A Research on Consumer Behavior Towards Interestfree Financing with Special Reference to Planned Behavior Theory: An Empirical Analysis

This study seeks to empirically analyze the validity of consumer tendency/ behavior towards the interest-free financing models with reference to the planned behavior theory (PBT). Additionally, the research further tests the validity of the hypotheses on the consumer tendencies towards interest-free financing via PBT in Turkey and other predominantly Muslim countries. To this end, the main variables of the theory, attitude, subjective norm, and perceived behavioral control, have been redefined through certain factors spelled out in the literature. Subsequently, they have been analyzed through the Cronbach Alpha test in the relevant parts of the survey done with the participation of 235 persons. The study concludes that the attitude variable, redefined through the factors of desire for a fair financial system and cost advantage, determines the consumer behavior towards interest-free financial models. Additionally, it has also been observed that the avoidance from interest, one of the factors that define the subjective norm variable, underscores the consumer behavior towards these financial methods. However, the chi-square test results suggest that the subjective norm and perceived behavioral control variables do not provide consistent outcomes. Also, it can be said that the work is original due to a special reference to PBT in the sample of Turkey, even though it is similar to interest-free finance studies made with PBT.