INFLUENCE OF FINANCIAL SOCIALIZATION AGENTS AND FINANCIAL KNOWLEDGE ON YOUNG ADULTS’ PERCEPTION OF TAKAFUL

Abstract

This study aims to examine the influence of socialization agents and financial knowledge on customer's perception towards Takaful awareness of young adults currently studying in a public university. The selected socialization agents are family and friends, social media and electronics media, reading materials, informal public seminars or classes despite their ready embedded conventional financial knowledge in influencing their perception towards Takaful. The study is based on the questionnaire survey. Basic inferential correlation and t-test analysis was employed to test the relationship of the selected antecedents. From the analysis, the study found that external social influencers such as electronic media and social media, informal public seminars and classes' on general financial knowledge significantly influencing customer's perception towards Takaful awareness. On the other hand, family and friends moderately an influential factor in young adults' perception towards Takaful reputations as supporting religious commitment and embracing Islamic principles. Findings from this study provide valuable information to the Islamic financial products or services providers to understand factors that might influence customer's perception in the marketplace.