Consumer Behavior;The Effects of Waqf

Topics: Sharia, Islamic Golden Age, Islam Pages: 16 (5179 words) Published: October 26, 2014
Islamic Economics FN 5013

Project Paper
Consumer Behaviour; The Effects Of Waqf




1.1.The Significance of the Study
Issues on consumption behavior become more important to all groups of society. This is because of the changes of current world economic which directly affect the consumers and families regardless their level of income. Today we can observe many conventional theories and models of consumer behavior were seen which try to educate consumers on how to consume ethically, eventually to overcome the current consumption issues.

These theories and models identify the philosophy, concept and motive of conventional consumption. With rising of Islamic Finance we need to discuss Islamic critics on conventional consumption approaches and some principles, sources and institutions Islamic consumption built on them. Specifically, this study attempts to examine the necessity of Islamic consumer behavior and how it should be displayed in the Islamic endowment (waqf) in strategies to improve Islamic framework for consumer behavior.

In todays world, especially in developing countries, the income has increase in a high ratios and people become more rich than a one or two decade ago. However, this increasing income leads to a wealth distribution problem in a fair manner and there will be a huge social justice problem if this problem is not resolved. Muslim society is aware of the requirement of practising Waqf since it is beneficial to the Muslims and the same time can help those needy people. In this case we want to discuss waqfs as the main institutions that can help to reduce these wealth distribution problems.

1.2.Justification about the Study
As an eminent term, consumer behavior is diversified in a multiple dimensions. Consumer behavior studies (models and theories) have apparently played their parts to find solutions to the problems of limited natural resources and unlimited human desires. The conventional consumer behavior theory is always connected to the materialistic and individualistic philosophy of life. Hence, every individual member competes with one another to acquire maximum material wealth. From Islamic Perspective Man’s behavior is supervised by Islamic worldview. In this regard, Islamic worldview refers to the vision of reality and truth that appears before our mind’s eye revealing what existence is all about. In this point we believe that we have to find some linkages about Islamic institutions and consumer behavior. Waqfs are the social institutions that exercised successfully in the Islamic history which help Muslim individuals to consume his wealth in a good manner for today’s world and hereafter.

1.3.Objectives of the Study
The study on the topic is to highlight on the following issues:

i. Identify the philosophy, concept and motive of conventional and İslamic consumption. ii. The possibility to find linkages and contributions between consumer behavior perspective of Islam and waqfs as religious based social institution. iii. To find avenues that waqf is a financial instrument that can be accepted by both Muslims and non Muslims. iv. To deliberate the benefit and advantages of the waqf to the ummah in respect of people as a consumers. v. To justify whether Waqfs can help to reduce wealth distribution problems for needy people and make a justıce world.

2.Review of the Literature
Lots of changes have been occurred in the last century. There are too many theories and models have apparently played their parts to find solutions to the problems of limited natural resources and unlimited human desires which is the basic premise of consumer behavior. There are not too many specific study directly conducted to consumer behavior with waqfs. Hence we try to review different studies in this part. Alam and Hisham...

References: 1) Ahmad Azrin Adnan, 2011, Islamic Consumer Behavior (ICB): Its Why And What. International Journal of Business and Social Science, 2-21 (157-165)
2) Isa, Z.M., Ali, N., Harun, R
3) Magda Ismail Abdel Mohsin, (2013) "Financing Through Cash-Waqf: A Revitalization To Finance Different Needs", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 6 Iss: 4, pp.304 – 321.
4) Zubair Hasan, 2005, “Treatment of Consumption in Islamic Economics: An Appraisal”, J.KAU: Islamic Econ., Vol. 18, No. 2, pp. 29-46-2005
5) Dr
6) Asharaf Mohd Ramli and Azrul Azlan Iskandar Mirza, 2007, The Theory of Consumer Behavior: Conventional vs. Islamic, 2nd Islamic Conference.
6) Monzer Kahf, 2009, “The Demand Side or Consumer Behavior; Islamic Perspective”.
7) Ahmed El-Ashker and Rodney Wilson, 2006, Islamic Economics; A Short Story, Leiden-Boston.
8) Syed Shah Alam, Rohani Mohd and Badrul Hisham, Is religiosity an important determinant on Muslim consumer behavior in Malaysia?, Journal of Islamic Marketing Vol. 2 No. 1, 2011 pp. 83-96.
9) Murat CIZAKCA, 2004, “Incorporated Cash Waqfs and Mudaraba, Islamic Non-Bank Financial Instruments From The Past To The Future?”, the International Seminar on Non-bank Financial Institutions, Kuala Lumpur, Jan. 26-28, 2004.
10) Reazul Karim, 2006, “ ‘Zakat and Waqf Bank’ - for Social Development and Improved Management of Endowments”, Barrister at Law (Lincoln’s Inn) LL.B (Wolverhampton), PGDL (City University, U.K).
11) AbdulHasan M. Sadeq, 2002, “Perpetual Charity And Poverty Alleviation”, International Journak of Social Economic, Vol. 29, No 1/2 , 2002 pp. 135-151
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