Marketing Impact of Halal Labeling Toward Indonesian Muslim Consumer’s Behavioral Intention Based on Ajzen’s Planned Behavior Theory: Policy Capturing Studies on Five Different Product Categories

Abstract:     
Purpose – Indonesia is the biggest Muslim country in the world. Attention on the importance of Halal labeling in Indonesia is now growing. Halal‐conscious consumer segment is getting bigger and the Halal Product Protection Act is being drafted. Understanding purchase behavior of Muslim consumer regarding Halal Labeling is imperative for marketer doing business in a Muslim country. The purpose of this paper is to test the applicability of the theory of planned behavior (TPB) in explaining the intention to switch from products without certified Halal labels within a wide array of purchase context, especially in the purchase of food and medicine products.

Design/methodology/approach – A policy capturing questionnaire was used to elicit responses from consumers using a convenience sampling technique. A total of 7500 responses were obtained from 150 participating respondent in 50 different scenario cases. Data is analyzed using Multi‐Group Structural Equation Modeling.

Findings – The findings is that Theory of Planned Behavior (TPB) is not completely valid to explain both the behavioral intention of Muslim consumers in Indonesia to seek information about the Halal certification of a product and to cancel their purchase if the product did not have Halal certification. Differences in magnitude and significance of causal relationships exist between different product categories.

Research limitations/implications – The study employs a limited population, thus this research has weak external validity. However, because this research is using quasiexperimental method, this research has strong internal validity in return. Thus, relationships among variables can be explained, even though a generalization to field conditions still needs further research.

Practical implications – The results will be primarily beneficial to marketers of food and medicine product sold in Muslim countries by offering an insight into the intentions of consumers to cancel purchases of products without Halal labeling.

Originality/value – The paper extends the understanding of the behavior of Muslim consumer toward products without Halal labeling within a variety of purchase context.

Number of Pages in PDF File: 12

Keywords: Purchase Behavior, Halal Label, Muslim Consumer

JEL Classification: F14, M31

Accepted Paper Series