THE 10th ISLAMIC BANKING, ACCOUNTING AND FINANCE INTERNATIONAL CONFERENCE 2022 (iBAF 2022)

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THE 10th ISLAMIC BANKING, ACCOUNTING AND FINANCE INTERNATIONAL CONFERENCE 2022

(iBAF 2022)

Consumer Purchase Intention of Halal Cosmetic: A Systematic Literature Review

Ahmad Rafiki

Faculty of Economics and Business, Universitas Medan Area (UMA) Jl. Setia Budi No.79 Kota Medan, Sumatera Utara, Indonesia

Tel: +628 126897374 E-mail: [email protected]

Fitriani Tobing

Wan Suryani

Hery Syahrial

Jennie Clarissa

Abstract

This study aims to examine relevant research on consumer purchases in halal cosmetics. A total of 18 studies relating to top- level journals have been identified by the recommended method of systematic literature review. Bibliometric and narrative literature approaches are used to explore information related to the number of documents per year, publishers, journals, theories, methods, countries, institutions and antecedent of purchase intention. The results showed a downward trend in the number of studies in the field of consumer purchases in halal cosmetics. Emerald and the Journal of Islamic Marketing are top publishers and journals. Theory of reasoned action and Theory of planned behavior are theories that are still predominantly used. SEM-AMOS and PLS-SEM are widely used analytical tools. Malaysia and Indonesia still occupy the top positions in this study. Furthermore, a number of institutions have contributed to this study, and interestingly in this study it was found that several institutions from Muslim minority countries have taken part, namely India, China and Canada. Apart from the importance of the halal cosmetics market for producers and consumers, in the existing literature there is little research on halal cosmetic products.

Keywords: Quantitative; Halal Cosmetics; Literature review

1. Introduction

The word halal comes from Arabic which means ‘allowed’, while the word haram, means forbidden or unlawful (Alam & Sayuti, 2011; Wilson & Liu, 2010). The word halal has been associated with many segments in various research articles. The rapidly growing popularity of halal today is inseparable from the religious spirit

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(Sugibayashi et al., 2019). According to a report by Thomson Reuters (2019), the halal cosmetics industry sector has the highest growth opportunity of 6.8% when compared to other halal industry sectors in 2024. Furthermore, the global halal market is expected to expand at a compound annual growth rate of 6.8% until 2024 (Trent, 2019).

Besides the large Muslim population that shows high loyalty to halal products, it turns out that halal cosmetics bring a wider market appeal among non-Muslim consumers, who associate halal cosmetics with ethical consumerism and stricter quality assurance standards (Sugibayashi et al., 2019). In addition, for non-Muslims, halalness can be a bridge in terms of suitability and quality received in trade transactions with Muslims (Hashim

& Mat Hashim, 2013; Yusuf et al., 2017).

Despite the importance of the halal cosmetics market for producers and consumers, the existing literature focuses on halal food products, and there is little research on halal cosmetic products (Ireland & Rajabzadeh, 2011; Mukhtar & Butt, 2012; Teng & Jusoh, 2013). Muslim consumers around the world today are increasingly emphasizing Islamic ‘sensitivity’, including sensitivity in the cosmetic products market (Aoun & Tournois, 2015).

Sensitivity here emphasizes about buying. According to Ajzen and Fishbein (1980) intention is considered an important factor in the relationship between attitude and behavior. Purchase intention is the consumer's thoughts, desires, and interests in a product that will lead to the act of purchasing an informed product (Belch & Belch, 2014). In research studies that examine the relationship between halal cosmetic and purchase intention/consumer purchases have been carried out before, but still few. Therefore, this study will examine the halal cosmetic associated with consumer purchase.

2. Literature Review

Halal cosmetic products are an innovation and revolution in the cosmetics industry, because they are characterized by high quality, follow halal compliance and meet strict scientific guidelines (Khan et al., 2020).

Cosmetic and personal care products have emerged as the leading and fastest growing segment today (Shahid et al., 2018). This development is in line with the large Muslim population with the emergence of awareness of halal products, plus the interest in the use of halal cosmetics from non-Muslims who use the reasons of safety, cleanliness and quality of halal products. Researchers also take part in promoting and reviewing halal products and the reasons for using/purchasing halal products. This huge market opportunity allows both Muslim and non- Muslim consumers to purchase halal cosmetic products. Purchasing behavior according to Haque (2018) is defined as the power of consumers to make decisions in purchasing any product and service available in the market.

Understanding the behavior of buyers, especially halal cosmetic products, can help managers in making decisions and increasing company sales. Studies on halal cosmetics have been carried out in the last 10 years, both through qualitative and quantitative approaches. Studies with a qualitative approach have been carried out (Annabi & Ibidapo-Obe, 2017; Aoun & Tournois, 2015; Hashim & Mat Hashim, 2013; Herjanto et al., 2022;

Shahid et al., 2018; Sugibayashi et al., 2019), studies with a quantitative approach have been carried out (Abd Rahman et al., 2015; Briliana & Mursito, 2017; Handriana et al., 2020; Haque et al., 2018; Isaac et al., 2019; Khan et al., 2020), however, the studies carried out are widely associated with purchase intentions, while purchasing decisions are still few. In a quantitative approach, a study conducted by Herjanto et al (2022) was found which conducted an analysis with a systematic review that examined halal cosmetic consumption with data taken from 2010-2021, the results of their research mapped antesedents, best authors, publications, affiliation, country, theory, contexts and methods.

3. Methodology

This section presents the steps and procedures for conducting a systematic literature review. We started the process by analyzing all the literature on intention to buy halal cosmetics. After the relevant articles are analyzed according to predetermined criteria, then the literature is summarized and concluded. The methodology applied is in accordance with the method developed by Fauzi (2022). However, considering the number of articles selected as many as 18 articles, the authors conduct a critical study in this case which includes information related to the number of documents per year, publishers, journals, theories, methods, countries, institutions and factors that become antecedents of purchase intention. The next stage of the data collection process can be seen in Figure 1.

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Figure 1. Data collection mechanism.

4. Result

4.1 Publication Output, Publisher and Journals

In this study, there are 18 articles that discuss Consumer Purchase of Halal Cosmetic. The distribution of articles on each year is shown in Table 1. 2021 was a productive year for authors with 6 articles (33.33%), followed by 2020 with 4 articles (22.22%), and in 2018 with 2 articles (11.11%). The number of articles per year can be seen in Table 1.

Table 1. The number of documents consumer purchase of halal cosmetic.

Years No. of Studies

2013 1

2015 1

2016 1

2017 1

2018 2

2019 1

2020 4

2021 6

2022 1

Total 18

From 18 articles discussing Consumer Purchase of Halal Cosmetic, it is known that Emerald is the top one of publishers with a total of 11 articles (61.11%), the distribution of publishers is shown in Table 2.

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Table 2. The most dominant publisher.

Publisher No. of Studies

Emerald 11

Growing Science 1

Kolej University Islam Sultan Azlan Shah 1

Korea Distribution Science Association (KODISA) 1

MDPI AG 1

National Cheng Kung University 1

University of Tehran, College of Farabi 1

Others 1

Total 18

From 18 articles, the Journal of Islamic Marketing is the top journal that publishes 10 articles (55.55%), then the distribution of publication journals is shown in Table 3.

Table 3. The most dominant publication of journals.

Publisher No. of Studies

Journal of Islamic Marketing 10

Asia Pacific Management Review 1

Cosmetics 1

Global Journal Al-Thaqafah 1

Iranian journal of Management Studies 1

Journal of Asian Finance, Economics and Business 1

Management Science Letters 1

Measuring Business Excellence 1

Pertanika Journal of Social Science and Humanities 1

Total 18

4.2 Theory, Method, Countries, and Institutions

Theory of reasoned action is a theory that is widely used in this study with a total of 7 articles (38.89%), then the theory of planned behavior as many as 5 articles (27.78%), then the distribution of theories in this study is shown in Table 4.

Table 4. Theories of studies.

Theory No. of Studies

Theory of reasoned action 7

Theory of planned behaviour 5

SOR model 1

ELM Theory 1

Diffusion of innovation theory 1

RBV Theory 1

Not specified 2

Total 18

SEM-AMOS is an analytical method that is widely used in this study with the number of articles using it as many as 8 articles (44.44%), followed by PLS-SEM analysis as many as 5 articles (27.78%), the distribution of analysis used is shown in Table 5.

Table 5. Methods of studies.

Method No. of Studies

PLS-SEM 5

SEM-AMOS 8

SMART-PLS 1

Others 4

Total 18

In Table 6, it can be seen that Malaysia is the first-ranked country in studying Consumer Purchase of Halal Cosmetic with 8 articles (44.44%), Indonesia in second place with 6 articles (33.33%), then India with 3 articles (16.67%), and Pakistan with 1 article (5.55%).

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Table 6. Countries of consumer purchase of halal cosmetic.

Country No. of Studies

Malaysia 8

Indonesia 6

India 3

Pakistan 1

Total 18

In Table 7, it can be seen that each institution contributes an average of 1 article to the study of Consumer Purchase of Halal Cosmetic. Only University Putra Malaysia contributed 2 articles.

Table 7. The most dominant institutions of studies.

Institution Country No. of Studies

University Putra Malaysia Malaysia 2

Universiti Kebangsaan Malaysia Malaysia 1

Politeknik Nilai Malaysia 1

International Islamic University Malaysia Malaysia 1

Multimedia University Malaysia 1

University Malaya Malaysia 1

Universiti Malaysia Terengganu Malaysia 1

President University Indonesia 1

Universitas Jenderal Soedirman Indonesia 1

Universitas Airlangga Indonesia 1

STIEPARI Semarang Indonesia 1

Trisakti School of Management Indonesia 1

Universitas Islam Indonesia Indonesia 1

Gitarattan International Business School India 1

Jaipuria Institute of Management India 1

Shandong Jianzhu University China 1

Canadore College Canada 1

Total 18

In Table 8, it can be seen from the 18 articles that we have reviewed, we found 6 categories of antecedents which are variables that affect the purchase intention of halal cosmetics. This category consists of psychological, cognitive, halal-related factors, marketing, spirituality, and situation.

Table 8. Antecedents of purchase intention on halal cosmetics.

Antecedents Variables

Psychology Attitude (Affective and Cognitive), Trust, Hedonic Shopping, Utilitarian Shopping, Cognitive Halal Perception, perceived behavioral control, Perceived Value Halal Related Factors Certification, Logo, Knowledge, Orientation, Ingredient safety, Marketing Brand Image, Brand Awareness, Brand Loyalty, Advertisement, Product

Characteristic, Consume Innovativeness, eWOM Quality, eWOM Valence, eWOM Consistency, eWOM Quantity

Spirituality Religiosity, Religious Belief, Religious Knowledge, Religious Commitment, Religious Orientation

Situation Subjective Norm, Social Influence, Normative Believe, Self Eficacy

5. Discussion and Conclusion

From the results of the investigation, it was found that the researchers' attention to the study of Consumer Purchase of Halal Cosmetic experienced growth that was correlated with the peak of growth in 2021 and decreased in 2022. There are 7 known publishers in this study, and Emerald is the top publisher with 11 articles. A total of 9 journals were aimed at by researchers to publish the results of their research with Journal of Islamic Marketing as the top journal. Researchers have also studied using several theoretical approaches, but it is recognized that the commonly used theoretical approaches are the theory of reasoned action and the theory of planned behavior. The analytical techniques used by the researchers are still dominated by SEM-AMOS and PLS-SEM. Studies on this field are predominantly carried out in Malaysia and Indonesia. There are 17 institutions that have contributed to the study of this field, and there are non-Muslim institutions from India, China, and Canada that have also

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Behavior are widely used theories but in this study researchers have also used RBV. SEM-AMOS and PLS-SEM are widely used analytical tools. Studies in this field are widely carried out in Malaysia and Indonesia.

Interestingly, in this study, it was found that several institutions from Muslim minority countries have taken part, namely India, China and Canada.

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