Religiosity, Income and Consumption Decision: Analysing Gender Differences (A case study of District Peshawar, Khyber Pakhtunkhwa)
Income is considered as an important determinant of personal consumption. The choices of an individual are not only influenced by the external factors (income, prices, etc.) but the internal factors such as personal preferences, social influence, and religious beliefs as well. The consumption decisions of the individual may therefore vary depending on their religiosity. Male and female are expected to perform different roles and responsibilities in the society, hence their role as a consumer may also differ while taking decisions regarding consumption of goods and service. The current study aims to examine the impact of religiosity and gender on the consumption decisions of the individual. A total of 679 faculty members (male and female) participated in the study from three major government universities located in district Peshawar. The results of logistic regression revealed that females are more influenced by religiosity in their consumption decisions regarding shariah-compliant financial products such as buying Islamic insurance policy takaful and opening profit and loss account as compared to their male counterparts. The results also confirmed that the income of the consumer has also an influence on their consumption decisions but the strength of religiosity is more than the income in affecting consumption decisions of female than male, where the role of income is more significant in determining consumption decision very consistent with the conventional consumption theory.