American Journal of Economics, Finance and Management
Articles Information
American Journal of Economics, Finance and Management, Vol.1, No.2, Apr. 2015, Pub. Date: Mar. 5, 2015
Country-of-Origin Effect on Consumer Purchase Intention of Halal Brands
Pages: 25-34 Views: 4248 Downloads: 2899
Authors
[01] Mahdi Borzooei, Business Management Faculty, Universiti Teknologi MARA, Shah Alam, Malaysia.
[02] Maryam Asgari, Business Management Faculty, Universiti Teknologi MARA, Shah Alam, Malaysia.
Abstract
Purpose – The purpose of this study is to explore if country of origin influences the purchase intention in selecting Halal brands from Muslim and non-Muslim countries. Design/methodology/approach – This research paper is based on a participant observation in a simulation shopping environment to identify the effect of country of origin on Muslim consumers when purchasing Halal brands, and using a semi-structured in-depth interview to elicit the perception of Muslim consumers. Findings – The results of the study indicate that country of origin has no effect on the consumers when choosing Halal brands. Although there are claims that Muslim countries are more reliable, in reality, country of origin does not affect the purchase intention when selecting Halal brands. Indeed, the decisions to select Halal brands for majority of respondents were based on taste, price and packaging. It was also found that when talking about Halal, the majority of respondents did say that they have different opinion in Halal certified by Muslim countries versus the non-Muslim ones. Thus, a model was achieved that reveals the factors affecting the purchase intention of consumers in the marketplace which are: Halal requirements, Halal industry procedures, business environment, Halal interpretation and manpower resources. Finally, another finding indicates that the United Kingdom is the most reliable non-Muslim country, while Saudi Arabia has been found to have stringent legislation in Halal compliance among Muslim countries. Research limitations – This research used a qualitative approach to analyze 35 Muslim respondents from the campus of Universiti Teknologi MARA (UiTM). Furthermore, the majority of the respondents were single and young adult students. Practical implications – Practical implication extends to a new window for Halal certification bodies, marketers and businesses in different countries involved in the Halal industry. Social implications – Some countries need to pay more attention to the Halal not only as a commercial activity but also as a spiritual need of Muslim consumers, and to establish their credibility in the marketplace. Originality/value – This is a pioneer study to seek a more accurate understanding of how consumers select Halal brands from Muslim and non-Muslim countries.
Keywords
Halal, Country of Origin, Muslim and Non-Muslim Countries, Halal Brands, Muslim Consumers, Purchase Intention, Simulation Shopping Environment
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