Shaping Halal Into A Brand? Factors Affecting Consumers' Halal Brand Purchase Intention
Shaping Halal Into A Brand? Factors Affecting Consumers' Halal Brand Purchase Intention
Shaping Halal Into A Brand? Factors Affecting Consumers' Halal Brand Purchase Intention
To cite this article: Afzaal Ali, Adnan Ali & Mehkar Sherwani (2017): Shaping Halal Into a Brand?
Factors Affecting Consumers’ Halal Brand Purchase Intention, Journal of International Food &
Agribusiness Marketing, DOI: 10.1080/08974438.2017.1312657
Article views: 4
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JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING
http://dx.doi.org/10.1080/08974438.2017.1312657
ABSTRACT KEYWORDS
The authors’ aim was to find the possible positive relationships Brand image; brand loyalty;
among branding constructs (brand image, brand perceived brand satisfaction; brand
quality, brand satisfaction, brand trust, and brand loyalty) to trust; halal; Muslim
explain consumer purchasing behavior toward halal brands. The
authors proposed and empirically tested a conceptual model
consisting of variables such as brand image, brand perceived
quality, brand satisfaction, brand trust, and brand loyalty. A
sample of 324 international Muslim respondents in China
was gathered through the use of convenience and snowball
sampling methods, and the hypotheses were tested by
performing structural equation modeling. The empirical results
show that the brand image of a halal milk brand is found to
directly and positively affect consumer brand perceived quality,
brand satisfaction, brand trust, and brand loyalty except for
consumer brand purchase intention. This study suggests that
companies dealing with halal brands should invest more
resources to increase brand perceived quality, brand satisfaction,
brand trust, and brand loyalty because these factors are
positively associated with customers’ brand purchase intention.
CONTACT Afzaal Ali [email protected] University of International Business and Economics, Business
School, Huibin Building, No. 10, Huixin Dongjie, Chaoyang District, Beijing 100029, China.
Color versions of one or more of the figures in the article can be found online at www.tandfonline.com/wifa.
© 2017 Taylor & Francis Group, LLC
2 A. ALI ET AL.
The word halal is derived from Arabic and means “permissible, lawful, or
permitted by the Shariah (Islamic law)” (Wilson, 2014). The opposite of this
word in Arabic is haram, which means “prohibited or unlawful.” In this line
of definition of halal, a brand is considered a halal brand if it complies with
Shariah together with the above-mentioned brand qualities, stems from an
Islamic country or focuses on Muslim consumer as a target market (Alserhan,
2010b), or is recognized by halal standards internationally (Lada, Tanakinjal, &
Amin, 2009).
In the current study, we have many reasons to focus on the concept of halal
brand. First, the global Muslim population is approximately 1.6 billion (Ireland
& Rajabzadeh, 2011; Lada et al., 2009), which is now close to one-quarter of the
world’s population (Hanzaee & Ramezani, 2011); is equal to almost 23% of
the world’s population (Batrawy, 2014; Ireland & Rajabzadeh, 2011); and is
projected to increase at an annual rate of 26% to 28% by 2020 (Hanzaee &
Ramezani, 2011; Muhammad, Isa, & Kifli, 2009). Second, 57 countries in the
continents of Africa, Asia, and Europe with a majority of their population
who are Muslim are member countries under the platform of Organization
of the Islamic Conference (OIC), with a joint gross domestic product of about
US$8 trillion before 2008 (Alserhan, 2010b). Third, an international halal mar-
ket was estimated to be worth more than US$2.3 trillion in 2012 and expected
to increase to US$10 trillion by 2030 per figures released during the Halal
World Food Exhibition (Gulfood) (www.halalhighlights.com/HH%20Feb14.
html). Fourth, it helps businesses to enter untapped market segments by
adding value to its products in the competitive environment. Likewise,
McDonald’s in Singapore added 8 million customers a year after obtaining a
halal certification and offering halal food lines (Sabri, 2006). Last, sizeable
Muslim populations are living in non-Muslim countries; however, Muslim
consumers can access halal products in just some outlets (Dali, Nooh, Nawai,
& Mohammad, 2009). For example, Alserhan (2010a) stated that in the United
States, there are 90,000 kosher (Jewish-based) products worth nearly US$100
billion compared with just about 1000 halal products in the same market. These
facts cement the argument that there is significant demand for halal brands in
Muslim as well as non-Muslim countries and motivate businesses around the
globe to focus more on halal brands to secure maximum market share.
Furthermore, all of these reasons highlight nonattendance of the halal
market segment from researchers, marketers, and businesses, on the one
hand, and the huge potential of halal brands in the future, on the other hand.
In addition, few studies in food and nonfood contexts have investigated
consumer decision making within a religious framework (Ahmed, Al-Kwifi,
Saiti, & Othman, 2014; Bonne, Vermeir, Bergeaud-Blackler, & Verbeke,
2007; Hanzaee & Ramezani, 2011; Ireland & Rajabzadeh, 2011; Rahman,
Asrarhaghighi, & Rahman, 2015), and fewer have specifically focused on
the perspective of halal brands (Ahmad, 2013, 2015; Fitriati, 2012; Wilson
JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING 3
& Liu, 2010). However, none of the empirical research has been done on the
validity of the interrelationships among various branding constructs such as
brand image, brand perceived quality, brand satisfaction, brand trust, and
brand loyalty in a holistic framework to confirm whether these branding
constructs also work for the halal brand in the same way to gauge consumers’
halal milk brand purchase intention. Halal is not merely a brand element for
Muslims; instead, it is part of a belief system and moral code of conduct, inte-
gral in daily living (Wilson & Liu, 2010). The reason might be because halal
branding has not been researched much and it is assumed that branding works
in the same way as in the West (Ahmad, 2015). To address and understand
these issues, the present research is a first attempt that proposes a framework
to explore the possible positive relationships among branding constructs
(brand image, brand perceived quality, brand satisfaction, brand trust, and
brand loyalty) to explain consumer purchasing behavior toward a halal brand.
(2001) revealed that if there is congruence between the brand image and cus-
tomers’ self-image, this relationship would enhance customer satisfaction and
customers’ preference for the brand. Furthermore, studies in marketing have
claimed that brand image is beneficial to enhance consumer satisfaction with
a brand in both product and service categories (Aaker, 1991; Chien-Hsiung,
2011; Tu, Wang, & Chang, 2012). According to this argument, it is expected
that a favorable brand image will increase customer brand satisfaction.
Hypothesis 2: The brand image of a halal brand is positively associated with
customer brand satisfaction.
and loyalty have reported that trust is a key determinant of brand loyalty. For
instance, Chaudhuri and Holbrook (2001) conducted a study by using the
aggregate-level, brand-specific data for 107 brands from three separate sur-
veys of consumers and brand conducted in three phases. They have found that
brand trust is significantly associated with customer loyalty along with value.
Similarly, Fournier (1998) and Urban, Sultan, and Qualls (2000) mentioned
that trust is essential in building strong consumer-brand relationships, and
it is positively related to brand loyalty (Lau & Lee, 1999). Similarly, ample
research has established the role of trust in developing purchase behavior
including purchase intentions (Chen & Chang, 2013; Kang & Hur, 2012).
Given these results, we posit the following hypotheses:
Hypothesis 10: Customer brand trust of halal brand is positively associated
with customer brand loyalty.
Hypothesis 11: Customer brand trust of halal brand is positively associated
with customer brand purchase intention.
Methods
Sampling and data collection
Data were collected from international Muslim students from 17 countries
who were currently studying at 25 universities based in 15 cities of China
and had purchased or were intending to purchase halal brand of milk. A
questionnaire approach was used in this research, and students were asked
to answer a questionnaire consisting of two parts. Part I seeks student percep-
tions of halal milk brand image, brand perceived quality, brand satisfaction,
brand trust, brand loyalty, and brand purchase intention. Part II asks for
10 A. ALI ET AL.
Stimuli
China is a non-Muslim country, and Muslim students in China mostly
buy branded milk containing the halal symbol or logo due to the religious
sensitivity of this matter for Muslims. Therefore, we requested
respondents to consider their current halal milk brand while filling out our
questionnaire.
Measurement of variables
The current research referred to previous studies to design questionnaire
items in the halal branding context. Also, the researchers adapted already
developed, validated items of scales, and the language of items was to some
extent customized to make the language understandable. As the questionnaire
was modified, a pilot study was conducted to test the suitability of the instru-
ments used in this study. A total of 30 questionnaires, apart from the sample
size, were collected from target respondents and analyzed, to test respondents’
level of comprehension of modified questionnaire items and to secure high
levels of reliability and validity. After the pilot test, 324 students agreed to
participate and were retained. The measure of brand image consisted of four
items, and brand satisfaction with three items was adapted from previous
studies (Chen, 2010; Kang & Hur, 2012; Mourad & Ahmed, 2012). A measure
of brand perceived quality was based on four items adapted from the study of
Pappu and Quester (2006). Similarly, the current study measured brand
loyalty with four items (Chaudhuri & Holbrook, 2001; Kang & Hur, 2012).
Finally, purchase intention was measured with two items, adapted from
Summers, Belleau, and Xu (2006). Moreover, a 5-point Likert scale
(1 = strongly disagree, 5 = strongly agree) was used for all the Part I questions.
JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING 11
Table 1. (Continued).
f %
Wuhan 4 1.2
Xi’an 4 1.2
Zhenjiang 4 1.2
Marital status
Single 216 66.7
Married 108 33.3
Education
Bachelor 44 13.6
Master 132 40.7
Ph.D. 136 42.0
Any other 12 3.7
Home country
Bangladesh 8 2.5
Canada 4 1.2
France 4 1.2
Germany 4 1.2
Ghana 4 1.2
Indonesia 8 2.5
Iran 4 1.2
Jordan 4 1.2
Kenya 4 1.2
Malawi 4 1.2
Malaysia 4 1.2
Maldives 4 1.2
Nigeria 4 1.2
Pakistan 248 76.5
Somalia 4 1.2
Tajikistan 8 2.5
Tanzania 4 1.2
Method of analysis
We used the two-step approach suggested by Anderson and Gerbing (1988)
to test the proposed hypotheses. In a first step, we used confirmatory
factor analysis (CFA) to test the measurement model to confirm
whether the measurement constructs are unidimensional and reliable.
Moreover, to assess the model with regard to model fit and model parsimony,
all constructs were allowed to intercorrelate freely without attribution of a
causal order. In a second step, this study used structural equation modeling
(SEM) to test whether the hypothesized causal relationships exist among
the constructs.
perceived quality, satisfaction, trust, and loyalty fully mediates the effect of
halal brand purchase intention.
Moreover, brand perceived quality has a positive impact on brand satisfac-
tion (B = .31; CR = 4.90; γ = .324**) and brand purchase intention (B = .15;
CR = 2.38; γ = .311**), thereby supporting hypotheses 6 and 7. Compared with
the perceived quality–purchase intention path, perceived quality–satisfaction
path has the greater coefficient, which suggests that perceived quality of halal
milk brand is critical for customer satisfaction. From the results, high perceived
quality of halal milk brand is understood to be significantly important in deter-
mining customer satisfaction and customer purchase intention for halal milk
brand. Also, brand satisfaction appeared to have a significant and positive
influence on brand trust (B = .20; CR = 2.74; γ = .155**) and brand purchase
intention (B = .17; CR = 2.41; γ = .230**), supporting hypotheses 8 and 9. In
terms of relative contribution, brand satisfaction appeared as a stronger direct
predictor of brand trust rather than purchase intention in the halal milk brand
case, which implies that customer satisfaction with halal milk brand acts as an
important factor to enhance his/her trust of the halal milk brand. This show
when a customer perceives that a halal milk brand quality is superior, his/her
trust and purchase intention increase.
Similarly, there is a strong support for the hypotheses of the influence of
brand trust on brand loyalty (hypothesis 10; B = .18; CR = 2.52; γ = .221,
p < .01) and brand purchase intention (hypothesis 11; B = .18; CR = 2.35;
γ = .288, p < .01). In terms of effect size, brand trust contributes equally to
brand purchase intention and brand loyalty. This finding signifies that the
more trust a customer has in a halal milk brand, the greater loyalty and pur-
chase intention he/she has with halal milk brand. Finally, brand loyalty is
positively and significantly correlated with halal milk brand purchase inten-
tion (B = .15; CR = 2.07; γ = .173, p < .01), supporting hypothesis 12. In terms
of effect size, brand loyalty has a significant direct effect on brand purchase
intention. So, it can be stated that customers’ high level of loyalty with halal
milk brand will persuade them to purchase halal milk brand.
18 A. ALI ET AL.
Discussion
Although prior research has widely discussed traditional branding issues, to
some extent, a few recent studies (Ahmed et al., 2014; Alam and Sayuti,
2011; Bonne et al., 2007; Khalek, 2014) have explored the relationship among
several halal foods constructs. However, there has been no study that explored
the branding constructs in the halal framework and developed an integrated
JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING 19
storage, or packaging, milk may become mixed with haram ingredients and
make it haram.
Moreover, religious associations attached to halal foods probably make
buying decision more important for Muslim consumers, leading to a different
decision-making process (Ahmed et al., 2014; Bonne et al., 2007). Therefore,
consumers consider it more important to get halal milk brand perceived qual-
ity and/or to be satisfied with halal milk brand and/or to have a trust on halal
milk brand and/or to be a loyal consumer of halal milk brand before making a
purchase decision besides with brand image of any food product. Therefore,
consumers consider it more important to get halal milk brand perceived qual-
ity and/or to be satisfied with halal milk brand and/or to trust halal milk
brand and/or to be a loyal consumer of halal milk brand along with brand
image before making a purchase decision. In addition, this will help compa-
nies to integrate the positive image of the halal brand with their purchase
decisions.
Several implications can be drawn from the results of this study that may
help the marketers to develop suitable strategies for halal brands and their
purchase. First, current study results have proved empirically that there are
direct and indirect relationships among branding constructs even in halal
branding just like in traditional food and nonfood contexts. Results show that
an established brand image adds to consumer perception of brand perceived
quality, brand satisfaction, brand trust, and brand loyalty, which, in turn,
ultimately enhance consumers’ halal brand purchase intention. Thus, it is evi-
dent that establishing strong brand image helps the halal brand to develop its
brand perceived quality, consumer satisfaction, consumer trust, and consumer
loyalty and indirectly to enhance consumer base. This implies to company
managers that they should attempt to market the important idea of the brand
image through advertising and/or various promotional techniques to grab the
local as well as the international market share of halal food. Right now, the
Muslim population is approximately 1.6 billion (Ireland & Rajabzadeh,
2011; Lada et al., 2009), almost one-quarter of the world’s population
(Hanzaee & Ramezani, 2011), and the halal market total worth is expected
to increase to US$10 trillion by 2030 (www.halalhighlights.com/HH%
20Feb14.html). These figures show the size and potential of the halal market
segment to halal businesses. In short, a halal food company can market its
products directly to 57 Muslim countries in the world. All that is needed is
to establish a strong brand image in the market through halal branding and
by producing halal food in an hygienic environment fully following Islamic
practices and later establishing the best halal value chain to deliver products
to final consumers. To conclude, organizations with the favorable brand
image, excellent brand perceived quality, increased brand satisfaction, more
brand trust, and high brand loyalty have every possibility to leverage their
success in getting a significant share of halal markets.
JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING 21
industry into different areas, such as dairy, meat, drinks, etc. to understand
the full consumer decision-making process and the tradeoffs consumers face.
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