Effect of Halal Management System Certified Awareness on

Buying Interest of Consumer Goods in Indonesia

Mashudi
Fakultas Syariah dan Hukum
Universitas Islam Negeri (UIN) Walisongo Semarang Indonesia.
mashudi_69@yahoo.co.id

Abstract
The purpose of this research is to measure the effect of perceived behavior on purchasing
behavior of halal food among consumers in Tangerang which is mediated by purchase intention
and moderated by halal awareness. Data collection through online questionnaires was carried out
by snowball sampling and the results of questionnaires were returned and valid as many as 300
respondents. Data processing using SEM method with SmartPLS 3.0 software. The results of this
study indicate that attitudes, subjective norms and perceptions of behavior control have a
significant effect on purchase intention. Meanwhile, purchase intention has a significant effect on
the purchasing behavior of working consumers, and halal awareness moderates the effect of
purchase intention on purchasing behavior.

Keywords: Halal awareness, Buying Interest , halal food, theory of planned behavior.

1. Introduction
Indonesia is the country with the most expenditure on halal food, thereby strengthening the
potential of the halal culinary market in the country as a lifestyle that is widely accepted by the
community. Indonesia is proving that it is not only a halal food market, but also a producer.
However, the opportunity as a producer has not been fully utilized. UU no. 33/2014 concerning
the Guarantee of Halal Products until now has not had a significant effect on the growth and
acceleration of the halal product industry including food and beverages. The number of Muslims
in Indonesia and the world continues to increase from time to time, the growth of the middle
class increases 7 percent - 8 percent per year, so that purchasing power increases. This fact is a
very large target market, especially for Indonesia, where the majority of the population is
Muslim. More than that, public awareness to consume halal food has also increased. Many of
them consider that halal certification is not important, even though this halal certification will
encourage the interest of other countries to consume halal food, not only in other countries and
even in our own country, because the food in each city is different. For example, during a study
tour to tourist cities in Indonesia, immigrants not only see tours but will look for foods in the
city, especially when the tour is Muslim tourism, of course they will look for special foods from
the city that are labeled halal or halal certified. This halal-certified food is very important for all
of us, besides making it easier for us to find halal-certified food it also makes the Indonesian
economy better. Indonesian halal food is still inferior to other countries, for example Japan,
South Korea, Thailand, Malaysia. In fact, the greater potential of the halal food market in the
world should be able to be utilized properly by the food industry in Indonesia.
The development of the halal industry in Indonesia will focus on mapping the constraints that are
currently occurring by grouping 5 aspects, namely the first aspect of the policy consisting of the
implementation of the Halal Product Guarantee (JPH) which has not been completed, there is
still a lack of certification and standardization of halal products, and there is still no roadmap
development of the halal industry. Furthermore, the second aspect, namely human resources,
consists of many producers who do not pay attention to halal products and still lack knowledge
of halal products for small business actors. Then, the third aspect of infrastructure is the lack of
adequate infrastructure, especially the lack of coordination of the institutions that handle
infrastructure. Then, the fourth aspect of socialization consists of a lack of promotion about halal
and a lack of socialization, education and information about halal. The fifth aspect of production,
namely some constraints such as limited raw materials that meet halal criteria, there are still
several sectors that depend on imports and finally there is no standard definition of halal
products. ANP analysis results show that the main problem in the development of the halal
industry is the aspect of human resources will have a good impact on the fast development of the
halal industry because it provides a better perception and understanding of the market. Apart
from human resources, the next constraints are infrastructure and production. Infrastructure is an
obstacle in the development of the halal industry. Infrastructure barriers relate to the
implementation of JPH such as regulations, systems, procedures, and the number of halal
guarantee institutions. The next priority is policy and outreach. Furthermore, the formulation of
strategies in the development of the halal industry is based on the mapping of obstacles that have
been done. This strategy is called the Halal Industry Integration Strategy which has the aim of
maximizing the role of every economic actor. These economic players include the government,
consumers, investors and industry (Thomson Reuters & Dinar Standard 2018).

The Halal Industry Integration Strategy includes two things. First, examining factors that can
increase the preference of companies or producers in the halal industry to obtain halal
certification, this can be driven by demand in the market, especially in Indonesia, where the
majority of Muslims tend to think that all products in circulation are halal products. Therefore,
checking the halal label on a product to be consumed is not a priority. Second, analyzing the role
of each actor in the halal industry. The government as a regulator can maximize in formulating
regulations, especially in halal certification, especially in making companies more government to
maintain halal certification. Then, consumers by maximizing the urgency of consuming products
labeled halal will encourage producers to pay attention to halal guarantees for their products.
Then, Islamic financial institutions as investors. Purwanto (2020) explained that industrial
collaboration can lead to a harmonious system that can support each other and investors have a
role to channel their long-term funds to other halal industries. Lastly, the role of industry. The
lack of involvement of Muslims in the industry can reduce the country's image as a country that
has great potential to become a major player in the halal industry, especially in the long term.
Muslim workers and producers are expected to have a deeper understanding of halal practices, as
well as Islamic legal and ethical standards. This can encourage a growing number of products
and companies seeking to obtain halal certification.

The halal industry has experienced rapid development in recent years. The halal lifestyle that is
synonymous with Muslims has spread to various countries, even to countries with minority
Muslim populations. Halal is a universal indicator for product quality assurance and living
standards (Gillani, Ijaz, & Khan, 2016). Halal is usually only associated with material matters.
However, in Islam halal includes deeds and work or commonly referred to as Muamalah
(Qardhawi, 1993). Halal can be defined as a quality standard that is in accordance with Islamic
Sharia law and is used in every activity carried out by Muslims (Bohari, Cheng, & Fuad, 2013).
Halal products and services are chosen by Muslims as a form of obedience to Islamic Sharia law.
Although halal is closely related to Muslims, it does not mean that consumers of halal products
only come from Muslims. Consumers of halal products from countries with Muslim minority
populations have experienced a significant increase in recent years. The halal industry is
experiencing rapid development in several sectors, including: halal food, finance, travel, fashion,
cosmetics and medicine, media and entertainment, as well as other sectors such as healthcare and
education.

Based on data from the Global Islamic Economy Report for 2016-2017, Indonesia is in the top
10 producers of the halal industry globally. Overall, the world's total expenditure in the halal
industry reaches US $ 2.97 trillion. A total of US $ 1.9 trillion or equivalent to Rp 25,270 trillion
is a contribution from the food sector. Currently, Indonesia is not among the top 10 producers of
the halal food industry. The biggest producer of halal food is dominated by Malaysia. According
to a researcher in the field of Islamic Economics, optimizing the management of the domestic
halal industry can increase the State Budget (APBN). Based on existing data, the halal food
industry has a very large market. Based on BPS data, Indonesia has the largest Muslim
population in the world. This is a huge economic potential. The halal food industry sector has
great potential to be developed. On average, the industrial sector is projected to grow by around
eight percent in the period until 2021. It is analogized that if Indonesia can control 10 percent of
the potential of the world's halal food industry which reaches IDR 25,270 trillion, it is certain
that revenue from the halal food industry will only reach IDR 2,527 trillion. Thus the increase in
sources of state revenue will be even higher (Akbar, 2017). The Ministry of Industry has made
plans for the establishment of a halal industrial area which is targeted for completion before
2020. This is done in response to the increasing demand for halal products in the world. Halal
industrial area is an industrial area in which all industries apply or comply with Islamic standards
from upstream to downstream. This Halal Industrial Zone will be selected in the Java region
because there is already an industrial area in the consumer goods sector. Meanwhile, for its
management, the government will hand over to one of the business actors who already know
good halal production standards (http://www.kemenperin.go.id).

The development of the halal market requires increased efficiency in the market to keep pace
with this growth. One approach that can be used is supply chain management (SCM) (Noordin,
Noor, & Samicho, 2014). SCM can be used to increase the productivity and profitability of the
halal market (Noordin et al, 2014). Strategic and systemic coordination of business functions in a
company is the key to the successful implementation of SCM in the company. Traditional SCM
can be defined as the process of converting raw materials into finished goods for further
distribution to the end consumer (Manzouri, AbRahman, Zain, & Jamsari, 2014). In the
increasingly rapid development of the industry, especially the development of the halal industry,
traditional SCM is deemed insufficient to accommodate market needs. Therefore, SCM develops
according to industry needs to become a halal supply chain. Halal supply chain can be defined as
the integration of business processes and activities from raw materials to end consumers (from
farm to plate) (Omar & Jaafar, 6 Faqiatul MW & Anissa HP, Halal Food Industry Development
Model in Indonesia 2011). So the difference between SCM and halal supply chain is the goal.
Supply chain management (SCM) is implemented in companies so that companies can reduce
production costs. On the other hand, the halal supply chain is used by companies with the aim of
maintaining and maintaining the halalness of the product (Gillani et al, 2016). The maintained
halal integrity of the product will be one of the competitive advantages for producers to be able
to compete with other producers in the same industry. The following is an example of a halal
supply chain image to be able to maintain a halal product. Only halal species are allowed to be
bred and these halal species do not consume prohibited food .

The purpose of this study is to prove that attitudes influence the buying interest in halal products.
Analyze and find out whether attitudes have a positive effect on buying interest in halal products.
Analyze and find out whether subjective norms have a positive effect on buying interest in halal
products Analyze and find out whether perceptions of behavior control have a positive effect on
buying interest in halal products Analyze and find out whether purchase intention has a positive
effect on buying behavior of halal products Analyze and find out whether halal awareness
moderates positive influence of interest in buying behavior of halal food products.

Method

Referring to previous theory and research, there is a relationship between variables which
includes attitudes, subjective norms and perceptions of behavioral control, purchase intention,
halal awareness and purchasing behavior. The author builds a research model as follows:

Figure 1.Research Model

The above research results prove that attitudes have an effect on buying interest in halal
products. Based on the description above, the hypothesis of this research is:
 H1: Attitudes have a positive effect on buying interest in halal products
H2: Subjective norms have a positive effect on buying interest in halal products
H3: Perception of behavior control has a positive effect on buying interest in halal products
H4: Purchasing intention has a positive effect on the buying behavior of halal products
H5: Halal awareness moderates the positive influence of interest in buying behavior of halal
food products

The method used in this research is quantitative method. Data collection was carried out by
distributing questionnaires to 300 halal food consumers. The questionnaire was designed closed
except for questions / statements regarding the identity of the respondents in the form of a semi-
open questionnaire. Each closed question / statement item is given five answer choices, namely:
strongly agree (SS) score 5, agree score (S) 4, neutral score (N) 3, disagree score (TS) 2, and
strongly disagree score (STS ) 1. The data processing method uses PLS and uses SmartPLS
version 3.0 software as a tool.  The respondents in this study were 300 working cosumers at one
of the private universities in Tangerang, Indonesia. The questionnaires were distributed using
simple random sampling technique.

Table 1.Respondents Profile

Criteria Total
Gender Male 160
Female 140
Age (per December 2020) < 20 years old 120
20 - 25 years 100
old
> 25 years old 80
Working Period < 1 year 130
1-5 years 90
> 5 years 80

Result and Discussion

Validity and Reliability Test

The testing phase of the measurement model includes testing for convergent, validity
discriminant validity. Meanwhile, to test construct reliability, Cronbach's alpha value and
composite reliability were used. The results of the PLS analysis can be used to test the research
hypothesis if all indicators in the PLS model have been implemented to meet the requirements of
convergent validity, discriminant validity and reliability test and validity tests are carried out by
looking at thevalue loading factor of each indicator against the construct. In most references, a
factor weight of 0.5 or more is considered to have sufficiently strong validation to explain latent
constructs (Chin, 1998; Ghozali, 2014; Hair et al., 2010). In this study, the minimum limit for
loading factor the accepted is 0.5, provided that the AVE value of each construct is> 0.5
(Ghozali, 2014). Based on the results of SmartPLS 3.0 processing, all indicators have a value
loading factor above 0.5. So thus, the convergent validity of this research model has met the
requirements. The value of loadings, cronbach's alpha, composite reliability and AVE for each
complete construct can be seen in Table 2 below:
Table 2. Items Loadings, Cronbach’s Alpha, Composite Reliability, and Average Variance
Extracted (AVE)
Cronbach’s Composite
Variables Items Loadings AVE
Alpha Reliability
Attitude AT1 0.976 0.912 0.912 0.778
(AT) AT2 0.923
AT3 0.824
AT4 0.857
AT5 0.824
Subjective Norm SN1 0.979 0.989 0.913 0.731
(SN) SN2 0.998
SN3 0.978
SN4 0.867
SN5 0.867
Perceived Control PC1 0.867 0.900 0.931 0.723
(PC) PC2 0.863
PC3 0.976
PC4 0.843
Purchase Intention PI1 0.765 0.903 0.932 0.721
(PI) PI2 0.712
PI3 0.942
PI4 0.812
PI5 0.815
Halal Awareness HA1 0.815 0.821 0.893 0.712
(HA) HA2 0.836
HA3 0.836
Purchase Behavior PB1 0.876 0.942 0.912 0.814
(PB) PB2 0.972
PB3 0.987

Discriminant validity is carried out to ensure that each concept of each latent variable is different
from other latent variables. The model has good discriminant validity if the AVE square value of
each exogenous construct (the value on the diagonal) exceeds the correlation between this
construct and other constructs (values below the diagonal) (Ghozali, 2014). The results of testing
discriminant validity using the AVE square value, namely by looking at the Fornell-Larcker
Criterion Value (Fornell & Larcker, 1981b), were obtained as follows:

Table 3. Discriminant Validity

Variables AT HA PI*HA PB PC PI SN

Attitude 0.832
Halal Awareness 0.624 0.813
Moderating Effect:
0.134 0.113 1.000
PI*HA
Purchase Behavior 0.776 0.665 0.164 0.965
Perceived Control 0.723 0.789 0.212 0.816 0.813
Purchase Intention 0.867 0.632 0.013 0.813 0.878 0.878
Subjective Norm 0.864 0.621 0.213 0.713 0.713 0.813 0.898

Table 4. Collinearity Statistics (VIF)

Variables AT HA PI*HA PB PC PI SN

Attitude 3.456
Halal Awareness 1.965
Moderating Effect:
1.034
PI*HA
Purchase Behavior
Perceived Control 3.432
Purchase Intention 1.812
Subjective Norm 3.213

The results of the discriminant validity test in Table 3 above show that all constructs have a
square root value of AVE above the correlation value with other latent constructs (through the
Fornell-Larcker criteria). Likewise, the cross-loading value of all items from an indicator is
greater than the other indicator items as mentioned in Table 4, so it can be concluded that the
model has met the discriminant validity (Fornell & Larcker, 1981a).Furthermore, a collinearity
evaluation is carried out to determine whether there is collinearity in the model. To find
collinearity, it is necessary to calculate the VIF of each construct. If the VIF score is higher than
5, then the model has collinearity (Hair et al., 2014). As shown in Table 4, all VIF scores are less
than 5, meaning that this model has no collinearity.Construct reliability can be assessed from the
Cronbach's alpha value and the composite reliability of each construct. The recommended
values composite reliability and Cronbach alpha are more than 0.7 (Ghozali, 2014). The
reliability test results in table 2 above show that all constructs have values of composite
reliability and Cronbach alpha greater than 0.7 (> 0.7). In conclusion, all constructs have met the
required reliability.

Hypothesis Testing

Hypothesis testing in PLS is also called the inner model test. This test includes a significance test
for direct and indirect effects as well as measuring the magnitude of the influence of exogenous
variables on endogenous variables. The effect test was performed using the t-statistic test in the
analysis model partial least square (PLS) using the software SmartPLS 3.0. With the technique
bootstrapping, the values for R Square andsignificance test values as shown in the table below:

Table 5. R Square Value

R Square R Square Adjusted

Purchase Behavior (PB) 0.811 0.773
Purchase Intention (PI) 0.733 0.712

Table 6. Hypothesis Testing

T P-
Hypotheses Relationship Beta SE Decision
Statistics Values
H1 AT -> PI 0.321 0.023 4.630 0.000 Supported
H2 SN -> PI 0.221 0.023 3.478 0.001 Supported
H3 PC -> PI 0.332 0.057 3.857 0.000 Supported
H4 PI -> PB 0.778 0.067 15.436 0.000 Supported
H5 PI*HA -> PB 0.089 0.046 2.114 0.023 Supported

Based on Table 5 above, the value of R SquarePurchase intention (PI) is 0.811, which means
that the variable purchase intention (PI) can be explained by the variable attitude (AT),
subjective norm (SN) and perceived control (PI) of 81.1%, while the remaining 18.9% is
explained by other variables not discussed in this study. Value of R SquarePurchase behavior
(PB) is 0.733 which means that the purchase behavior (PB) variable can be explained by the
variable purchase intention (PI) and halal awareness (HA).73.3%, while the remaining 26.7% is
explained by other variables not discussed in this study. Meanwhile, Table 6 shows the T
Statistics and P-Values which show the influence between the research variables that have been
mentioned. 

The Effect of Attitudes on Purchase Intention for Halal Food Products

Purchase intentions of consumers come from consumer attitudes and assessments of a product as
well as external factors of the product. Attitudes, judgments, and other external factors are very
important factors in predicting consumer behavior. Purchase intention can measure how likely
consumers are to buy a product, where the higher the purchase intention the higher the
consumer's intention to buy the product (Maghfiroh, 2015). The results of the study (Abd-
Rahman et al., 2015) prove that attitudes have a positive effect on intention use of halal products
(Abd-Rahman et al., 2015). Research using Theory of Reasoned Action (TRA) found that
attitudes are positively related to the intention to choose halal products among consumers
(Mukhtar & Butt, 2012).
 
The Influence of Subjective Norms on Purchase Intention for Halal Food Products
 The results of this study prove that subjective norms have a positive effect on buying interest in
halal food products. The higher the influence of the reference group on halal food, the higher the
interest in purchasing halal food. A predictor of social factors called subjective norms is the
social pressure that is felt to meet expectations about involvement in a behavior that must
influence the individual's intention to do or not to that behavior. If the social expectation is that
people should perform in the behavior in question, then individuals should be more inclined to
do so. Conversely, if the social expectation is that one should not perform in a behavior, then the
individual should be inclined to do so. In this case, if the purchase of halal food is seen as
socially desirable behavior, based on what other important people think about it, then individuals
are more likely to purchase halal food. In this study, subjective norms are perceived social
pressures that influence consumer decisions to buy halal food (Alam & Sayuti, 2011). The
research results of Bashir, Bayat, Olutuase, & Abdul Latiff (2019), Alam & Sayuti, (2011), and
Afendi, Azizan, & Darami (2014) prove that subjective norms have an effect on buying interest
in halal products.

The Effect of Perception of Behavioral Control on Purchase Intention for Halal Food
Products
 
The results of this study prove that Perceptions of Behavior Control have a positive effect on
buying interest in halal food products. The higher the Perception of Behavioral Control towards
halal food, the higher the interest in purchasing halal food. Perceived behavioral control is the
extent to which a person feels capable of engaging in the behavior. This has two aspects: how
much control a person has over the behavior and how confident one is about being able to or not
perform the behavior. It is determined by the individual's belief about the power of both
situational and internal factors to facilitate the performance of the behavior. The more control a
person feels about making a halal food purchase, the more likely he or she will. In this study,
perceived behavioral control is the ability to buy halal food (Afendi et al., 2014). The results of
research by Bashir, Bayat, Olutuase, & Abdul Latiff (2019), Alam & Sayuti, (2011), and Afendi,
Azizan, & Darami (2014) prove that perceptions of behavior control have an effect on buying
interest in halal products

The Influence of Purchase Intention for Halal Food Products on Purchasing Behavior of
Halal Food Products
 The results of this study prove that buying interest has a positive effect on purchasing behavior
towards halal food products. The higher the buying interest in halal food will increase the buying
behavior of halal food. Purchase interest reflects the short-term behavior of consumers in the
future for future purchasing decisions (next shopping plan). Purchase interest is the most
appropriate thing to predict consumer behavior. Purchase intention refers to the possibility of
consumers buying a product. Purchase intention is an individual's conscious plan to make an
effort to buy a product (Listyoningrum & Albari, 2012). Purchasing interest refers to an
individual's readiness and willingness to buy a particular product or service (Ajzen, 2005), and it
can influence consumer purchasing decisions in the future. This can be considered as one of the
cognitive behavioral mechanisms of consumers on how consumers intend to buy certain products
(Bashir et al., 2019). Intention can be a reliable predictor of behavior. Purchasing behavior
comes from adequate awareness of the product (Bashir et al., 2019).

 
The Effect of Halal Awareness in Moderating the Relationship between Purchasing Interest
in Halal Food Products on Purchasing Behavior of Halal Food Products
 The awareness of Muslims in Indonesia tends to increase accompanied by MUI data where the
products registered for obtaining a halal certificate have also increased. Consumers begin to look
for what is good and useful for themselves to consume. When people begin to realize that
consuming halal food is important for themselves, this will have a positive impact on the interest
in buying halal products. The greater the level of understanding of a Muslim towards halal, the
more positive a Muslim's behavior will be regarding issues related to halal. This also affects the
buying interest of Muslims to consume products in accordance with Islamic rules. Therefore,
halal awareness increases the positive influence of attitudes on the interest in buying halal food
products. The research results of Nurhasanah & Hariyani (2017), Hayat Muhammad, Ahmad,
Siddiquei, & Haider, (2013), Bashir, Bayat, Olutuase, & Abdul Latiff (2019) prove that halal
awareness increases buying interest and purchasing behavior of halal products.

Research by Cloud, et al (2015) states that halal certification has a positive effect on buying
interest. This contradicts the research conducted by Nurhasanah, et al (2018) entitled Factors
Affecting Purchase Intention for Halal Processed Food Products, which states that halal
certification has no significant effect on purchase intention. Manufacturers in selling their
products need a marketing strategy so that consumers know the products offered and attract their
buying interest in the products being sold. A study conducted by Awan, et al (2015) states that
halal marketing has a positive effect on buying interest. This contradicts the research conducted
by Faturohman (2019) and Putri and Rimadias (2019), where the results of this study show that
halal marketing does not have a positive effect on buying interest. Awan, et al (2015) in their
research show that religiosity and personal social perceptions have a positive effect on Muslim
consumer buying interest. Based on the differences in the results of these studies, it is necessary
to conduct more in-depth research on the factors that can affect Muslim consumer buying interest
in halal food.
The halal awareness variable has a positive and significant effect on buying interest in halal
products. This shows that if someone has better halal awareness, it will increase the person's
intention to buy halal products (Putri & Rimadias, 2019). The halal certification variable has a
positive and significant effect on buying interest in halal bread products. This shows that halal
certification has a positive influence on respondents' interest in buying Halal food because halal
certification provides a guarantee of product quality. Factors Affecting Intention to Buy Halal
food to consumers when they express their desire to purchase halal products in the future (Aziz
& Chok, 2013). The religiosity variable has a positive and significant effect on Muslim consumer
buying interest for halal bread products. This is because when a Muslim is obliged to eat halal
food and to prevent himself from consuming what is haram, it is a form of obedience to religion.
So that when someone's level of faith gets higher, it will increase the person's interest in buying
Halal food. On the other hand, if a person's faith level gets lower, the lower the person's interest
in buying halal bread. Halal marketing variables have a positive and significant effect on Muslim
consumer buying interest for Halal food products. This proves that the effect of halal marketing
carried out by producers such as promotions, advertisements, brands and prices affects
consumers' buying interest in Halal food products. Marketing and promotion related to halal food
products is able to direct consumers to halal awareness because designs related to halal
awareness are one of all marketing objectives and also Muslim consumers still consider their
religion in consuming halal food (Fitria, Hermawan, & Asnawi, 2019) Personal social perception
variables have a positive and significant effect on Muslim consumer buying interest in Halal
food products. Purchase interest of a consumer can arise due to pressure, both social and
personal. This is due to the influence of themselves and the social environment of consumers
such as the work environment, friendship, family and have an impact on the control of
consumers' personal behavior on the interest in buying halal food products (Awan, et al, 2015).

Conclusion

Based on the results of the study, it is concluded that the attitude, subjective norms and
perceptions of behavior control have a positive effect on buying interest in halal food products.
Purchasing intention has a positive effect on the buying behavior of halal food and in this study
proves that halal awareness is able to moderate the effect of purchase intention on purchasing
behavior of halal food products. The higher the awareness of halal will increase the relationship
between buying interest and buying behavior of halal food. The results of this study also show
that it is important to pay attention to halal awareness in the form of increasing the relationship
between buying interest and buying behavior of halal food products so that halal food producers
must be able to increase the perception of halal awareness of every consumer.

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