Shaping Halal Into A Brand? Factors Affecting Consumers' Halal Brand Purchase Intention

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Journal of International Food & Agribusiness Marketing

ISSN: 0897-4438 (Print) 1528-6983 (Online) Journal homepage: http://www.tandfonline.com/loi/wifa20

Shaping Halal Into a Brand? Factors Affecting


Consumers’ Halal Brand Purchase Intention

Afzaal Ali, Adnan Ali & Mehkar Sherwani

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

To link to this article: http://dx.doi.org/10.1080/08974438.2017.1312657

Published online: 08 May 2017.

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JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING
http://dx.doi.org/10.1080/08974438.2017.1312657

Shaping Halal Into a Brand? Factors Affecting Consumers’


Halal Brand Purchase Intention
Afzaal Alia, Adnan Alib, and Mehkar Sherwania
a
University of International Business and Economics, Beijing, China; bXi’an Jiaotong University,
Xi’an, China

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.

A brand is defined as a toolbox of marketing that helps to differentiate one


product from other products to satisfy the same need of customers (Aaker,
1996). Brand attributes guarantee a trustworthy performance promise for
consumers (Batey, 2009), and it adds value to a product and gives meaning
to consumption. Thus, brands provide the basis on which consumers can
identify and bond with a product (Weilbacher, 1995) to present personal
stories about their lives and identities as well as to position themselves in
relation to culture, society, and other people (Heding, Knudsen, & Bjerre,
2009). A successful brand is an identifiable product; augmented in such a
way that it provides a means of choice for consumers (Temporal, 2001) in
addition to lead them to reveal their behavior (Gelder, 2003). Worldwide,
many consumers (e.g., Muslim consumers) look for a brand (halal brand) that
fully adheres to their some definite values, customs, and practices.

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.

Literature review and hypotheses development


Conceptual understanding
Among proposed branding constructs, we believe the brand image has the
most significant influences on customer purchase decision. The primary
reason is that concept of halal is a purely religious issue (Bonne et al., 2007),
and it is a prerequisite for any food to become halal before other purchase con-
siderations (Ahmed, 2008), such as price, quality, convenience, etc. At the start
of the buying process, if a specific brand portrays the halal image to potential
customers, then they can decide whether to buy it based on other factors.
One of the possible theoretical explanations can be drawn from the associ-
ative memory network model. By using the associative network memory
model, researchers have explained that human memory consists of associative
networks (Anderson, 1976; Wyer & Srull, 1986) and there are several nodes in
each associative network. These nodes are the stored information in human
memory, and they are linked to each other in one way or another (Keller,
1993). An activated node stimulates the most strongly associated node more
than a less associated node (Collins & Loftus, 1975). As a result, strongly
associated information in an established memory network is more likely to
be recalled than is less strongly associated information. In the concept of halal
branding constructs, there may be several separate nodes, such as halal brand
image, its perceived quality, satisfaction, trust, and loyalty. The first node
signal to the rest of the nodes separately and altogether as illustrated in
Figure 1. If a brand claims to be halal, other linked nodes such as brand
perceived quality, brand satisfaction, brand trust, and brand loyalty might
be activated in the consumer’s mind to persuade the consumer’s halal brand
purchase intention.
4 A. ALI ET AL.

Figure 1. Conceptual framework.

Alternatively, brand signaling theory specifically helps in explaining why


the halal brand image can significantly influence the consumer’s perception
toward brand perceived quality, brand satisfaction, brand trust, and brand
loyalty to motivate a customer to purchase halal food. In the case of halal
food purchasing, consumers usually face the situation with information
asymmetry. All halal food sellers claim to be halal, but only they know if they
are really halal. In this situation, with information asymmetry, it is worthwhile
for organizations to portray their brand image as a halal brand, thus believably
transferring halal brand information to the consumers and resolving the
asymmetry.
We further discuss the implications of suggested constructs in the field of
halal branding and developed a research framework to explore the relation-
ships among branding constructs that can enhance customers’ halal brand
purchase intention. Moreover, this study focused on finding the correct view-
point and evaluation for new concepts of halal branding in compliance with
the halal food trends to increase consumers’ responses toward halal brands.

Impact of brand image on brand perceived quality


Brand image has been defined as the reasoned or emotional perceptions con-
sumers attach to specific brands (Low & Lamb, 2000). Keller (2003) viewed
brand image as the perceptions about a brand held in the consumer’s memory
JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING 5

as reflected by the brand associations. Cretu and Brodie (2007) defined it as a


brand representation in the mind of the consumer that is linked to a set of
perceptions or an offering about a brand the consumer forms as reflected
by brand associations. Similar to brand image role for traditional products,
brand image of halal products creates value for a company as it makes it
easier for consumers searching for halal product information and helps create
associations that elicit positive feelings and attitudes that can spread to other
products of the same brand.
Brand perceived quality represents consumers’ overall judgment regarding
the superiority of a product (Tsiotsou, 2006; Zeithaml, 1988). Moreover,
perceived product/service quality of a brand is central to the theory that
strong brands add value to consumers’ purchase evaluations (Law & Lamb,
2000) and influence consumers’ decision making (Pappu, Quester, &
Cooksey, 2005; Sweeney & Swait, 2008). Furthermore, Pappu and Quester
(2008) mentioned that brand perceived quality influences consumers’
willingness to compromise on somewhat higher prices and/or pay a premium
price, hence generating brand equity. In food perspective, Mathewa, Raudah,
and Nurazizah (2014) defined quality by its cleanliness and freshness.
In halal branding perspective, brand perceived quality can be defined as a
brand that offers conventional performance as well as considered halal attri-
butes that are acceptable to Muslim consumers under Shariah. Past research
has provided evidence of the role of brand image, as a specific influence, on
the perceptions of the quality of a product or service in both quantitative stu-
dies (Ahmed, Johnson, Ling, Fang, & Hui, 2006; Bloemer, de Rayter, & Petter,
1998; Cretu & Brodie, 2007) and qualitative studies (Browan, Easingwood, &
Murphy, 2001). Therefore, in the context of our present work, we hypothesize:
Hypothesis 1: The brand image of a halal brand is positively associated with
customer brand perceived quality.

Impact of brand image on brand satisfaction


In marketing literature, consumer satisfaction is one of the most frequently
researched topics as consumer satisfaction is crucial to enduring business
success (Jones & Suh, 2000; Pappu & Quester, 2006). Oliver (1997) defined
satisfaction as a judgment that the product/service itself or a product/service
feature provides the consumer a pleasurable level of consumption-related
fulfillment including levels of underfulfillment or overfulfillment. There is
no consensus among researchers on the definition of consumer satisfaction;
however, almost all agree on the importance of consumer satisfaction.
Notably, a majority of previous researchers studied the relationship
between brand image and customer satisfaction in the service industry
(Chien-Hsiung, 2011; Chitty, Ward, & Chua, 2007), and few studies have been
in the product context (Jamal & Goode, 2001). For instance, Jamal and Goode
6 A. ALI ET AL.

(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.

Impact of brand image on brand trust


In marketing literature, trust has been defined as a bond that could be the
relationship that occurs between a consumer and an organization (Fournier,
1998). Carroll and Ahuvia (2006) defined trust as the extent to which a con-
sumer believes that his/her confidence in a certain brand satisfies his/her
desire. Chaudhuri and Holbrook (2001) define brand trust as the “willingness
of the average consumer to rely on the ability of the brand to perform its sta-
ted function” (p. 82). Trust is more prominent in situations of information
asymmetry, uncertainty, as well as fear of opportunism (Chiu, Huang, &
Yen, 2010). Therefore, trust plays an important role to decrease information
asymmetry and uncertainty to make consumers feel comfortable with their
brand (Pavlou, Liang, & Xue, 2007). In brief, brand trust plays a central role
in forming long-term buyer–seller relationships. Therefore, brand trust in
halal branding context refers to consumers’ willingness to rely on the ability
of the brand to perform its halal as well as stated function.
Referring to past studies by Dowling (1986) and Ratnasingham (1998), the
image perceived by a consumer can significantly affect his/her behavior. In
addition, Flavian, Guinaliu, and Torres (2005) said that image has a positive
influence on consumer trust because it can diminish consumers’ perceived
risk and at the same time increase purchase probability at that time of
transaction execution. Therefore, the more favorable the brand image of a
company, the more positive the assertiveness or confidence in consumers
toward the branded product and its features will be (Bennet, Hartel, &
Mccoll-Kennedy, 2005). Thus, the brand image may serve as an important
surrogate for intrinsic product feature information (Pavlou et al., 2007) that
might influence consumer decision making by fostering customers’ confi-
dence in a brand (Flavian et al., 2005; Pavlou et al., 2007). Finally, previous
research findings have supported that there is a positive relationship between
brand image and customer brand trust (Cretu & Brodie, 2007; Flavian et al.,
2005). Therefore, this study implies the following hypothesis context:
Hypothesis 3: The brand image of a halal brand is positively associated with
customer brand trust.
JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING 7

Impact of brand image on brand loyalty


Brand loyalty is the customer’s level of attachment to a brand (Aaker, 1991).
According to Oliver (1997, p. 392), it is “a deeply held commitment to rebuy
or repatronise a preferred product or service consistently in the future, despite
situational influences and marketing efforts having the potential to cause
switching behaviour.” Brand loyalty is a prerequisite for a firm’s competitive-
ness and profitability (Chaudhuri & Holbrook, 2001) and it leads to certain
marketing advantages, such as reduced marketing costs (Aaker, 1996), more
new customers (Dick & Basu, 1994), greater trade leverage (Aaker, 1991),
favorable word of mouth about the brand/companies (Dick & Basu, 1994;
Zeithaml, Berry, & Parasuraman, 1996), repeat purchase (Zeithaml et al.,
1996), and customers’ willingness to pay premium prices and effectively
increase market share (Aaker, 1996; Dick & Basu, 1994). Therefore, customer
loyal with the halal brand can be considered as one of the ways with which the
customer expresses his/her satisfaction with the conventional performance of
the product received along with its halal attributes.
In Tu, Wang, and Chang’s, (2012) study, a link between corporate brand
image and brand loyalty was examined in a sample of Starbuck’s coffee in
the Taipei area of Taiwan and a significant positive relationship was reported.
Further, a positive brand image was an important antecedent of customer
loyalty and significantly affects customer loyalty. In addition, many other
studies have proposed that brand image has a positive influence on consumer
loyalty (Ogba & Tan, 2009; Sweeney & Swait, 2008). Therefore, in the context
of our present work, we hypothesize:
Hypothesis 4: The brand image of a halal brand is positively associated with
customer brand loyalty.

Impact of brand image on halal brand purchase intention


Purchase intention is defined as an individual’s intention to buy a particular
product/service (Dodds, Monroe, & Grewal, 1991), whereas halal brand
purchase intention can be represented as customer purchase intention to
buy a halal brand. Purchase intention is a vital predictor of actual buying
behavior (Sparks & Browning, 2011). Referring to past studies of del Rio,
Vazquez, and Iglesias (2001) and Keller (1993) in the brand equity research
context, findings suggested that a favorable product brand image has a
positive effect on consumers’ purchase intentions. In addition, past studies
(Dodds et al., 1991; Lee & Tan, 2003) confirmed the positive direct effect of
favorability of product brand image on consumer purchase intentions. Hence,
we hypothesize:
Hypothesis 5: The brand image of a halal brand is positively associated with
customer brand purchase intention.
8 A. ALI ET AL.

Impact of brand perceived quality on brand satisfaction and halal brand


purchase intention
Several studies in marketing have examined the relationships among quality,
satisfaction, and consumer purchase behavior and found a positive relation-
ship between perceived quality with consumer satisfaction (Darsono &
Junaedi, 2006; Taylor, Sharland, Cronin, & Bullard, 1993) and consumer
purchase intention (Tsiotsou, 2006; Zeithaml et al., 1996). For instance, Llu-
sar, Zornoza, and Tena (2001, p. 721) suggested that when perceived quality
and satisfaction are regarded as overall assessments, perceived quality proved
to be one of the primary drivers of customer satisfaction and therefore
precedes it. Similarly, previous studies (Aaker, 1991; Pappu et al., 2005) have
also studied the direct association between quality and decision making and
have reported that brand perceived quality does have a direct effect on con-
sumers’ decision making as it provides them a sound reason to prefer one
brand over the other. Given these results, we posit the following hypotheses:
Hypothesis 6: Brand perceived quality of a halal brand is positively associa-
ted with customer brand satisfaction.
Hypothesis 7: Brand perceived quality of a halal brand is positively
associated with customer brand purchase intention.

Impact of brand satisfaction on brand trust and brand purchase intention


According to Athanassopoulos, Gounaris, and Stathakopoulos (2001),
customer satisfaction is associated with positive word-of-mouth and increased
levels of trust. On the contrary, dissatisfaction leads to negative word-of-mouth
regarding a manufacturer’s abilities or a service provider (Ha & Perks, 2005).
Past studies have established that satisfaction is a good predictor of consumer
trust (Chen & Chang, 2013; Kang & Hur, 2012). Moreover, highly satisfied con-
sumers continually buy a product or service of the firm that provides satisfac-
tion (Bolton & Lemon, 1999; Ha & Perks, 2005) and they recommend the
service to their associates (Zeithaml et al., 1996). Results of different researches
show that satisfaction is a good predictor of purchase behavior (McQuitty, Finn,
& Wiley, 2000; Zeithaml et al., 1996) and it has a direct effect on repurchase
intentions (Ha & Perks, 2005). Therefore, the following hypotheses are set forth:
Hypothesis 8: Customer brand satisfaction toward a halal brand is
positively associated with customer brand trust.
Hypothesis 9: Customer brand satisfaction toward a halal brand is
positively associated with customer brand purchase intention.

Impact of brand trust on brand loyalty and brand purchase intention


Empirical findings of past research (Chaudhuri & Holbrook, 2001; Flavian,
Guinaliu, & Gurrea, 2006) that have examined the relationship between trust
JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING 9

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.

Impact of brand loyalty on brand purchase intention


Academicians and practitioners agree that customer loyalty is probably one of
the best measures of success (Dick & Basu, 1994) and the most important
strategic element in any organization in creating the sustainable competitive
advantage (Gounaris & Stathakopoulos, 2004). Loyal customers help firms
to reduce marketing expenditures, spread positive word of mouth, and
effectively increase market share; are less price sensitive and willing to pay
premium prices; and improve organizational profitability (Aaker, 1996; Dick
& Basu, 1994). In the past, researchers have found that brand loyalty is an
important antecedent of consumer purchase intention (Hennig-Thurau
et al., 2002; Mittal, Ross, & Baldasare, 1998). Therefore, the following
hypothesis is set forth in halal brand context:
Hypothesis 12: Customer brand loyalty toward the 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.

demographic information, reported in Table 1. This study used the con-


venience and the snowball sampling methods to target international Muslim
students currently studying in various parts of China. First, the convenience
sample method through face-to-face and online data collections was used to
approach those respondents whom we can reach easily. Second, we used
the snowballing method again through a paper and online means to reach
a widely varied sample. We asked our friends to help us to locate and reach
out to their Muslim friends to get more responses. Online means include
social media such as Facebook, Twitter, and Wechat, and Yahoo, Gmail,
and Hotmail were used to distribute and send a link to the online survey. This
was an easy and cost-effective way to collect data. We used the self-admini-
strated and online survey approaches to collect data. Moreover, we prepared
an electronic version of a questionnaire by using the http://kwiksurveys.com/
website.

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. Demographic profile of respondents.


f %
Gender
Male 264 81.5
Female 60 18.5
Current university
Baoding University 4 1.2
Beihang University 8 2.5
Beihua University 4 1.2
Beijing Foreign Studies University 8 2.5
Beijing Forestry University 4 1.2
Beijing Language and Culture University 20 6.2
Beijing Normal University 8 2.5
Beijing University of Chemical Technology 4 1.2
Central South University 4 1.2
Central University of Finance and Economics 4 1.2
China Agricultural University 8 2.5
Chongqing University 4 1.2
Communication University of China 8 2.5
Dongbei University of Finance and Economics 4 1.2
Jiangsu University 4 1.2
Nanchang Institute of Technology 4 1.2
Northeast Agricultural University 4 1.2
Northwestern Polytechnical University 4 1.2
Renmin University of China 4 1.2
Shanghai University 4 1.2
Southwest Jiaotong University 4 1.2
University of Electronic Science and Technology of China 16 4.9
University of International Business and Economics 180 55.6
University of Science and Technology of China 4 1.2
Zhongnan University of Economics and Law 4 1.2
Professional status
Non-professional 140 43.2
Professional 184 56.8
Income (in Chinese yuan)
<3000 72 22.2
3000–4000 160 49.4
4100–5000 40 12.3
5000+ 52 16.0
Age
20 12 3.7
21–30 212 65.4
31–40 76 23.5
41–50 24 7.4
City in China
Baicheng 4 1.2
Beijing 252 77.8
Chaoyang 8 2.5
Chengdu 16 4.9
Dalian 4 1.2
Harbin 4 1.2
Hefei 4 1.2
Jiaxing 4 1.2
Jilin 4 1.2
Luoyang 4 1.2
Qingdao 4 1.2
Shanghai 4 1.2
(Continued)
12 A. ALI ET AL.

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

Characteristics of the respondents


Descriptive statistics in Table 1 show that considerably more men respondents
(81.5%) than female respondents (18.5%) completed the survey. Respondents
were mainly “between 21 and 30” years old (65.4%) followed by “between 31
and 40” years old (23.5%), and most of them were single (66.7%) as well as
professional (56.8%). Almost half of the respondents (49.4%) were in the
“between 3000 and 4000 yuan” income category, followed by the “less than
3000 yuan” income category (22.2%). One hundred thirty-six (42.0%) respon-
dents were in a doctoral program, 40.7% were in a master’s program, and
13.6% were in a bachelor’s degree program. In terms of respondents’ current
university; the majority were enrolled in the University of International
Business and Economics (55.6%), followed by Beijing Language and Culture
University (6.2%) and the University of Electronic Science and Technology
of China (4.9%). An overwhelming number of respondents were from
Pakistan (76.5%). Of 324 respondents who participated in the online survey,
77.8% were studying at the Universities of Beijing followed by Chaoyang
(2.5%) and Chengdu (4.9%).
JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING 13

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.

Data analysis and results


Preliminary analysis and measurement model results
Because the measures for all the constructs used in this study were adapted
from previous studies, we performed CFA in SPSS to assess the dimensional-
ity and psychometric properties of the constructs in the context of our study.
We ran a CFA model with all the constructs and examined Cronbach α
values, composite reliability, and average variance extracted to test reliability
and validity. The results of CFA indicated that the factor loadings of all
measurement items loaded significantly on their respective constructs, with
factor loadings being higher than the recommended value of 0.5 (Hair,
Anderson, Tatham, & Black, 1998, p. 598). Moreover, in line with the recom-
mendations of Leech, Barrett, and Morgan (2005), the Kaiser–Meyer–Olkin
measure of sampling adequacy (KMO value = 0.804) is greater than 0.70,
and Bartlett’s test of sphericity is highly significant (p < .05) (Leech, Barrett,
& Morgan, 2005).
Also, Cronbach’s α values and composite reliability of the studied halal
brand constructs exceeded the recommended level of .70, suggesting the inter-
nal consistency of each studied measurement construct has been achieved. In
addition, we measured and verified construct validity by using the convergent
and discriminant validity. First, as shown in Table 2, the AVEs of all six
constructs are 0.77, 0.51, 0.71, 0.50, 0.60, and 0.67, respectively, which are
all equal to or greater than 0.5. This demonstrates that there is convergent val-
idity for all constructs. Second, this study applied Fornell and Larcker’s mea-
sure of discriminant validity (Fornell and Larcker, 1981). To satisfy the
requirement of the discriminative validity, the correlation between constructs
must not be greater than the square root of the constructs’ AVE. For example,
the correlation between brand image and brand perceived quality is 0.219
(p < .01) and the square root of the AVEs of brand image and brand perceived
quality are 0.88 and 0.71, respectively; both AVEs are above the correlation
(0.219) between them, implying the presence of discriminant validity.
14
Table 2. Confirmatory factor analysis and scale reliability.
Components
1 2 3 4 5 6 CA AVE CR
Brand image .91 0.77 0.93
My current halal milk brand is the best benchmark of halal commitments. .87
My current halal milk brand is well reputed among halal milk brands. .90
My current halal milk brand addresses all my halal concerns. .88
My current halal milk brand is trustworthy about halal promises. .86
Brand perceived quality .81 0.53 0.82
My current halal milk brand is of very good quality. .82
My current halal milk brand is of consistent quality. .72
My current halal milk brand is very reliable. .70
My current halal milk brand features are excellent. .66
Brand satisfaction .89 0.74 0.89
I am happy about the decision to choose my current halal milk brand because of its halal commitments. .77
I believe that my current halal milk brand is a right thing to purchase because of its halal assurance. .84
Overall, I am satisfied with my current halal milk brand because of my halal concerns. .96
Brand trust .80 0.50 0.79
I trust my current halal milk brand. .68
I rely on my current halal milk brand. .77
My current halal milk brand is an honest brand. .62
My current halal milk brand is safe. .69
Brand loyalty .83 0.60 .86
I prefer my current halal milk brand to other halal milk brands. .74
I intend to buy a product (like yogurt) of my current halal milk brand in my next purchase. .78
I recommend my current halal milk brand to others (e.g., friends, family). .84
I intend to pay even more money for my current halal milk brand than for other halal milk brands. .73
Brand purchase intention .76 0.67 0.80
I will also buy my current halal milk brand in the near future. .91
Whenever I intend to buy milk, probably I will purchase my current halal milk brand. .71
JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING 15

Results of the structural model


Next, the parameters for the proposed relationships in Figures 1 and 2 and
research hypotheses were tested (Table 3, Table 4, and Figure 3). Brand image
of a halal brand is found to directly and positively affect brand perceived
quality (B = .35; CR = 5.02; γ = .296, p < .01), brand satisfaction (B = .23;
CR = 3.54; γ = .308, p < .01), brand trust (B = .22; CR = 2.88; γ = .205, p < .01),
and brand loyalty (B = .41; CR = 5.83; γ = .403, p < .01) except for brand pur-
chase intention (B = .09; CR = 1.18; γ = .341, p < .01), supporting hypotheses
1, 2, 3, and 4 but not hypothesis 5. In terms of effect size, brand image contri-
butes highly to brand loyalty, which suggests that brand image of halal milk
brand play a more important role to enhance consumer loyalty with halal milk
brand. In other words, positive brand image enhances the brand perceived
quality, consumer satisfaction of halal milk brand, the level to which consu-
mers trust the halal milk brand, consumer loyalty with halal milk brand, and
consumer purchase intention for halal milk brand, whereas, in hypothesis 5,
a nonsignificant effect of brand image on brand purchase intention is the out-
come of the full mediation effect of brand perceived quality, satisfaction, trust,
and loyalty (Table 4). The indirect effect of brand image on brand purchase
intention via perceived quality, satisfaction, trust, and loyalty is significant,
but since the direct effect is not significant (B = .09; CR = 1.18; p > .05), brand

Figure 2. The structural model.


16
Table 3. Correlation between the constructs and descriptive statistics.
Brand Brand perceived Brand Brand Brand Brand purchase
Mean S.D. image quality satisfaction trust loyalty intention
Brand image 4.43 .476 – – – – – –
Brand perceived quality 4.35 .400 .296** (.88, .73) – – – – –
Brand satisfaction 4.41 .478 .308** (.88, .86) .324** (.73, .86) – – – –
Brand trust 4.51 .408 .205** (.88, .71) .050 (.73, .71) .155** (.86, .71) – – –
Brand loyalty 4.50 .416 .403** (.88, .77) .011 (.73, .77) .034 (.86, .77) .221** (.71, .77) – –
Brand purchase intention 4.59 .441 .341** (.88, .82) .311** (.73, .82) .230** (.86, .82) .288** (.71, .82) .173** (.77, .82) –
Note: Significance at: *p < .05 and **p < .01.
Values in bracket indicates square root of the AVEs of respective constructs, with upper values indicating the correlations.
JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING 17

Table 4. Results of the structural model.


Hypotheses B SE CR p Results
H1: Brand perceived quality ← brand image .35 .059 5.02 *** Supported
H2: Brand satisfaction ← brand image .23 .060 3.54 *** Supported
H3: Brand trust ← brand image .22 .055 2.88 .004 Supported
H4: Brand loyalty ← brand image .41 .061 5.83 *** Supported
H5: Brand purchase intention ← brand image .10 .078 1.18 .237 Not supported
H6: Brand satisfaction ← brand perceived quality .30 .079 4.09 *** Supported
H7: Brand purchase intention ← brand perceived quality .20 .091 2.59 .010 Supported
H8: Brand trust ← brand satisfaction .20 .057 2.74 .006 Supported
H9: Brand purchase intention ← brand satisfaction .17 .077 2.41 .016 Supported
H10: Brand loyalty ← brand trust .18 .088 2.52 .012 Supported
H11: Brand purchase intention ← brand trust .18 .106 2.34 .019 Supported
H12: Brand purchase intention ← brand loyalty .15 .084 2.07 .039 Supported

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.

Figure 3. Results of mediation tests.

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

model to investigate the relationship among important branding constructs in


the halal perspective to predict consumer purchase intention. In order to fill
this research gap, the authors considered five relevant constructs—brand
image, brand perceived quality, brand satisfaction, brand trust, and brand
loyalty—and developed a research framework to further discuss their
relationships. This article summarizes the literature on halal food, the halal
food market segment, and the concept of branding constructs in halal
perspective into a new managerial framework.
The empirical results show that overall the halal milk brand image had a
significant and positive influence on brand perceived quality, brand satis-
faction, brand trust, and brand loyalty, which supported the findings of
earlier studies in traditional food and nonfood contexts that favorable
brand image plays a crucial role to enhance consumers’ perceptions of
brand quality (Bloemer et al., 1998; Cretu & Brodie, 2007), brand satisfac-
tion (Chien-Hsiung, 2011; Tu, Wang, & Chang, 2012), brand trust (Cretu
& Brodie, 2007; Flavian et al., 2005), and brand loyalty (Ogba & Tan, 2009;
Sweeney & Swait, 2008). Similarly, halal milk brand perceived quality was
significantly and positively related to brand satisfaction and brand
purchase intention; overall halal milk brand satisfaction had a direct posi-
tive effect on brand trust and brand purchase intention; halal milk brand
trust was an antecedent of brand loyalty and brand purchase intention;
and, finally, halal milk brand loyalty had a direct positive effect on brand
purchase intention. These results confirm the findings of previous
researchers (Chen & Chang, 2013; Hennig-Thurau et al., 2002; Kang &
Hur, 2012; McQuitty et al., 2000; Pappu et al., 2005; Tsiotsou, 2006; Urban
et al., 2000) who have reported these relationships in traditional food and
nonfood backgrounds.

Conclusion and managerial implications


Importantly, results show that brand image of a halal brand was not a signifi-
cant predictor of consumers’ halal brand purchase intention. This finding
contradicts the results of del Rio et al. (2001) and Lee and Tan (2003), who
have reported that positive brand image is related to purchase intention in
traditional branding context. However, brand image was found to have only
an indirect effect on consumer halal brand purchase intention through brand
perceived quality, brand satisfaction, brand trust, and brand loyalty. This is
may be due to the quite different nature of halal food product consumption
for Muslims than the consumption of regular food products or other foods
for non-Muslims. Although normally cow/buffalo/sheep/goat milk is con-
sidered halal by Muslims and only milk from these animals is commercially
viable. However, as China is a non-Muslim country, consumers may believe
that there is a chance that at any stage, such as collection, transportation,
20 A. ALI ET AL.

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

Moreover, these days, companies should take advantage of popular


Muslims’ concerns about halal food issues to position their brands to obtain
new differentiation advantages in existing as well as new markets. Therefore,
the ideas of halal branding can become a new way of brand positioning. Islam
does not give an option to Muslims to choose between halal and haram; if you
are a Muslim, then you must choose halal. On the basis of current findings, we
recommend that halal business organizations use the brand image, quality,
satisfaction, trust, and loyalty dimensions in policy and decision making that
intend to encourage consumers to purchase halal food brands.

Limitations and future research directions


Because eating halal food is a religious obligation, it is a sensitive matter for
Muslims. Therefore, regardless of whether someone frequently eats halal
foods, he/she might feel it is inappropriate to disclose details about halal
food consumption when asked in a direct manner. In this case, for future
researchers, the reverse question technique is a good way to tape respondents’
more accurate and honest responses to generate more generalizability.
Second, non-Muslims were not surveyed in the current study. As a result, it
would be interesting to know the reactions of non-Muslims toward halal food
brand. Similarly, it is also important to know whether they are willing to buy a
brand labeled as halal and the reasons why and why not.
Third, all the respondents in this research were international Muslim
students studying at various universities in China. The study, however, would
have yielded more and varied answers should it be conducted in a compara-
tive study mode by considering a Chinese Muslim sample along with the
international Muslims. If situation occurred and was assessed as yielding
benefits, researchers may consider this avenue or pool to tap when doing such
research in the future. Although research has yielded many results, the
study could have been expanded to increase the variables pool such as brand
price, brand availability, and brand credibility to obtain richer insights into
the decision-making process of consumers in addition to the numbers of
respondents.
Moreover, we included only university students from seventeen Muslim
and non-Muslim countries with the majority being from Pakistan. As a result,
the sample is not generalizable to the whole Muslim population and may not
be reflective of all young Muslims due to the reason discussed earlier. Overall,
consumers with different age groups, education levels, income levels, and
professional backgrounds and an equal proportion of respondents from
various countries should be taken into account for data collection as well as
data analysis to understand consumer patterns in future research. Finally,
as in the current study, we only consider halal milk brand in a product
category; future researches should focus on segmentation of the halal food
22 A. ALI ET AL.

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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