Maqasid Sharia-Based Financial Plan to Prevent Conspicuous Consumption Among Muslim Household
Keywords:
Conspicuous Consumption, financial planning, Maqashid Sharia, Muslim Household
Abstract
The trend of the flexing phenomenon, especially on social media, is currently causing various reactions, one of which is the tendency to consume and use various luxury facilities. In consumer behavior, this phenomenon is referred to as Conspicuous Consumption. In today's modern world, it happens not only to upper-class consumers, but also to everyone in the community with various goals, including the goals of acquiring social status, prestige, or wealth. For lower-middle households, of course, this is a problem, so financial planning is needed. This study aims to explore the perspective of Maqasid Sharia in financial planning for Muslim families as a solution to the Conspicuous Consumption phenomenon. This research is a qualitative descriptive study with a library research approach. Data were obtained from official reports as well as other literature from journals, books and websites. The results of this study indicate that financial planning based on the Maqasid Sharia hierarchy, namely Dharurriyah, Hajiyyah and Tahsiniyyah can prevent the phenomenon of Conspicuous Consumption in Muslim households. In addition, Islamic consumption which prohibits Israf and aims to achieve Maslahah is a contradiction to Conspicuous Consumption. Good financial planning will ultimately bridge Muslim families to achieve prosperity in this world and the hereafter. The study provides model that can be used to refine existing models and frameworks, thereby enhancing their effectiveness and applicability in real-world scenarios.
References
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Amin, H. (2017). Consumer behaviour of Islamic home financing: Investigating its determinants from the theory of Islamic consumer behaviour. Humanomics, 33(4), 517–548. https://doi.org/10.1108/H-12-2016-0102
Asad Ibrahim, A., Jamal Elatrash, R., & Omar Farooq, M. (2014). Hoarding versus circulation of wealth from the perspective of maqasid al-Shari’ah. International Journal of Islamic and Middle Eastern Finance and Management, 7(1), 6–21. https://doi.org/10.1108/IMEFM-06-2012-0053
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Dhaliwal, A., Singh, D. P., & Paul, J. (2020). The consumer behavior of luxury goods: A review and research agenda. Journal of Strategic Marketing, 1–27. https://doi.org/10.1080/0965254X.2020.1758198
Dusuki, A. W., & Bouheraoua, S. (n.d.). THE FRAMEWORK OF MAQĀS.ID AL-SHARĪʿAH AND ITS IMPLICATION FOR ISLAMIC FINANCE. Islam and Civilisational Renewal, 2(2), 316–336.
Fisol, W. N. M. (2017). Financial Planning Through Maqasid Shari’ah Engineering: A Study on the Takaful Products Development. International Journal of Muamalat, 1(1), 12.
Furqani, H. (2017). Consumption and Morality: Principles and Behavioral Framework in Islamic Economics. Journal of King Abdulaziz University-Islamic Economics, 30(4). https://doi.org/10.4197/Islec.30-SI.6
Hossain, B. (2014). Economic Rationalism and Consumption: Islamic Perspective. Journal of Economics and Sustainable Development, 5(24), 11.
Jaikumar, S., Singh, R., & Sarin, A. (2018). ‘I show off, so I am well off’: Subjective economic well-being and conspicuous consumption in an emerging economy. Journal of Business Research, 86, 386–393. https://doi.org/10.1016/j.jbusres.2017.05.027
Jaramillo, F., Kempf, H., & Moizeau, F. (2001). Conspicuous Consumption, Social Status and Clubs. Annales d’Économie et de Statistique, Jul.-Dec.(63/64), 25.
Johnson, P. (1988). Conspicuous Consumption and Working-Class Culture in Late-Victorian and Edwardian Britain. Transactions of the Royal Historical Society, 38, 27–42.
Maulidizen, A. (2020). Analysis of Islamic Consumption Ethics Critical Toward Causes of Corona Virus in Wuhan, China. Al-Banjari: Jurnal Ilmiah Ilmu-Ilmu Keislaman, 19(2), 197. https://doi.org/10.18592/al-banjari.v19i2.3488
McAleer, M. (2017). Theravada buddhism and thai luxury fashion consumption. Journal of Reviews on Global Economics, 6, 58–67.
Monzur-E-Elahi, M., & Alam, Md. M. (2022). Application of Maqasid Al-Shariah and Rules of Shariah in Managing Wealth and Financial Transactions. Journal of Law, 10(2), 249–267. https://doi.org/10.31219/osf.io/ueavm
Nouman, M., Siddiqi, M. F., Ullah, K., & Jan, S. (2021). Nexus between higher ethical objectives (Maqasid Al Shari’ah) and participatory finance. Qualitative Research in Financial Markets, 13(2), 226–251. https://doi.org/10.1108/QRFM-06-2020-0092
O’Cass, A., Jin Lee, W., & Siahtiri, V. (2013). Can Islam and status consumption live together in the house of fashion clothing? Journal of Fashion Marketing and Management: An International Journal, 17(4), 440–459. https://doi.org/10.1108/JFMM-03-2013-0023
Orellano, A., Valor, C., & Chuvieco, E. (2020). The influence of religion on sustainable consumption: A systematic review and future research agenda. Sustainability, 12(19), 7901.
Perez-Truglia, R. (2013). A test of the conspicuous–consumption model using subjective well-being data. The Journal of Socio-Economics, 45, 146–154. https://doi.org/10.1016/j.socec.2013.05.012
Ramakrishnan, A., Kalkuhl, M., Ahmad, S., & Creutzig, F. (2020). Keeping up with the Patels: Conspicuous consumption drives the adoption of cars and appliances in India. Energy Research & Social Science, 70, 101742. https://doi.org/10.1016/j.erss.2020.101742
Ramazani, A., & Kermani, M. (2022). Spiritualism versus materialism: Can religiosity reduce conspicuous consumption? Journal of Islamic Marketing, 13(8), 1639–1655. https://doi.org/10.1108/JIMA-09-2019-0184
Rehman, A. U., Al Shammari, S., & Al-Mamary, Y. H. (2022). Role of religiosity and the mediating effect of luxury value perception in luxury purchase intention: A cross-cultural examination. Journal of Islamic Marketing, 13(4), 975–995. https://doi.org/10.1108/JIMA-03-2021-0091
Ryabov, I. (2016). Conspicuous consumption among Hispanics: Evidence from the Consumer Expenditure Survey. Research in Social Stratification and Mobility, 44, 68–76. https://doi.org/10.1016/j.rssm.2016.02.003
Salam, M. T., Muhamad, N., & Leong, V. S. (2019). Measuring religiosity among Muslim consumers: Observations and recommendations. Journal of Islamic Marketing, 10(2), 633–652.
Sarofim, S., Minton, E., Hunting, A., Bartholomew, D. E., Zehra, S., Montford, W., Cabano, F., & Paul, P. (2020). Religion’s influence on the financial well‐being of consumers: A conceptual framework and research agenda. Journal of Consumer Affairs, 54(3), 1028–1061. https://doi.org/10.1111/joca.12315
Shaikh, S. A., Ismail, M. A., Ismail, A. G., Shahimi, S., & Mohd. Shafiai, M. H. (2017). Towards an integrative framework for understanding Muslim consumption behaviour. Humanomics, 33(2), 133–149. https://doi.org/10.1108/H-01-2017-0005
Shipman, A. (2004). Lauding the Leisure Class: Symbolic Content and Conspicuous Consumption. Review of Social Economy, 62(3), 277–289. https://doi.org/10.1080/0034676042000253909
Shukla, P. (2008). Conspicuous consumption among middle age consumers: Psychological and brand antecedents. Journal of Product & Brand Management, 17(1), 25–36. https://doi.org/10.1108/10610420810856495
Siepmann, C., Holthoff, L. C., & Kowalczuk, P. (2022). Conspicuous consumption of luxury experiences: An experimental investigation of status perceptions on social media. Journal of Product & Brand Management, 31(3), 454–468. https://doi.org/10.1108/JPBM-08-2020-3047
Šmakova, V., & Piligrimienė, Ž. (2021). Religion in Consumer Behavior Research: A Systematic Literature Review. In M. H. Bilgin, H. Danis, E. Demir, & G. Karabulut (Eds.), Eurasian Business and Economics Perspectives (Vol. 20, pp. 179–191). Springer International Publishing. https://doi.org/10.1007/978-3-030-85304-4_11
Syahriar, A., & Nafisah, Z. (2020). Comparison of Maqasid Al-Shari’ah Asy-Syathibi and Ibn’Ashur Perspective of Usul Al-Fiqh Four Mazhab’. Ulul Albab: Jurnal Studi Dan Penelitian Hukum Islam, 3(2), 185.
Syahrivar, J., Hermawan, S. A., Gyulavári, T., & Chairy, C. (2022). Religious compensatory consumption in the Islamic context: The mediating roles of religious social control and religious guilt. Asia Pacific Journal of Marketing and Logistics, 34(4), 739–758. https://doi.org/10.1108/APJML-02-2021-0104
T, D., & Sobari, N. (2022). Conspicuous Consumption on Gen Z in Indonesia: Advances in Economics, Business and Management Research, 206, 136–142. https://doi.org/10.2991/aebmr.k.220128.018
Taylor, D. G., & Strutton, D. (2016). Does Facebook usage lead to conspicuous consumption?: The role of envy, narcissism and self-promotion. Journal of Research in Interactive Marketing, 10(3), 231–248. https://doi.org/10.1108/JRIM-01-2015-0009
Trigg, A. B. (2001). Veblen, Bourdieu, and Conspicuous Consumption. Journal of Economic Issues, 35(1), 99–115. https://doi.org/10.1080/00213624.2001.11506342
Ünal, S., Deniz, E., & Akın, N. (2019). Determining the factors that influence the intention to purchase luxury fashion brands of young consumers. Ege Academic Review, 19(2), 221–236.
White, D. (2018). Religious Experience and New Materialism: Movement Matters edited by Joerg Rieger and Edward Waggoner, Palgrave Macmillan, London/New York, 2016, pp. ix+ 191,\pounds 60.00, hbk. New Blackfriars, 99(1082), 547–549.
Winkelmann, R. (2011). Conspicuous consumption and satisfaction. Journal of Economic Psychology, 33(1), 183–191. https://doi.org/10.1016/j.joep.2011.08.013
Adil, M. (2021). Influence of religiosity on ethical consumption: The mediating role of materialism and guilt. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-01-2020-0035
Ahmed, H., & Salleh, A. M. H. A. P. M. (2016). Inclusive Islamic financial planning: A conceptual framework. International Journal of Islamic and Middle Eastern Finance and Management, 9(2), 170–189. https://doi.org/10.1108/IMEFM-01-2015-0006
Ali, N. A., Wan Ahmad, W. M., Sarif, S., Kamri, N. ‘Azzah, & Azahari, R. (2018). Application of the Concept of Maslahah in Household Debt Management. In A. A. Rahman (Ed.), New Developments in Islamic Economics (pp. 19–33). Emerald Publishing Limited. https://doi.org/10.1108/978-1-78756-283-720181002
Al-Issa, N., & Dens, N. (2021). How do religiosity and acculturation to the global consumer culture drive the perceived value of luxury? A study in Kuwait. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-03-2021-0080
Amin, H. (2017). Consumer behaviour of Islamic home financing: Investigating its determinants from the theory of Islamic consumer behaviour. Humanomics, 33(4), 517–548. https://doi.org/10.1108/H-12-2016-0102
Asad Ibrahim, A., Jamal Elatrash, R., & Omar Farooq, M. (2014). Hoarding versus circulation of wealth from the perspective of maqasid al-Shari’ah. International Journal of Islamic and Middle Eastern Finance and Management, 7(1), 6–21. https://doi.org/10.1108/IMEFM-06-2012-0053
Budiantoro, R. A., Chasanah, A. N., Arifin, N. R., & Tamimah, T. (2021). Islamic Wealth Management: Strategies in Sharia-Based Financial Planning and Management. Amwaluna: Jurnal Ekonomi Dan Keuangan Syariah, 5(2), 198–211. https://doi.org/10.29313/amwaluna.v5i2.6428
Dekhil, F., Boulebech, H., & Bouslama, N. (2017). Effect of religiosity on luxury consumer behavior: The case of the Tunisian Muslim. Journal of Islamic Marketing, 8(1), 74–94. https://doi.org/10.1108/JIMA-09-2012-0051
Dhaliwal, A., Singh, D. P., & Paul, J. (2020). The consumer behavior of luxury goods: A review and research agenda. Journal of Strategic Marketing, 1–27. https://doi.org/10.1080/0965254X.2020.1758198
Dusuki, A. W., & Bouheraoua, S. (n.d.). THE FRAMEWORK OF MAQĀS.ID AL-SHARĪʿAH AND ITS IMPLICATION FOR ISLAMIC FINANCE. Islam and Civilisational Renewal, 2(2), 316–336.
Fisol, W. N. M. (2017). Financial Planning Through Maqasid Shari’ah Engineering: A Study on the Takaful Products Development. International Journal of Muamalat, 1(1), 12.
Furqani, H. (2017). Consumption and Morality: Principles and Behavioral Framework in Islamic Economics. Journal of King Abdulaziz University-Islamic Economics, 30(4). https://doi.org/10.4197/Islec.30-SI.6
Hossain, B. (2014). Economic Rationalism and Consumption: Islamic Perspective. Journal of Economics and Sustainable Development, 5(24), 11.
Jaikumar, S., Singh, R., & Sarin, A. (2018). ‘I show off, so I am well off’: Subjective economic well-being and conspicuous consumption in an emerging economy. Journal of Business Research, 86, 386–393. https://doi.org/10.1016/j.jbusres.2017.05.027
Jaramillo, F., Kempf, H., & Moizeau, F. (2001). Conspicuous Consumption, Social Status and Clubs. Annales d’Économie et de Statistique, Jul.-Dec.(63/64), 25.
Johnson, P. (1988). Conspicuous Consumption and Working-Class Culture in Late-Victorian and Edwardian Britain. Transactions of the Royal Historical Society, 38, 27–42.
Maulidizen, A. (2020). Analysis of Islamic Consumption Ethics Critical Toward Causes of Corona Virus in Wuhan, China. Al-Banjari: Jurnal Ilmiah Ilmu-Ilmu Keislaman, 19(2), 197. https://doi.org/10.18592/al-banjari.v19i2.3488
McAleer, M. (2017). Theravada buddhism and thai luxury fashion consumption. Journal of Reviews on Global Economics, 6, 58–67.
Monzur-E-Elahi, M., & Alam, Md. M. (2022). Application of Maqasid Al-Shariah and Rules of Shariah in Managing Wealth and Financial Transactions. Journal of Law, 10(2), 249–267. https://doi.org/10.31219/osf.io/ueavm
Nouman, M., Siddiqi, M. F., Ullah, K., & Jan, S. (2021). Nexus between higher ethical objectives (Maqasid Al Shari’ah) and participatory finance. Qualitative Research in Financial Markets, 13(2), 226–251. https://doi.org/10.1108/QRFM-06-2020-0092
O’Cass, A., Jin Lee, W., & Siahtiri, V. (2013). Can Islam and status consumption live together in the house of fashion clothing? Journal of Fashion Marketing and Management: An International Journal, 17(4), 440–459. https://doi.org/10.1108/JFMM-03-2013-0023
Orellano, A., Valor, C., & Chuvieco, E. (2020). The influence of religion on sustainable consumption: A systematic review and future research agenda. Sustainability, 12(19), 7901.
Perez-Truglia, R. (2013). A test of the conspicuous–consumption model using subjective well-being data. The Journal of Socio-Economics, 45, 146–154. https://doi.org/10.1016/j.socec.2013.05.012
Ramakrishnan, A., Kalkuhl, M., Ahmad, S., & Creutzig, F. (2020). Keeping up with the Patels: Conspicuous consumption drives the adoption of cars and appliances in India. Energy Research & Social Science, 70, 101742. https://doi.org/10.1016/j.erss.2020.101742
Ramazani, A., & Kermani, M. (2022). Spiritualism versus materialism: Can religiosity reduce conspicuous consumption? Journal of Islamic Marketing, 13(8), 1639–1655. https://doi.org/10.1108/JIMA-09-2019-0184
Rehman, A. U., Al Shammari, S., & Al-Mamary, Y. H. (2022). Role of religiosity and the mediating effect of luxury value perception in luxury purchase intention: A cross-cultural examination. Journal of Islamic Marketing, 13(4), 975–995. https://doi.org/10.1108/JIMA-03-2021-0091
Ryabov, I. (2016). Conspicuous consumption among Hispanics: Evidence from the Consumer Expenditure Survey. Research in Social Stratification and Mobility, 44, 68–76. https://doi.org/10.1016/j.rssm.2016.02.003
Salam, M. T., Muhamad, N., & Leong, V. S. (2019). Measuring religiosity among Muslim consumers: Observations and recommendations. Journal of Islamic Marketing, 10(2), 633–652.
Sarofim, S., Minton, E., Hunting, A., Bartholomew, D. E., Zehra, S., Montford, W., Cabano, F., & Paul, P. (2020). Religion’s influence on the financial well‐being of consumers: A conceptual framework and research agenda. Journal of Consumer Affairs, 54(3), 1028–1061. https://doi.org/10.1111/joca.12315
Shaikh, S. A., Ismail, M. A., Ismail, A. G., Shahimi, S., & Mohd. Shafiai, M. H. (2017). Towards an integrative framework for understanding Muslim consumption behaviour. Humanomics, 33(2), 133–149. https://doi.org/10.1108/H-01-2017-0005
Shipman, A. (2004). Lauding the Leisure Class: Symbolic Content and Conspicuous Consumption. Review of Social Economy, 62(3), 277–289. https://doi.org/10.1080/0034676042000253909
Shukla, P. (2008). Conspicuous consumption among middle age consumers: Psychological and brand antecedents. Journal of Product & Brand Management, 17(1), 25–36. https://doi.org/10.1108/10610420810856495
Siepmann, C., Holthoff, L. C., & Kowalczuk, P. (2022). Conspicuous consumption of luxury experiences: An experimental investigation of status perceptions on social media. Journal of Product & Brand Management, 31(3), 454–468. https://doi.org/10.1108/JPBM-08-2020-3047
Šmakova, V., & Piligrimienė, Ž. (2021). Religion in Consumer Behavior Research: A Systematic Literature Review. In M. H. Bilgin, H. Danis, E. Demir, & G. Karabulut (Eds.), Eurasian Business and Economics Perspectives (Vol. 20, pp. 179–191). Springer International Publishing. https://doi.org/10.1007/978-3-030-85304-4_11
Syahriar, A., & Nafisah, Z. (2020). Comparison of Maqasid Al-Shari’ah Asy-Syathibi and Ibn’Ashur Perspective of Usul Al-Fiqh Four Mazhab’. Ulul Albab: Jurnal Studi Dan Penelitian Hukum Islam, 3(2), 185.
Syahrivar, J., Hermawan, S. A., Gyulavári, T., & Chairy, C. (2022). Religious compensatory consumption in the Islamic context: The mediating roles of religious social control and religious guilt. Asia Pacific Journal of Marketing and Logistics, 34(4), 739–758. https://doi.org/10.1108/APJML-02-2021-0104
T, D., & Sobari, N. (2022). Conspicuous Consumption on Gen Z in Indonesia: Advances in Economics, Business and Management Research, 206, 136–142. https://doi.org/10.2991/aebmr.k.220128.018
Taylor, D. G., & Strutton, D. (2016). Does Facebook usage lead to conspicuous consumption?: The role of envy, narcissism and self-promotion. Journal of Research in Interactive Marketing, 10(3), 231–248. https://doi.org/10.1108/JRIM-01-2015-0009
Trigg, A. B. (2001). Veblen, Bourdieu, and Conspicuous Consumption. Journal of Economic Issues, 35(1), 99–115. https://doi.org/10.1080/00213624.2001.11506342
Ünal, S., Deniz, E., & Akın, N. (2019). Determining the factors that influence the intention to purchase luxury fashion brands of young consumers. Ege Academic Review, 19(2), 221–236.
White, D. (2018). Religious Experience and New Materialism: Movement Matters edited by Joerg Rieger and Edward Waggoner, Palgrave Macmillan, London/New York, 2016, pp. ix+ 191,\pounds 60.00, hbk. New Blackfriars, 99(1082), 547–549.
Winkelmann, R. (2011). Conspicuous consumption and satisfaction. Journal of Economic Psychology, 33(1), 183–191. https://doi.org/10.1016/j.joep.2011.08.013
Published
2022-12-31
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