3rd International Halal Management Conference (3rd IHMC 2021)
166
3
rdINTERNATIONAL HALAL MANAGEMENT CONFERENCE (3
rdIHMC 2021)
What Influence Consumers to Purchase Muslim-Made Homecare Products?
Muhamad Azrin Nazri Azreen Jihan Che Mohd Hashim
Nur Ainna Ramli
Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan Malaysia
E-mail: [email protected]
Nor Asiah Omar
Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM)
_____________________________________________________________________________________________
1. Introduction
Islam is the second largest and fastest growing religion in the world with Muslim consumers are expected to reach 26 percent of the global population. The growing Muslim population worldwide represents an exciting opportunity to commercialize halal products related to Muslim company that produce halal product worldwide.
Approximately 60 percent of people in Malaysia are Muslims that contribute towards the growing demand of halal product such as foods, personal care, financial as well as home care product. However, the Muslim companies that produce Muslim products in Malaysia do not show a positive sign as only 40 percent from the businesses or entrepreneurs in Malaysia come from Malay and Bumiputera (Bernama, 2019).
Generally, Buy Muslim’s First (BMF) campaign started with the primary aim of urging the Muslim community to be more vigilant about halal or Shariah-compliant products, leading to several halal-related issues, triggered by the exploitation or misuse of the halal logo in Malaysia. The buy Muslim first campaign has been going on since 2018 but is slow and inactive. In 2019, this campaign received the attention of the Malaysian Muslim community, sparking awareness of the Muslim community (Othman et al., 2020). Therefore, this study aims to examine the factors that influence Muslim consumers’ purchase intention to buy home care product manufactured by Muslim producer. Specifically, factors i.e. brand perceived quality, perceived price, promotion, customer ethnocentrism, religiosity, and Muslim centric ness on customer purchase intention towards buying Muslim home care product were investigated.
2. Literature Review
Muslim centric ness which is the tendency of Muslims to purchase Muslim products. Brand perceived quality means the intend to know what customer’s perception of the overall quality of the brand when they want to buy the Muslim home care product. Perceived price is considered an important factor for a customer to buy the product or not.
Customer ethno-centrism refer to beliefs held by customer about the product that derived from their own country, ethnic or cultural group. Religiosity refers to relationship between the religion belief and customer’s purchase intention. A person with a high level of religiosity tends to be more obedient to the teaching of their religion. Ali, Xiaoling and Sherwani (2018) carried out studies on the brand perceived quality as one of factors influencing the purchase intention. Therefore,
H1: There is a positive relationship between brand perceived quality and purchase intention.
Studies by Karim et al., (2011) indicates a favorable connection between the Muslim centric ness and the purchase intention. Thus, the following hypothesis is
H2: There is a positive relationship between Muslim centric ness and purchase intention.
Chang (2017) conducted a research to investigate the factors influencing the purchase intention and found that promotion significant. Thus,
H3: There is a positive relationship between promotion and purchase intention.
According to Suhud and Willson (2019) perceived price as a factor influencing the purchase intention. Thus,
H4: There is a positive relationship between perceived price and purchase intention.
3rd International Halal Management Conference (3rd IHMC 2021)
167 Jianlin et al. (2010) found customer ethnocentrism influences purchase intention. Thus,
H5: There is a positive relationship between customer ethnocentrism and purchase intention.
Nora et al., (2016) has done research on religiosity and found it as a factor affecting the purchase intention. Thus,
H6: There is a positive relationship between religiosity and purchase intention.
3. Methodology
The unit of analysis in this study were Muslim consumers. The sampling design for this study was probability sampling. The data collection was conducted via online questionnaire through google form. The sample size of this research was 150 respondents who are Muslim consumers. All measurement items were adapted and adopted from previous studies.
4. Results and Discussion
The demographic analysis shows most respondents know about Muslim home care products contributing to 95.8 percent of respondent. There were 131 female respondents represent 78.9 percent of respondents involved in this survey. Majority of the respondents are between the age of 20 until 25 years old (89.8 percent) while the least no of respondents who participated in the survey were age of 46 to above. Further analysis shows no missing and extreme value found in the study. The skewness and kurtosis value of the data is close to zero which indicates the distribution of data is normal (Tabachnik and Fidell, 2001). The measurement items of all constructs in the study exceeded the 0.7 of Cronbach alpha indicating its item reliability (Nunnally, 1978). The multiple regression analysis in Table 1 shows all hypotheses were accepted except perceived quality.
Table 1: Multiple Regression Result
Model Unstandardized
Coefficients
Standardized Coefficients
t Sig. Result
B Std. Error Beta
(Constant) .710 .233 3.050 .003
MusCent .519 .072 .521 7.163 .000 Accepted
Relig .211 .075 .212 2.809 .006 Accepted
1 PerQualit -.085 .054 -.100 -1.576 .117 Rejected
PPrice .094 .044 .127 2.148 .033 Accepted
Promo -.089 .042 -.108 -2.113 .036 Accepted
CusEth .179 .068 .187 2.629 .009 Accepted
5. Conclusion
The research offers the empirical findings where Muslim centric ness, religiosity, perceived price, promotion and customer ethnocentrism influence the intention of Muslim consumers to purchase homecare product manufactured by Muslim manufacturers. Based on the finding, it is recommended that Muslim manufacturers to improve their product quality in order to attract more customers to purchase their home care product. For future research, it is also recommended to add more constructs, apply qualitative data, increase sample size and involve non-Muslim as unit of analysis. These recommendations will offer new insight on the existing research.
6. References
Ali, A., Xiaoling, G., & Sherwani, M. (2018). Antecedents of consumers’ Halal brand purchase intention: An integrated approach. Management Decision, 56(4), 715-735. doi:10.1108/MD-11-2016-0785
Bernama. (2019). Only 40% company owned by Malay and Bumiputera Entrepreneurs. Retrieved January 22, 2021, from https://www.astroawani.com/berita-malaysia/hanya-40-peratus- syarikat-dimiliki-usahawan-melayu-dan-bumiputera- 212107.
Chang, A. Y. (18 September 2017). A Study on the Effects of Sales Promotion on Consumer Involvement and Purchase Intention in Tourism Industry. EURASIA Journal of Mathematics, Science and Technology Education, 13(12), 8323-8330.
doi:10.12973/ejmste/77903
Jianlin, W., Ning, Z., & Qi, D. (2010). Consumer Ethnocentrism, Product Attitudes and Purchase Intentions of Domestic Products in China. International Conference on Engineering and Business Management, 2262-2265.
3rd International Halal Management Conference (3rd IHMC 2021)
168 Karim, J. A., Abdul Rahman, S., & Ariffin, Z. Z. (2011). Do Muslims Purchase Muslim Products? Muslim Centric Ness: An
Exploratory Study. International Conference on E-business, Management and Economics, 25, 60-65.
Nora, L., & Minarti, N. S. (2016). The Role of Religiosity, Lifestyle, Attitude as Determinant Purchase Intention. 135-148.
Nunnally, I. (1978). Psychometric theory: McGraw Hill.
Othman, S. H., Yahya, M. A. B., Abdul Wahab, N. J., Sallehuddin, M. Z. (2020). The Impact of "Buy Muslim First (BMF)"
Campaign to Young Muslim Consumer. International Journal of Academic Research in Economics and Management Sciences. 9(2), 71-80. http://dx.doi.org/10.6007/IJAREMS/v9-i2/7634
Suhud, U., & Willson, G. (2019). Low-Cost Green Car Purchase Intention: Measuring the Role of Brand Image on Perceived Price and Quality. International Journal of Economics and Business Administration, VII (3), 238-249.
Tabachnick, B.G., & Fidell, L.S. (2001). Using Multivariate Statistics (Fifth ed.). Boston: Allyn and Bacon.