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

ASEAN Marketing Journal, Vol. 3, No. 1, June 2011

Presented partially in the 5th International Conference on Business and Management Research, 2010

12 Pages Posted: 25 Sep 2010 Last revised: 8 Feb 2012

See all articles by Bagus Adi Luthfi

Bagus Adi Luthfi

University of Indonesia (UI)

Imam Salehudin

University of Indonesia (UI) - Department of Management; University of Queensland, Business School, Students; University of Indonesia (UI) - Faculty of Economics and Business

Date Written: June 30, 2011

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.

Keywords: Purchase Behavior, Halal Label, Muslim Consumer

JEL Classification: F14, M31

Suggested Citation

Luthfi, Bagus Adi and Salehudin, Imam, 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 (June 30, 2011). ASEAN Marketing Journal, Vol. 3, No. 1, June 2011 , Presented partially in the 5th International Conference on Business and Management Research, 2010, Available at SSRN: https://ssrn.com/abstract=1682342

Bagus Adi Luthfi

University of Indonesia (UI) ( email )

Depok, West Java 16424
Indonesia

Imam Salehudin (Contact Author)

University of Indonesia (UI) - Department of Management ( email )

Campus UI Depok
Depok, West Java 16424
Indonesia

University of Queensland, Business School, Students ( email )

St Lucia
Australia

University of Indonesia (UI) - Faculty of Economics and Business ( email )

Kampus Baru
Depok, West Java 16424
Indonesia

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
1,396
Abstract Views
4,391
rank
15,100
PlumX Metrics