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Book part
Publication date: 19 December 2016

Norafni @ Farlina binti Rahim

Islamic finance and Halal product sectors are thriving successfully. This chapter is a general review of the perception of Asian consumers on Islamic finance and Halal

Abstract

Purpose

Islamic finance and Halal product sectors are thriving successfully. This chapter is a general review of the perception of Asian consumers on Islamic finance and Halal sectors in the global Halal economy.

Methodology/approach

The first section will briefly describe the Halal concept in both Islamic finance and Halal industries, and the growth of both sectors in Asian countries. The second part highlights the review of Asian consumers’ perception towards Islamic finance products and Halal products.

Findings

The review found that the consumers’ perception towards the Islamic finance products and Halal products is distinctive. This is due to the diversity of Asian countries in terms of geography, religion, culture, ethnic, school of thoughts (madzahib), income per capita and government’s involvement.

Originality/value

The third part of the chapter concentrates on planning towards Halal marketing, which involves the move and future challenges in different layers of industries to gear up and strengthen the Halal economy.

Details

Advances in Islamic Finance, Marketing, and Management
Type: Book
ISBN: 978-1-78635-899-8

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Article
Publication date: 5 May 2021

Shyue Chuan Chong, Chin Chai Yeow, Choon Wei Low, Pei Yew Mah and Diep Thanh Tung

Halal products were a norm in the Muslim countries; however, halal food products were not only being consumed by Muslims nowadays. People are concerned about their daily…

Abstract

Purpose

Halal products were a norm in the Muslim countries; however, halal food products were not only being consumed by Muslims nowadays. People are concerned about their daily needs, especially their food and spend in this modern society. Customers nowadays are more educated, and all the information can be easily accessed by just a click. Previous literature found that customers are looking for quality products and products that are safer to be consumed.

Design/methodology/approach

The purpose of this study investigates non-Muslim customers’ intention in consuming halal food products in Klang Valley, Malaysia. Using 321 non-Muslim responses from Klang Valley, partial least square regression was used to examine the factors influencing the customer’s purchase intention on halal products.

Findings

The results show that product quality, product price, product availability and product safety significantly influence the purchase intention of urban non-Muslim on halal food products. The result implies that product quality is the most significant factor compared with other variables.

Originality/value

The data and results may contribute to the relevant authority to form a proper plan to improve Malaysia’s halal food items.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 11 February 2021

Syed Adil Shah, Maqsood Hussain Bhutto and Sarwar M. Azhar

The purpose of this study is to integrate and synthesize the Islamic marketing literature, understand the phenomenon and related concepts and provide suggestions for…

Abstract

Purpose

The purpose of this study is to integrate and synthesize the Islamic marketing literature, understand the phenomenon and related concepts and provide suggestions for future research.

Design/methodology/approach

The study uses an integrative review method that emphasizes summarizing and synthesizing the previous literature related to a phenomenon.

Findings

The findings indicate the emergence of five major themes, namely, Islamic marketing and its perspectives, activities in Islamic marketing, opportunities, controversies and challenges in Islamic marketing, Islamic principles and determinants of consumers’ behavior and awareness toward Islamic products. Each of the major themes consists of sub-themes discussed in detail in the results and discussion sections.

Research limitations/implications

Like other studies, this integrative literature review has some limitations. These include the methodology undertaken, the lack of explanation of inter-relationship among themes and lack of Islamic theory-based review. These limitations lead to future research directions.

Practical implications

Marketing managers need a thorough understanding of the Islamic standards and need to develop strategies. Further, there are inter-differences among Muslims, which need to be thoroughly understood by managers. Moreover, marketers can effectively use advertising in creating awareness and increasing demand of halal products.

Originality/value

This study provides an integrative review of the literature and synthesizes the Islamic marketing literature, which has not been done before.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 1 December 2020

Talita Leoni Rizkitysha and Arga Hananto

Despite the high research interest regarding Halal products, most studies on Halal products focused on food and cosmetics. This study aims to examine the factors that…

Abstract

Purpose

Despite the high research interest regarding Halal products, most studies on Halal products focused on food and cosmetics. This study aims to examine the factors that affect the attitude and purchase intention of non-food Halal products in a limited context of detergent products. This study is derived from the theory of reasoned action. It incorporates knowledge, religiosity and perceived usefulness of Halal label as antecedents of attitude.

Design/methodology/approach

This study applied a self-administered online questionnaire. Data were collected through an online survey with a non-probability sampling technique (convenience sampling). The study retained a total of 264 valid responses. The respondents mainly consisted of Muslim consumers from the 18–24 age group (62.5%), followed by the 25–31 age group (29.2%). Data were analyzed using partial least square structural equation modeling.

Findings

The results indicate that attitude toward Halal-labeled detergent is affected by the perceived usefulness of the Halal label, and knowledge of Halal. Consequently, attitude toward Halal-labeled detergent positively affects intention to buy Halal-labeled detergent. This study also suggests that religiosity has a positive effect on the perceived usefulness of the Halal label and purchase intention of Halal detergent.

Originality/value

This study is among the few studies that discuss the antecedents and consequences of attitude toward Halal products in the context of detergent, a non-food Halal product category besides cosmetics. Muslim consumer responses toward Halal label were mostly researched in food and cosmetics contexts, while in some countries such as Indonesia, Halal labeling on all products has recently become mandated by legislation. Hence, this study provides some insights regarding Muslim consumer’s attitudes toward Halal-labeled products besides food and cosmetics.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 4 February 2021

Hanif Adinugroho Widyanto and Imaduena Aesa Tibela Sitohang

This paper aims to investigate the antecedents of Muslim millennial’s purchase intention for halal-certified cosmetics and pharmaceutical products by expanding the theory…

Abstract

Purpose

This paper aims to investigate the antecedents of Muslim millennial’s purchase intention for halal-certified cosmetics and pharmaceutical products by expanding the theory of reasoned action (TRA) through the inclusion of religiousity (RG), halal knowledge and halal certification as the exogenous constructs in addition to TRA’s subjective norm, with attitude as the mediating variable.

Design/methodology/approach

A sample of 403 Muslim millennial customers of cosmetics and pharmaceutical products from the Greater Jakarta area, Indonesia. The data were analysed using partial least squares method.

Findings

Based on the study, attitude fully and/or partially mediates all the exogenous variables. RG and subjective norm are found to have no direct and significant relationship to purchase intention, but they indirectly affect the latter through attitude. Finally, both halal knowledge and halal certification have partial mediation with purchase intention through attitude as the mediating variable.

Practical implications

By understanding the relationships between the latent constructs, halal players in the industry could use the findings to better comprehend the urgency and importance of the halal aspects of their products, particularly halal certification, with regards to the Muslim millennials, and devise appropriate policies and strategies to capture the increasingly potential slice of the market.

Originality/value

The extant literature on halal products has mostly examined the food industry, and little attention has been given to the halal cosmetics and pharmaceutical products, inspite of its growing importance in Indonesia as the world’s largest halal market. Unlike earlier studies on the topic, this study also limits its focus on the Muslim millennial consumers, which is arguably the most potential and lucrative share of the halal market.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 25 February 2020

Maya F. Farah

The purpose of this study is to empirically investigate the effects of religiosity level, ethnocentrism, subjective norms, product judgment and trust in Halal food products

Abstract

Purpose

The purpose of this study is to empirically investigate the effects of religiosity level, ethnocentrism, subjective norms, product judgment and trust in Halal food products on the consumer intention to purchase a Muslim (manufactured in a majority Muslim country) versus a foreign (manufactured in a majority non-Muslim country) product available on the Lebanese market across the two main Muslim sects, namely, Sunnism and Shiism.

Design/methodology/approach

The study used a quantitative survey that was administered to a proportionate stratified sample of 607 respondents from the two sects.

Findings

The results indicate that Sunni consumers indicate a greater trust in judgment of and willingness to buy foreign Halal products compared to their Shiite counterparts, while Shiite consumers display a greater trust in judgment of and willingness to buy Muslim products. Moreover, religiosity, ethnocentrism, subjective norms, brand trust and product judgment have been found to significantly influence consumer purchase intention.

Practical implications

The study results exhibit that religious sect plays a key role in consumer purchase intention, which encourages decision makers and marketers to pursue identity, awareness and communication strategies while targeting Muslim consumers of both sects.

Originality/value

Muslim consumers’ perception of Halal products is a sorely under-researched area of study with minimal empirical data supporting such studies. The results of this study offer some insight into consumer behavior differences between members of the two sects.

Details

Journal of Islamic Marketing, vol. 12 no. 2
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 8 May 2020

Mahmut Selami Akın and Abdullah Okumuş

The study aims to examine the consumers’ attitudes toward halal food products based on tripartite model. Regarding this, the effect of halal food awareness, perceived risk…

Abstract

Purpose

The study aims to examine the consumers’ attitudes toward halal food products based on tripartite model. Regarding this, the effect of halal food awareness, perceived risk and behavioral tendency on attitudes toward halal food products are investigated.

Design/methodology/approach

343 valid questionnaires were obtained. Exploratory and confirmatory factor analyses were performed to ensure content validity, and structural equation modeling was progressed to test the relationships among variables through IBM SPSS Statistics 22.0 and AMOS 23.0 software.

Findings

Research validates the tripartite model of attitude and suggests attitude toward halal food is formed by predominantly behavioral tendency and partially psychological drivers, rather than cognitive elements.

Research limitations/implications

The characteristics of participants should be different and larger sample may provide some other results. The product or service context should be different, for example, halal cosmetic, halal hygienic, halal tourism.

Practical implications

Trigger messages may put forward in marketing communications activity for halal food products marketing and halal certificated food brands need to establish their distribution networks effectively to get closer with consumers.

Originality/value

Attitudes towards halal products represent the key driver of consumer behavior for the development of marketing strategies in certified halal firms addressing both domestic and foreign markets. It is the first study examining Turkish consumer attitudes toward halal food product using tripartite model in the field of halal consumption behavior. The paper offers a different methodological framework and it could be potentially of interest for scholars, marketers and policy makers.

Details

Journal of Islamic Marketing, vol. 12 no. 6
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 6 June 2020

Mohammad Mominul Islam

This study aims to conceptualize the basic Islamic marketing (IM) process according to Shari’ah, addressing some of the queries raised by scholars on halal and marketing.

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Abstract

Purpose

This study aims to conceptualize the basic Islamic marketing (IM) process according to Shari’ah, addressing some of the queries raised by scholars on halal and marketing.

Design/methodology/approach

A qualitative approach and content analysis have guided to shape segmentation, targeting and positioning (STP) with the help of secondary data from conventional and IM. Required Qur’anic verses and hadiths have been galvanized to shape STP in line with empirical evidence, showing potential marketing implications.

Findings

This study has accepted Islamic resources to segment markets, mentioning mankind, non-Muslims, Muslims, generic, halal and Islamic products. It has proposed to target mankind, non-Muslims markets with generic and halal products. Muslim marketers can target the pious Muslim consumers with Islamic products. For positioning, the halal certification has been suggested for the non-Muslim marketers and Islamization is for Muslim marketers. The whole process has been conceptualized in a single framework.

Practical implications

Marketers can have many product development ideas and basic guidelines and scholars may be able to sense some queries as to IM.

Social implications

This study has shown how inter-religious relationships can be harmonized with carrying out marketing functions to keep the social fabric following the Qur’anic verses.

Originality/value

This study has outlined the IM process as per Muslim and non-Muslim marketers’ needs under Shari’ah. Besides, it has answered some questions on halal and IM that has been hardly addressed before.

Details

Journal of Islamic Marketing, vol. 12 no. 7
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 25 March 2020

Abu Saim Md. Shahabuddin, Mohd Edil Abd Sukor and Noor Hazarina Hashim

The purpose of this paper is to explain the importance of the understanding of the halal business from an Islamic perspective. Business use of the Quranic and fiqhi word

Abstract

Purpose

The purpose of this paper is to explain the importance of the understanding of the halal business from an Islamic perspective. Business use of the Quranic and fiqhi word halal is now conspicuous because of the penetration of halal product ideas not only into the food products but also into the pharmaceutical, cosmetic, leisure and entertainment industries.

Design/methodology/approach

This paper evaluates the Islamic authenticity of the prevailing halal business initiatives. Toward this evaluation, explains the frame of reference and shows the Islamic ethical excellence of business enterprises. This framework is based on the Quranic injunctions and instructions regarding usury (riba), intoxicants (khamr), trade with mutual consent (taradim minkum) and trading during Friday prayer (Jumuah), which have direct or indirect implications for the management of business enterprises. Then, it describes and evaluates two cases, namely, halal chicken and Sharīʿah-compliant hotel. Materials for these cases are obtained through an internet blog and literature review.

Findings

The evaluation reveals that these halal business cases are overwhelmingly product-centric and they violate or neglect people’s rights. On the scale of ethics and social responsibility, while they largely maintain legal responsibility, moral and spiritual responsibilities hardly draw their attention. Hence, a need for a fundamental reorientation of halal business thought is suggested in the conclusion.

Practical implications

The findings may serve as a useful input for halal business owners in improving their practices to confirm with all moral and spiritual standards of Islamic business conduct, and not the only product. These standards have significant implications for equitable growth in a society and a blissful eternal life.

Originality/value

The topic of product-centric halal business has not been fully explored and understood by its stakeholders. This paper aims to give insights to an overwhelming trend toward equating halal products with the whole of the halal business.

Details

Journal of Islamic Marketing, vol. 11 no. 6
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 11 September 2020

Adil Khan, Mohd Yasir Arafat and Mohammad Khalid Azam

This study aims to investigate the influence of religiosity (intrinsic and extrinsic) and halal literacy on the intention of Muslim consumers to purchase halal branded…

Abstract

Purpose

This study aims to investigate the influence of religiosity (intrinsic and extrinsic) and halal literacy on the intention of Muslim consumers to purchase halal branded food products in India. An extended version of the theory of planned behaviour (TPB) was used as a framework. Apart from religiosity and halal literacy, the influence of attitude, social norms and perceived behavioural control of halal on buying intention were also tested.

Design/methodology/approach

The study uses a survey design. The data were collected from 350 individual respondents, using a closed-ended, structured questionnaire. The quality of the measurement model has been assessed through reliability testing, factor loading, average variance extracted and Fornell-Larcker criterion. The test of hypotheses was conducted by performing the partial least square structural equation modelling.

Findings

The result of hypotheses testing shows that both intrinsic and extrinsic types of religiosities did not have a direct influence on buying intention. However, religiosity (extrinsic and intrinsic) and halal literacy have significant relationships with most of the antecedents of the intention of the TPB. In addition, both kinds of religiosities (extrinsic and intrinsic) and halal literacy had a significant indirect effect (through TPB antecedents) on buying intention.

Originality/value

Muslim population in India is one of the largest in the world, yet there is a lack of popular halal branded food products in the market. Nevertheless, few researchers have attempted to study the consumer behaviour of the Muslim population for halal products in India. A large amount of research work on halal food behaviour is from countries such as Malaysia and Indonesia, where the Muslim population is in the majority and halal brands are already popular. Further, this paper studies the impact of dimensions of religiosity, which has been overlooked by researchers studying the halal food purchasing behaviour. The study also explores the impact of halal literacy, an understudied construct in halal marketing literature. The present study is amongst the earliest empirical research based on Muslim consumers in India on the topic of halal branded food products.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

Keywords

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