RESEARCH PROPOSAL THE PERCEPTION OF THE NON-MUSLIM CUSTOMERS ON TAKAFUL TOWARDS ISLAMIC BANK IN PENGKALAN CHEPA By

RESEARCH PROPOSAL
THE PERCEPTION OF THE NON-MUSLIM CUSTOMERS ON TAKAFUL TOWARDS ISLAMIC BANK IN PENGKALAN CHEPA
By:
NUR AMIRA BINTI AB. RAZAK (A15A0623)
NUR AMIRA HAZWANI BINTI HAMZAH (A15A0626)
NUR ASIAH BINTI ALI (A15A0633)
NUR ATHIRAH ALWANI BINTI MAHADZIR (A15A0636)

TABLE OF CONTENTS
TOC o “1-3” h z u CHAPTER ONE PAGEREF _Toc513416422 h 3INTRODUCTION PAGEREF _Toc513416423 h 31.1 Background of the Study PAGEREF _Toc513416424 h 31.1.1 Background of Takaful PAGEREF _Toc513416425 h 31.1.2 The Classification of Takaful PAGEREF _Toc513416426 h 51.1.3 The Development of Takaful in Malaysia PAGEREF _Toc513416427 h 61.1.4 The Growth of Takaful in Malaysia PAGEREF _Toc513416428 h 71.2 Problem Statement PAGEREF _Toc513416429 h 91.3 Research Objectives PAGEREF _Toc513416430 h 111.4 Research Question PAGEREF _Toc513416431 h 111.5 Significance of the study PAGEREF _Toc513416432 h 121.6 Limitations of the study PAGEREF _Toc513416433 h 121.7 Definition of Terms PAGEREF _Toc513416434 h 131.8 Chapter Summary PAGEREF _Toc513416435 h 14CHAPTER TWO PAGEREF _Toc513416436 h 15LITERATURE REVIEW PAGEREF _Toc513416437 h 152.1 Introduction PAGEREF _Toc513416438 h 152.2 Discussion on Independent Variables PAGEREF _Toc513416439 h 152.3 Discussion on Dependent Variable PAGEREF _Toc513416440 h 182.4 Related Theories & Models PAGEREF _Toc513416441 h 192.5 Conceptual Framework PAGEREF _Toc513416442 h 212.6 Hypothesis of the Study PAGEREF _Toc513416443 h 232.7 Chapter Summary PAGEREF _Toc513416444 h 23CHAPTER THREE PAGEREF _Toc513416445 h 24METHODOLOGY PAGEREF _Toc513416446 h 243.1 Introduction PAGEREF _Toc513416447 h 243.2 Research design PAGEREF _Toc513416448 h 243.3 Sampling Frame PAGEREF _Toc513416449 h 253.4 Population PAGEREF _Toc513416450 h 253.5 Sampling Technique PAGEREF _Toc513416451 h 253.6 Sample Size PAGEREF _Toc513416452 h 263.7 Unit of Analysis PAGEREF _Toc513416453 h 263.8 Data Collection Procedure PAGEREF _Toc513416454 h 273.9 Survey Instrument PAGEREF _Toc513416455 h 273.10 Reliability and Validity of the instrument PAGEREF _Toc513416456 h 273.11 Plan for Data Analysis PAGEREF _Toc513416457 h 283.12 Chapter Summary PAGEREF _Toc513416458 h 30
CHAPTER ONEINTRODUCTION1.0 Introduction
Chapter one present about introduction of this study and comprises nine main sections in this chapter. It included background of the study, the problem statement, research objectives, research questions, hypothesis of the study, significance of the study, limitation of the study, definition of terms and the last final section summarize the chapter.

1.1 Background of the StudyIt is a natural phenomenon in any society that everybody is exposed to all sorts of risks in their daily life. It may be expected and some are unexpected. These risks may occur to one’s life, properties or even business ventures. Often, these risks affect the lives of many individuals in the society which sometimes so devastating and shattering. The effect is that they may leave these unfortunate people vulnerable and helpless ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “abstract” : “The word takaful is derived from Arabic verb “Kafala”, which means to guarantee, looking after, to help and to take care of oneu201fs needs. Takaful is a system of Islamic insurance based on the principles of “ta’awunu201f (mutual assistance) and “tabarru'” (voluntary contribution). The Takaful industry has developed rapidly in Brunei Darussalam since early1990s. The objective of this paper is to examine the public preferences and understanding between Takaful and conventional insurance. It also attempts to identify reasons and factors that make the conventional insurance contradicted with the Shari’ah principles. The samples were randomly selected consisting of residents of Brunei Darussalam and on-line questionnaires were distributed. It is found that a big majority of the respondents do not understand what takaful is. Despite that, a big majority prefer Takaful over conventional insurance. The study proposes that the takaful companies should educate the public to increase their understanding on Takaful.”, “author” : { “dropping-particle” : “”, “family” : “Matsawali”, “given” : “Mohd Shril”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Abdullah”, “given” : “Mohd Fadzilah”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Yeo”, “given” : “Chui Ping”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Abidin”, “given” : “Siti Yusmardinah”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Zaini”, “given” : “Masnalliza M.”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Ali”, “given” : “Hardi M.”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Alani”, “given” : “Farooq”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Yaacob”, “given” : “Hisham”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “International Journal of Business and Social Science”, “id” : “ITEM-1”, “issue” : “22”, “issued” : { “date-parts” : “2012” }, “page” : “163-177”, “title” : “A study on Takaful and conventional insurance preferences: The case of Brunei”, “type” : “article-journal”, “volume” : “3” }, “uris” : “http://www.mendeley.com/documents/?uuid=8122d4ea-3106-4404-b6d1-e4b83488a787” } , “mendeley” : { “formattedCitation” : “(Matsawali et al., 2012)”, “plainTextFormattedCitation” : “(Matsawali et al., 2012)”, “previouslyFormattedCitation” : “(Matsawali et al., 2012)” }, “properties” : { “noteIndex” : 0 }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }(Matsawali, 2012).
Background of TakafulNowadays, Islamic finance has become one of the most rapidly growing segments of the global financial system and the development of Takaful is seen as one of the key components contributes to the development of Islamic finance. According to Maysami and Kwon (1999), the first Takaful company was established in Sudan in 1979 and today Takaful companies are spreading around the world. In Malaysia, the first Takaful company in Malaysia is Syarikat Takaful Malaysia Berhad (STMB) established under Takaful Act 1984. Malaysia marks the second largest Takaful market in the world, showing the growth of 21% in 2012, in which is more than double the growth of the broader insurance industry at 9% and the world’s largest family Takaful market (Crawford and Ashar, 2013).

Takaful is an insurance product which is based on Shariah compliance. Takaful products also known as Islamic insurance, halal insurance, ethical insurance, Islamic mutual insurance, co-operative insurance and community insurance (Salman, 2014). Takaful holds a different concept from conventional insurance which is prohibited by the Shariah due to the elements of uncertainty (gharar), interest (riba) and gambling (maysir). Besides, Islam also prohibited any kind of investment in business that involve interest (riba) or goods and services that considered contrary to Islamic principles. Consequently, Takaful is regarded as an alternative to conventional insurance which presents itself as a form of mutual help (ta’wun) in furthering good virtue by helping others who are in need or in hardship ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “abstract” : “The concept of insurance is not a new phenomenon in the history of human civilization. It has been around since the days of Babylon in Mesopotamia aimed at protecting private property, real estate, commercial and family affairs. Similarly, the idea and practice of Takaful is not new as it was practiced during the time of the Prophet Muhammad (PBUH) by its adoption of the concept of Aqilah. Starting the 1970s and increasingly in the 1990s, Islamic countries and other countries with a significant Muslim population have encouraged the provision of financial services, including insurance, under Islamic principles. The concept of Takaful or Islamic insurance was first introduced in Sudan in 1979, inspired by the growing needs of the Muslim consumers for an insurance protection that conforms to the Islamic law. In Malaysia, the emergence of the first Takaful operator took place in 1985 .This paper describes the concept of al-Takaful in Islam and its development in Malaysia, specifically in the establishment of Syarikat Takaful Malaysia Berhad (TMB), Malaysia’s pioneer in Islamic insurance.”, “author” : { “dropping-particle” : “”, “family” : “Sharifuddin”, “given” : “Syazrin Syimee”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Kasmoen”, “given” : “Azlinda”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Habibahanin”, “given” : “Nur”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Taha”, “given” : “Mat”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Mir”, “given” : “Shaiza”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Talaat”, “given” : “Ahmad”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Zuraina”, “given” : “Aida”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Talaat”, “given” : “Mir Ahmad”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “International Journal of Humanities and Social Science Invention ISSN (Online”, “id” : “ITEM-1”, “issue” : “12”, “issued” : { “date-parts” : “2016” }, “page” : “2319-7722”, “title” : “The Concept of Takaful (Islamic Insurance) and Its Functions in the Establishment of Syarikat Takaful Malaysia; the First Takaful Operator in Malaysia”, “type” : “article-journal”, “volume” : “5” }, “uris” : “http://www.mendeley.com/documents/?uuid=afa59b89-5d93-48a9-ac25-05d7cafacf19” } , “mendeley” : { “formattedCitation” : “(Sharifuddin et al., 2016)”, “plainTextFormattedCitation” : “(Sharifuddin et al., 2016)”, “previouslyFormattedCitation” : “(Sharifuddin et al., 2016)” }, “properties” : { “noteIndex” : 0 }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }(Sharifuddin, 2016).
The definition the Takaful is derived from “takafala” which means “looking after one another” (Hamid, 2009). The existence of Takaful system is in line with Islamic value concerning socio economic principle for the benefit of individual and society as whole. Takaful is known as the practice of sharing the risks among as many people as possible as well as mutual guarantee among participant. According to Abdullah and Aziz (2016), Takaful concerned to the strong ethics of the system of fairness, transparency, distribution of wealth leading to social goodness and environmentally friendly focus for generating economic activity.

According to Bank Negara, Takaful is an insurance concept in Shariah whereby a group of participants mutually agree among themselves to guarantee each other against defined loss or damage that may inflict upon any of them by contributing as tabarru’ or donation in the Takaful funds. In other words, it is an arrangement by a group of people with common interests to guarantee and protect themselves from certain defined misfortunes such as premature death, disability, ageing, sickness and property damages, fire and so on (Ayuba, 2014).

According to Section 2 of the Malaysian Takaful Act 1984, it defined Takaful as a scheme based on brotherhood, solidarity and mutual assistance which provides for mutual financial aid and assistance to the participants, in case of need whereby, the participants mutually agree to contribute for that purpose.

The main purpose of takaful under the Islamic system is to bring equity to all parties involved and the objective of the contract is to help the policy holder through bad times. For takaful, profit earnings is not the main goal, while sharing any profits generated incidentally is acceptable (Maysami and Kwon, 1999). The origin of Islamic insurance started before the era of the Holy Prophet Muhammad (S.A.W) which is based on “Aqilah” mutual cooperation (Klingmuller, 1969).

The Classification of TakafulThere are two type of Takaful which are General Takaful and Family Takaful. First of all, the general takaful contract normally is a short-term policy where takaful participants pay contributions and operators undertake to manage the risk. The contributions paid by the participants are credited into the general takaful fund, which is then invested and the profits generated are paid back to the fund.

Tabarru’ element is more apparent in general takaful as participants will normally undertake to regard his contributions as donation to fellow participants. All contributions go to a common pool of funds which will be used to compensate takaful participants in the event of loss. There is no saving and investment elements but the takaful operator will distribute any underwriting surplus to the participants on annual basis. Typically, general takaful is short-term but renewable periodically. Takaful operators everywhere typically provide a full range of general takaful products in both retail and corporate segments.
General takaful is categorized into two types which are motor takaful and non-motor takaful. For Motor takaful, it will provides protection for private car, motorcycle and commercial vehicle. Then, for Non-motor takaful ranges from fire, marine, health takaful, personal accident and others.

Then, for the family takaful it is a long-term policy for which most participants aim at saving for their long-term needs. For example their children’s education, their pension and compensation for dependants in the event of death and disability. This type of takaful has a long-term time horizon which ranges from 10 to 30 years. In family takaful, operators normally divide the contributions of participant into two parts. First, the participant’s account (savings account). Secondly, the participant’s special account (tabarru’ account) for meeting losses of the fellow participants.

In the event of loss, the participant will be compensated according to a pre-agreed formula. Accordingly, the clause of tabarru’ is incorporated in the contract. Both accounts are invested in shari’ah -approved securities. Depending on the type of underlying contract, the takaful operator may receive a fee or share of investment profit. Typically, it is long-term in nature, loosely comparable to conventional life insurance. If a participant dies prematurely, his family gets the amount in the participant’s account plus dividends, and amount in participant’s special account as if he continued contribution until the maturity period. If the participant withdraws from the takaful programme, he will get the amount in the participant’s account only.

Among the most common and typical family takaful products offered include savings and educational plans, retirement plans, retirement annuities, waqf plans and ancillary benefits added to the main plans, such as protection for critical illness, disability, accidental death, or waiver contribution.

The Development of Takaful in MalaysiaThe development of the takaful industry in Malaysia started in the 1980s when the need of the Muslim consumers for an alternative to the conventional life insurance prevailed as the result of a fatwa (decree) issued by the Malaysian National Fatwa Committee which ruled that conventional life insurance is a void contract due to the presence of the elements of maisir, gharar and riba (Bank Negara Malaysia Report, 2005). In conjunction with this fatwa, the Takaful act was enacted in 1984 and Syarikat Takaful Malaysia Berhad, the pioneer takaful operator in the country was soon established.
The Malaysian Takaful Act 1984 acknowledges that takaful is a scheme based on brotherhood, solidarity and mutual assistance which provide for mutual financial aid and assistance to the participants in case of need whereby the participants mutually agree to contribute for the purpose (Hendon, Zuriah and Sharifah, 2009).
This is the chronologies of events of the Malaysian takaful industry:

Source: 20 years’ Experience of Malaysian Takaful Industry
The Growth of Takaful in MalaysiaIn Malaysia, Family Takaful is larger, but General Takaful is gaining traction. As of 2011, Takaful contributions were about 6 of 1% of Malaysia’s Gross National Income and approximately 10% of total insurance premiums (Bank Negara Malaysia, 2012). Worldwide, Takaful is a projected $12 billion dollar industry in 2012, according to the most recent Ernst and Young World Takaful Report; after being $8.3 billion in 2011 after adjustment for inflation. Conventional insurance worldwide is a $4.6 trillion dollar industry by comparison (Ernst and Young, 2012).
6673853257550Figure 1: Statistical Report of General Takaful and Family Takaful

Sources: adapted from Bank Negara Malaysia-2011 Statistical Report
Figure 1 above shows the growth trends in Family and General Takaful net contributions in aggregate over the nine (9) year period between 2003 until 2011. Malaysia’s Family Takaful growth has been impressive thus far. Net Family contributions have grown 385.7% from 2003 to 2011 or an average 42.9 per year before adjustment for inflation. General Takaful grew 360.8% over the same period or an average 40.1% per year before adjustment for inflation. However, growth has slowed. Family funds grew at an unadjusted 9.2% from 2010 to 2011 while General funds grew at an unadjusted 12.4% (INCEIF, 2012).

Meanwhile, globally, the takaful industry has been growing rapidly. This trends appealing to both Muslims and non-Muslims. The industry is expected to grow by 15-20% annually, with contributions expected to reach USD7.4 billion by 2015. Currently, there are more than 110 takaful operators worldwide.
According to Central Bank of Malaysia, Malaysia has already achieved significant milestones in the development of its takaful industry. With the enactment of the Takaful Act 1984, the first takaful company was established in 1985. Since then, Malaysia’s takaful industry has been gaining momentum and increasingly recognized as a significant contributor to Malaysia’s overall Islamic financial system.

As at 2007, total assets of Malaysia’s takaful industry amounted to USD2.8 billion with market penetration of 7.2% (Bank Negara Malaysia, 2007). Takaful assets and net contributions experienced strong growth with an average annual growth rate of 27% and 19% respectively from 2003 to 2007.

According to Ayinde (2012), Malaysians are willing to adopt Islamic insurance services depending on significant factors including compatibility and awareness. A similar study by Swartz and Coetzer (2010) also concluded that Takaful products have attracted even non-Muslim communities. Nonetheless, the interest shown by non-Muslims and the support of Muslims is insufficient to promote the knowledge and awareness to lead the growth of Takaful.

In Malaysia, Muslims represent 60% and non-Muslims 40% of the population. With the non-Muslims, primarily the Chinese, forming the economic backbone, it is important that Islamic banks assess their level of success in attracting non-Muslims.

1.2 Problem StatementThis research is conducting for study the perception of non-Muslim towards Takaful which is Islamic Insurance Services. The Takaful industry continues to grow from year to year driven by domestic economic growth. Takaful is an Islamic Insurance that was adopted from Conventional Insurance. There is a significance differences between Islamic and Conventional Insurance which is in Islamic Insurance or Takaful, there are three (3) elements that have been prohibited from this activity. The elements are riba, gharar and maysir. According to Hamid et. al. Islamic and Conventional Insurance are two different contracts. Islamic insurance which is known as Takaful is based on the concept of Takaful that is developed on three principles: 1) Mutual responsibility 2) Co-operation with each other 3) Protecting one another from any kind of difficulties, disaster and other misfortune, whereby the financial contribution (premium) is based on the concept of tabarru’.
Nowadays, Takaful has become the popular insurance services among Muslim all over the world. According to Hassan Scott Odierno (2014), Takaful is not insurance for Muslim but insurance that complies with the principles of Shariah. Since all the Muslim were exposed to the benefit of Takaful compared to the conventional insurance. The question now is about the perception of non-Muslim towards Takaful. How these non-Muslim react towards the Takaful. The researches want to know how much their knowledge about the Takaful. Since the researchers know that the information about Takaful is hard to get to the non-Muslim. Most students who are taking Takaful subject at university are a Muslim. Based on the researcher observation, information about Takaful is rarely to get unless you read a paper about the Takaful itself. Either in media or in newspaper or in magazine, it is hard to find information about Takaful but you can find about conventional insurance easily.
The study conducted by Daljit (2011) summarizes that even though Takaful market has established more than 25 years, but there are many Malaysian who do not have a Takaful protection. According to a statement issued by Chief of Staff Takaful Malaysia Group executive, Datuk Seri Mohamed Hassan Kamil (2015), he explained that the Takaful market grew rapidly in recent years. Statistic also shows that about 45 percent of Malaysian has insurance product yet what disappoints less than 15 percent of Malaysian has Takaful products. Hence this information proves that the Malaysian Takaful industry is still far behind compared to the overall penetration of the insurance market and conventional stock.
This research is necessary to know whether non-Muslim have clear understanding about Takaful or not. This is because past studies highlight the Muslims unawareness of the Takaful and their lack of understanding on Takaful and its importance (Kassim, 2005). The Islamic community itself is not aware of the importance of Takaful. So that, the complete information on importance and advantages of Takaful to a non-Muslim is needed to ensure they have a clear understanding about Takaful.
The major differences between Takaful product and conventional insurance product are the elements that have been prohibited in the contract. In Takaful, they use there principle that in line with Shariah compliance which is 1) mutual responsibility 2) mutual cooperation and 3) mutual protection. Based on the principle, the entire premium holder will be dealt fairly. Takaful products begin with the purchase of the premium by the premium holder. The money that the Takaful Operators get called as a donation. In Takaful, the premium holder will be placed in a group. When one of the members facing a difficulty, the Takaful Operator will use the donation to help the needed. Then when a surplus exits, they will divide between them fairly. That is how the Takaful product is different from conventional insurance product.
The main purpose of this study is to examine the perception of the non-Muslim customers on Takaful towards Islamic Bank in Pengkalan Chepa and the level of knowledge of non-Muslim on Takaful. Often, the previous research study is mostly covered of Muslim’s customers. In this study, we are focusing on three main factors that influences perception of non – Muslims on Takaful product.
In this research, the researchers will use quantitative method by using a questionnaire that will be given toward the chosen respondents. The chosen respondents are the non-Muslim consumer who uses Takaful as their insurance services. Other than that, the researchers also will use secondary data. Secondary data refer to information that has been already gathered by someone and readily available to the researcher.
1.3 Research ObjectivesThe objective of this study will be to examine the perception of the non-Muslim’s customers on Takaful towards Islamic Bank in Pengkalan Chepa. More specifically, this study will attempt to:
To determine the understanding of the non-Muslim’s customers on Takaful product toward Islamic Bank in Pengkalan Chepa;
To determine the acceptance towards Takaful product among the non-Muslim’s customers in Pengkalan Chepa.
To determine the trust on Takaful product among the non-Muslim’s customers in Pengkalan Chepa.
1.4 Research Question
In order to meet the above research objectives, the following research questions were formulated:Are the non-Muslim’s customers have a fully understanding on Takaful product in Islamic Bank?
Is there any acceptance towards Takaful product among the non-Muslims customers in Pengkalan Chepa?
Are the non-Muslim’s customers has their trust on the Takaful product offered by Islamic Bank?
1.5 Significance of the studyThis research is mainly based on the perception of non-Muslims customers on Takaful towards Islamic banks in Pengkalan Chepa. Since there are also many non -Muslims are residing in Kelantan, to be more focused are which those who lived in the Pengkalan Chepa area, some of them seems to be subscribing into Islamic products like Takaful even though conventional insurance are also available. This study has been carried out to find out what are the factors that could contribute to the usage of Takaful among them rather than the conventional that somehow will open ways for Takaful company to improve their products specification for better understanding to non-Muslims. This study may also help to give a clearer and specific view on what are the real thoughts of non-Muslim about Takaful products and other Islamic products that seem to be difficult to known in general scope. Plus, the end results of this study could be contributing to the society in providing better understanding to the non-Muslims especially about Takaful, thus to provide more data in Takaful products and services in the future.

1.6 Limitations of the study As any other study being done, there are also few limitations that could block the study to be carried out. These are some of the limitations:
Non- Muslims in Kelantan
The study is about non-Muslims perception on Takaful products, and the target populations that the study is focusing are the non-Muslims in Pengkalan Chepa. In Kelantan, up to 96% of Kelantan populations are Muslims, and the rest of them are non- Muslims. This has been a challenge for the study to be done due to the limited numbers of non-Muslims society.

Lack of time
The time given to conduct this study is very short, making it a lot difficult to collect and analyse the data collected. Due to limited time, the study could not have variety of results, as it can be a factor to better understanding on the study’s objective.

Lack of awareness
In this study, the lack of awareness of this study it self that mostly people would not think about the non-Muslims perception on Islamic products, Takaful to be more specific.
1.7 Definition of TermsPerception
Perception is defined as the way in which something is regarded, understood or interpreted. Perception also refers to the way people try to understand their surrounding as they gather information through five sense organs and it is the process by which people organize and interpret their sensory impressions in order to give meaning to the environment. Overall, perceptions is the set of processes by which person becomes aware of and interprets information about something surround them.

Takaful
Takaful is the term used in Islamic finance which is the contrary to the conventional insurance where Takaful is the Islamic insurance and it is based on the principle of mutual assistance. In Takaful, the members will contribute the funds or money into a collective monetary pool for mutual protection and guarantee against any type of damage or loss. Takaful is a shared responsibility of risk in the event of a loss to any of the members who contribute to the pool of funds. Takaful is an Islamic insurance that based on Shariah law and combines the responsibility of individuals, who mutually protect each other.

Islamic Bank
Islamic banking is defined as the banking system which is consonance with the value in Islam and governed by the principles laid down by Shariah. Islamic banking avoids the participation in prohibited (haram) activities such as interest (riba), uncertainty (gharar) and gambling (maisir) and also investment in trade of the forbidden goods such as alcohol. According to the Islamic Banking Act 1983, Islamic bank means any company which carries on Islamic banking business and holds a valid license; and all the offices and branches in Malaysia of such bank shall be deemed to be one bank.
Understanding
Understanding is defined as the ability to understand something; comprehension towards someone or something. Understanding is a psychological process related to an abstract or physical object, such as person, situation, or message whereby one is able to think about it and use concepts to deal with that object.
Trust
Trust is define as a firm belief in the reliability, truth, or ability of someone or something. A trust can provide a means to hold and manage property. A trust is usually established to empower someone else (trustee) to manage and care for your propertyfor the benefit of your family (beneficiaries). The another definition of trust is a relationship created at the direction of an individual, in which one or more persons hold the individuals property subject to certain duties to use and protect it for the benefit of others.

Acceptance
Acceptance is defined as the process or fact of being received as adequate, valid or suitable. It is also as an act of believing or asserting and response to anything accuring in any moment of life. An acceptance of someone or something is also an indication that a person approve of or believe in it. In legal terms, acceptance is language signifying consent to the terms of an offer, leading to the creation of a contract.

1.8 Chapter SummaryThe first section described the background of the study which focused on Takaful and the perception of the non-Muslim customers on Takaful. The statement of problem was the second section of this chapter. It dealt with the Takaful scheme in Islamic Bank and also the perception of non-Muslim customers towards Takaful that has not been fully explored.
There were three research objectives in the study as illustrated in section three, three research question in section four and three research hypothesis in section five. Section six described the significance of the study while section seven illustrated the limitations of the study. The definitions of terms were described in section eight in this chapter.

CHAPTER TWOLITERATURE REVIEW2.1 Introduction
This chapter will solely review literature on two main issues in examining how well the Perception of Non-Muslim Customers on Takaful towards the Islamic Bank thus, illustrating:
The discussion on Independent Variable and Dependent Variable
The related theories and models
In addition, this chapter will describe the research framework, which also will be served as the conceptual framework of this study.
2.2 Discussion on Independent VariablesUnderstanding
Based on Razak et.al. (2013), he have explored the factors that influencing the acceptance of Takaful among Malaysian based on perception, product, features, promotion, benefit and service quality. The final report has indicated that service quality was the most significant factor on why Malaysians chose to purchase Takaful products. Another similar study is from Swartz and Coetzer (2010) that conclude Takaful products also have attracted even non-Muslims. But, the interest shown by non-Muslims and the support of Muslims are still not enough to promote the knowledge and awareness to lead the growth of Takaful.

There are many non-Muslims who are still could not find the exact differentiation of Islamic banking products and services for example: Takaful. This could be supported by the theory of Bley and Kuehn’s (2004) that showed Muslim students are more interested and knowledgeable in Islamic banking as compared to non-Muslim. Lou’s (2010) also showed that non-Muslims could not understand the real concept of Islamic banking even though there are a lot of advertising campaigns targeted at them.
Trust
The concept of trust in Islam is known generally as Am?nah. Am?nah is evidently stated in the Quran and the Hadith of the Prophet (pbuh). The word Am?nah originates from the word Amnu and Am?nah is a trustworthy person where the trustee protects and delivers the rights to its rightful owner. The antonym for Am?nah is Al-khiy?nah. Thus, Am?nah is to keep the trust in the way the trustee intended to. Islam demands that trust is a major component of any transaction. Fairness, justice and honesty should be prevail. In Common Law, the equity concept of Trust arises when the settler transfers his property to the trustee in order for the trustee to manage the property as agreed for the benefit of identified beneficiaries. Trust is created through an agreement or through judicial decision.

The majority of marketing studies (Raimondo, 2000), trust can be as part of ‘brand credibility’, in product acceptance (Keller and Aaker, 1992), fundamental to develop of loyalty (Reicheld and Schefter, 2000) and as critical in maintaining successful agency-client relationship (Labahn and Kohli, 1997). There is, generally a paucity of trust related research in the consumer domain, although several recent publications focus on the consumer relationship with brand (Aaker, 1997). Thus, since consumers have trusted any brand or products, it shows that their acceptance towards a product.

Bello and Ayuba (2014) have noted that consumers’ perception is the function and reflection of their awareness of the offerings which is Takaful and the trust level built by the consumer on the services providers which is Takaful Operators. This explains the position that marketers hold with regard to consumers’ product/services decision process.

However, in the case of Takaful product the operators also should work hard in differentiating themselves from the conventional insurance services which would build new reputation. This is because a lot of non-Muslim customers are not aware and cannot differentiate Islamic insurance which is Takaful with conventional insurance. Besides, they also should win people trust and confidence. When the operator win the people trust especially non-Muslim customers, more of them will participate in this product. Establishing and building consumers’ trust of Takaful service providers restore consumers’ confidence of the Islamic insurance services as to be capable of meeting consumers’ need of risk management tool ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “DOI” : “10.5539/ijms.v7n2p27”, “ISSN” : “1918-7203”, “abstract” : “Islamic Insurance (Takaful) is the insurance practice that is established based on ethical faith to provide a risk management product for consumers whose belief has discouraged them to patronize the conventional insurance services.Takaful products are developed to be free from 3 in-built principles (interest, uncertainty and gambling element) that have disqualified any financial transaction to be Sharia compliant. Thus, the paper is aimed at examining the factors that influence the consumers’ attitude toward Takaful services patronage in Kano Metropolis, Nigeria. To this end, the study examines the extent to which consumers’ awareness, perception of Takaful services and the trust and confidence they reposed on Takaful Operators have significant relationship with their attitude towards Takaful services patronage. A structured questionnaire was the only instrument used in collecting the data. Although, the population of the study is indefinite, 384 subjects are administered with the questionnaires using judgmental sampling technique and the employment status of the respondents was the basis for the selection and inclusion of the respondents in the study. The data was analyzed using multiple-regression with SSPS version 17. The paper found that awareness, perception, trust and confidence are significantly related to the consumers’ attitude toward Takaful services patronage. It was, therefore, recommended that an attitudinal change campaign is required and rigorous marketing campaign should be embarked upon to create awareness of Takaful service and its Operators. Hence, trust and confidence of people should be won and built in favor of Takaful services.”, “author” : { “dropping-particle” : “”, “family” : “Maiyaki”, “given” : “A. A.”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Ayuba”, “given” : “Habibu”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “International Journal of Marketing Studies”, “id” : “ITEM-1”, “issue” : “2”, “issued” : { “date-parts” : “2015” }, “page” : “27-34”, “title” : “Consumersu2019 Attitude toward Islamic Insurance Services (Takaful) Patronage in Kano Metropolis, Nigeria”, “type” : “article-journal”, “volume” : “7” }, “uris” : “http://www.mendeley.com/documents/?uuid=6d80ecf0-6525-499c-bd60-6116aa3eb266” } , “mendeley” : { “formattedCitation” : “(Maiyaki ; Ayuba, 2015)”, “plainTextFormattedCitation” : “(Maiyaki ; Ayuba, 2015)”, “previouslyFormattedCitation” : “(Maiyaki ; Ayuba, 2015)” }, “properties” : { “noteIndex” : 0 }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }(Maiyaki and Ayuba, 2015).

Acceptance
Based on Silberer and Wolfahrt (2001), acceptance research has provided important insights in explaining the success or failure of new product or services. Consumer acceptance is a complicated process involving societal attitudes. In addition, consumer acceptance reflects of their experience using a product. Then the company can show a positive or good image to their consumers with produce a good product that will give a good experience to them supported by (Soderlund, 1998).

According to Zainal Abidin (2005), although its acceptance in the Muslim world was slow at first, the new millennium has seen a quickening in the pace. This has a lot to do with the emergence of a young generation of educated and affluent Muslims seeking a substitute for an important part of commerce and personal finance. For Muslims, Islam is not merely about how to go about worshipping God, it is also a way of living life.

A study conducted by Razak (2013) have explored the factors that influence the acceptance of Takaful among Malaysians based on perception, product, features, promotion, benefit and service quality. The researchers reported that service quality was the most significant factor on why the Malaysians chose to purchase Takaful products. Again, a similar study conducted by Rahim and Amin (2011) focused on the relationship among attitude, subjective norm, and amount of Takaful information obtained. The research captured that all three factors of attitude, subjective norm, and amount of Takaful information obtained were part of the influential predictors of Islamic insurance acceptance.

Acceptance could also be measured by the confidence level of the banking services and products perceived by their customers. Past findings from researchers on Islamic banking have mentioned bank secrecy, friendliness of bank staff, trustworthiness, transaction security and the bank’s good image as determinants of confidence have evaluated respondents’ confidence level in choosing Islamic banking in terms of bank confidentiality with regards to their customer’s account and transaction. Bank confidentiality was one of the most essential factors among Muslim and non-Muslims customer to select Islamic banking ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “DOI” : “10.5829/idosi.wjihc.2017.07.11”, “author” : { “dropping-particle” : “”, “family” : “Shahril”, “given” : “Mohd”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Razimi”, “given” : “Ahmad”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Romle”, “given” : “Abd Rahim”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “id” : “ITEM-1”, “issue” : “1”, “issued” : { “date-parts” : “2017” }, “page” : “7-11”, “title” : “Non-Muslim Perception on Islamic Banking Products and Services in Malaysia”, “type” : “article-journal”, “volume” : “7” }, “uris” : “http://www.mendeley.com/documents/?uuid=31d2db92-8f3c-4daa-a610-bb1b9b75f524” } , “mendeley” : { “formattedCitation” : “(Shahril, Razimi, ; Romle, 2017)”, “plainTextFormattedCitation” : “(Shahril, Razimi, ; Romle, 2017)”, “previouslyFormattedCitation” : “(Shahril, Razimi, ; Romle, 2017)” }, “properties” : { “noteIndex” : 0 }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }(Shahril, Razimi and Romle, 2017). Thus, since consumers have trusted any brand or products, it shows that their acceptance towards a product. So we can conclude that, trust factor play a significant influence on acceptance of non-Muslim customers.

2.3 Discussion on Dependent VariablePerception of non-Muslim towards Takaful
Perception can be defined by the process of which people selected, organize and interpret information to form a meaningful picture of the world (Kotler and Armstrong, 2004). Furthermore, it is influenced by how the person acts by his or her own perception of situation. The perception of non-Muslim towards Takaful is still unclear due to the numerous factors, thus it is important to look at them through different perspective.
Prior researchers (Fishbein and Ajzen, 1975) assumed that individuals are usually rational and make systematic use of information available to them. More specifically, people are generally expected to consider the implications of an action before they decide whether or not to engage in it. In this study, perception of non-Muslim is taken to examine their intention to use Takaful rather than conventional insurance. This is supported through theory of reasoned action (TRA), which identifies subjective norms and attitudes as the determinants of behavioral intentions to predict behaviors and outcomes (Ajzen and Fishbein, 1980, p.5).

Davis (1989) has developed the technology acceptance model (TAM) from theory of reasoned action (TRA) which comprises four primary dimensions: perceived ease of use (PEU); perceived usefulness (PU); attitude towards use (ATU); and behavioral intention of use (BIU). The individual’s attention to perform a behavior is a combination of attitudes, including behavioral belief, evaluations of behavioral outcomes, subjective norms, normative beliefs and motivation to comply (Davis et al., 1989; David and Venkatesh, 1996).
Non-Muslims perception towards Takaful also may occurred as study by Loo (2010) showed a significant differences between X-Gen Muslims and X-Gen non-Muslims and similarity between Baby Boomers Muslims and Baby Boomers non-Muslims in how they perceive of Islamic banking. Shortly, non-Muslims view Islamic banking with a disadvantage more significantly than Muslims.

2.4 Related Theories & ModelsPerception
According to Gregory et al (1995), perception is a set of process by which an individual becomes aware of and interpret information about environment. If everyone perceived everything the way, things would be a lot simpler, of course, the reverse is true. Moreover, people often assume that, reality is objective that, we all perceive the same things in the same way. Markin (1995), perception is concerned with the way in which we select and recognize sensory data presented by our environment. In the other words, perception may be define as a complex process by which people select, organized and interpret sensory stimuli into meaningful picture of the world.

Forgus and Melamed (1976) defined perception as the process of information extraction. Forgus and Melamed based their description on cognitive structures and according to them, perception are the process that determine how humans interpret their surroundings. According to Steward L. Tubbs & Stylvia Mors “Perception is an active process as one selectively perceives, organizes and interprets what one experiences. Interpretations are based on the perceives past experiences, assumptions about human behavior, knowledge of the others circumstances, present moods/wants/desires and expectation. Walters and B.J Bergiel (1989) characterized perception as a solid process during which an individual acquires knowledge about the environment and interprets the information according to his/her needs, requirements and attitudes.

Ludy T. Benjomin, J. Roy Hoppkins, Jack R. Nation (MacMillan), perception is not only made of stimulus variables that make up our perceptual environment such as sounds, colors, shapes, texture, etc. but other variables too which reside within the perceiver and are usually labeled organismic variables. Thus, perception is a result of stimulus variables and organismic variables. Walters et al (1989) define that every perception involves a person who interprets through the senses something, event, or relation which may be designated as the percept. Van der Walt (1991) adds that perception occurs when sensory receptors receive stimuli via the brain, code and catorise them and assign certain meanings to them, depending on the person’s frame of reference. A person’s frame of reference consists of all his previous held experiences, beliefs, likes, dislikes, prejudices, feelings, and other psychological reactions of unknown origin.

Public Opinion
‘Public’ defined by Holt Reinhart ; Winston, New York, may designate any loose association of individuals held together by common interests, common cultural base and various mechanical means of communication. It lacks formal institutionalization and is transitory, amorphous and relatively unstructed association. Robinson defines ‘public’ as any group of people who have common interest. Herbert Blummer refers ‘public’ as a group of people confronted by an issue, divided in their ideas and engaged in discussion. Thus, public is a unstructed group of individuals held together due to an issue, interest or event.

Holt Reinhart ; Winston defined opinion as belief or conviction more verifiable and stronger than truly verifiable than mere hunch or impression but less valid and stronger between fact and opinion, public opinion may be defined as “belief, convictions or views of individuals on matters or issues of widespread or public interest and concern”. As per S.Ganesh, “Public Opinion, although looks like a loosely held opinion of individuals is much more than this. It is a strong opinion of the people and with it people have come to exert their views on the decision maker”.
According to Lawrence Lowell, there are four stages by which the opinions can be formed. The first stage is wherein the impressions are formed which are positively or negatively reinforced by subsequent interactions. In the second stage, the issue is debated and the controversy in the mind begins to settle which helps the perceiver to take up a defenite position on either side. In the thirs stage, the perceiver takes a definite side; and the fourth stage is reached when the action on the perception becomes necessary.

Customer Perception
Customers perception is most often used in the context of how customers perceive the quality of the service they are offered. More widely speaking customer perception is also the customers’ overall picture of the company, including company image, expectations, external influences, service quality and others. Wilson, Zeithaml, Bitner and Gremler (2008), if customer’s experiences exceed their expectations, customers’ satisfaction together with situational and personal factors will result in customer loyalty.
The concept of customer perception has also been defined by various researchers as per needs of the environment. Human psyche is a very complex process because it involves not only economic factors but also the emotional and social factors (Clark and Goldsmith, 2006). Thus, it is really very difficult to provide adequate concept of customer perception. It has been observed by the various researchers that the success or failure of the product or service is directly related to the human psyche and their preference (Kauffman, 1996).

Perception plays an important role in life of the customers. Our environment including business environment is littered with numerous stimuli trying to attract our attention. The quality of our perception depends on the way we process and interpret the stimuli or the information reaching our senses. Perception is the process, by which an individual select, organizes and interpret information inputs to create meaningful picture of the world. When we interpret a situation or events we are then in position to respond. (Kotler, 1997).
Customer perception is an important component of our relationship with our customers. Customer’s satisfaction is a mental state which results from the customer’s comparison of expectations prior to a purchase with performance perceptions after a purchase. A customer may make such comparisons for each and every part of an called “domain-specific satisfaction” or for the offer in total called “global satisfaction”. Moreover, this mental state, which we view as a cognitive judgment, is conceived of as falling somewhere on a bipolar continuum bounded at the lower end by a low level of satisfaction where satisfaction where expectations exceed performance perceptions and at the higher end by a high level of satisfaction where performance perception exceed expectations.

2.5 Conceptual FrameworkThe purpose of this study are to determine the understanding of the non-Muslim’s customers on Takaful product toward Islamic Bank in Pengkalan Chepa, to determine the acceptance towards Takaful product among the non-Muslim’s customers in Pengkalan Chepa and to determine the trust on Takaful product among the non-Muslim’s customers in Pengkalan Chepa.

The research framework as illustrated in figure below has two key components: perception and Takaful.

20574002032635037528501184910Takaful toward Islamic Bank
Takaful toward Islamic Bank
1714501070610Perception:
Acceptance
Trust
Understanding
Perception:
Acceptance
Trust
Understanding
3752850394335Dependent Variable
Dependent Variable
171450375285Independent Variables
Independent Variables

2847975210185
159067554610Moderating Variables
Moderating Variables

1590675156845Age
Knowledge
0Age
Knowledge

2.6 Hypothesis of the StudyHypothesis 1H1 : There is a positive and significant relationship between understanding and the perception of Takaful product among non-Muslim in Pengkalan Chepa.
Hypothesis 2H1: There is a positive and significant relationship between acceptance toward Takaful and the perception of Takaful product among non-Muslim in Pengkalan Chepa.

Hypothesis 3
H1 : There is a positive and significant relationship between confidence the perception of Takaful product among non-Muslim in Pengkalan Chepa.

2.7 Chapter SummaryIn this chapter, the first section describe about the definition of the independent variables and dependent variables which is perception and Takaful. Then theories model about perception. After that the conceptual framework of the research study and the last is hypothesis.
CHAPTER THREEMETHODOLOGY3.1 IntroductionAccording to Kerlinger (1986), research is an attempt to analyze data through scientific methods with the aim of finding answers to the problems of the study conducted. Methodology is one of the important factors in ensuring the validity and reliability of the research. This chapter will cover twelve sections begin with introduction and followed by section two which is research design. The third section describe about sampling frame and it will be followed by section four which is population. Section five will cover about sample technique and next is sample size in section six. Section seven will cover about unit analysis and that followed by data collection procedure in section eight. Section nine will cover survey instrument and it will be followed by validity and reliability of the instrument in section ten. Section eleven will cover about plan of data analysis and the last section which is section twelve is the summary of this chapter.

3.2 Research designThe research design is an action plan that shows in detail how a study was conducted (Sabitha, 2006). Leedy (1997) defines research design as a plan for a study, providing the overall framework for collecting data. It also serves as a guide to assisting researchers in the process of collecting, analyzing and making interpretations of the results of research conducted. The research design is also a model for the researchers to make an inference on the variables studied.
The purpose of this study is to examine the perception of the non-Muslim customers on Takaful towards Islamic Bank in Pengkalan Chepa. The research method used was a descriptive method which was a survey that was processed to get feedback on the factors that influences perception of non – Muslims customers on Takaful product. According to Gay (1976), descriptive method is involving collection of data in order to test hypothesis or to answer questions concerning the current status of the subject of the study.

3.3 Sampling FrameA simple definition of a sampling frame is the set of source materials from which the sample is selected. The definition also encompasses the purpose of sampling frames which is to provide a means for choosing the particular members of the target population that are to be interviewed in the survey. Carl-Erik Särndal (2013) stated that it is a list of all those within a population who can be sampled and it also may include individuals, households or institutions.
In many practical situations the frame is a matter of choice to the survey planner and it sometimes a critical one. Some very worthwhile investigations are not undertaken at all because of the lack of an apparent frame; others, because of faulty frames, have ended in a disaster or in cloud of doubt (Raymond James Jessen, 1978).

In this research, the sampling units consist of 600 sets of questionnaires and were distributed to the non-Muslims customers in Pengkalan Chepa. The sampling location is in Pengkalan Chepa, Kelantan.

3.4 PopulationPopulation refers to the entire group of people, events or things of interest that researcher wishes to investigate. In this research we will select non-Muslim respondent in Pengkalan Chepa, Kota Bharu, Kelantan. According to the statistic 2010, the total of non-Muslim in Kota Bharu is 9558.

3.5 Sampling TechniqueSampling is the process of selecting a sufficient number of elements from the population. In this research, the researcher will use random sampling technique by choose a random respondent around Pengkalan Chepa, Kota Bharu.
3.6 Sample SizeSample size is the number of respondents that the researchers choose from the population. Sample Size is determine using Krejcie and Morgan Table, 1970. According to the table, the sample size for this research’s population which is 9558 non-Muslim is 368.

3.7 Unit of AnalysisThis study adopts unit of analysis that will be analysed in the study. This study conducted about the perception of Non-Muslims on Takaful towards Islamic bank in Pengkalan Chepa. So, the unit analysis that is being conducted in this study could be the non – Muslims in Pengkalan Chepa. This is because this study is will calculate the tendency of non-Muslim to choose over Takaful product rather than conventional insurance.

3.8 Data Collection ProcedureIn this study, according to Donald, Kuratko, Mortgano and Hornaby (1990), all of the data will be obtained through questionnaires that design 20% from the researchers and 80% from the past researchers. The finished questionnaires will have the cover letter with signature of all the researchers and given first to the supervisor for validation. Then, the questionnaires will be personally delivered to the selected respondents, which is non-Muslims in Pengkalan Chepa. The cover letter of the questionnaire will have the purpose of the study and the respondents’ information confidentiality.

3.9 Survey Instrument
The survey instrument that is being used in this study is questionnaires. This study use questionnaires in order to serve as an inductive method with the aim of to formulate new theory, whereby the questions will be used to ‘explore substantive area’ (Gill ; Johnson 2001). Plus, questionnaires serve as the quick method to get a lot of information in a limited time. It is easy to be analyzed and can be distributed to many people in form of online, papers or even verbal. This questionnaires will be developed by researcher based on literature from previous research. In the questionnaires, the content will also be build according to the research objectives and the research questions. In this questionnaires, Likert scale will be used whereby 1=Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree and 5=Strongly Agree. Also, another Likert scale use such 1=Very Dissatisfied, 2=Dissatisfied, 3=Neutral, 4=Satisfied and 5=Very Satisfied.
The questionnaires will have three section, which is the first section (A) is about the demographic section, where it has gender, age, race, marital status, and level of education or employment. The second section (B) will then focused more about the level of perception of non-Muslims on Takaful products. Finally, the last section (C) will focus on the respondents’ response towards choosing Takaful product in Islamic bank.
3.10 Reliability and Validity of the instrumentReliability refers to the consistency, stability and repeatability of results i.e. the result of a researcher is considered reliable if consistent results have been obtained in identical situations but different circumstances (Twycross and Shields, 2004, p.36). Reliability coefficient assesses the consistency of the entire scale with Cronbach Alpha being the most widely used (Nunnally, 1979). On the other hand, validity is the extent to which any measuring instrument measures what it is intended to measure (Thatcher, 2010, p.125). It is possible for a measurement to be reliable but invalid; however, if a measurement is unreliable, then it cannot be valid (Thatcher, 2010, p.125; Twycross and Shields, 2004, p.36). Besides, modifications on the feedback received will be reworded, combined and deleted.
3.11 Plan for Data AnalysisThe data collected in this study will be computed and analysed using the Statistical Package for the Social Science (SPSS) version 24.0 software program. The analysis of data will be performed in two stages.

The initial stages of the analysis of the data involved conducting an exploratory data analysis to examine the data before any specific statistical procedures will be used to analyse the data collected. For each respondent, the raw scores, average scores, and relative scores for each of the scale will be calculated. These data will become the basis for the subsequent analysis in this study. For each variable, the mean, standard deviation and skewness across all observations will be calculated, as would other statistical manipulations. These data will be transformed. Cronbach Alphas is to verify internal consistency will be carried out. In addition, the findings of the study will be supported with the illustration of tables and graphs.

The second stage will involve the use of various statistical procedures to answer the research objectives. The methods employed will be descriptive statistics and multiple linear regression analyses to measure the contributions of each of the variable in this study. Regression analyses are a set of statistical techniques which allow one to assess the relationship between one or many dependent variables and several independent variables. This is commonly used procedure to see if we can attribute the relation of two variables to a third variables.
Plan for Data Analysis
Research Objective Variable Measurement Scale Statistic
To determine the understanding of the non-Muslim’s customers on Takaful scheme in Islamic Bank Independent variable evaluated in terms of non-Muslim’s customer understanding on Takaful Scheme Measurement on variables of non-Muslim’s customers understanding Interval Descriptive
To determine the customer’s acceptance among the non-Muslim’s customers towards Takaful scheme Independent variables evaluated in terms of the acceptance of non-Muslim’s customers towards Takaful Measurement on variables that explain the non-Muslim’s customer acceptance Interval Descriptive
To determine the trust on Takaful product among the non-Muslim’s customers in Pengkalan ChepaIndependent variables evaluated in terms of the level of trust among the non-Muslim’s customers towards Takaful product Measurement on level of trust of non-Muslim’s customer towards Takaful Interval Descriptive
3.12 Chapter SummaryAs the conclusion, this chapter discussed the quantitative analytical approach that will be used in this study. The quantitative approach to data collection is discussed in great depth which included the use of questionnaires. The steps undertaken by the researcher will begin with the aims of the research, the identification of the sample, the instruments (questionnaire) used and plan for data analysis.
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