Determinants Of Customers Perception Towards Islamic Banking: A Quantitative Study In Nangarhar Province, Afghanistan

Abstract

This paper explores the determinants of customer perceptions towards Islamic banking in Nangarhar Province, Afghanistan, with a focus on customer satisfaction, adoption, and long-term engagement. The research aims to examine the influence of factors such as customer awareness, bank profitability, and service quality on consumer preferences for Islamic banking products. A quantitative approach was employed, using a structured questionnaire to collect data from 150 respondents. The data was analyzed using SPSS software, and statistical techniques such as correlation analysis, reliability testing (Cronbach’s Alpha), and multiple linear regression were applied. The results show a strong positive relationship between customer awareness and consumer preferences, while service quality emerged as the most significant factor influencing customer satisfaction. The findings also indicate that profitability had a weaker, insignificant impact on customer preferences. The study highlights the need for Islamic banks to improve service quality and profitability to enhance customer engagement and satisfaction in the region.