Interacting with Muslim Customers for Developing New Shariah-Compliant Financial Services in a Multicultural Country

Abstract

Offering successful new services to the market is a priority for many service firms worldwide because a firm's growth and prosperity depend on regularly introducing new services to a diverse group of customers. Additionally, developing successful new services requires firm-customer interaction because a customer can provide valuable insights into the design and content of many new services. This concept of customer interaction holds even greater significance in emerging countries with a sizable Muslim population, particularly when they are in the minority. Against this backdrop, our article examines the importance of customer interaction with Muslim customers in the development of new Shariah-compliant financial services in the emerging market of India. Utilizing a multiple-case study methodology, we gathered data through in-depth interviews with service managers and Muslim customers. For data triangulation, we consulted several documents and archival records related to the new service development efforts by the participating financial service firms. By doing so, the article addresses two key research gaps in the literature. First, there is a lack of NSD (New Service Development) research within emerging markets, and second, there is a dearth of studies on the roles of Muslim customers in developing new services globally. Drawing from the case study data, we contend that developing new services that meet Muslim customer needs and comply with Shariah principles poses a challenge for many service firms. To meet this challenge, a firm must establish a system that integrates the requirements of Muslim customers into creating new services. To this end, we propose several modes and methods of customer interaction and analyze the problems involved in the interaction process with Muslim customers. Our findings suggest that contrary to the notion often found in the literature, Muslim customers are willing to collaborate with service firms to develop new services which can serve as a valuable source of information for generating service ideas. This article holds implications for financial service firms seeking to market new Shariah-compliant financial services to Muslim customers in emerging markets. Furthermore, this article has theoretical implications for literature related to the marketing of Islamic finance.