Fatiha Sari

PRICE DETERMINATION IN MOBILE PHONE TRADING TRANSACTIONS: AN ISLAMIC ECONOMICS PERSPECTIVE

Introduction

Price determination in mobile phone trading transactions: an islamic economics perspective. Explore mobile phone pricing from an Islamic economics perspective. This study analyzes mechanisms and strategies, ensuring justice, honesty, and transparency, while avoiding riba & gharar.

Abstract

Pricing is an essential aspect of buying and selling activities that must uphold the principles of justice, honesty, and transparency in accordance with Islamic economics. This study aims to analyze the pricing mechanism, the pricing strategies implemented, and their conformity with the principles of Islamic economics. This study employed a qualitative field research approach. Data were collected through observation, interviews, and documentation, and were analyzed using the Miles and Huberman data analysis model. The findings indicate that pricing is determined based on distributor prices, distribution costs, and reasonable profit margins. The pricing strategies implemented include competitive pricing, discounts, bundling promotions, low-price add-on programs, purchase bonuses, and service quality improvement. These practices comply with the principles of Islamic economics by promoting justice, honesty, transparency, and public benefit (maslahah), while avoiding elements of riba (usury), gharar (uncertainty), tadlis (deception), and ihtikar (hoarding). The pricing strategies implemented by 88 Cellular Group are consistent with the principles of Islamic economics, as they are not solely profit-oriented but also promote fair and ethical business transactions. Business practitioners are encouraged to consistently uphold Islamic principles in pricing strategies to enhance consumer trust and foster sustainable business practices.

Review

The paper, "PRICE DETERMINATION IN MOBILE PHONE TRADING TRANSACTIONS: AN ISLAMIC ECONOMICS PERSPECTIVE," tackles a pertinent subject by examining pricing mechanisms and strategies in the mobile phone trading sector through the ethical framework of Islamic economics. The study aims to ascertain how these business practices align with core Islamic principles of justice, honesty, transparency, and public benefit (*maslahah*). This exploration is highly relevant, demonstrating the applicability of faith-based economic guidelines to contemporary commercial activities, and offering valuable insights into integrating ethical considerations within modern market dynamics. Utilizing a qualitative field research approach, the study gathered data through observation, interviews, and documentation, subsequently analyzed using the Miles and Huberman model. The findings reveal that pricing is formulated based on distributor costs, distribution expenses, and reasonable profit margins. The implemented strategies—including competitive pricing, discounts, bundling promotions, low-price add-ons, purchase bonuses, and service quality improvements—are robustly asserted to comply with Islamic economic principles. Specifically, the research emphasizes that these practices avoid *riba* (usury), *gharar* (uncertainty), *tadlis* (deception), and *ihtikar* (hoarding), thereby fostering fair and ethical transactions not solely driven by profit. The primary strength of this paper lies in its practical demonstration that business profitability can be achieved while adhering to strong ethical frameworks. By identifying specific pricing strategies that align with Islamic principles, the study provides a valuable model for businesses aiming for sustainable and trust-based practices. The recommendation for practitioners to consistently uphold these principles underscores the paper's prescriptive utility. While the abstract convincingly argues for the compliance of the observed practices, future research could potentially expand on this by exploring challenges faced during implementation or comparing findings across a broader range of businesses to offer a more comprehensive understanding of these dynamics within the industry.

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