This paper aims to examine the determinants that influence the customer’s adoption towards the use of family takaful scheme by extending diffusion theory of innovation (DOI) in the context of Pakistan.
The published work allied to takaful studies and DOI was reviewed. Total of 282 respondents who are non-users of family takaful product were used for the purpose of primary data collection through convenience sampling.
The customer’s adoption towards Islamic insurance is determined not only by perceived relative advantage and perceived compatibility but also by awareness and religious belief. Perceived complexity, on the contrary, turns out not to be a predictor of family takaful adoption. Further, gender, age and education do not moderate the family takaful adoption by the customers.
This research alike others have limitations in terms of sampling method used and only covers one city of Pakistan, namely, Karachi. Further studies need to be conducted in other cities as well with a large population.
Extended DOI is not used in the context of takaful in Pakistan as evident from scarce literature on the empirical studies. Therefore, the authors extend the DOI in the current work. Further, this paper will be a useful reference guide for the academicians, operators of takaful business and future researchers.
