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VOICE OF ACADEMIAAcademic Series of Universiti Teknologi MARA Kedah
Chief Editor
Associate Professor Dr Roziya AbuFaculty of Information Management,
Universiti Teknologi MARA Cawangan Kedah, Malaysia
Editorial Team
Junaida IsmailFaculty of Administrative Science and Policy Studies,
Universiti Teknologi MARA Cawangan Kedah, Malaysia
Aishah MusaAcademy of Language Studies,
Universiti Teknologi MARA Cawangan Kedah, Malaysia
Syahrini ShawalludinFaculty of Art and Design,
Universiti Teknologi MARA Cawangan Kedah, Malaysia
Khairul Wanis AhmadFacility Management & ICT Division,
Universiti Teknologi MARA Cawangan Kedah, Malaysia
Siti Natasha Mohd YatimResearch And Industrial Linkages Division,
Universiti Teknologi MARA Cawangan Kedah, Malaysia
Associate Editors
Dr Norkhazzaina SalahuddinSchool of Business Management, Universiti Utara Malaysia
Dr Normalisa Md IsaSchool of Business Management, Universiti Utara Malaysia
Dr Waida Irani Mohd FauziSchool of Business Management, Universiti Utara Malaysia
Dr Shamsul Huda Abd. RaniSchool of Business Management, Universiti Utara Malaysia
Mr Mathivannan JaganathanSchool of Business Management, Universiti Utara Malaysia
Miss Norzalila Jamaludin School of Business Management, Universiti Utara Malaysia
Editorial Board
Professor Dr M. Nauman FarooqiFaculty of Business & Social Sciences,
Mount Allison University, New Brunswick, Canada
Professor Dr Kiymet Tunca CaliyurtFaculty of Accountancy,
Trakya University, Edirne, Turkey
Professor Dr Diana KopevaUniversity of National and World Economy,
Sofia, Bulgaria
Associate Professor Dr Roshima SaidFaculty of Accountancy,
Universiti Teknologi MARA Cawangan Kedah, Malaysia
Associate Professor Dr Zaherawati ZakariaFaculty of Administrative Science and Policy Studies,
Universiti Teknologi MARA Cawangan Kedah, Malaysia
Dr Kamarudin OthmanDepartment of Economics, Faculty of Business Management,
Universiti Teknologi MARA Cawangan Kedah, Malaysia
Dr Kardina KamaruddinDepartment of Management, Faculty of Business Management,
Universiti Teknologi MARA Cawangan Kedah, Malaysia
Dr Azlyn Ahmad ZawawiFaculty of Administrative Science and Policy Studies,
Universiti Teknologi MARA Cawangan Kedah, Malaysia
e-ISSN: 2682-7840
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TABLE CONTENTSof
The Dynamic Capability Development through Learning Orientation: Malaysian International New Venture (INV) firmsAfifah Alwani Ramlee
Exploring The Factors Of Employee Retention In Bangladesh Private UniversitiesShamsel Arifin , Rafiduraida Binti Abdul Rahman
University Experience and Entrepreneurial Quality Development among Students in Malaysian Comprehensive UniversityShamsul Huda Abd Rani , Bidayatul Akmal Mustafa Kamil, Shamsul Hana Abd Rani
The Effect of Family-Spouse Adjustment on Expatriate Adjustment: Malaysia as a Host CountryNoor Hafiza Zakariya, Abdul Kadir Othman, Zaini Abdullah
The Role of Satisfaction as a Mediator on The Relationships Between Usage Intention and Word of Mouth of Islamic Bank Products and Their DeterminantsMaria Abdul-Rahman, Mona Fairuz Ramli, Ajay Chauhan
Demistyfing Consumer Purchase Intention For Remanufactured Auto PartsLoh Ka Chin, Normalisa Md Isa, Norkhazzaina Salahuddin, Khonder Suraiya Nasreen
Does halal logo influence Muslim purchase decision? A comparative study between extrinsic and intrinsic religious peopleWaida Irani Mohd Fauzi, Munirah Khamarudin ,Sany Sanuri Mohd Mokhtar, Maha Yusr
Examining Factors Influencing Malaysian Consumer Purchase Intention In Halal Cosmetic Products: A Conceptual FrameworkMunirah Khamarudin , Waida Irani Mohd Fauzi
Demystifying Customer Satisfaction Towards An Authorised Automobile Service CentreCho Sin Win, Normalisa Md Isa, Norkhazzaina Salahuddin, Arunnaa a/p Sivapathy, Afifah Alwani Ramlee
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11 - 19
20 - 30
31 - 38
39 - 51
52 - 60
61 - 68
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Voice of Academia 15 Special Issue August (1) 2019,
Does halal logo influence Muslim purchase decision? A comparative study between extrinsic and intrinsic religious people
Waida Irani Mohd Fauzi*, Munirah Khamarudin ,Sany Sanuri Mohd Mokhtar, Maha Yusr
School of Business Management, Universiti Utara Malaysia, Sintok, Kedah
ARTICLE INFO ABSTRACT
©2019 UiTM Kedah. All rights reserved.
1. Introduction
Halalcertificationhasarelativelyshorthistory,whichstartedinMalaysiainthe1980’sandexpandedtoothercountriesandalsotootherproductsandservicessince.Todaytherearemorethan400knownhalalcertificationbodies(HCBs).Asaresult,therearemanydifferenthalalstandards:localstandards(eitherdevelopedbyanationalstandardsdevelopmentbodyorbytheHCBitself),regionalstandards(e.g.theArabGulfCooperationCouncil’shalalstandard)andinternationalhalalstandards(IHIAllianceandSMIIC).TheHCBprovidesauditingandcertificationservicesforwhichitchargeseitherafixedoravolumebasedfee.Itisaproductcertification,addressingespeciallytheingredientsandproductionprocess,whichallowstheproducertoputahalallogooftheHCBontheproductpack-aging.InMalaysia,theauthorizedbodythatisresponsibleisJAKIM.ItbecomesasymboloftrustandthelogoofhalalbecomesanindicatorthattheproductispermissibleinIslam.However,certainMalayMuslimconsumersinMalaysiadonotplacestrongtrusttowardshalalcertificationlogo.Someofthemunabletoplace100%trustonhalalproductcertificate.Consumerinabilitytotrustthehalal
Recently , halal issues have been brought to the attention of Malay Muslim consumers. Some of them trust halal logo and some of them do not. Consumer action in purchasing a product is depends on their school of thought and the role of religiosity. Extrinsic religious people mostly trust halal logo in their purchasing behavior, however, intrinsic religious people have their own judgment and additional criteria in purchasing a product. There is a higher halal consciousness among them, when a halal logo is not become a primary indicator to determine halal status. Thus, this paper tries to investigate the significant relationship of halal logo towardsextrinsic as compared to intrinsic religious people in their purchasing decision. The study use mall intercepts approach to distribute a questionnaires. Result of the study reveals that, the extrinsic religious people have strong trust towards halal logo as compared to intrinsic people. Intrinsic religious people do not rely on halal logo itself but they put more trust on the owner of the store and they are more concern on the ingredients of the product and usually prefer muslim made product. The finding of this study may have an implication towards JAKIM who are trusted body in issuing halal logo.
Article history:ReceivedJune2019ReceivedinrevisedformAcceptedJune2019PublishedAugust2019
Keywords:Islamicbanking,perceivedvalue,reputation,usageintentions,wordofmouth
CorrespondingAuthor:[email protected]
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certificatenotsolelybecausetheydonottrusttheauthorizedbody(JAKIM)buttheyusuallydidnottrust themanufacturer.Somemanufacturersarecheatingafter theygethalalcertification, theydidnotfollowJAKIMguidelinesandtheychangethematerialsuseintheirproducttocutcost.Withthisissue, hence, religiosityorientationofMuslimconsumermayperceivedifferentbehavior towardshalalproductcertificate.Thus,theobjectiveofthispaperistoinvestigatetherelationshipbetweenhalal product certification and Malay Muslim consumer attitudes with the moderating effect ofreligiosityorientationinpatronizingIslamicretailstores.
2.0 Literature Review2.1 Defined halal
ThehalalstatusThehalalstatusoftheproductmustbestrictlyconfirmedasprescribedintheQuranandhadith(mainsourcesofIslamicjurisprudence).Bydefinition,halalcanbedefinedaspermissible,lawfulandwholesomeaccordingtoIslamiclaw.InMalaysiatoidentifythataproductis halal, a comprehensive halal food standard has developedwhich confirms that the product hasfollowedstandardprocedureofhalalfoodservicequalitywhichisclassifiedasMS1500:2004.Halalcanalsobedefinedasclean,healthyandtastier(Burgamann,2007).Specifically,halalproductsmustbefixedwithhalaldietarylawsorprescriptionfortheadvancementoftheirwell-being(IsmailandFatt,2004).
In theHolyQuran, halal is referred to as clean and hygienic. The halal product shouldconsistofhalalsourcesthatfollowSyariahlawandshouldnotcontainingredientssuchasgelatin,alcohol,orpigandanimalfats.Thehalalconceptisverybroad,andreferstothreecategories:food,lifestyles and services (Alserhan, 2010). In understanding the concept, halal in Islam meanspermissible (lawful), and haram means prohibited (forbidden) by Shariah compliance. By thisdefinition,halalmeansanythingthatisfreefromanycomponentthatMuslimsareprohibitedfromconsuming, and it is not simply “pork-free” but covers amultitude of forms such as emulsifiers,gelatins,enzymes,lecithinandglycerine,andalsoadditivessuchasstabilizers,flavorings,coloringsandbreadcrumbs(Kocturk,2002).
2.2 Halal Logo
BasedonMalaysia’sDepartmentofIslamicDevelopment(JAKIM-JabatanKemajuanIs-lamMalaysia), the halal guidelines are guided byQur’anic interpretations by the ImamsMaliki,Hambali,Syafie,andHanafi.Thecompleteguidelinesofhalal food,basedoncertaincriteriaandhighlightedbyJAKIM,are:
1)Doesnotconsistoforcontainanythingthat isconsideredtobeunlawfulaccordingto Islamiclaw. 2)Hasnotbeenprepared,processed,transportedorstoredusinganyapplianceorfacilitythat wasnotfreefromanythingunlawfulaccordingtoIslamiclaw,and 3)Hasnot,inthecourseofpreparation,processing,transportation,orstoragebeenindirect contactwithanyfoodthatfailstosatisfyitems1and2above.
Otherthanthat,JAKIMlistIslamiccriteriaregardingcertainaspectsthatmustbefollowed,suchas:
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2.3 The slaughter: TheslaughterofanimalsmustbeperformedbyaMuslimofsoundmindandmaturity,whofullyunderstandsthefundamentalsandconditionsrelatedtothisactivity.TheanimalmustbealiveatthetimeoftheslaughterandmustbeamongthosethatMuslimsareallowedtoeat.Theslaughtermustbedonewithasharpdevice–butnotsomethingmadeoutofbones,nailsorteeth–andtheanimal’srespiratorytract,esophagusandjugularveinmustbesevered.
2.4 Storage, display and preparation:
Processedfoodishalalifitisnotmadeupofordoesnotcontainpartsorby-productsofanimalsthatMuslimsareforbiddentoconsume.Itshouldnotcontainwhatthelawtermsas‘filth’,and should be prepared, processed and manufactured using untainted equipment. In preparation,processingandstorage,halalfoodshouldnotcomeintocontactwithorbeincloseproximitytothatwhichisnothalal.
2.5 Hygiene and sanitation:
The premises for manufacturing, preparing and selling food and drinks must be cleanand freeofelements thatmaycause infestation,orflies, rats, cockroaches, lizardsandother suchpests.Factoryworkersmustbehealthy,andwearclean,protectiveclothingtoavoidcontamination.Equipmentusedmustbewashedfrequentlytoensurecleanliness.Washroomfacilitiesmustalsobeclean.
2.6 Extrinsic and intrinsic religious
Religious orientation can be divided into twomotivational approaches towards religion:intrinsic and extrinsic . The intrinsic people aremore submissive and trusting of each other, areconservative,lessdominantandmoretraditionalincharacter(Essoo&Dibb,2004).Theyhavestrongconcernformoralstandards,havemorediscipline,andareresponsibleindividuals.
Intrinsic individuals relate to their need for structure, or a central focus of life. On theotherhand,extrinsicindividualsrelatetobeingflexibleandmoreadaptivetosituations.Intrinsicallyreligious people are described as those who put religion as their primary purpose in life. Theirobjectives in life arebrought in concordance to their religion expectations, and theyhavegreatermotivationtofollowreligiousteachingsandrulings.
For extrinsically religious people, religion is not the prime motivator in their lives.Nevertheless, they still hope for the benefit of religion in life, such as support in grief, socialacceptanceandstatus,ortoprovidejustificationinlife,suchaswhenfacinghardshipinlife.Forthem,religiousteachingsareselectiveandtimelyadoptedtosuittheirotherprimaryobjectivesinlife.
Thisisinlinewithpreviousstudiesthatfoundthatintrinsicallyreligiousconsumersaremoresubmissivetoothers,theyexhibitconscientiousnessandneedmoreconsistenciesintheirlife,whereextrinsically religious people aremore flexible, self-reliant, and pragmatic in nature.Usually, theintrinsicreligiouspeoplemayconsiderreligiousteachingsandrulingsastheirframeworkforlife,duetothestructureandconsistencyintheirlives.Ontheotherhand,extrinsicallyreligiouspeoplewillsearchforreligiousteachingstosuitproblematicmattersintheirlives.
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2.7 Religiosity and behavior
Recently,therehasbeenariseinthenumberofMuslimsinMalaysiawhohaveunderstoodandshowconcerntowardsIslamicteachingandpractices.Sincemostindividualsmakedecisionsonwhattobuyandwhatcriteriaareneededinbuyingaproduct,thepresentstudywouldexpectthatMuslimconsumerswouldfolloweveryguidanceofAllahand,thus,thepresentstudywouldassumetheamountofinfluenceIslamhasonthisaspectofMuslimlife.
The importance of understanding consumer behavior in their purchase decisions andbehaviorisimportantasitrelatestotheirstoreevaluativecriteriaandconsumerpatronagebehavior.Inthe1990’s,somescholarsrelateittoreligion,andreligiousaspectsofpatronagebehavior,astheybelieve it has a significant influence on customer behavior (Delener, 1990;McDaniel&Burnett,1990;Swimberghe et al., 2009).Religion is an important cultural factor to studybecause it is themostuniversalandinfluentialsocialinstitutionthathasasignificantinfluenceonpeople’sattitudes,values,beliefsandbehaviorattheindividualandsocietallevels.Moreover,religionisasetofbeliefsthatare taughtduringchildhoodandpeoplegraduallycommit to thereligionas theyhavegreaterunderstandingtowardsitsteachings(Mokhlis,2009).Interestingly,thismeansthatpeoplewhohavereligionwillhold tocertainvalues thatareable to influence theiractionsanddecisions. In Islam,religionisnotaculture,butitmustbeconsideredasawayoflifethatsetsaformofbehaviorthatiscalledIslamic.Peoplewhohavethestronginfluenceofreligionwillhavefaithintheirdailyactivities.
In the literature, there are several investigations on the relationship betweenreligiosity and consumer behavior. Religiosity influences several aspects of consumer lifestyles,whichmay affect choicebehavior.Peoplewithhigher religious commitments tend to be satisfiedwiththeirlives,theyhaveamoretraditionalsexroleorientation,andaremorelikelytobeopinionleaders(Wilkesetal.,1986).Inassessingstorepatrons,highlyreligiouspeoplearelesslikelytousecreditandmorelikelytoprefernationalbrandsandproducts.Theyareconservative,traditional,andmoreinsightfulandmaturethancasuallyreligiouspeople.Ontheotherhand,lessreligiouspeoplearemorefashionable,haveahigherconsciousnessofbrandnames,andselectstoreswithwell-knownbrands,preferinnovativeproductsandputahigherconsiderationonproductquality(Essoo&Dibb,2004).
2.8 Halal logo indicator is higher among extrinsic religiosity than the intrinsically religiosity in Muslim purchase decision.
Halal is originated from theArabicwords halla, yahillu,hillanwahalalan. In Islam halalmeans “permissible”or “lawful”whileharammeans forbidden. In Islam,halal is not specificallyrelated to food itself,however, it isapplied tootherproductssuchas toiletries,economicsystem,financeandinsurance; itcoversallaspectsofhumanlife.It isstatedintheQuranthatAllahs.w.tcommandsMuslimstoconsumeonlythingsthataregoodandhalal(16:114and23:51).
In order to protect the rights of Muslim consumers to obey their commandment inconsuminghalalproducts,certificationinstitutionshaveemergedinseveralcountriesintheworld.Some countries that have their own bodies handling halal clarification are Thailand, Indonesia,Singapore and Malaysia. In Malaysia one of the institutions responsible for halal clarificationstandards and certification is JAKIM. They are responsible to clarify thehalal status of different food, drinks and medicine which must be free from haram
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components.AsMuslimconsumersbecomemoresensitivetowardsthehalalstatusit is importantforgovernmentbodiessuchasJAKIMtoperformtheirresponsibilityaccurately.SeveraltasksandresponsibilitiesmustbeperformedbyJAKIMsuchasissuingahalalcertification.
Asdiscussed inprevious literature,differentbehaviors existbetweenextrinsic religiosityandintrinsicreligiosity.ExtrinsicreligiositywillobeyShariahprinciplesbasedonhukm;whereas,theintrinsicreligiouspeoplewillbeconcernedwithdeeperknowledgeofIslamicrulesthatpotraytheirworship toAllahs.w.t from thedifferentpointofview. Intrinsicpeopleperceivebeyond theShariahprinciples (syariahtullah); however, theygodeep inside Islamic teaching,which is calledsunnahtullah.Insyariat,Islamteachesusthehukmoftheactionbutifwegofurthersunnahtullahteachesusthewaytoachievehalal.Itisdescribedashukmsyarakversushukmwaraq.
Withthisunderstandingofintrinsicbehavior,theywillbemoreconcernedwithwhattheyeatandconsumebypurchasingfromtrustedresourcesandnotjustrelyonthehalallogo.Otherwise,theextrinsicallyreligiouswillsimplybesatisfiedwiththehalallogoasanindicatorintheirdecisionprocess.Duetotheadvancementinfoodtechnologytoday,therearevariousingredientswhicharenotclearinhalalandharamstatus.Intrinsicallyreligiouspeopleareconcernedtowardsthisissue.Someofthecodeandingredientsaresuspicioustothem,anditbecomesasyubhahproduct.Themostcommon are food additives, gelatin, emulsifiers and rennet of cheesemanufacturers.These kindsof resourceswill becomehalal if theprocess is according to Islamic laws.Nevertheless, intrinsicreligiositywillgobeyondthehalallogoinordertoensuretheproductishalal.
Hencethestudyhyphotesisthat: H1:Halallogohasapositivesignificantrelationshiponextrinsicreligiouspeopleas comparedtointrinsicreligious.
3.0 Research Method
Theresearchdatawerecollected inseveralstatesofMalaysiabyusingclustersampling.Thestudydecidedtouseclustersamplingasitisdifficulttolistpopulationelementsthatarecostlyorimpossible.Forexample,itmaynotbepossibletolistallofthecustomersofachainofIslamicretailstores.However,itwouldbepossibletorandomlyselectasubsetofstores(stage1ofclustersampling)andtheninterview(mallintercept)arandomsampleofcustomerswhovisitthosestores(stage2ofclustersampling).
For the purpose of this study, a simple random samplingmethodwas used to select tenpercent of the total Islamic retail store from the recent list of theMuslimConsumerAssociationknownasPPIM(PersatuanPenggunaIslamMalaysia).Thenextstepof thestudywas tocreateadirectoryofretailstoresinthespecifiedareas.Thereareapproximately114typesofstorelistedinvarious states inMalaysia as at 2012: Pahang (2), Kedah (3), Kelantan (3), Terengganu (3) andSelangor(3).Basedonthetotalnumberofstores,approximately14storeswereselectedrandomlytorepresentthesampleofthestudy.Thestudyonlyconsidered14storesasthesestoresmatchedthecriteriasuchaseasyaccessintermoflocation,theownerofthestoreisapproachable,safefortheresearchertoconductmallintercept,thestoreisestablishedandsustaininmorethanfiveyearsandthestoremustfulfilltheoperationaldefinitionofanIslamicretailstore.Then,asimplerandomsampleofcustomerswasselectedtoaccomplishthequestionnaires.
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4.0 Results
The result indicates that, apositive significant relationshipofhalal logoamongextrinsicreligiouspeopleascomparedtointrinsic.Botharestatisticallysignificantat0.05level.However,thebetavaluefortheextrinsicreligiosityishigherthanintrinsicreligiosity.Basedontheresult,thebetavaluethatexplainedhalallogoforextrinsicreligiouspeopleis(B=0.910)ascomparedtointrinsicreligiosity(B=0.280).HenceH1issupported,theresultalsoshowedthat,halallogotendstomorestronglyinfluenceextrinsicreligiousthanintrinsicreligiouspeopleinpurchasedecision.
5.0 Discussion and Conclusion
Itistobenotedthattheextrinsicreligiosityismoreconcernedabouthalalproductlogoinbuyingaproductascomparedtointrinsicreligiosity.Thehighervalueofhalal ingredientsamongtheintrinsicgroupissimilartopreviousresearch(ArshiaMukhtar,2012)inthestudyofhalalandreligiosity. As discussed in previous literature, different behaviors exist between extrinsicreligiosity and intrinsic religiosity. Extrinsic religiosity will obey Shariah principles based onhukm; conversely, the intrinsically religious peoplewill be concernedwith deeper knowledge inIslamic rules that portray their worship of Allah s.w.t. from a different point of view. TheirperceptionisbeyondnotonlyconsideredShariahprinciples(syariahtullah),theygodeepinsidetheIslamic teachingofsunnahtullah. Insyariat, Islamteachesus thehukmof theactionbut ifwegofurthersunnahtullahteachesusthewaytoachievehalal.Itisdescribedashukmsyarakversushukmwaraq.
Withthisunderstandingofintrinsicbehavior,therewillbemoreconcernofwhattheyeatandconsumebypurchasingfromtrustedresourcesandnotjustrelyingonthehalallogoandcertificate.Converselyextrinsic religiositywill simplybe satisfiedwith thehalal logoandcertificationasanindicatorintheirdecisionprocess.Duetotheadvancementinfoodtechnologytoday,therearevariousingredientswhicharenotclearinhalalandharamstatus.Withregardtointrinsicreligiositythereareconcernstowardsthisissue.Someoftheinformationandingredientsaresuspicioustothem,anditbecomesasyubhahproduct.Themostcommonarefoodadditives,gelatin,emulsifiersandrennetincheesemanufacture.Thesekindsofresourceswillbecomehalalifcomefromhalalresources.
In fact, the intrinsic religious individual showsmorepreference toward local brands andbecomes more ethnocentric to purchaseMuslim made products (Fam et al., 2004) and some ofthem do not have halal logo.Theywill acquiremoremarket information from the owner of thestoretoreduceuncertaintyandriskintheirpurchasingdecisions.Religiousindividualsmightadoptinformation-seeking to relieve theiranxietyat thepossibilityofanyunfavorableoutcomeof theirchoice decision (Delener, 1990) due to feeling less secure and lack of self-confidence in buyingdecisions.Inotherhands,theyaredependableandonlymaketheirpurchaseactivitiesfromtrustedresourcesandstores(Fauzi&Muhamad,2011).
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