Determinants of Purchase Intention of Halal Cosmetic Products Among Generation Y Consumers
Determinants of Purchase Intention of Halal Cosmetic Products Among Generation Y Consumers
Determinants of Purchase Intention of Halal Cosmetic Products Among Generation Y Consumers
https://www.emerald.com/insight/1759-0833.htm
Determinants
Determinants of purchase of purchase
intention of halal cosmetic intention
Abstract
Purpose – Halal cosmetic products are considered as innovation and revolution in the cosmetic industry as
they offer high-quality products that follow the halal compliance and meet the strict scientific guidelines.
However, halal cosmetic brands are still facing challenges in their positioning and are unable to identify how
to encourage customers to buy. Although there is an increasing awareness towards the use of halal cosmetics
among the Generation Y consumers, the factors that might stimulus their purchase intention of halal
cosmetics is still ambiguous. Besides, there is a lack of well-established study on the role of religious belief as
a predictor to Generation Y consumers’ purchase intention. To address the gap, this study aims to propose a
model to reveal the distinctive factors that influence the purchase intention of halal cosmetics among
Generation Y in Malaysia.
Design/methodology/approach – The population for this study consisted of Generation Y consumers.
A closed-ended questionnaire was used for data collection from a sample of 262 respondents. The proposed
model was tested using partial least squares structural equation modelling.
Findings – This study discovered that ingredient safety followed by the halal logo is very important
predictor for the purchase intention of halal cosmetic products among Generation Y consumers. Unexpectedly,
this study finds that religious belief plays the least important role in purchase intention.
Research limitations/implications – This study fills the gap in the theory of planned behaviour (TPB)
by improving its limitation through considering the unbiased determinant of behaviour i.e. religious belief.
Practical implications – This study recommends cosmetics companies to position their products based
on the importance of safety ingredient with halal logo as unique attributes of the product. It also suggests
marketers to understand the right promotion strategy to be used in targeting the right market segment.
Originality/value – TPB is only based on cognitive processing and it ignores one’s needs/motivations
prior to engaging in certain behaviour. Hence, this study looks into religious belief as a means of motivation
and one of the important determinants of TPB.
Keywords Ingredient, Logo, Promotion, Religious belief, Purchase intention, Halal,
Cosmetic products
Paper type Research paper
Introduction
The demand for cosmetic products is dramatically increasing and revenue in the segment
amount to $402m in 2020 (Statista.com, 2019). A research company reported that 95% of
millennials like to use cosmetics and usage of cosmetics is no longer limited to women only.
In fact, a study found that millennial men are almost as likely as women interested in
cosmetic products (Marketing Charts, 2017). Young generation nowadays is more prone to Journal of Islamic Marketing
purchasing high-quality cosmetic products that assure safety (Swidi et al., 2010). This is © Emerald Publishing Limited
1759-0833
because of the concern that many cosmetic products nowadays are containing ingredients DOI 10.1108/JIMA-11-2019-0248
JIMA that are made of alcohol, collagen gelatine and lactic acid that can build up in blood stream
and eventually harm the body (Mukhtar and Butt, 2012). There are a number of
international brands that are suspicious of using those harmful ingredients and selling to
consumers.
Halal cosmetic products are considered as an innovation and revolution in the cosmetic
industry as they offer high quality of products that follow halal compliance. Cosmetics are
considered halal only when the ingredients fulfil requirements according to Sharia and
ingredients such as alcohol and substantial derived from animals are free and have no
chance to be used in the preparation of the cosmetic. Halal cosmetics meet beyond religious
requirements because they have to follow strict scientific investigation to come up with a
product that is pure, safe and use the best natural ingredients. Hence, halal is not always just
an assure product that is approved for Muslims; it turns into a global image for first-rate
guarantee and life-style choice (Lada et al., 2009; Wilson and Liu, 2010, 2011). As such even
non-Muslims can be attracted to consume the halal cosmetics products.
The worldwide Muslim populace of more than 1.8 billion, tons of hobbies in growing
halal merchandise and industry appears to come from non-Muslim international locations.
According to a Global Islamic Economy report, halal cosmetics industry continues to
expand as long as products produced are halal certified. Statistics showed that Muslims’
spending on cosmetics is estimated to increase from $61bn in 2017 to $90bn by 2023.
Malaysian beauty and personal care industry is still conquered by worldwide beauty giants
with a market share of 60% and Malaysia’s export value for halal cosmetics and private care
is RM 1.7bn, which is 5% of global halal market (Ministry of International Trade and
Industry [MITI], 2017). Despite the fact that a significant portion of the Malaysian total
consumers are Muslims, halal beauty products are yet to generate a widespread impact
within the beauty industry because of the number of motives.
Studies on halal branding have been growing fast but attention on young Muslim
consumer perspective on halal branding is limited. Wilson (2019) highlighted that halal
branding is not just sticking a halal logo on the packet but it is also ingredient branding that
gives full trust to the buyers. Malaysia has emphasised the halal branding through certified
halal logo and approved ingredients. While past studies have been done to explore the
ingredients and logo as an important factor for purchase intention of Muslim consumers in
general, the impact of promotion factors towards halal cosmetics is still in argumentative
stage (Benyahia, 2018). Besides, there is a lack of well-established study on the role of
religious belief as a factor to influence young Muslim consumers nowadays. Hence, there is
an urgent call to study the impact of religious belief on young consumers’ behaviour (Abu-
Alhaija et al., 2018). To address the gap, this study proposes a model to reveal the significant
predictors of purchase intention of halal cosmetics products among the Generation Y in
Malaysia.
Literature review
Malaysian cosmetic industry has contributed billions of Malaysian ringgit in annual sales
and is growing rapidly at 15% annually because of prodigious demand for premium
products (Malaysia External Trade Development Corporation [MATRADE], 2012). Young
generation nowadays is educated and independent and is capable enough to purchase
cosmetic products by using their own money. Most importantly, cosmetic products provide
plenty of benefits to the consumers by giving them a sense of confidence, a whole new look
and much more aspects (Khraim, 2011). Because of this, an increase in beauty products can
be observed in Malaysia. Nevertheless, the vast majority is stressed over different issues
concerning cosmetics and thus consumers tend to be extra careful when making their
choices. This has happened when many new manufacturers of cosmetics in the marketplace Determinants
are competing for demand and popularity. of purchase
intention
Theoretical foundation
The theory of planned behaviour (TPB) assumes that the best prediction of one’s conduct is
inquiring as to whether he/she is aiming to carry on with a particular goal in mind. There
are three determinants that predict behavioural intention which are attitude, subjective
norm and perceived behavioural control (Ajzen, 1991). This theory explains a character’s
performance of sure behaviour is resolute via his or her purpose to carry out that behaviour
or action. Although, this theory is being used to examine the behaviours of consumers,
generalisation of the theory in relations to halal cosmetics product specifically among
millennials could not be assumed. Researchers such as Ali et al. (2018) critiqued that
purchase behaviour changes depending on target market group and the situation. He
suggested that further empirical justification and extensions are crucial for generalisability
of applying TPB model. For instance, a study done by Pratiwi (2018) revealed that customer
attitude and perceived behaviour control significantly influence purchase intention of young
Muslim consumers in Papua; however, subjective norms do not have any impact.
Referring to the past studies, researchers advised that interpretation on the factors of
TPB model should be cautious. Besides, these findings were based on the biased
determinants of behaviour intention of TPB model and ambiguous to conclude general
behaviour process of customers. Furthermore, determinants of TPB are broad factors and
unable to interpret in meaningful way. The objective of the study is to revise the
determinants of TPB model and extend the findings by looking at alternative factors that
reflect to halal context of the study.
Limitation of TPB is only based on cognitive processing and ignored one’s needs/
motivation prior to engaging in certain behaviour. Hence, this research looks into religious
belief as a means of motivation and one of the important determinants of TPB.
Proposed model
The study uses the TPB to develop the framework. According to the theory, consumer
behaviour intention is impacted by attitude, subjective norm and perceived behavioural
control. The attitude means evaluation towards an object and attitude for this study refers to
customer attitude towards ingredient safety and halal logo (Khalek, 2014). Subjective norms
mean the extent to which other people’s opinion is approved and subjective norms for this
study refer to promotional influence (Ho et al., 2015). Perceived behaviour control means
difficulty or ease in performing the behaviour and perceived behaviour control for this study
refers to religious belief (Mutmainah, 2018). Research framework proposes that ingredient
safety, halal logo, promotional influence and religious safety are the determinants of
purchase intention of Generation Y consumers. The relevance of TPB in halal context helps
to explain the purchase intention in a more meaningful way. As such, this study tends to
discover the most significant factors that influence purchase intention of halal cosmetics by
testing the following hypotheses. Figure 1 shows the proposed framework of purchase
intention of halal cosmetics.
Methodology
According to the Halal Directory by Halal Industry Development Corporation Malaysia,
there are 26 companies registered under the cosmetics business category. Among which, 3
are under the skincare category and 124 are under the beauty category (Badarudin, 2019).
Among the top home-grown brands in halal cosmetics and skincare are dUCk Cosmetics,
SimplySiti, So.Lek, Nurraysa, Pretty Suci and ElhajjHalal Skincare (Badarudin, 2019). This
study investigates the perspectives of young consumers’ purchase intention on both
skincare and beauty care products of local and foreign brands. The population of the study
are young Muslim consumers in Malaysia as the estimated young population is 14 million
out of 32.4 million who are aged between 15 and 40 years (Department of Statistics
Malaysia, 2018).
The targeted population of the study belongs to Generation Y group, who are sceptical
and concerned about their look and appearance. They are the selfie generation and they put
an effort to present an ideal self (Ma et al., 2017). According to the study done by Ma et al.
(2017), the finding reveals that high percentage of selfie takers wear makeup and hence their
behaviour links to grooming rituals and both men and women see personal grooming as a
necessity.
The study was conducted using survey method among 300 undergraduate students from
various programs at private universities in Malaysia. Data were collected over an eight-
week period, using a close-ended questionnaire. Convenience sampling method was used
and a total of 262 usable questionnaires were analysed. There are a total of 21 items to
measure the 5 variables and the required sample size is 5 multiply by 21, i.e. 105. Hence the
sample size for this study meets the requirement (Ferdinand, 2005). The instruments used to
measure each of the constructs in the questionnaires were multi-item scales which have been
adopted from the past studies and improved to fit in the context of the study. The items for
religious beliefs were adapted from Salman and Siddiqui (2011); the items for ingredients
Religious belief
Ingredient safety
Purchase intention of
Generation Y
Figure 1.
Halal Logo Proposed research
framework on
purchase intention of
Promotion halal cosmetics
among Generation Y
JIMA safety are taken from Lada et al. (2009); the items for halal logo and purchase intention are
adapted from Aziz and Chok (2013); and finally, the promotional influence items are adapted
from Shaari and Arifin (2010). Prior to the survey, a pilot study was conducted to check the
reliability and validity of the instrument. Finally, as the nature of this examination was
confirmative, partial least squares structural equation modelling (PLS-SEM) was used for
information investigation and hypotheses testing proposed by different researchers (Hair
et al., 2017; Rönkkö and Evermann, 2013).
Measurement modelling
The purpose of assessment of the measurement model was to evaluate the relationship
between each indicator and its related construct, as well as to ensure that each construct is
distinct from the others. As all constructs in this study were operationalised in reflective
mode, thus, several tests were used to examine these concerns, and acceptable results were
obtained. The “Rule of Thumb” for assessing the reliability and validity in PLS-SEM is
presented in Table 1. These criteria were followed throughout the analysis.
The result for the measurement model is presented in Table 2. It shows that the
measurement model has achieved all the required value to proceed with further analysis.
Structural modelling
In this study, PLS-SEM was used to recognise the structural relationships between different
variables and their effects and to test hypotheses for this study. A five-step procedure is
used to assess the structural model which includes assess for collinearity, path coefficient
( b ), R-square (R2), effect size (f2) and the predictive relevance (Q2) as suggested by Hair et al.
(2017).
The first step is to test the collinearity statistics among the constructs in the structural
model. According to Hair et al. (2017), the variance inflation factor (VIF) values should
be # 5. In this study, the VIF values range from 1.246 to 4.588, which suggest that there
were no collinearity issues in the model.
The second step is to assess the path coefficient to evaluate the significance of the
hypothesised relationship among the constructs. The results indicate the path coefficient
between religious belief and purchase intention is 0.223. The path coefficient between
promotions and purchase intention is 0.242. Moreover, the path coefficient between halal
logo and purchase intention is 0.251. Finally, the path coefficient between ingredients safety
and purchase intention is 0.263.
The third step is to assess the coefficient of determination (R2). The most used method for
evaluating the coefficient of determination in PLS-SEM is R2 value (Hair et al., 2017). The
authors further noted that R2 values of 0.75, 0.50 or 0.25 for dependent variable in the
structural model could be described as substantial, moderate and weak, respectively. The R2
What to check? What to look for in SmartPLS? Where is it in the report? Is it OK?
Reliability
Indicator reliability “Outer loadings” numbers PLS – Calculation Results – Outer Square each of the outer loadings to find the
Loadings indicator reliability value
Value of 0.70 or higher is preferred. If it is an
exploratory research, 0.4 or higher is acceptable
(Hair et al., 2011)
Internal consistency reliability “Reliability” numbers PLS – Quality Criteria – Overview Composite reliability should be 0.7 or higher. If
it is an exploratory research, 0.6 or higher is
acceptable (Hair et al., 2012a, 2012b)
Validity
Convergent validity “AVE” numbers PLS – Quality Criteria – Overview It should be 0.5 or higher (Henseler et al., 2015)
PLS – Quality Criteria – Overview (for
the AVE number as shown above)
Discriminant validity “AVE” numbers and latent PLS – Quality Criteria – Latent Fornell and Larcker (1981) suggest that the
variable correlations Variable Correlations “square root” of AVE of each latent variable
should be greater than the correlations among
the latent variables
Table 1.
validity
reliability and
Rule of thumb for
intention
JIMA Factor Cronbach’s Discriminant
Constructs Items loadings alpha CR AVE validity
value for purchase intention is 0.308 that fall within the moderate level (refer to Table 3
below).
Step four includes a further investigation of the prediction size between the predictor
variables and the dependent variable (Hair et al., 2017). f2 is used to measure the effect size of
the endogenous constructs for the model. According to Cohen (1988), the minimum effect
size to be considered is 0.02. This means that anything less than this has no effect on the
endogenous constructs for the model. The f2 value for the study model is presented in
Table 3. For this study, all the values fall within the acceptable range.
The fifth step concerns the assessment of the predictive relevance (Q2). Hair et al. (2019)
further suggested using predictive relevance Q2 value to evaluate the predictive accuracy of
the model. According to the authors, Q2 values larger than zero indicate predictive relevance
to the model. In this study, the Q2 value for purchase intention is 0.165 which is greater than
zero (Figure 2).
R2 f2 Q2
Figure 2.
Structural model of
the study
The bootstrapping option was used to examine the structural path significance. This
option in PLS-SEM helps the researcher to conduct the analysis from a nonparametric
view point rather than relying on the parametric significance (Hair et al., 2017). This
procedure helps to generate a large number of subsamples as a replacement of the
original samples to test coefficients for their significance. Figure 1 shows the structural
model after bootstrapping. In this study, for best result, the sample was increased to
5,000 as suggested in past literatures (Barclay et al., 2015; Benitez et al., 2019; Chin,
2010; Hair et al., 2017; Wong, 2013).
According to Hair et al. (2017), the t-values should be 1.96 to be statistically
significant. The findings in Table 4 shows that the all the t-values are statistically
significant as these are well above the required value of 1.96. It can be seen that
ingredient safety (p < 0.000 and t = 5.165), halal logo (p < 0.000 and t = 4.573),
promotion (p < 0.000 and t = 4.308) and religious belief (P < 0.000 and t = 4.272) have
positive impact on purchase intention. Among all the variables, ingredients safety has
the most impact on purchase intention, followed by halal logo, promotion and religious
belief. Therefore, all the hypotheses have been accepted in this study. The summary of
the hypotheses is presented in Table 5.
JIMA Discussion
This study provides sensible contributions by evaluating the factors affecting purchase
intention of halal cosmetic among Generation Y Muslim consumers in Malaysia. The
findings of the research unveiled that ingredient safety followed by halal logo has the
significant impact on purchase intention of halal cosmetics among young consumers in
the context of Malaysia. The finding adds the contribution to existing studies by confirming
that ingredient safety and halal logo are the two most important factors in purchase
intention (Shaari et al., 2019). Surprisingly to the fact that even non-Muslims consumers
nowadays are looking at ingredient safety of cosmetic products that are environment
friendly (Noreen and Eta, 2013). This is because consumers would purchase a product that is
good for their health, where in this context of study, a product that is pure and safe for their
skin. Initially, consumers will refer to the packaging of the beauty product to search the
information on the label before figuring out to purchase and use (Hashim and Rosidah,
2014). However, it would be insufficient justification if the product is a form of natural
resources with no halal logo in the content.
In addition, finding somehow reveals that promotion plays third-important role in
purchase intention among young Muslim consumers. Although, previous findings from
purchase intention of halal products in Pakistan (Hayat et al., 2015) and Turkey (Varinli
et al., 2016) stated that promotion is one of the most important factors; findings from
Thailand (Syukur and Nimsai, 2018) revealed that promotion does not influence the
purchase intention. Findings from this study contribute to the existing literature by stating
the importance of promotion on purchase intention depending on the context of the study
(Abu-Alhaija et al.,2018).
Unexpectedly, the study finds that religious belief plays a least important role in
purchase intention of halal cosmetics among young consumers and somehow current
finding aligns with past study (Hayat et al., 2015) in which religious belief ought to be less
Conclusion
The research has concluded that findings from this study provide a different approach for
understanding the triggers of the purchase intention on halal cosmetics products among the
Generation Y consumers in Malaysia. The most important conclusion that may be drawn
from this study was that the ingredients and halal logo have a significant impact on
purchase intention. Unexpectedly, religious belief has least impact on purchase intention of
Generation Y consumers. Regardless of degree of religious belief, young consumers are still
looking for cosmetics that provide greater protection of consumer health and safety.
Therefore, future study is needed to scrutinise non-Muslim consumer’s awareness in depth
towards halal cosmetics products. Finally, the relevancy of halal subject needs to have a
continuous research to promote and introduce halal in a bigger variety and for the
JIMA consumers around the world to acknowledge the importance of halal especially, halal
cosmetic products.
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