LETTER OF TRANSMITTAL
16 August, 2016
The Dean
Faculty of Business Studies
International Islamic University Chittagong (IIUC)
Subject: Dissertation Report
Dear Sir,
Assalamu A’laikum Wbt. Wrt.
This is my immense pleasure submitting my internship report based on the topic of
The Relationship between Religiosity and New Product Adoption among
Muslim Consumers.
This report is the upshot of my dissertation programme that correlated my
academic study with practical experience. During my dissertation period, I came
across different categories of people in the society and succeeded in gaining ideas
and experience on peoples’ attitude towards Religiosity and New Product
Adoption. This was a new dimension of knowledge gathering for myself in
particular and my society in general.
I beg your kind consideration for the unintentional errors, if any, in preparing the
report despite my best efforts. I hope that you would be kind enough to receive this
report and oblige thereby.
Sincerely yours,
(Riffat Sultana)
Matric No. R153407
Programme: RMBA
Department of Business Administration
International Islamic University Chittagong
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ACKNOWLEDGEMENT
It is indeed a great pleasure and honor on my part to have the opportunity to submit this
report. I would like to offer my heartiest gratitude to Allah (SWA), without Whose favor
this report would have not been possible to prepare and submit in time.
At the very outset, I am grateful to my supervisor Dr. Mohammad Aktaruzzaman Khan,
Associate Professor, for his generous guidance, never-ending support until I finished this
report. My special thanks go to Mr. Md. Mahi Uddin, Associate Professor and Convener
of RMBA Internship/Dissertation Programme, for his sincere advice and guidance in
presenting this dissertation report.
I would also like to thank Mr. Serajul Islam, Associate Professor & Head of the
Department. It is a great pleasure to express my heartiest gratitude to all teachers of the
department for their valuable suggestions and kind co-operation extended to me during the
period of study.
I would like to express my heart-felt gratitude to the people around me, who made me
acquainted with the ideas of Religiosity and New product adoption and enriched my
knowledge about its impact in the society. I was immensely benefitted by their ample
support rendered during my research conducted.
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TABLE OF CONTENTS
ACKNOWLEDGEMENTS …………………………………………………………… ii
TABLE OF CONTENTS ………………………………………………………….……… iii
LIST OF TABLES …………………………………………………………….…………... v
LIST OF FIGURES ………………………………………………………….………… vi
LIST OF APPENDICES ………………………………………………………….…… vii
ABSTRACT ………………………………………………………….………………….viii
CHAPTER 1 INTRODUCTION
1.1 Background of the Study …………………………………………………………….. 1
1.2 Gaps in Research ……………………………………………………………………… 5
1.3. Research Objectives ………………………………………………………………….. 5
1.4. Significant of the Study ……………………………………………………………… 7
1.5. Definition of the Key Terms …………………………………………………………. 8
1.5.1 Islam ………………………………………………………………………….8
1.5.2 Religiosity ……………………………………………………… ………….8
1.5.3 Dimensions of Religiosity ……………………………………………………9
[Link] The Ideological Dimension ……………………………………….. 9
[Link] The Ritualistic Dimension ………………………………………… 9
[Link] The Intellectual Dimension ……………………………………….. 9
[Link] The Experimental Dimension ………………………………………9
[Link] The Consequential Dimension …………………………………… 10
1.5.4 New Product Adoption …………………………………………………… 10
1.5.5 Consumer Behavior ……………………………………………………….. 10
CHAPTER 2 LITERATURE REVIEW
2.1. Introduction ………………………………………………………………………… 11
2.2 Islamic Religiosity: an overview…………………………………………………….. 11
2.3 Islam and Muslim Consumer Behavior……………………………………………… 12
2.4. Muslim as viable Market segment…………………………………………………… 13
2.5. New Product Adoption (NPA)………………………………………………………. 14
2.6. Theoretical Framework …………………………………………………………….... 17
2.7. Research Model and Hypotheses ……………………………………………………. 18
CHAPTER 3 METHODOLOGY
3.1 Introduction ………………………………………………………………………….. 20
3.2 Sampling Procedure ………………………………………………………………….. 20
3.3 Data Collection Method………………………………………………………………. 20
3.4 Variables and Measurements………………………………………………………… 21
3.5 Statistical Analysis ………………………………………………………………….. 22
3.5.1 Factor Analysis…………………………………………………………….. 22
3.5.2 Reliability Analysis ………………………………………………………… 23
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CHAPTER 4 RESULT
4.1 Introduction ………………………………………………………………………….. 24
4.2 Sample Profile………………………………………………………………………. 24
4.3 Goodness of Measures……………………………………………………………...... 26
4.3.1 Factor Analysis ……………………………………………………………. 26
4.3.2 Reliability Analysis………………………………………………………… 28
4.4 Descriptive Analysis …………………………………………………………………. 29
4.5 Zero-Order Correlation ………………………………………………………………. 30
4.6 Regression Analysis…………………………………………………………………... 31
4.7 Results of Hypotheses………………………………………………………………… 33
CHAPTER 5 DISCUSSION AND CONCLUSION
5.1 Introduction…………………………………………………………………………… 34
5.2 Nature of People and Influence of Religiosity over their purchasing decision……… 34
5.3 Ideological Dimension of religiosity and NPA………………………………………. 36
5.4 Consequential Dimension of religiosity and NPA……………………………………. 36
5.5 Ritualistic, Intellectual and Experimental Dimensions of Religiosity and NPA………37
5.6 Overall Religiosity and NPA………………………………………………………. 37
5.7 Limitation of the research……………………………………………………………. 38
5.8 Future research……………………………………………………………………….. 38
5.9 Conclusion …………………………………………………………………………… 39
REFERENCES………………………………………………………………………… 40
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LIST OF TABLES
Table 3.1 Summary of Variables and Measures …………………………………….. 21
Table 4.1 Profile of Respondents ……………………………………………………. 25
Table 4.2 Factor analysis for Independent Variables………………………………… 27
Table 4.3 Factor analysis for Dependent Variable……………………………………. 28
Table 4.4 Reliability Coefficients …………………………………………………. 29
Table 4.5 Characteristics of the Variables (Descriptive Statistics) ………………… 30
Table 4.6 Zero-order Correlation …………………………………………………… 31
Table 4.7 Results of the Inferences …………………………………………………... 33
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LIST OF FIGURES
Figure 2.1 Theoretical & Conceptual Framework…………………………………… 17
Figure 2.2 Research model…………………………………………………………... 19
Figure 4.1 Result of regression Analysis …………………………………………… 32
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LIST OF APPENDICES
Appendix A : Questionnaire …………………………………………………………. 43
Appendix B1 : Descriptive Statistics …………………………………………………. 46
Appendix B2 : Factor Analysis ………………………………………………………. 48
Appendix B3 : Reliability Analysis ………………………………………………….. 53
Appendix B4 : Correlations Analysis ………………………………………………….56
Appendix C : Multiple Regressions …………………………………………………. 57
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THE RELATIONSHIP BETWEEN RELIGIOSITY AND NEW PRODUCT
ADOPTION AMONG MUSLIM CONSUMERS
ABSTRACT
Purpose This paper aims to investigate the relationship between religiosity and New
Product Adoption (NPA) among Muslim consumers. Methodology A total 270
questionnaire were distributed among adult Muslim consumers. Religiosity represented the
independent variable and was measured using five dimensions; ideological, ritualistic,
intellectual, consequential and experimental dimension. NPA represented the dependent
variable. Data was collected using a convenience sampling method and stepwise regression
analysis was used to test the proposed model. Findings Religiosity affects NPA among
Muslim consumers; their beliefs influence how and what products they adopt. Research
limitations/implications the data collected for the current study investigate Bangladeshi
customers' attitude towards religiosity and new product adoption in Chittagong, the second
largest city of Bangladesh. It would be interesting if future researchers examine consumers’
attitude towards specific products for specific product categories taking wide areas of the
country for better generalizability.
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