THE INFLUENCE OF CORPORATE IMAGE, USER IMAGE, AND

PRODUCT IMAGE TOWARD PURCHASE DECISION

ON MUI HALAL FOOD CERTIFICATION:

A Study on Pizza Hut Restaurant in Malang

Ratih Diyah Novianti

Supervisor: Sunaryo, SE, MSi, Ph.D

International Management, Faculty of Economics and Business,

Brawijaya University

Jl. Mayjen Haryono 165, Malang 65145, Indonesia

Phone. 0341 -555000, 551396 Fax. 0341 -553834

E-mail: info.feb@ub.ac.id, Website: http://www.feb.ub.ac.id

Abstract

This research aims to examine the influence of Corporate Image, User Image, and

Product Image toward Purchase Decision on MUI Halal Food Certification, a study on

Pizza Hut Restaurant in Malang. The type of this research is Explanatory Research. The

research is conducted in all Pizza Hut Restaurant outlets in Malang (Pizza Hut Semeru,

Pizza Hut Matos, Pizza Hut Ciliwung, and Pizza Hut Suhat). 150 questionnaires were

distributed randomly to Pizza Hut Muslim consumers who have visited the outlets for

more than one in a year in all Pizza Hut restaurants in Malang. The sampling technique

used purposive sampling and the research instruments were tested using the Validity Test,

Reliability Test, and Classical Assumption Test. The hypothesis testing used F-Test and

T-Test.

The multiple regression analysis result shows that Corporate Image, User Image,

and Product Image have significant effect simultaneously and partially toward Purchase

Decision. The dominant test shows that User Image is the most dominant variable

influencing the Purchase Decision. Overall, the independent variables: Corporate Image,

User Image, and Product Image have contribution as 70.6% toward dependent variable:

Purchase Decision while the rest 29.4% are described by other variables beyond this

research.

The result of this research can be applied for Marketing Strategy. The company

should retain the brand image with halal image in order to always have a positive image

in the consumers’ eyes that will influence their decision in purchasing decision.

Keywords: Corporate Image, User Image, Product Image, Brand Image, MUI

Halal Certification, Purchase Decision

1. Background

Most of the world's Muslim population lives in South Asia, particularly in

Indonesia, Pakistan, and India. Indonesia is the largest Islamic country in Asia

with the highest Muslim population in the world. Over 88% of Indonesia's

population follows Islam (Maps of World site, February 2015). According to

Population and Civil Records Service of Malang city, the total population in

Malang is 857.891 people (updated on 6 August 2014). Malang citizen are mostly

Muslim, and the second is Christian (Protestant), Catholic and the rest are Hindu

and Buddhist (Malang Kota site, January 2015). Today, halal is not only a

religious issue but it also extends to business scope. It is considered as a global

symbol in insuring quality and selecting lifestyle (Azmi, 2005 in Kordnaeij et al.,

2013). It becomes a hot topic in foods, pharmaceutical, and cosmetic products

(Nizam and Daud, 2012). Muslim people demand halal product. It makes

companies run for halal certification to make people easier to sort and choose

halal product. In Indonesia, the government body responsible for controlling food

is Ministry of Agriculture (for meat and animal-based foods) and National Agency

for Foods and Drugs Control (BPOM) (for packaged-food product). MUI (The

Indonesian Council of Ulama) is the umbrella of 63 Islamic organizations in

Indonesia that issues halal certification based on the assessment by LPPOM MUI

(Lembaga Pengkajian Pangan, Obat dan Kosmetika/Board of Foods, Drugs, and

Cosmetics Assessment).

Halal issue in Indonesia came from the case of pig fat in 1988. The case

taken by a researcher from University of Brawijaya, not only ignited anger among

Muslim society but also threatened the national economy because of drastically

decreasing consumption rate of processed foods (MUI site, January 2015). The

adoption of Indonesia’s halal standard by foreign institutions is certainly

beneficial for Indonesian consumers and producers. It is because consumers are

protected from products that are not halal for Muslim (MUI site, January 2015).

MUI’s halal certification standard requires companies to implement Halal

Assurance System of LPPOM’s standard. In relation to halal certification,

procedures refer to preparation, slaughtering, used ingredients, cleaning, handling,

processing, transporting, and distributing (Hanzaee and Ramezani, 2011).

Biel (1992) in Li et al. (2011:1875) stated the image of a brand has three

contributing sub-images, which are the image of the product/service provider, or

corporate image; the image of the user; and the image of the product/service itself.

Branding plays an important role for a company since a strong brand can increase

consumer confidence, enable consumers to understand the product, and suppress

the customers' perception of risk (Tjiptono, 2005:62). Therefore, companies need

to consider registering their products for halal label to get customer’s heart.

In Indonesia, the number of franchise business with foreign license is more

than 90%. The businesses provide a greater return, accelerate transfer of

technology, increase business opportunities, and expand employment

opportunities (Ministry of Trade site, February 2015).

There are many popular foreign franchises such as McDonalds, KFC,

A&W, Pizza Hut, Starbucks, and so on. Pizza Hut is an international food

franchise from the United States of America (Pizza Hut Indonesia site, January

2015). From a small and simple pizzeria, Pizza Hut has grown into the largest

pizza restaurant chain in the world with more than 5,600 restaurants in 97

countries (Pizza Hut Indonesia site, January 2015). Within the journey, Pizza Hut

Indonesia has grown faster and become number one pizza brand in Indonesia. It

can be seen from the awards that Pizza Hut achieved such as Top Brand Award,

Tiger Award, Champs Challenge, Corporate Image Award, etc.

Based on the background described above, the researchers interested in

conducting a research entitled “The Influence of Corporate Image, User Image,

and Product Image toward Purchase Decision on MUI Halal Food

Certification: A Study on Pizza Hut Restaurant in Malang.”

Research Formulations

The following are the problems that will be discussed in this research:

1. Does corporate image significantly have partial influence on purchase

decision at Pizza Hut Malang?

2. Does user image significantly have partial influence on purchase

decision at Pizza Hut Malang?

3. Does product image significantly have partial influence on purchase

decision at Pizza Hut Malang?

4. Do corporate image, user image, and product image variables

significantly have simultaneous influence on purchase decision at

Pizza Hut Malang?

5. Among corporate image, user image, and product image, which

variable is the dominant factor that drives consumer decision to make

purchases at Pizza Hut Malang?

Research Objectives

From the description of the background of the problems above, the goals

of this research are:

1. To analyze the effect of corporate image partially on consumer

purchase decision at Pizza Hut, Malang.

2. To analyze the effect of user image partially on consumer purchase

decision at Pizza Hut, Malang.

3. To analyze the effect of product image partially on consumer purchase

decision at Pizza Hut, Malang.

4. To analyze the simultaneously effect of corporate image, user image,

and product image variables on consumer purchase decision at Pizza

Hut, Malang.

5. To reveal which brand image variables that has dominant effect on

consumer’s purchase decision at Pizza Hut Malang.

2. Literature Review

Brand Image

Keller (1993), as cited by Jing et al. (2014) described brand image as a set

of brand association. According to Biels (1992) in Li et al. (2011:1875), the image

of a brand can be described as having three contributing sub images, the image of

the provider of the product/service (corporate image), the image of user, and the

image of product/service itself.

Purchase Decision

Purchase decision can be defined as a continuous process that refers to

thoughtful, consistent action undertaken to bring about the need of satisfaction.

Generally, customers are quite rational and make systemic use of the information

available for them (Azjen et al., 1980 in Shareef et al., 2008).

MUI Halal Standardization

Halal standards are used in making halal production more unambiguous.

It supports customers and consumers in choosing the products (Spiegel et al.,

2012 in Ismail et al., 2014). The adoption of Indonesia halal standard by foreign

institutions is certainly beneficial for Indonesian consumers and producers. This is

because consumers are protected from products with unclear halalness and with

commonly recognized halal standard businessmen can get assurance about halal

requirements they have to fulfill before the market their products (MUI site,

January 2015).

MUI Halal Certification

A halal certificate is a document issued by MUI, certifying the products

meet the Islamic dietary guidelines. It includes that the product does not contain

pork or its byproducts, alcohol, prohibited food ingredients of animal origin, and

the product has been prepared and manufactured using clean equipment.

Companies that want to procure halal certificate, including processing industry,

slaughterhouse, restaurant, catering service, and distributor must meet the

Requirements of Halal Certification HAS 23000 such as: (1) Halal Policy, (2)

Halal Management Team, (3) Training and Education, (4) Materials, (5) Products,

(6) Production Facilities, (7) Written Procedure for Critical Activities, (8)

Traceability, (9) Handling of Non-Conformance Products, (10) Internal Audit,

(11) Management Review (MUI site, January 2015).

Relationship Between Brand Image with MUI Halal Certification and

Purchase Decision

A successful brand image enables consumers to identify the needs the

brand can satisfy and to differentiate the brand from its competitors. It

consequently increases the likelihood of consumers purchasing the brand (Hsieh

et al., 2004). Most consumers believe that products with halal certificate have

higher quality and security than non-halal goods (Kotler, 2007 cited by Kordnaeij

et al., 2013). Therefore, a good brand image with halal label is the perfect

combination for Muslims. Therefore, it makes consumer easier to make purchase

decision because the brand is credible and has integrity.

Hypothesis

According to Wijaya and Palupi (2012) and Ardy and Moko (2012), the

research hypotheses can be determined as follows:

H1: Corporate Image (CI) has partial effect toward Purchase Decision (PD) at

Pizza Hut, Malang.

H2: Estimate User Image (UI) has partial effect toward Purchase Decision

(PD) at Pizza Hut, Malang.

H3: Product Image (PI) has partial effect toward Purchase Decision (PD) at

Pizza Hut, Malang.

H4: All variables of Corporate Image (CI), User Image (UI), and Product

Image (PI), have simultaneous effect toward Purchase Decision (PD) at

Pizza Hut, Malang.

H5: User Image (UI) is the most dominant variable affect toward Purchase

Decision (PD) at Pizza Hut, Malang.

3. Research Method

Type of Research

Based on the characteristics explanation of the problem and objective that

will be examined, the type of this research is explanatory research. Malhotra and

Peterson (2006:150) stated that quantitative method is a methodology that seeks to

quantify the data and typically applies some form of statistical analysis. The

objective study in this research uses quantitative method to explain how big the

impact of brand image with MUI halal certification toward purchase decision in

case study of halal product, Pizza Hut Restaurant in Malang.

Location of the Study

The data in this research study uses primary data collection method. The

researchers distribute questionnaires to Muslim consumers who visited Pizza Hut

Restaurant in Malang area (Pizza Hut Semeru, Pizza Hut Ciliwung, Pizza Hut

Matos, or Pizza Hut Suhat).

Population and Sampling

Quantitative data from a large, representative sample should collected

using a survey, as in the opening vignette, if the sample results are to be projected

to the population (Malhotra and Peterson, 2006:151). The population of this

research study is consumers of Pizza Hut Restaurant in Malang. The population in

this research is uncountable because not all people are able to be selected and the

size is unknown.

Sampling Technique

Sampling can be defined in two types, Probability sampling and Non

probability sampling (Sekaran and Bougie, 2010:271). In this research, sampling

technique uses the non probability sampling. Purposive sampling is a part of non

probability. The criteria of the sample are: (1) Muslim respondent of Pizza Hut in

Malang, (2) Respondent in age ≤ 16, and (3) Respondent who visited Pizza Hut

with purchase frequency in a year.

Sample Number

Following Roscoe (1975) in Sekaran (2003:295) in determining sample

size, the researchers take 150 samples which larger than 30 and less than 500 of

respondents in order to obtained more objective and accurate result that represent

the population of total Pizza Hut Restaurant in Malang where questionnaire

distributes to each restaurant area with 30 samples of respondents and the more 45

samples for the most in demand restaurant.

Data Collection Method

There are two types of data collection methods which are primary data and

secondary data. This study conducts primary data which means distribute

questionnaires to 150 Muslim respondents who are consumers of Pizza Hut

Restaurant in entire Malang (Pizza Hut Semeru, Pizza Hut Ciliwung, Pizza Hut

Matos, and Pizza Hut Suhat). The primary data is also obtained from interview

directly to Micky, one of employee of Pizza Hut Restaurant, Malang. Meanwhile,

the secondary data is compiled by studies literature or relevant books, journals,

articles, company documents, and annual or monthly report of Central Bureau of

Statistics (BPS).

Operational Definition Variable

Independent Variables

The independent variable is Brand Image (BI) as according to Biels (1992)

in Li et al. (2011:1875) that brand image has three sub variables which are:

1. Corporate Image: CI1 Corporate Popularity, CI2 Corporate Credibility,

CI3 Corporate Network, CI4 Corporate Innovation, CI5 Corporate

Caring, CI6 Corporate Impression, CI7 Community Responsibility, CI8

Corporate Physical Attribute, CI9 Corporate Behavioral Attribute, CI10

Interactive Quality

2. User Image: UI1 Brand Imagine, UI2 Brand Personality, UI3 User

Category, UI4 Lifestyle, UI5 Social Class

3. Product Image: PI1 Product Attribute, PI2 Function, PI3 Durability, PI4

Product Quality

Dependent Variable

Purchase decision is where consumers create preference for selecting a

brand, so the consumers will automatically create purchase intention toward

preferred brand (Kotler, 2005:227). The indicators of purchase decision are: PD1

Product Usage Decision, and PD2 Brand Awareness.

4. Findings & Discussion

Findings

The Characteristic of Respondents

The respondents data used in this study are based on the consumer’s age,

gender, latest education, occupation, income, information of halal product, and

purchase frequency in a year.

Table of Respondents Characteristic

Respondents

Characteristic Criteria Respondents Percentage (%)

Age

< 18 2 1

18-23 119 79

24-29 12 8

≥ 30 17 12

Total 150 100

Gender

Female 119 79

Male 31 21

Total 150 100

Latest Education

Senior High School 98 65

Diploma 4 3

S1/S2/S3 48 32

Total 150 100

Occupation

Student 115 77

Employee 19 12

Entrepreneur 10 7

Others 6 4

Total 150 100

Allowance/Income

Approximately

500.000 29 19

1.000.000-

2.000.000 78 52

2.100.000-

3.000.000 25 17

> 3.000.000 18 12

Total 150 100

Information about

Pizza Hut MUI Halal

Certification

Brochure 10 7

Banner 15 10

Product Packaging 56 37

Friends/Family 37 25

Social Media 32 21

Total 150 100

Purchase Frequency

of Buying Pizza Hut

In a Year

< 2 times 26 17

2 times 47 31

3-6 times 67 45

7-10 times 9 6

> 10 times 1 1

Total 150 100

Source: Primary Data processed, March 2015

The first characteristic of respondents is based on age, which the criteria is

Muslim consumers who are older than 15 years old and no older than 60 years

old. The result shows that respondents around 18-23 years old mostly visited

Pizza Hut restaurant rather than other criteria respondent based on age as 79%.

This condition happens because around age 18-23 years old tend to choose

western food. The productive age is a potential market. Thus, Pizza Hut can use it

to segmenting their consumers. The second characteristic of respondents is based

on gender. The most dominant consumers are women as 79% that love to eat in

Pizza Hut rather than men. This condition speculates that women are more

interested in eating in a proper place such as Pizza Hut and certain food and

beverage with halal label.

This research also takes criteria of respondents based on latest education of

Pizza Hut Muslim consumers. The result describes the teenagers who mostly

visited Pizza Hut are the senior high school as 65% of total percentage. Some of

high school consumers come with their families and they said Pizza Hut is the

right place for gathering. The fourth respondent criteria is based on occupation.

The result shows that student criteria is the biggest percentage of all criteria as

77%. From the interview with some students, they confess their families often

bring them there after school, or just to celebrate great achievement. Thus, in

consumers’ eyes, Pizza Hut is the right place for gathering.

The fifth criteria respondents based on allowance/income. The result

shows that respondents with income Rp. 1.000.000,00 – Rp. 2.000.000,00 tend to

visit Pizza Hut restaurant in Malang. It means Pizza Hut offers affordable price

for their consumers. The sixth characteristic of respondents is based by

information about Pizza Hut MUI halal Certification. The respondent

characteristic is to figure out whereof consumers know the information about

Pizza Hut MUI halal certification. The most dominant information is from

product packaging as 37%. It means that consumers directly know that Pizza Hut

halal by buying Pizza Hut product. From the data above, it is shown that the most

dominant result is 45% of 3-6 times went to Pizza Hut in a year. The other

dominant is followed by 47 people (31%) that went to Pizza Hut 2 times in a year.

This condition speculated that almost 80% of total respondents tend to eat in Pizza

Hut in more than 2 times in a year, shows that they are loyal to Pizza Hut.

Validity and Reliability Test

Result of validity test shows that all questionnaire items in Corporate

Image, User Image, Product Image, and Purchase Decision have significant value

less than 0.05 and r value larger than 0.3, which means it can be concluded that

instruments that is used for independent and dependent variable are valid.

Meanwhile in reliability test result is obtained the Cronbach Alpha Coefficient (α)

of independent and dependent variables are more than 0.6 which means the

instruments of independent and dependent variable are reliable.

Normality, Multicollinery, and Heteroscedasticity Test

The residual score is grouped into a normality test histogram pattern, the

residual will create a normal distribution curve pattern, while the residual is

focused on the middle with its highest peak equal to 0.000 which means the

assumption of normality test has been demonstrated.

The result describes the tolerance value of corporate image (0.387), user

image (0.411), and product image (0.392) are more than 0.1. While VIF value of

corporate image (2.583), user image (2.430), and product image (2.549) are less

than 10. It means the assumption of non multicolliarity has been demonstrated.

Heteroscedasticity test result shows the data spread randomly, no certain

pattern occurs, and spreads over and below the 0 on Y axis. It concludes there is

no heteroscedasticity.

Multiple Regression

Multiple Regression Analysis method is used for determining the influence

of independent variables of CI, UI, and PI with Halal MUI Certification toward

the dependent variable of PD.

The Estimation Result

Variables

Standardized

Coefficient

Beta

t Calculated Sig. Remarks

Corporate Image

(CI) 0.255 2.706 0.008 Significant

User Image (UI) 0.351 3.837 0.000 Significant

Product Image

(PI) 0.174 1.985 0.044 Significant

R square = 0.706

Adjusted R Square = 0.488

F Table = 2.666

Significant F = 0.000

T Table = 1.975

Source: Primary Data processed, March 2015

The multiple regression analysis based on the table above can be

presented as follows:

Y = β1X1+ β2X2+ β3 X3+ β4X4+ β5X5 +e

PD = 0.255 CI + 0.351 UI + 0.174 PI + e

The regression model has adjusted R square value 0.706. It shows that the

regression model among Corporate Image, User Image, and Product Image with

MUI Halal Certification variables influence toward Purchase Decision with

contribution as 70.6% while the other value 29.4% is described by other

undetected variables such as service quality, price, etc.

Hypothesis Test

The simultaneous test (F-Test) result shows that Ftable value with degrees

of freedom (df) N1 = 3 and N2 = 147 is 2.666. If Fcalculated is compared to Ftable, the

F calculated is bigger than Ftable (18.37 > 2.666). The significant value is 0.000, it

means it is smaller than α = 0.05. By both comparison, it is concluded that H0 is

rejected at α = 0.05. Therefore, all independent variables (CI, UI, PI) have

simultaneous effect toward dependent variable (PD).

The partial test (T-Test) result shows that each independent variable has a

significant effect toward dependent variable. Corporate Image Tcalculated value

2.706 > Ttable 1.975 and the significant value 0.008 < α = 0.05. Therefore,

Corporate Image (CI) has a significant effect on Purchase Decision (PD). User

Image Tcalculated value is bigger than the Ttable (3.837 > 1.975) and the significant

value (0.000 < 0.05). Thus, User Image (UI) has a significant effect on Purchase

Decision (PD) because the hypothesis alpha is accepted. Product Image Tcalculated

value 1.985 > Ttable 1.975 while the significant value 0.044 < α = 0.05. Therefore,

Product Image (PI) has a significant effect on Purchase Decision (PD) because H0

rejected and Ha accepted.

Discussion

The research conducted by Wiranegara and Subianto (2008), also states

that corporate image influences Muslim consumer purchase decision with

standardized coefficient beta of corporate image is 0.255. The previous research,

Ardy and Moko (2012) also has similar finding that user image is the most

dominant variable that has positive significant influence toward Muslim

consumers purchase decision with standardized coefficient beta is bigger than

other variables as 0.351. While the other finding shows the number of coefficient

beta for product image as 0.174 and has positive significant influence toward

purchase decision as the previous research Ardy and Moko (2012).

5. Conclusion & Recommendation

Conclusion

The conclusion analyses in this research are as follows:

1. Corporate image has partially significant influence on purchase decision.

2. User image has partially significant influence on purchase decision.

3. Product image has partially significant influence on purchase decision.

4. The overall corporate image, user image, and product image variables have

simultaneously significant influence on purchase decision.

Recommendation

1. Marketer of Pizza Hut needs to find the best way to satisfied their

consumers and customers. Improvisations like increase the quality of

product and service, how to communicate well with consumers, or the way

to promote their products are needed to maintain corporate image and

product image in order to reach the goal of company.

2. Pizza Hut is expected to create more varied and creative products, and may

include specific offering such as Pizza Hut café.

3. For future researchers, this research can be used for reference in

conducting the future research especially for the influence of corporate

image, user image, and product image toward consumer purchase decision

on MUI halal food certification. It is suggested for the future research to

add other variables. Future research is also expected to fulfill the limitation

of this research such as expand the object of the research in order to obtain

the new finding and result.

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