THE APPLICATION OF THE CONSULTATIVE SELLING TECHNIQUE BY ISLAMIC BANKS IN EMERGING ECONOMIES

In the evolving landscape of Islamic Banking in emerging markets, banks are facing a competitive environment that is threatening the traditional marketing approach of product-centric banking. The study was a critical analysis of the use of consultative selling techniques in Islamic banks and how it affects the development of customer relationships and the competitive position of the bank. A mixed method was used, utilising quantitative survey information from 286 respondents, as well as qualitative information from semi structured interviews and secondary sources. Quantitative results showed that the dimensions of consultative selling, namely, ethical communication, personalised advisory interaction, customer responsiveness, and financial guidance, had a significant impact on customer satisfaction, customer loyalty, and institutional trust. The results of the regression analysis showed that the variables together accounted for 70.9 percent of the variance in competitive positioning, with ethical communication as the most significant variable. The qualitative results also revealed that the Islamic banks had a commendable level of ethics in communicating with their customers and building relationships, but there are still areas where the banks’ customer education and advisory work are lacking. The study found that consultative selling is a key strategic mechanism for improving the competitiveness of Islamic banking in emerging economies; however, there is a need for a greater level of institutional integration of consultative services and financial literacy support for full effectiveness. The study’s main results enrich the literature on Islamic marketing by placing consultative selling as a linkage between the principles of ethical banking and modern customer relationship management.