview

PDF - Published Version Available under License Attribution 4.0 International (CC BY 4.0). Download (350kB) | Preview

Abstract

This paper aims to investigate consumers’ preferences regarding the distribution channels for subscription, contribution payment and compensation claims of microtakaful scheme in Malaysia. Design/methodology/approach – Consumers’ preferences were explored through questionnaires and focus group discussions (FGD) conducted among the bottom 40% income classification households (B40) in five zones: northern, central, eastern, southern and Sabah and Sarawak. Findings – Empirical findings from cross-tabulation analysis revealed that takaful company is the preferred distribution channel for purchasing protection plans and making compensation claims. However, the online platform is the favoured channel to make contribution payments. Further investigation through FGD suggested that the selection of a channel for subscription, contribution payment and compensation claim is influenced by consumer trust, cost-effectiveness and simplicity of procedure. Research limitations/implications – Limitation is pertaining to only cross-tabulation analysis used in explaining the choice of distribution channel for microtakaful among B40 group. Thus, advanced analysis is required to strengthen the findings. Practical implications – Findings of this study would help marketers and practitioners to formulate strategies to promote their microtakaful protection to enhance subscription among the low-income population. Originality/value – Empirical findings offer academic contributions to the existing body of knowledge on microtakaful area as the primary data collected will eventually allow future researchers to explicate the contribution of the current study to understand the important of distribution channel for microtakaful from the perspective of subscribers and potential subscribers

Item Type:	Article
Uncontrolled Keywords:	Microtakaful, Consumers’ perception, Distribution channels, Malaysia
Subjects:	H Social Sciences > HG Finance
Divisions:	School of Economics, Finance & Banking
Depositing User:	Mr. Izhar Hj. Hashim
Date Deposited:	03 Nov 2026 12:46
Last Modified:	03 Nov 2026 12:46
URI:	https://repo.uum.edu.my/id/eprint/34607

Actions (login required)

View Item