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يماساا قيوستلل سداسلا يملاعلا رمتؤملا

6th Global Islamic Marketing Conference

لوبنطسا

6

-8

رايا

5102

Istanbul, May 6

8, 2015

Qatar University

Erciyes University

Istanbul University

www.iimassociation.com

|

www.gimac.org

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Thank you note

The International Islamic Marketing Association and the Global Islamic Marketing Conference extend its most sincere appreciation to three great individuals who have made a great contribution to the staging of yet another successful Islamic Marketing conference. Conference Associate Chair Professor Ekrem Erdem from Erciyes University, co-Chair Professor Khaled Alshare, Qatar University; and Dr. Ali Hilal, the regional manager of the International Islamic University, Jordan. They gave most generously of their time and expertise. Their exceptional efforts were essential in ensuring that this conference was a rewarding and uplifting experience for all those who attended. We speak for all attendees and participant when we thank you most sincerely.

We also cannot thank enough Dr Daphne Halkias, the chair of the scientific Committee who made sure that this conference is number 1 in the number of journal publication in the world.

Special thanks are extended to the conference organizers Elite MAF Events & Exhibitions who made sure that GIMAC6 becomes an a world class conference.

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GIMAC6 Team

Conference Associate Chair: Professor Ekrem Erdem. Ekrem Erdem is a Professor in the Department of Economics at Erciyes University, Kayseri, Turkey. He completed his Ph.D. at Rensselaer Polytechnic Institute, NY, USA. Prof. Erdem has been in charge as the dean of Erciyes University, Faculty of Economics and Administrative Sciences since 2008, and the Director for African Economic and Social Research Center. Professor Erdem has more than 120 scientific Works as books, papers published and presented in scientific journals and meetings. His major fields of interest are monetary isues, innovation and labor economics, economic growth, and Islamic economics. He has been scientific referee for many journals, and involved in almost a houndred scientific events as organizator, scientific board member and president. He is the board member of International Trade and Finance Association (IT&FA) since 2010. He teaches monetary and banking economics, macroeconomics, and managerial economics courses at undergraduate, master and doctorate levels, and he has managed 25 master and doctorate thesis as advisor.

Chair of the Scientific Committee: Daphne Halkias, PhD.

Fellow, Institute of Coaching at McLean Hospital, Harvard Medical School, USA

Research Affiliate, Institute for the Social Sciences, Cornell University, New York, USA Senior Research Fellow, Center for Young and Family Enterprise, University of Bergamo, Italy Editor, International Journal of Teaching and Case Study; International Journal of Social

Entrepreneurship and Innovation. She is also: CEO, Consulting Psychologist, Executive Coaching Consultants, www.executivecoachingconsultants.com

Conference Co-Chair: Professor Khaled Alshare. Professor Khaled Alshare joined Qatar University in fall 2010 and prior to that, taught at different universities in the USA for 15 years. His research interests include technology acceptance models, systems development, end-user computing, cross-cultural studies in information systems, distance education, and data envelopment analysis (DEA). Professor Alshare’s work appeared in numerous academic journals. He has also served in numerous professional organizations such as the Decision Sciences Institute (DSI), Americas Conference on Information Systems (AMCIS), South-West DSI, and the Consortium for Computing Sciences in Colleges CCSC-CP at different capacities such as a treasurer, organizer, papers chair, a board member, and track and a mini-track chair

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Notes about the proceedings

This is the book of conference abstracts. Most full papers that have been accepted at GIMAC6 will be scheduled for publication at the following participating journals.

English Language Journals

International journal of Islamic marketing and branding (NEW: Inderscience)

Journal of Developmental Entrepreneurship

International Journal of Social Entrepreneurship and Innovation

International Journal of Teaching and Case Studies

African Journal of Business and Economic Research

International Journal of Arab Culture, Management and Sustainable Development

Journal for Global Business Advancement

French Language Journals

A special issue of the Arabic journal of Islamic Marketing

Arabic Language Journals

لضفأ رشن تيس

ا

ةيبرعلا ثاحبا

الجما يف

ةيلاتلا

ا

ةلجما

يماساا قيوستلل ةيماعلا

|

ةيماساا لامعاا ةداير ةلجم

|

ةيماساا ةدايقلاو ةراداا ةلجم

Contact Details

Dr. Baker Alserhan, Associate Professor, Qatar University

President, International Islamic Marketing Association | Mobile: 00974 74023018 | Office: 00974 44036477 | Welcome@iimassociation.com | alserhan@yahoo.com | alserhan@qu.edu.qa Ronald Doherty, Director, Public Relations, International Islamic Marketing Association, Ireland|Mobile:+353862444952| ronald.doherty@iimassociation.com | Ronaldo60@gmail.com

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Contents

Peace Marketing: The Role of Islamic Marketing ... 12

Islamic Ethics and Feminism in the Context of Islamic Business ... 13

Toward Advancing Islamic Marketing Debates: Insights from Japanese ‘Omotenashi’ Concept and Practices ... 14

The Fashion Attitudes of Emirati Women: From Traditional and Conservative to Western and Revealing ... 15

Islamic Management Ethics Success and Sustainability: Arab Contractors Osman Ahmed Osman & Co™ ... 16

The role of religiosity in influencing halal food consumption among generation y Muslim consumers in Malaysia ... 17

A Multi-Item Scale for Measuring Muslim's Conception of Allah: Justification, Development, and Validation of an Islamic Measure in the Marketplace ... 18

Muslim Consumers’ Perception on Halal Branding: An Exploratory Qualitative Study ... 19

Consumer philanthropic behaviour: the moderating effect of religious values ... 20

Conceptualizing Customer Experience toward Relationship Equity and Service Loyalty from Perspective of Private Hospitals in Developing Countries ... 21

Extract from Quran and Sunnah: Reviving and sustaining the TRUST of a GREEN ENVIRONMENT with Muslims) ... 22

Muslim Women and Entrepreneurship in Nigeria: Meaning and Challenges ... 23

Social Entrepreneurship and Resilience among Muslim Students in Malaysia ... 24

Saudi Nationals Wasting Time at Work in Private Organizations and the Perspective of Islam ... 25

A Comparative Performance Analysis of Islamic and Conventional Market Indexes ... 26

Assessing the Readiness Level of Basel III Implementation in the Islamic Financial Institutions in Qatar ... 27

A Study of Algerians’ Attitudes towards Islamic Insurance ... 28

Implementation of sharia marketing strategy in a complementary and alternative medicine company: Study Case in Bekam Ruqyah Center, Indonesia... 29

Socio-Cultural Relational Antecedent of Trust in the United Arab Emirates ... 30

Commitment of Islamic Banks to long-Term Economic Development and Society Welfare: The Sudan Experience... 32

Corporate governance compliance of financial companies according to Qatari and AAOIFI codes ... 33

The role of service quality in brand loyalty, is religiosity missing here? The case of Egyptian banking sector ... 34

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Exploring the Factors Affecting Purchase Intention of Halal Certified Foods in Turkey: A PLS-Path

Modelling Research ... 36

Effect of Brand’s CSR activities and its empathy towards Sharia Values (in all aspects of brand identity, behavior and communications) on Muslim Consumer’s Loyalty towards the brand ... 37

The synergic relationships between marketing and quality in creating customer value ... 38

Muslim Households Interpretation on Tayyib Food Consumption in Malaysia ... 39

Islamic perspective of customer relationship marketing factors: honesty, trust and equality ... 40

Assessing of Jordanian Tourism through Antecedents of Tourist's Satisfaction: A Structural Equation Modeling (SEM) Approach ... 41

The corporate social responsibility and its instrument of Islamic bank in Islamic economy ... 42

Islamic Business Management Principles and Employee’s Welfare ... 43

Influence of Islamic leadership perception on lecturers’ motivation and performance at Islamic higher education (pti) in Yogyakarta special region ... 44

Analysis of consumers’ attitude towardsharia hospitality marketing mix ... 45

Influence of Islamic work ethic, leadership justice and subordinate trust on the attitudes of organizational change: ... 46

Rahn development model at sharia pawnshop in indonesia... 47

Religiousity on Shopping Orientation and Behavioral Intention for Moslem and Non-Moslem Customers ... 48

The narratives of Islamic Entrepreneurship: Evidence from Muslim women entrepreneurs in Malaysia .. 49

Establishment of Traceability through Halal Assurance System Implementation ... 50

Application of supply chain management for certified halal food products in Surabaya Indonesia ... 51

The direct and indirect effects of halal-labeled cosmetics actual purchase among Indonesian Muslim consumers ... 52

The Impact of Strong Religious Beliefs on Halal Products toward Brand Love ... 53

Females Muslims and Social Media advertising: Evidence from Saudi Arabia ... 54

What is happening: The Dynamics of the Saudi Twitterverse ... 55

The Egyptian revolution continues: a showcase of social media & behavioral change in the Muslim world ... 56

Determining the Optimal Endorsement Strategy on Non-Muslim Attitude Development ... 57

Internal Marketing Redux: The Relationship of Wartime Conditions and Perceptions of Job Insecurity in Syria ... 58

Relationship between Islamic work ethic and love of money ... 59

Investigating Muslim Consumers’ Behavior toward Halal Products Using fMRI technology: Theoretical Framework ... 60

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Preference for Culturally Incongruent Offerings in Qatar Author ... 62

Individual and Entrepreneurship Skills for the performance of businesses led by women in Palestine ... 63

Consumers’ Religious Beliefs and Their Attitudes toward Cause-Related Marketing ... 64

The implications of Islamic principles on the hierarchy of effects model in advertising: a framework of Islamic advertising ... 65

Issue of Halal in Consumer Good: The Case of Indonesia in Promoting Supporting Policy ... 66

Consuming Burger Joint Fast Food: Using the Theory of Planned Behavior in Predicting the Intention of Generation Y Muslim Consumers... 67

Halal tourism activities in turkey and a case of hospitality companies in Antalya ... 68

Performance Evaluation under Islamic Economics: Monetary Gains versus Social Gains ... 69

Risk Taking vis-a-vis Risk Management in Islamic Finance: Analysis from the Shari’ah Perspective ... 70

Development and Validation of Instrument to Measure Islamic Materialistic Attitudes... 71

Social Customer Relationship Management (s-CRM) Among Muslim Owned SMEs in Malaysia ... 72

Tracing the halal status: consumer perception on the halal tagging technology. ... 73

Women entrepreneurs in Muslim world: a multi-country analysis ... 74

Determinants of American Muslims’ Intentions to Use Retail Islamic Banking and Financial Services: An Application of the Theory of Planned Behavior ... 75

Comparing Leadership & Management concepts; Its Islamic Perspective ... 76

Influence Of Islamic Leadership and Organizational Culture and Worship Behavior on Performance of M A N Teachers in Sleman Regency, Yogyakarta Special Region... 77

The International Islamic Leadership Program and Network (ILPN) ... 78

Islamic Leadership ... 79

The role of the auditors of the Audit Bureau in dealing with e-government and Audit Bureau Law in the maintenance of public money in Jordan ... 80

French Abstracts

... 81

Ethique, finance islamique et responsabilité sociale de l’entreprise ... 82

Les Determinants Du Choix Des Banques Islamiques Dans Le Contexte Tunisien ... 83

Le marketing ethnique et l’émergence de la consommation halal : état de lieux et opportunités à saisir . 84 La Finance islamique en Tunisie : Réalités et Perspectives ... 85

L’émergence des produits Halal dans les économies non musulmanes ... 86

Le marketing dans un environnement islamique ... 87

تاصخلملا

ةيبرعلا

... ...

... ...

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ي مح ي عر ئيبلا يف اسإا

... ...

... ...

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The direct and indirect effects of halal-labeled cosmetics actual purchase

among Indonesian Muslim consumers

Muniaty Aisyah

State Islamic University, Syarif Hidayatullah Jakarta, Indonesia

ABSTRACT

The purposes of this study is to analyze the direct and indirect effects of halal-labeled cosmetics actual purchase among Muslim consumers in Indonesia. Using primary data collection method, 100 questionnaires were distributed to target respondents comprising of female students studying at State Islamic University in Jakarta, representing the Muslim consumers in Indonesia. The data are analyzed using Structural Equation Model. This study proposes seven direct causal effects (attitude, subjective norm, and perceived behavioral control toward purchase intention; and attitude, subjective norm, perceived behavioral control, and purchase intention toward actual purchase), based on Theory of Planned Behavior (TPB) in the structural model. The findings indicate five direct effects and three indirect effects that are: 1) only perceived behavioral control is positively related to the halal-labeled purchase intention; 2) attitude, subjective norm, perceived behavioral control and purchase intention, each one has positive related to the actual purchase of halal-labeled cosmetics; 3) consumers’ intention has iindirect effect on mediating attitude, subjective norm, and perceived behavioral control toward halal cosmetics actual purchase. Thus, consumers’ intention over purchasing halal-labeled cosmetics could predicts the necessities of halal cosmetics among Muslims. This study also finds that there are relations between: 1) the amount of allowance with attitude; 2) the purchase frequency with attitude, subjective norms, perceived behavioral control, intention and actual purchase; 3) the religion orientation with subjective norm; 4) the halal cosmetics knowledge with perceived behavior control, and 5) the frequency to checked out the halal label with perceived behavioral control, intention and actual purchase. By addressing the consumers’ behaviors and profile

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THE DIRECT AND INDIRECT EFFECTS OF HALAL-LABELED COSMETICS PURCHASE BY INDONESIAN MUSLIM CONSUMERS

Muniaty Aisyah

State Islamic University (UIN) Syarif Hidayatullah Jakarta, Indonesia

muniaty.aisyah@uinjkt.ac.id

ABSTRACT

The purpose of this study is to analyze the direct and indirect effects of halal-labeled

cosmetics purchased by Muslim consumers in Indonesia. Using primary data collection

method, 100 questionnaires were distributed to target respondents comprising of female

students at State Islamic University (UIN) Syarif Hidayatullah Jakarta, who represented the

Muslim consumers in Indonesia. The data was analyzed using the Structural Equation Model.

This study proposes seven direct causal effects (attitude, subjective norm, and perceived

behavioral control towards purchase intention; and attitude, subjective norm, perceived

behavioral control, and purchase intention towards actual purchase), based on Theory of

Planned Behavior (TPB) in the structural model. The findings indicate five direct effects and

three indirect effects that are: 1) only perceived behavioral control is positively related to the

halal-labeled purchase intention; 2) attitude, subjective norm, perceived behavioral control

and purchase intention, each is positively related to the actual purchase of halal-labeled

cosmetics; 3) consumers’ intention has an indirect effect on mediating attitude, subjective norm,

and perceived behavioral control toward the actual purchase of halal-labeled cosmetics. Thus,

consumers’ intention over purchasing halal-labeled cosmetics could predict the necessities of

halal cosmetics among Muslims. This study also finds that there are relations between: 1) the

amount of allowance with attitude; 2) the purchase frequency with attitude, subjective norms,

perceived behavioral control, intention and actual purchase; 3) the religion orientation with

subjective norm; 4) the halal cosmetics knowledge with perceived behavior control, and 5) the

frequency to examine the halal label with perceived behavioral control, intention and actual

purchase.By addressing the consumers’ behavior and profile characteristics that predict the

necessities of halal-labeled cosmetics, marketers can stimulate the consumers to seek out new

halal cosmetics and sequentially stimulate halal cosmetics innovation and greater distribution

in Indonesia.

Keywords: halal, cosmetics, purchase behavior

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INTRODUCTION

Muslims have strict religious guidelines with regard to consumption and use. Allah

Subhanahu Wa Ta’ala commands Muslims to consume only things that are Halal (i.e.

religiously permissible) and good (Al Qur’an, 23:51). In the Arabic language, Halal refers to

anything that is permissible under Islamic law. It is usually used to describe activities that a

Muslim is permitted to engage in, e.g. eat, drink or use. The antithesis of halal is ’haram’, which

in the Arabic language refers to anything prohibited under Islamic law. Accordingly, Halal

products are those that are Shariah compliant, i.e. do not involve the use of haram (prohibited)

ingredients, exploitation of labor or environment, and are not harmful or intended to harm. The

realm of halal may extend to all consumables such as pharmaceuticals, cosmetics, toiletries,

etc. The halal label, logo or certificate not only guarantees Muslims what they consume or use

is in accordance to Islamic law (Aisyah, 2014), but also encourages manufacturers to meet the

halal standard. Thus, halal certification can play an important role to assure Muslim consumers

that the products they buy meet the necessary religious requirements and conditions. (Omar

et.al, 2012).

Since the dawn of civilization food and pharmaceutical products (drugs and cosmetics)

have been some of the earliest human needs. It is an obligation for Muslim to consume and

use only halal products. Currently, there are numerous food and pharmaceutical products

available with nonspecific labeling; the halal verification and authentication of these products

is urgently required. Non-halal items commonly found include pig derivatives such as pork,

lard, and gelatin as well as alcohol (khamr), blood, or meat derived from animals not

slaughtered according to Shariah law (Mursyidi, 2013).

According to Mursyidi (2013), most non-halal items found in the market are pork and

its derivatives such as pork, lard, gelatin, and porcine-based products. In addition it is also

possible to find, blood (especially in local markets) and meat derived from animals not

slaughtered according to Shariah law. Other than food, some non-halal items are also found in

medical preparations, cosmetics and other personal care products. Non-halal items employed

in cosmetics preparation can be classified based on their origin, namely human and animal. In

the case of cosmetics preparation, the problem commonly relates to the “najs” (impure) status

of the ingredients. Some are listed as follows:

1. Insulin, it is a matter of fact that pig insulin is similar to human insulin. Therefore such pig

insulin was commonly utilized in the past. Presently it is approximately used for 17 % of

the time, and human insulin and cow insulin is used for about 70% and 8 %, respectively.

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2. Heparin, this compound works as an anti-coagulating agent to prevent blood blocking

vessel. Heparin was commonly obtained from pigs (sodium heparin known as Lovenox

from Aventis Pharma pecialitis, in French).

3. Gelatin, a protein derived from animal collagen (pig, lamb, cow). Gelatin derived from pig

is more abundant compared to gelatin derived from halal animals; consequently, Muslims

must be made aware to this reality.

4. Alcohol. Ethyl alcohol is also used in many cosmetic agents both for men (aftershave lotion)

and for women in perfumes. Ethyl alcohol is absorbed through the skin. It then passes

through the flesh into the blood vessels and finally mixes with the blood and circulates

throughout the body. Once in the blood it is as if ingested orally. As a small quantity of any

intoxicant is ‘haram’ therefore, as mentioned earlier, all liquid cosmetic products containing

Ethyl alcohol are prohibited. Other names given to synthetic ethyl alcohol are, ethanol,

methylated spirits (contains 5 % methyl alcohol and 95% ethyl alcohol). Products

containing these ingredients therefore will also be prohibited (Mughal, 2003).

5. Keratin, a chemical obtained from human hair and employed as a coloring agent of hair.

6. Albumin, derived from human serum and used as a solvent to dissolve active ingredients in

the formulation of cosmetics.

7. Placenta extract, prepared by extraction of human placenta. The extract is believed to be the

cosmetic preparation of choice for anti-aging products and skin care. It is reported that 320

tons of placenta are used per year.

8. Hyaluronic acid, a chemical obtained from the womb and commonly used for skin

whitening and skin care products.

Keratin, albumin, placenta and hyaluronic acid in cosmetics preparations employ human

tissue and organs, therefore it is recommended not to use these substances. From a Muslims

perspective, knowing the origin of raw materials and production process of consumer items is

essential due to the Shariah obligation stating that any Muslim must consume only halal and

wholesome products. This situation is increasingly important since the verification and

authentication of halal products is paramount in order to maintain the sanctity of the Islamic

religion (Mursyidi, 2013).

In order to protect the rights of Muslim consumers and their efforts to follow their

commandments in consuming only halal products, halal certification institutions have emerged

in several countries to provide certification for food, beverages, medicine and cosmetic

products that are halal and not containing ‘haram’ components. In Indonesia, halal certification

is provided by MUI (Indonesia Ulama’ Assembly). Halal certification from MUI is recognized

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internationally (Salehudin and Bagus, 2011). Based on Halal Product Protection Act, only

products that have halal certificates are allowed to put halal labeling on their packaging.

This study aims to examine the causal relationships of several antecedents of actual

purchases of halal-labeled cosmetics based on TPB model. In particular, this study has specific

objectives: 1) to identify the direct influence of consumer attitude, subjective norm, and

perceived behavior control on purchase intention, 2) to identify the direct influence of consumer

attitude, subjective norm, perceived behavior control, and purchase intention on actual purchase

of halal-labeled cosmetics, 3) to identify the indirect influence or mediating effect of intention

on consumers’ actual purchase of halal-labeled cosmetics. This paper is structured as follows.

First, we review the marketing literature on the antecedents of actual purchase, purchase

intention, attitude, subjective norm, and perceived behavior control, based on the Theory of

Planned Behavior (TPB).

LITERATURE REVIEW

The Theory of Planned Behavior (TPB) by Ajzen (1985, 1991) is the model that is used

in this study to explain influential variables of Muslim consumers’ halal-labeled cosmetics

actual purchase. According to the TPB model there are three conceptually independent

determinants of behavioral intention: attitude, subjective norm, and perceived behavioral

[image:15.595.163.483.502.587.2]

control (Figure 1).

Figure 1. Theory of Planned Behavior (TPB) Model (Ajzen, 1985, 1991)

A person’s attitude towards a behavior represents evaluation of the behavior and its

outcomes. The subjective norm concerns the extent to which the importance of other people’s

opinion and perception will lead to performing the behavior. Perceived behavioral control

refers to the ease or difficulty of performing the behavior (Ajzen, 1985, 1991).Therefore, it is

assumed that halal-labeled cosmetics consumption within a Muslim population using the TPB

is applied in the framework. A positive personal attitude towards the consumption of halal

cosmetics, the influence of other important people, and the perceived control over consuming

Attitude

Subjective norm

Perceived behavioral control

Intention Behavior

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halal-labeled cosmetics predict the intention to purchase the product among Muslims, thus will

determine the actual purchase.

Purchase Intention and Actual Purchase

Armitage and Conner (2001) defined that intention as the motivation for individuals to

engage in a certain behavior. It assumes that the probability of performing an act is a function

of intention to perform act (Chang and Cheung, 2001). According to the TPB model, behavioral

intention is an immediate antecedent of behavior (Ajzen and Fishbein, 1975). Purchase

intention can affect the buying decision of customers in the future (Omar et.al, 2012). Therefore,

purchase intention is prediction about consumers’ future purchase decisions.

Attitude and Purchase Intention

According to Eagly and Chaiken (1995), an attitude is the psychological tendency that

is expressed by evaluating a particular entity with some degree of favor or disfavor. Attitude

towards the behavior refers to the degree to which a person has a favorable or unfavorable

evaluation or appraisal of the behavior in question (Ajzen, 1991, 2008; Aisyah, 2007). The TPB

model determined that the more favorable the attitude with respect to a behavior, the stronger

is the individual’s intention to perform the behavior under consideration. The stronger the

attitude to purchase the product, the stronger the intention will be, thus this will show in the

actual purchase behavior and vice versa. In many societies, religion plays an influential role

shaping product actual purchase behaviors.

Considerable evidence indicates that religion can influence consumer attitude and

behavior in general (Rahim and Sutina, 2012), and product purchasing decisions and consuming

habits in particular. This study investigates the factors determining the attitude behind the

halal-labeled cosmetics actual purchase among Muslim consumers. The stronger the attitude to

purchase the halal-labeled cosmetics, the stronger the Muslim consumer’s intention will be

which will show the actual purchase behavior .

Subjective Norm and Purchase Intention

Subjective norm refers to the perceived social pressure to perform or not to perform the

behavior (Ajzen, 1991; Aisyah, 2007). The TPB model holds subjective norm as a function of

belief. It is the function of how customer’s referent others (e.g. parents, family, and friends) and

view the regarding behavior and how motivated the consumer is to comply with those beliefs

(Miller, 2005). Beliefs play important roles in performing the intention of customers (Ajzen

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and Fishbein, 1985). In the context of Islam, a religious society adheres to the teachings of their

Prophet Muhammad who embraced and displayed exemplary behavior to his followers. As a

result, the influence of Prophet Muhammad will have a positive effect on subjective norm thus

affecting the intention to behave accordingly (Rahim and Sutina, 2012). Subjective norm deals

with consumers’ motivation and behavior, which is constructed to incorporate the expectations

of the approval or disapproval of others important to him or her (Chen, 2008). According to

Rahim and Sutina (2012), it is proposed that if consumers believe that those people important

to them think halal-labeled products are essential, they will have a higher intention of

purchasing such products. The influence of significant others will have a positive effect on

subjective norm thus affecting the intention to behave accordingly.

Perceived Behavior Control

Perceived behavior control refers to the degree of control that an individual perceives

over performing the behavior (Chen, 2007). According to Ajzen (1991), perceived behavior

control is the extent to which a person feels able to engage in the behavior. Based on the TPB

model, perceived behavioral control describes perceptions of the extent to which the behavior

is considered to be controlled. It has been assessed that the degree to which people perceive to

actually have control over enacting the interest. Moreover, according to Verbeke and Vackier

(2005), perceived behavior control is of greater interest than actual control since it refers to

people’s perception of the ease or difficulty of performing the behavior of interest. Control

factors such as perceived availability may facilitate or inhibit the performance of behavior

(Vermier and Verbeke, 2006).

According to Rahim and Sutina (2012), Muslim’s intention to consume or purchase

halal products is determined by the control they feel they have over such behavior. It can be

proposed that perceived behavioral control positively influence intentions towards consuming

or purchasing halal products by the Muslim society. Consumers who consider themselves to be

more or less Muslims are sometimes primarily guided by the important factors attached to halal

products such as whether it is easy or difficult to buy or get the product and the ease or difficulty

to consume the product. For example, high perceived availability of halal products in a country

may hinder consumers in the country from consuming other products (Rezai et.al, 2009).

Therefore, there is a link between perceived behavioral control and behavior which suggests

that consumers are more likely to engage in behavior they feel they have control over and

prevented from carrying out behavior over which they feel they have no control over. For the

religious Muslim society, consuming or purchasing halal products is something that should be

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within their control. They can chose to consume or not to consume halal products and this will

eventually determine their intention (Rahim and Sutina, 2012).

METHODOLOGY

Hypotheses Model

The method of analysis employed to the hypotheses in this study is Structural Equation

Model (SEM). SEM is an analysis method employed to test structural models that depicts

structural relationships between latent constructs. When this research is translated into the

hypotheses model (Figure 2), observed variables are drawn with the error terms for each latent

variable. For the exogenous variables, attitude (x1) contains ten observed variables, while

subjective norm (x2) and perceived behavioral control (x3) each one contains eight observed

variables. For endogenous latent variables, halal-labeled cosmetics purchase intention (y1) and

actual purchase (y2), the observed variables of each, contains two variables. For structural

[image:18.595.196.466.406.654.2]

equation model, the error of each item is drawn as unobserved variables in round circles.

Figure 2. Hypotheses Model

Sampling and Instrument

This study used convenience random sampling method. Respondents were female

Muslim consumers who have been purchasing Wardah cosmetics, which is one of the most

popular halal-labeled cosmetics brands in Indonesia. They were students who are currently

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studying in the State Islamic University of Jakarta. For examining the hypotheses, this study

used questionnaires as the instrument to obtain the primary data needed. The questionnaire

consists of 5-point Likert scale to evaluate the level agreement of respondents. There were 175

questionnaires distributed during the data collection period to target the respondents.

The data was analyzed using Structural Equation Model (SEM), AMOS 22 version.

From 175 observation number, there were 71 data profile causing outliers. The data profile

causing outliers were removed, thus, there were 100 data used by this study. After outlier

evaluation, the next step was to see the level of normality data used. The result shows that the

value of critical ratio (CR) of data multivariate is 2.187 (in the range between -2.58 and 2.58),

therefore the data is normal.

Measurement Model of Structural Equation Model

Confirmatory factor analysis (CFA) was conducted on every measurement model. The

goodness of fit is the decision to see the model fit into the variance-covariance matrix of the

dataset. The CFA of measurement model has a good fit with the data based on assessment

criteria such as Statistic Chi-Square (X2), CMIN/df, p-value Goodness Fit Index (GFI), Normed Fit Index (NFI), Comparative Fit Index (CFI), PRATIO, Root Mean Square Error

Approximation (RMSEA), and Root Mean Square Residual (RMR). After several modification

indices verifications, the confirmatory factor analysis of measurement model in this study

[image:19.595.86.521.539.706.2]

indicates an adequate goodness of fit model (Table 1).

Table 1. Goodness of Fit Model

Goodness of Fit Index

Cut-off Value*

Indicator Revised Indicator

Status

Chi-Square (X2) Closed to 0 1168.667 699.203 Poor Fit

CMIN/ df <2 2.959 1.890 Goodness of Fit

p-value > 0,05 0.000 0.000 Poor Fit

GFI > 0.90 0.589 0.740 Poor Fit

NFI > 0.90 0,666 0.800 Marginal Fit

CFI > 0.90 0,748 0.893 Marginal Fit

PRATIO 0 - 1 0,908 0.851 Goodness of Fit

RMSEA < 0,10 0,141 0.095 Goodness of Fit

RMR < 0,10 0.021 0.022 Goodness of Fit

*Source: Hair et.al (2006), Haryono and Parwoto (2012)

Before the hypotheses can be tested, another step of analysis required is testing the

construct validity of the measurement used in this study. Good construct validity of the

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instrument must be established before any conclusion about the causal relationship among

constructs can be determined. The result showed a construct validity measurement model with

[image:20.595.86.556.185.355.2]

standardized loading factor > 0.5 (see Table 2).

Table 2. Construct Validity Measurement

Variable Indicator SLF Variable Indicator SLF Variable Indicator SLF Attitude

(x1)

x11 .533 Subjective norm (x2)

x28 .841 Perceived behavioral control (x3)

x38 .814

x12 .734 x27 .868 x37 .761

x13 .654 x26 .914 x36 .918

x14 .806 x25 .881 x35 .855

x15 .868 x24 .572 x34 .823

x16 .848 x23 .622 x33 .868

x17 .838 x22 .543 x32 .781

x18 .835 x21 .591 x31 .748

x19 .867 Purchase intention (y1)

y11 .929 Actual

purchase (y2)

y21 .746

x110 .659 y12 .932 y22 .772

SLF: Standardized Loading Factor

One-way Anova Test

This study also uses the one-way anova test to analyze whether there are any significant

differences between the means of several independent (unrelated) groups. The one-way anova

compares the means between the groups of different profile respondent and determines whether

any of those means are significantly different from each other (Ghozali, 2011). For example,

this study wishes to know whether the different range of respondent ages, allowance amount,

budget amount or expenditure, purchasing frequency, religious orientation, or different

understanding about halal conformity of cosmetics and frequency to examine halal labeling

before buying, affect the consumers’ attitude, subjective norm, perceived behavior control,

intention and actual purchase of the halal-labeled cosmetics.

FINDINGS

Respondent Profile

Respondents are female Muslim consumers who purchased Wardah cosmetics which

are one of the most popular halal-labeled cosmetics brand in Indonesia. They are students who

are currently studying in the State Islamic University of Jakarta. Their age range averages from

18 to 24 (93%) with only 7% under the age of 18. Based on Oneway Anova test, there are no

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differences or relation between ages range with consumers’ attitude, subjective norms,

perceived behavioral control, intention, nor halal cosmetics actual purchase.

Respondents’ allowance per month mostly average Rp.1, 000,000 to Rp.2, 000,000

(51%), 30% under and 9% above the range. Based on Oneway Anova test (Table 3), there are

differences or correlations between consumers’ allowance with attitude (sig.0.090 < α 0.10).

The largest mean value comes from the third allowance range (Rp.1, 000,001-Rp.2, 000,000),

followed by the fourth, second and first allowance range. This could indicate that the higher the

amount of the allowance, the higher consumers’ personal evaluation regarding halal cosmetics

[image:21.595.83.534.311.401.2]

purchasing or consumption.

Table 3. Attitude Value Based on Consumers’ Allowance per Month

N Mean Std. Deviation Std. Eror F Sig Attitude

(x1)

<500.000 16 4.1188 .27379 .06845 2.225 .090 500,001-1,000,000 24 4.2750 .36742 .07500

1.000.001-2.000.000 51 4.4000 .42755 .05987 2.00.001-3.000.000 9 4.3222 .40859 .13620

Total 100 4.3180 .39858 .03986

Respondent cosmetics’ purchasing budget mostly around 5 to 20% of their expenditure

per year (60%), 13% under and 27% above the range. Based on Oneway Anova test, there are

no differences or relation between cosmetics budget with consumers’ attitude, subjective

norms, perceived behavioral control, intention, nor halal cosmetics actual purchase.

The buying of cosmetics frequency is often four times a year (34%), 13% once, 27%

twice, 15% three times, and 11% five times a year. Based on Oneway Anova test (Table 4),

there is a relation between consumers’ purchase frequency with attitude (sig.0.001), subjective

norm (sig.0.003), perceived behavioral control (sig.0.001), intention (sig.0.000) and halal

cosmetics actual purchase (sig.0.000). The largest mean value comes from the 4 times

purchasing per year, followed by five times and more, three times, twice and once in a year. It

could indicate that the higher the purchase frequency, the higher consumers’ attitude, subjective

norms, perceived behavioral control, intention and actual behavior to repurchase the

halal-labeled cosmetics.

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[image:22.595.94.543.111.590.2]

Table 4. Attitude, Subjective Norm, Perceived Behavioral Control, Intention and Actual Purchase Values Based on Consumers’ Purchasing Frequency

N Mean Std.

Deviation

Std. Error

F Sig

Attitude (x1)

Once 13 3.9923 .13205 .03662 5.084 .001

Twice 27 4.2926 .39606 .07622

3 times 15 4.1800 .18205 .04701

4 times 34 4.4794 .41617 .07137

5 times and more 11 4.4545 .49873 .15037

Total 100 4.3180 .39858 .03986

Subjective norm (x2)

Once 13 3.7885 .45753 .12690 4.353 .003

Twice 27 3.9907 .33240 .06397

3 times 15 4.0500 .28268 .07299

4 times 34 4.1949 .42772 .07335

5 times and more 11 4.3864 .52872 .15942

Total 100 4.0863 .42814 .04281

Perceived behavioral control (x3)

Once 13 3.9231 .14011 .03886 5.021 .001

Twice 27 4.1713 .49413 .09510

3 times 15 4.0750 .20485 .05289

4 times 34 4.4449 .44188 .07578

5 times and more 11 4.3636 .51373 .15490

Total 100 4.2388 .44597 .04460

Purchase intention (y1)

Once 13 4.0385 .13868 .03846 5.831 .000

Twice 27 4.1111 .32026 .06163

3 times 15 4.0333 .12910 .03333

4 times 34 4.4559 .49799 .08540

5 times and more 11 4.2727 .41010 .12365

Total 100 4.2250 .40436 .04044

Actual purchase (y2)

Once 13 3.6538 .24019 .06662 9.832 .000

Twice 27 4.0926 .43934 .08455

3 times 15 4.0333 .12910 .03333

4 times 34 4.4118 .45177 .07748

5 times and more 11 4.3636 .50452 .15212

Total 100 4.1650 .46631 .04663

This study also characterized the religious orientation of respondents which consists of:

1) ignorant: I do not know how to pray; 2) less obedient: I rarely pray 3) moderate: I carry out

my religious obligation as long as able to do so; 4) quiet obedient: I always try to perform my

religious obligations; 5) obedient: I always perform my religious obligations. The distribution

shows that 74% of the respondents are quiet obedient, 11% are obedient, 15% are moderate.

Based on Oneway Anova test (Table 5), there is a relation between consumers’ religious

orientation with subjective norm (sig.0.045). The largest mean value comes from the obedient

characteristics, followed by quite obedient and moderate orientation. This indicates that the

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higher the religious orientation, the higher consumers’ belief about the significant other

expectation regarding the good compliance with religious obligations regarding halal cosmetics

[image:23.595.83.526.188.262.2]

purchasing or consumption.

Table 5. Subjective Norm Values Based on Consumers’ Religion Orientation

N Mean Std. Deviation Std. Eror F Sig Subjuctive

norm (x2)

Moderate 15 4.0250 .50267 .12979 3.202 .045 Quiet obedient 74 4.0541 .39695 .04614

Obedient 11 4.3864 .44530 .13426

Total 100 4.0863 .42814 .04281

In the scope of halal cosmetics, the critical aspects comes from the production especially

the sourcing of halal ingredients and the usage of permissible substances such as gelatin,

placenta, lard and collagen, etc. Halal cosmetics must be manufactured, stored, packaged, and

delivered in conformity with Islamic religious requirements. Most of the respondents (53%)

understand the existence of potential non-halal ingredients and the usage of permissible

substances in cosmetics, while 47% do not know. Based on Oneway Anova test (Table 6), there

are differences between consumers’ knowledge with perceived behavioral control (sig.0.065).

This could mean that one of the resources required to perform high intention and actual behavior

to purchase halal cosmetics is the consumers’ understanding of potential non-halal ingredients

or the usage of permissible substance in cosmetic production. Therefore, the higher the

consumers’ understanding of the meaning of halal-labeled cosmetic products, consumers

intention and actual behavior to repurchase halal cosmetics is also higher.

Table 6. Perceived Behavioral Control Value Based on Consumers’ Halal Cosmetics Knowledge

N Mean Std. Deviation Std. Eror F Sig Perceived

behavioral control (x3)

Do not know 47 4.1516 .42344 .06177 3.471 .065

Know 53 4.3160 .45508 .06251

Total 100 4.2388 .44597 .04460

Before buying, 41% of respondent examined the halal label on cosmetics packaging

once, 28% of them examined the halal label more than once, and 39% respondents never

examined the halal label on cosmetics packaging before buying. Based on Oneway Anova test

(Table 7), there are differences and a relation between consumers’ behavior to examine the

halal label in cosmetics packaging with perceived behavior control (sig.0.028), intention (sig.

0.10), and actual purchase (sig.0.035). From analyzing the amount of each mean value in Table

[image:23.595.86.532.578.637.2]
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7, it could be concluded that the more often consumers’ examined the halal label before buying,

the higher the consumers’ perceived behavioral control, intention and actual behavior to

[image:24.595.90.542.196.407.2]

repurchase the halal cosmetics.

Table 7. Perceived Behavioral Control, Intention and Actual Purchase Values Based on Consumers’ Knowledge about the Halal requirements of Cosmetic products

N Mean

Std. Deviation

Std.

Error F Sig Perceived

behavioral control (x3)

Never examined 31 4.1653 .41128 .07387 3.716 .028 Examined once 41 4.1646 .42522 .06641

Examined more than once 28 4.4286 .47070 .08895

Total 100 4.2388 .44597 .04460

Purchase intention (y1)

Never examined 31 4.2097 .38241 .06868 2.356 .100 Examined once 41 4.1463 .35784 .05589

Examined more than once 28 4.3571 .46859 .08856

Total 100 4.2250 .40436 .04044

Actual purchase (y2)

Never examined 31 4.0806 .36735 .06598 3.479 .035 Examined once 41 4.0976 .46394 .07246

Examined more than once 28 4.3571 .52453 .09913

Total 100 4.1650 .46631 .04663

Hypotheses Test Result

The findings of this study indicate that the TPB can be applied to the prediction of the

consumers’ actual purchase of halal-labeled cosmetics. After all the assumptions are fulfilled,

then the hypotheses proposed in this study should be tested. The result of data analysis from

the regression weight structural equation model (Table 7) shows that this study has established

five direct causal effects: 1) perceived behavioral control and halal cosmetics purchase

intention; 2) attitude and halal cosmetics actual purchase; 3) subjective norm and halal actual

purchase; 4) perceived behavioral control and halal cosmetics actual purchase; 5) halal

cosmetics purchase intention and actual purchase.

This study also presents three indirect effects (Table 8): 1) purchase intention mediates

the relationships between attitude and halal cosmetics actual purchase; 2) purchase intention

mediates the relationships between subjective norm and halal cosmetics actual purchase; 3)

purchase intention mediates the relationships between perceived behavioral control and halal

cosmetics actual purchase.does not mediate the relationship between perceived behavioral

control and halal cosmetics actual purchase.

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[image:25.595.85.399.104.233.2]

Table 7. Regression Weight

Estimate S.E. C.R. P Status y1 <--- x2 .091 .073 1.253 .210 Not significant y1 <--- x1 .132 .143 .920 .357 Not significant y1 <--- x3 .583 .095 6.170 .000 Significant y2 <--- x1 .310 .116 2.682 .007 Significant y2 <--- x2 .124 .054 2.313 .021 Significant y2 <--- x3 .545 .099 5.480 .000 Significant y2 <--- y1 .232 .095 2.438 .015 Significant

Table 8. Standardized Direct and Indirect Effects

Indirect Effect

x1 x2 x3 y1 y2

y1 .000 .000 .000 .000 .000 y2 .020 .027 .157 .000 .000

CONCLUSION

Based on the findings of this study, it can be concluded that the Theory of Planned

Behavior is applicable to explain the direct effect of consumers’ actual purchase on halal

cosmetics. The TPB model is used to give insight on how Muslim consumers in Indonesia are

becoming more conscious about halal cosmetics and it is not simply because of Muslims’

obligation to obey Islamic rules, but it is also influenced by their attitude, significant other,

perceived behavioral control and intention that directly affect their behavior to actually

purchase the halal cosmetics. It is also found that consumers’ intention as intervening variables

applicable to creates indirect effect between independent and dependent variables.

Moreover, from the Anova test it can be concluded that: 1) the higher the amount of

the allowance, the higher attitude or consumers’ personal evaluation regarding halal cosmetics

purchasing or consumption; 2) the higher the purchase frequency, the higher consumers’

attitude, subjective norms, perceived behavioral control, intention and actual behavior to

purchase or repurchase the halal-labeled cosmetics; 3) the higher the religious orientation, the

higher subjective norm or consumers’ belief about their significant others expectation regarding

compliance to commandments about halal cosmetics purchasing or consumption; 4) the higher

the consumers’ understanding about the halal requirements of cosmetic products, the higher

perceived behavior control or consumers’ belief about the sufficiency of resources required to

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perform the behavior of interest on consuming or purchasing the halal-labeled cosmetics; 5) the

more often consumers’ examined the halal label, the higher the consumers’ perceived

behavioral control, intention and actual behavior to purchase or repurchase the halal cosmetics.

This study also found that one of the requirements to perform high intention and actual

behavior to purchase or repurchase halal cosmetics is the consumers’ understanding of potential

non-halal ingredients or the usage of permissible substance in cosmetics production. In order to

extent the marketing of halal cosmetics products and to extent consumers’ concerns towards

the halal requirements of all halal-labeled products, it is suggested that the government and all

relevant institutions such as MUI (Indonesia Ulama’ Assembly) along with the formal

educational institutions need to conduct an intensive program of educating and socializing the

public (consumers, students, manufacturer and business communities) about the halal

requirements of halal-labeled products. Therefore, it is suggested that government and related

institutions need to implement the Security Act of Halal Products immediately (which were

approved by the Assembly on 2014, September 25th (Ichsan, 2014) in order to protect the consumer from consuming non-halal products which are commonly circulating in Indonesian

markets and have the potential causing social, political and economical turmoil. Expectantly,

the findings of this study could be beneficial to manufacture and marketers by offering an

insight into the consumers’ intention and confidence to purchase halal cosmetics.

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Ajzen, I and Fishbein M. (1975), Belief, Attitude, Intention and Behavior, An Introduction to

Theory and Research. Reading, Mass: Addison –Wesley. Retrieved from

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Ajzen, I and Fishbein M. (1985), Attitude Behavior Relations: A Theoretical Analysis and

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Armitage, C.J. and Conner, M. (2001), Efficacy of Theory of Planned Behavior: A Meta

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Diponegoro University Publisher: Semarang, Indonesia

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Mughal, Ahmed Saeed (2003), More on Synthetic Alcohol. Retrieved from

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Religious Society, Business and Management Quarterly Review,Vol 3(1), p.17-25

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Concerns for ‘Halalness’ of Halal-Labeled Food Products among Muslim Consumers

in Malaysia: Evaluation of Selected Demographic Factors, Economic and Technology

Management Review,Vol.4, p.65-73

Salehudin, Imam and Bagus Adi Luthfi. (2011), Marketing Impact of Halal Labeling Towards

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153

يماساا قيوستلل سداسلا يملاعلا رمتؤملا

6th Global Islamic Marketing Conference

لوبنطسا

6

-8

رايا

5102

Istanbul, May 6

8, 2015

Qatar University

Erciyes University

Istanbul University

www.iimassociation.com

|

www.gimac.org

ةينطولا ةبتكما يف عادياا قر

Gambar

Figure 1. Theory of Planned Behavior (TPB) Model (Ajzen, 1985, 1991)
Figure 2. Hypotheses Model
Table 1. Goodness of Fit Model
Table 2. Construct Validity Measurement
+6

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