Islamic attributes in consumer decision making : an empirical study in Singapore

Abstract

Consumption models developed by Muslim economists are based on assumptions of the economic agent having Islamic values. This thesis explores the basis of these consumption models, highlighting the relevant concepts in Islam which play an important role in developing this economic agent. From the models that have been analyzed, several hypotheses were constructed and supported with Qur`anic verses where possible. Using data collected from a survey in Singapore, an empirical study is conducted to test if the hypotheses are true. Our findings indicate that Muslims in Singapore generally do take Islam as their source of reference and are consuming halal products. They are also moderate spenders, displaying that moderation, a main concept of Islamic consumption models, is being practiced. However, for activities that seem secular such as donation for public goods, improvement courses and cooperation with the government, the findings are not supportive of the hypotheses. This indicates that Singaporean Muslims are still distinguishing between what they deem as secular from religion, a distinction which does not exist in Islam.