The interplay of religiosity at the retailing industry is not an alienation, rather a perpetually incubated subject of concern whenever never introduced to new subjective of objective criterions with every retail market disruption (McDaniel & Burnett, 1990; Mokhlis, 2020; Mortimer et al., 2020). The race for quant and relevancy of religiosity in terms of consumer behavior research is subtle (Mokhlis, 2009; Khraim, 2010). Much is needed to be done in terms of consumer market where retail leads in many dimensions as having a pivotal position at the socio-economic system (Kumar, Anand, & Song, 2016; Le, Nguyen, & Nguyen, 2013). Therefore, decades of research available calls for clearing the foggy situation through inspection of the overlapping conceptual knots. Moreover, the effects of religious orientation cannot be overlooked it has impact on purchase intention (Ustaahmetoğlu, 2020), purchase of counterfeit products (Jashim et al., 2020), retail store evaluations (Khraim et al, 2011), purchase behavior (Mokhlis, 2009; Khraim, 2010; Bukhar et al., 2020; Mokhlis, 2020).
Most of the research has been stating the role of religiosity in terms of purchase behavior, but a few have worked on it, and non in terms of the PI and TPsC. Past studies on Muslim consumers had identified the need for research on religiosity with ethnicity, income, and level of education (Shah Alam, Mohd, & Hisham, 2011). The literary development and lapses in the area of retailing steers the presentation of the novel relationship.
Moreover, in terms of territorial mapping, studies explaining the retail context of Islamic developing countries have been the grey area in literature (El-Adly & Eid, 2017; Fauzi, 2016) and the element of PB had been neglected (Swoboda, Haelsig, Morschett, & Schramm-Klein, 2007). Furthermore, the previous research didn’t go beyond one store in a single urban area (Puccinelli et al., 2009; Teller & Thomas, 2008) and considered the consumer physiological responses (Uchil, Thakkar, & Venugopal, 2015). Therefore, in the context of these series of gaps in the research available, the modern settings of retail industry are not only about marketer but the customer as well. So, the extension in psychological experiences could be the source to trace influence on purchase behavior (Niraj, 2013; Leingpibul et al., 2013; Azeem & Sharma, 2015).
Operationally, Azjan (1991) had identified perceived behavioral control as a factor in TPB in controlling the behavioral outcome (Sreen, Purbey, & Sadarangani, 2018). So, the paradigm set by the past studies, where the research problem had not been addressed, paves the way for the theory of reasoned action to provide suitable lenses for observation of the current problem of consumer behavior (Farouk et al., 2018; Brodowsky et al., 2018).
Moreover, religion lays down the foundations for triggers consumers’ PI along with a plethora of social behaviors, especially in Muslim majority societies (Bakar et al., 2013). The interplay between IsRO and PB, with bridging of PI steers the research problem case to the last piece of the puzzle, as being the role of psychological contract (Ashton, Lee, & Goldberg, 2004), which is better presented in the form of TPsC (Luo, 2006; Guest & Conway, 2002; Li & Lin, 2010). So, the study is steered by the theoretical inferences and interventions for explore the IsRO impact on PB, with mediation TPsC and PI at urban retail context of a developing Muslim majority country, as being the lucrative venue of value for retail marketers.
This study aims to further comprehend the consumer behavior according to religious orientation of the customer based upon the intervention of intention before final behavior and psychological contract between the customer and the retailer. More precisely the objective of this study is to estimate the customer purchase behavior according to the Islamic religious orientation, with the intervention of total psychological contract and intention to purchase.
The research questions are how much Islamic religious orientation effects the purchase behavior of the retail customers. How the Islamic religious orientation influences the purchase behavior of the retail customers with intervention of total psychological contract. How the Islamic religious orientation influences the purchase behavior of the retail customers with intervention of purchase intention.
This manuscript is organized as follows. First, review of the literature is taken to develop the study hypothesis in the theoretical framework. Second, we discussed the methodology and the results from the study. Lastly, the results from the study are discussed with managerial implications.
Literature Review
The retail industry is evolving and so is the consumer research in terms of psychological, religious and behavioral context. The literary knitting of the religious orientation, psychological contact in totality, PI and PB is done in the proceeding manner.
Islamic Religious Orientation (IsRO)
Religiosity has been observed as a personality trait (Ashton, Lee, and Goldberg, 2004) and it behaves differently from other traits in terms of psychological contract orientations, from transformational and transactional dimensions (Rousseau, 2000). Hence, this favors the underlining connection in total. The centrality of the religious orientation in the study is evident from the scope of Islamic business principles that cater all elements of concern, namely competition, change, customers, and company (Sula & Kartajaya, 2006).
The religious people earning higher income tend to have a more satisfied life than the religious people with low income (Maheshkumar Kanubhai Patel, 2017) although Iannaccone (1998) had found no relation between the total family income and prayer frequency of Catholics in the US, but strong religious activity contribution like religious belief. The long term effect of religiosity with income declines but with the declining religiosity income increases (Herzer & Strulik, 2013). Islam considers the religious orientation of commerce and business on a fundamental level and stresses upon it to an extent that the Messenger has been steered by ALLAH to become a successful businessman in his life. (Trim, 2009).
One of handsomely tolerable descriptions of religion by the academic world is put forward in the lines as a schema of behavior or translation of actions that “…are connected to the action of a religious person…” (Ferm, 1963, p. 647). Religious orientation has been the subject of interest in terms of theory and empiricism with attention on the untapped body of research study reservoirs in the business market (Emmons & Paloutzian, 2003). It has been continuously introduced in studies as a forecasting factor and triggering agent for a number of elements that directly impact on the daily lives of the common public, like overall satisfaction with respect to life affective-component of well-being (Diener, Eunkook, Lucas & Smith, 1999; Ellison, 1991).
Max Weber (1904) who depicted religion as a systematic projector of an increase in economic value addition streams and way forward for industrialization goal achievements has depicted this. On similar lines, religious orientation has been shown to be a decisive factor that creates resilience against performance bottlenecks and provides assistance along with psychological mentorship facility (Pargament& Hahn, 1986). Religious orientation also provides a thought paradigm, which projects hope, self-confidence, and positive reflection of self-image and stewardship of steering facility of a certain situation (Spilka et al., 1985).
Along with the clear bright side, there are some scholars who think that it brings the trend of traditionalist frame of mental reference which could be a reaction based with conservative affirmations (McMurry, 1978). However, many do consider it as a platform that enables the individual to have a reason for the choice, react, and mentally wear a behavior (Gorsuch& Smith, 1983).
In terms of behavior in a social setting, religion finds its way to impact on the behavior of a person by influencing the paradigm on which the personal values, ideals, and attitude psycho-sectors are based upon (Peterson & Roy, 1985). The provision of standard operating procedures for interpretation and attaching of meaning and value to the idea, action, or circumstances that gives understanding and sense of clarity to any individual is considered to be the sole responsibility of religion. This means that the individual, group or network of teams that have the understanding of the certain religion, applicable in the specific social setting, can be awarded capability of predictive analysis of the reaction, attitudinal trigger activation and observable behaviors by the representatives of the particular religious orientation (Hawkins et al.1980; Schiffman & Kanuk 1991).For Muslims and countries where Islam is the religion of the majority, the same concept and thinking about constructs, is believed to true (Rousseau, 1989; El-Adly & Eid, 2017; Fauzi, 2016).
According to the Islamic teachings, the sovereignty rests with ALLAH (God Almighty) that is provided to the believers of Islam as a form of trust that has to be kept them throughout life in order to function in accordance to the rules and guidance provided by Islam. The human being is made the ‘Khalifa’ of God Almighty and is believed to practice religion and orient his behaviors in terms of the system of belief and terms of reference provided for situations in daily life (IzziDien, 2000). As per the study of Al-Damkhi (2008), the word ‘Khalifa’ is defined as any person who “…takes over a position, a power, a trust, and who holds it reliably and in harmony with its granter.” Now, this clearly means that the power of making decisions is not the owned by the individual but it is a trust that is given by the creator to the believers and they are supposed to act in accordance to the Book, the Holy Quran, in order to be in ‘harmony’. This clarifies that the religious orientation demands control and stewardship of behavior and actions and their harmonization, at the psychological level, respectively. This being the argumentation to the stage where one can project that the work of Rousseau (1989) that psychological contracts are the psycho-agreements that are established by the individuals on the foundation of their belief system (Islam in the case of this study) and are confidently reflected in the actions in form of personal traits. Furthermore, religious orientation Moreover, religion lays down the foundations of the triggers for social behaviors and overall intentions (Gurvitch 1971; Gleason 1969; Merton 1937, Karl Marx, 1886) and do affect the PI of consumers, especially Muslims (Bakar et al., 2013).
Sula and Kartajaya (2006) stated that the Quran and Hadith have clearly taught human beings to abide by their agreements (contracts) and follow Islamic ethics. Furthermore, Islam teaches its believers to invest as per their ultimate capacity and then leave all else on the will of ALLAH.
Total Psychological Contract (TPsC)
The researchers state TPsC as the collection of psycho-agreements that flow from customer-to-marketer and vice versa, thereby, having dual dimensions in terms of customer and marketer. Many of the studies have been focusing on either while having the other in terms of limitation of their study, which has been strived to be nullified as a popular practice by this study and others as well. In this manner, the true and total sense of the TPsC concept could be gauged (Li &Lin, 2010; Luo, 2006; Chen et al., 2003; and Guest &Conway, 2002). Theoretically, it has been used by the researchers to assess the psycho-contractual relationship between employee and employers but lately it has been used by the studies focusing on the consumer behavior research paradigm (Luo, 2006). Moreover, the literary development of overlapping and theoretical connections between religious orientation, purchase behavior, and PI does advocate the thinking process which supports the steering capability of psychological contract (Rousseau, 1995; Ashton, Lee, and Goldberg, 2004). Nevertheless, this role of psychological contracts reflected in effective sense by observing from customer and marketer sides simultaneously. (Luo, 2006; Guest & Conway, 2002; Li & Lin, 2010).
While considering the religious orientation of any individual in terms of a personality trait as presented by Lee and Goldberg (2004), it plays a unique role on transformational and transactional forefronts apart from other traits of personality about psychological contract orientations (Rousseau, 1989; Rousseau, 2000).
H1: IsRO is having a positive and significant relationship with a TPsC for retail customers
Sula and Kartajaya (2006, pp. 142-3) have presented that the Islamic business regulations do cover the element of the customer in totality. It has been evident that religious personalities considered as a rock-solid form of quality guarantee (Arham, 2010)
Purchase Intention (PI)
Khare (2012) stated that the value interpreted by the individual displays greater influence on PI then the actual satisfaction in the purchase. Moreover, the retailer effort to create value in the purchase desision can generate positive customer behavior for patronage by gauging the interpretation pattern of the individual. Past studies had identified that emotional and social dimensions explain the perceived value of the product in building PI (Le et al., 2013).
A balances marketing mix reshapes the customer purchase motives if it can bring value in the purchase ( Kumar & Kim, 2014). The customers of the developing countries want an even better exchange for their money due to low purchasing power. Thus, purchasing is more dependent upon thorough evaluation of the place of purchasing and traits of the person (Lapoule, 2010; El-Adly & Eid, 2017; Rousseau, 1989).
H4: IsRO is having a positive and significant relationship with PI for retail customers. Sula and Kartajaya (2006) have also projected that all the Islamic business principles cover all the dimensions of the customer.
Purchase Behavior (PB)
The purchase behavior, in elementary, is defined by the five steps through which it passes while development of decision-based on elements like recognition of need, searching of information, evaluation of alternatives, the decision for purchase, and post- PB (Armstrong and Kotler, 2010). This study stops at the level of purchase behavior, which comes at the fourth level and does not consider the situations that come under the heading of post-purchase behavior. Here, it is mentionable that the considered PB stages are influenced by the perception that the individual sets in mind about the things to purchase. Kumar & Kim (2014) demarcated PB to be the reflection of PI and psycho-acceptance by the customers.
H5
PI generates a positive and significant relationship with PB for retail customers.
As perception is a psychological state of the brain so the psychoanalysis of the PB is imperative for assessment of the state of affairs being observed (Sheth et al., 2004). Islamic faith followers were found to be more conscious of their religious values while making the purchase decision(Mahesh K Patel & Sethi, 2014; Maheshkumar Kanubhai Patel, 2017).
H2: IsRO is having a positive and significant relationship with PB for retail customers
The psychological dimension has vitality at the strategic level as the consumers give more value to the psycho-contractual comparison of perceived and actual gain instead of the reality in objective terms (Schiffman & Kanuk, 2010). Hence, the psychological contract has an underpinning relationship with purchase behavior.
H3: Total psychological contract generates a positive and significant relationship with PB for retail customers.
Moreover, the inter-link with PI and the psychological contract was described by the straight logic that people will purchase the things that they have well thought out to buy (Blackwell et.al, 2001).
H1a: TPsC mediated the relationship between IsRO and PB for retail customers.
H1b
PI mediates the relationship between IsRO and PB for retail customers.