Examining the effect of halal perceived value and perceived risk on purchase intention: A mediating role of halal trust
-
Author(s)Muchammad Agung Miftahuddin ,Wiwiek Rabiatul AdawiyahLink to ORCID Index: https://orcid.org/0000-0002-8201-1947
,
Refius Pradipta
,
Faizal Wihuda
-
DOIhttp://dx.doi.org/10.21511/im.18(4).2022.06
-
Article InfoVolume 18 2022, Issue #4, pp. 62-73
- Cited by
- 746 Views
-
247 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Marketers in the rising halal Muslim consumerism must understand their clients’ behavior patterns to compete successfully. The purpose of this paper is to analyze the impact of halal perceived value, halal trust, and halal perceived risk on halal purchase intention among Muslim customers in Indonesia. Survey data analysis of 253 Muslim halal consumers was evaluated using structural equation modeling to scrutinize the empirical model fit. The results confirm that halal perceived value, perceived risk, and trust predict a significant amount of halal purchase intention. The study’s outcome also confirms that halal trust is a mediating variable through which halal perceived value and halal perceived risk affect halal purchase intention. This study contributes valuable insights into existing concepts of consumer halal trust influencing buying decisions and purchase intentions of halal products. This paper provides a practical foundation for managers to develop suitable halal marketing strategies that focus on creating value and reducing the risk perception to promote trust in consuming halal food products.
- Keywords
-
JEL Classification (Paper profile tab)M31, M39
-
References64
-
Tables5
-
Figures0
-
- Table 1. Means, standard deviation, and intercorrelation among variable
- Table 2. Results of the measurement model
- Table 3. Hypotheses testing
- Table 4. Direct effect model
- Table 5. Mediation path analysis
-
- Abror, A., Patrisia, D., Engriani, Y., Omar, M. W., Wardi, Y., Noor, N. M. B. M., Sabir Ahmad, S. S., & Najib, M. (2021). Perceived risk and tourist’s trust: the roles of perceived value and religiosity. Journal of Islamic Marketing.
- Abuznaid, S. A. (2020). Islamic marketing and Muslim consumers’ behavior. Asian Journal of Social Science Studies, 5(1), 10.
- Adawiyah, W. R., & Pramuka, B. A. (2017). Scaling the notion of Islamic spirituality in the workplace. Journal of Management Development, 36(7), 877-898.
- Adekunle, B., & Filson, G. (2020). Understanding halal food market: Resolving asymmetric information. Food ethics, 5(1), 1-22.
- Akın, M. S., & Okumuş, A. (2020). Shaping the consumers’ attitudes towards Halal food products in Turkey. Journal of Islamic Marketing, 12(6), 1081-1096.
- Al-Ansi, A., Olya, H. G., & Han, H. (2019). Effect of general Risk on trust, satisfaction, and recommendation intention for Halal food. International Journal of Hospitality Management, 83, 210-219.
- Al-Bukhari, M. (1978). Sahih al-bukhari. Dar Ul-Hadith. (In Arabic).
- Al-Hajjaj, M. B. (2007). The Book of Drinks. In Sahih Muslim, Book 36, Hadith 111. Riyadh: Dar-us-salam Publications.
- Ali, A., Ali, A., & Sherwani, M. (2017a). Shaping Halal into a brand? Factors affecting consumers’ Halal brand purchase intention. Journal of International Food & Agribusiness Marketing, 29(3), 234-259.
- Ali, A., Xiaoling, G., Sherwani, M., & Ali, A. (2017b). Factors affecting Halal meat purchase intention: Evidence from international Muslim students in China. British Food Journal, 119(3), 527-541.
- Ali, A., Xiaoling, G., Sherwani, M., & Ali, A. (2018). Antecedents of consumers’ Halal brand purchase intention: an integrated approach. Management Decision, 56(4), 715-735.
- Al-Teinaz, Y. R. (2020). What is Halal Food? In Y. R. Al-Teinaz, S. Spear, & I. H. A. Abd El-Rahim (Eds.), The Halal Food Handbook (pp. 7-26). John Wiley & Sons Ltd.
- Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411-423.
- Arsil, P., Tey, Y. S., Brindal, M., Phua, C. U., & Liana, D. (2018). Personal values underlying halal food consumption: evidence from Indonesia and Malaysia. British Food Journal.
- Ayyub, R. (2015). Exploring perceptions of non-Muslims towards halal foods in the UK. British Food Journal, 117(9), 2328-2343.
- Barron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychology research: Conceptual, strategic, and statistical consideration. Journal of Personality and Social Psychology, 51(6), 1173-1182.
- Chen, C. C., & Chang, Y. C. (2018). What drives purchase intention on Airbnb? Perspectives of consumer reviews, information quality, and media richness. Telematics and Informatics, 35(5), 1512-1523.
- Chen, Y. S. (2010). The drivers of green brand equity: green brand image, green satisfaction, and green trust. Journal of Business Ethics, 93(2), 307-319.
- Churchill Jr, G. A. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 16(1), 64-73.
- de Medeiros, J. F., Ribeiro, J. L. D., & Cortimiglia, M. N. (2016). Influence of perceived value on purchasing decisions of green products in Brazil. Journal of Cleaner Production, 110, 158-169.
- Eid, R., & El-Gohary, H. (2015). The role of Islamic religiosity on the relationship between perceived value and tourist satisfaction. Tourism management, 46, 477-488.
- Elseidi, R. I. (2018). Determinants of halal purchasing intentions: evidence from the UK. Journal of Islamic Marketing, 9(1), 167-190.
- Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of Marketing Research, 18(3), 328-388.
- Gimenez-Nadal, J. I., Lafuente, M., Molina, J. A., & Velilla, J. (2019). Resampling and bootstrap algorithms to assess the relevance of variables: applications to cross-section entrepreneurship data. Empirical Economics, 56(1), 233-267.
- Gupta, V., & Sajnani, M. (2020). Risk and benefit perceptions related to wine consumption and its influences on consumers’ attitudes and behavioral intentions in India. British Food Journal, 122(8), 2569-2585.
- Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate data analysis (7th ed.). Upper Saddle River: Pearson Education Limited.
- Hajli, N., Sims, J., Zadeh, A. H., & Richard, M. O. (2017). A social commerce investigation of the role of trust in a social networking site on purchase intentions. Journal of Business Research, 71, 133-141.
- Hanaysha, J. R. (2018). An examination of the factors affecting consumer’s purchase decision in the Malaysian retail market. PSU Research Review, 2(1), 7-23.
- Hanim, A., Dewi, I. R., & Istiyani, N. (2021). Muslim Consumer Behavior Towards Halal Industry 4.0: Attitudes and Perceived Risk. UNEJ e-Proceeding (pp. 120-125).
- Hari Adi, P., & Adawiyah, W. R. (2018). The impact of religiosity, environmental marketing orientation, and practices on performance: A case of Muslim entrepreneurs in Indonesia. Journal of Islamic Marketing, 9(4), 841-862.
- Holy Quran. (n.d.). Chapter 2: Sūrat Albaqarah (p. 168).
- Hussain, I., Rahman, S. U., Zaheer, A., & Saleem, S. (2016). Integrating factors influencing consumers’ halal products purchase: Application of the theory of reasoned action. Journal of international food & agribusiness marketing, 28(1), 35-58.
- Iranmanesh, M., Mirzaei, M., Hosseini, S. M. P., & Zailani, S. (2020). Muslims’ willingness to pay for certified Halal food: an extension of the theory of planned behavior. Journal of Islamic Marketing, 11(1), 14-30.
- Islam, T., & Chandrasekaran, U. (2013). Halal Marketing: Growing the pie. International Journal of Management Research and Review, 3(12), 3938-3948.
- Jamal, A., & Sharifuddin, J. (2015). Perceived value and perceived usefulness of halal labeling: The role of religion and culture. Journal of Business research, 68(5), 933-941.
- Leech, N. L., Barrett, K. C., & Morgan, G. A. (2005). SPSS for Intermediate Statistics, Use and Interpretation (2nd ed.). New Jersey: Lawrence Erlbaum Associates Inc.
- Mainolfi, G., & Resciniti, R. (2018). The influence of ethnocentrism and Halal trust on attitudes toward products from non-Muslim countries: A study of Moroccan consumers. African Journal of Business Management, 12(22), 652-665.
- Malaquias, F. F., & Hwang, Y. (2016). Trust in mobile banking under conditions of information asymmetry: Empirical evidence from Brazil. Information Development, 32(5), 1600-1612.
- Malik, S., Mahmood, S., & Rizwan, M. (2014). Examining customer-switching behavior in the cellular industry. Journal of public administration and governance, 4(2), 114-128.
- Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20-38.
- Mortimer, G., Fazal-e-Hasan, S. M., Grimmer, M., & Grimmer, L. (2020). Explaining the impact of consumer religiosity, perceived risk, and moral potency on purchase intentions. Journal of Retailing and Consumer Services, 55, 102115.
- Muhamed, A. A., Ab Rahman, M. N., Hamzah, F. M., Zain, C. R. C. M., & Zailani, S. (2019). The impact of consumption value on consumer behavior: A case study of halal-certified food supplies. British Food Journal, 121(11), 2951-2966.
- Mursid, A., & Anoraga, P. (2022). Halal destination attributes and revisits intention: The role of destination attractiveness and perceived value. International Journal of Tourism Cities, 8(2), 513-528.
- Nurrachmi, I., Setiawan, S., & Saripudin, U. (2020). Motivation for purchasing halal products: the influence of religiosity, trust, and satisfaction. Humanities and Social Sciences Reviews, 8(5), 210-218.
- Nurrachmi, R. (2017). The global development of halal food industry: A survey. Tazkia Islamic Finance and Business Review, 11(1).
- Olya, H. G., & Al-ansi, A. (2018). Risk assessment of halal products and services: Implication for tourism industry. Tourism Management, 65, 279-291.
- Ozturk, A. (2022). The Effect of Halal Product Knowledge, Halal Awareness, Perceived Psychological Risk, and Halal Product Attitude on Purchasing Intention. Business and Economics Research Journal, 13(1), 127-141.
- Podsakoff, P. M., MacKenzie, S. B., Lee, J-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879-903.
- Preacher, K. J., & Hayes, A. F. (2004). SPSS and SAS procedures for estimating indirect effects in simple mediation models. Behavior research methods, instruments, & computers, 36(4), 717-731.
- Purwanto, A., & Sudargini, Y. (2021). Exploring Factors Affecting the Purchase Intention of Halal Food Products: An Empirical Study on Student Consumers. International Journal of Social and Management Studies, 2(4), 13-21.
- Rahman, R. A., Zahari, M. S. M., Hanafiah, M. H., & Mamat, M. N. (2021). Effect of Halal Food Knowledge and Trust on Muslim Consumer Purchase Behavior of Syubhah Semi-Processed Food Products. Journal of Food Products Marketing, 27(6), 319-330.
- Randeree, K. (2019). Challenges in halal food ecosystems: the case of the United Arab Emirates. British Food Journal.
- Rousseau, D. M., Sitkin, S. B., Burt, R. S., & Camerer, C. (1998). Not so different after all: A cross-discipline view of trust. Academy of management review, 23(3), 393-404.
- Sayogo, D. S. (2018). Online traceability for halal product information: perceptions of Muslim consumers in Indonesia. Journal of Islamic Marketing.
- Sula, M. S., & Kartajaya, H. (2006). Sharia Marketing (pp. 101-103). Bandung: Mizan.
- Tieman, M., & Ghazali, M. C. (2013). Principles in Halal purchasing. Journal of Islamic Marketing, 4(3), 281-293.
- Weber, E. U. (2019). The utility of measuring and modeling perceived risk. In A. A. J. Marley (Ed.), Choice, decision, and measurement: Essays in Honor of R. Duncan Luce (pp. 45-56). Routledge.
- Wilson, J. A. (2014). The halal phenomenon: an extension or a new paradigm? Social Business, 4(3), 255-271.
- Yasid, Y., Farhan, F., & Andriansyah, Y. (2016). Factors affecting Muslim students’ awareness of halal products in Yogyakarta, Indonesia. International Review of Management and Marketing, 6(4), 27-31.
- Yeung, R. M., & Morris, J. (2006). An empirical study of the impact of consumer perceived risk on purchase likelihood: a modeling approach. International Journal of Consumer Studies, 30(3), 294-305.
- Yusof, Y. L. M., Jusoh, W. J. W., & Maulan, S. (2020). Perceived quality association as determinant to re-patronize Shariah-compliant brand restaurants. Journal of Islamic Marketing.
- Zakaria, Z., Salim, M. R., Ahmad, Z., Haini, F., Ahmad, M., & Kamaludin, M. A. (2015). Trust as a mediator in determining customers’ purchase intention of halal frozen food. International Academic Research Journal of Social Science, 1(2), 283-289.
- Zhu, W., Yao, N. C., Ma, B., & Wang, F. (2018). Consumers’ risk perception, information seeking, and intention to purchase genetically modified food. British Food Journal, 120(9), 2182-2194.
- Zulfakar, M. H., Jie, F., & Chan, C. (2012). Halal food supply chain integrity: from a literature review to a conceptual framework. 10th ANZAM Operations, Supply Chain and Services Management Symposium.
-
Perceived health risk, online retail ethics, and consumer behavior within online shopping during the COVID-19 pandemic
Yuniarti Fihartini ,
Arief Helmi ,
Meydia Hassan ,
Yevis Marty Oesman
doi: http://dx.doi.org/10.21511/im.17(3).2021.02
Innovative Marketing Volume 17, 2021 Issue #3 pp. 17-29 Views: 4523 Downloads: 1730 TO CITE АНОТАЦІЯThe risk of virus contracting during the COVID-19 pandemic has changed consumer preference for online shopping to meet their daily needs than shopping in brick-and-mortar stores. Online shopping presents a different environment, atmosphere, and experience. The possibility of ethical violations is higher during online than face-to-face transactions. Therefore, this study was conducted to investigate the influence of perceived health risk and customer perception of online retail ethics on consumer online shopping behavior during the COVID-19 pandemic, involving seven variables, namely perceived health risk, security, privacy, non-deception, reliability fulfillment, service recovery, and online shopping behavior. The data were collected through an online survey by employing the purposive sampling technique to a consumer who has shopped online during the COVID-19 pandemic in Indonesia. 315 valid responses were obtained and analyzed through quantitative method using SEM-Amos. The results showed that perceived health risk and four variables of online retail ethics including security, privacy, reliability fulfillment, and service recovery affected online shopping behavior. Meanwhile, non-deception was found to have an insignificant effect. The coefficient value proved perceived health risk to be more dominant in influencing online shopping behavior than the variables of online retail ethics. Thus, consumers pay more concern for their health during online shopping. However, positive consumer perceptions of the behavior of online retail websites in providing services also can encourage consumers to shop online during this pandemic.
-
Human resource management in promoting innovation and organizational performance
I Gede Riana ,
Gede Suparna ,
I Gusti Made Suwandana ,
Sebastian Kot 
,
Ismi Rajiani
doi: http://dx.doi.org/10.21511/ppm.18(1).2020.10
Problems and Perspectives in Management Volume 18, 2020 Issue #1 pp. 107-118 Views: 3568 Downloads: 852 TO CITE АНОТАЦІЯHuman resource management (HRM) is one of the elements enabling an organization to remain competitive in turbulence conditions. The effective practice of HRM makes competent and innovative employees contributing to the achievement of organizational objectives. This study aims to analyze HRM practices in creating innovation and organizational performance. The questionnaire was used to measure the respondents’ perceptions of variables used by a Likert scale. A survey of 126 manager samples and middle managers at export-oriented short and medium enterprises (SMEs) in Bali, Indonesia, was conducted to test the model. The analysis has shown that the proposed model was proven to be compliant with the research hypotheses. HRM significantly affects organizational performance and innovation, and it was found out that innovation can improve organizational performance. However, in the process of simultaneous testing, it was found out that innovation cannot improve organizational performance. The lack of attention to investments in human resources became one of the barriers to SMEs in creating innovation.
-
Green product buying intentions among young consumers: extending the application of theory of planned behavior
Andhy Setyawan ,
Noermijati Noermijati ,
Sunaryo Sunaryo ,
Siti Aisjah
doi: http://dx.doi.org/10.21511/ppm.16(2).2018.13
Problems and Perspectives in Management Volume 16, 2018 Issue #2 pp. 145-154 Views: 3345 Downloads: 1121 TO CITE АНОТАЦІЯThis research reveals the factors explaining the purchase intention toward green products among young consumers. Young consumers are beginner consumers who are going to play an important role to take a responsibility in preserving the environment. Theory of Planned Behavior (TPB) is selected as the main theoretical framework in this research alongside some other variables (environmental concern, environmental knowledge, and willingness to pay), which are added in the research model to expand TPB application. Three hundred and twenty-six respondents were interviewed through a survey and the data are analyzed using Structural Equation Modeling (SEM).
The findings illustrated that not every explanatory variable influenced the purchase intention toward green products among young consumers. Environmental concern and attitude did not influence the purchase intention toward green products among young consumers.
