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Halal food consumption: A comparative study between Arab Muslims and Non Arab Muslims consumers in Malaysia

Azura Hanim Hashim, hhazura@gmail.com*

Md Nor Othman, mohdnor@um.edu.my

Department of Marketing, University of Malaya, Malaysia

Abstract

The Halal market literature reveals that different interpretations of what Muslim considers the meaning of halal is the main challenge to understand the Muslim market. However, there is no empirical research being done to discover the statement. Therefore, this research will find out the assumption of the dissimilarity of Muslims consumers across different ethnicity to describe the basic process of purchase intention towards Halal food products. Specifically, this research examines the difference between Arab Muslims and Non Arab Muslims in terms of the level of religiosity and Halal perception. The result finds that the level of religiosity and Halal perception among Non Arab Muslims is higher compared to Arab Muslims and shows that Non Arab Muslims are more careful when purchasing food products compared to Arab Muslims.

Keywords- Religiosity, Consumer behavior, Halal, Malaysia.

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Halal food consumption among Arab Muslims and Non Arab Muslims consumers in Malaysia.

Introduction

Demand for Halal products and services have been increasing at US$655 billion in 2010 from US$635 billion in 2009 (Bernama, 2009). Despite the importance of the Halal market segment and the growing revenue (Fischer, 2008) research on Halal food consumption on Muslims market segment has been largely ignored (Bonne et al., 2008). Not much has been done to understand Muslim consumers’ perception on Halal food and many questions relating to their precise attitude and food choices remain under research (Lada, 2009; Bonne, 2008; Ahmed, 2008). In addition, the Halal food industry is not a 'single' market. It is a fragmented market where every country or region has its own characteristics. Thus, the one size strategy it will not work (Sungkar, 2009). However, research across countries and ethnicity on consumer behaviour and the Halal food consumption is noted to be lacking (Lada, 2009; Bogal, 2007). Furthermore, there is almost no research being done in comparing ethnicity and religiosity in Halal food consumption.

In view of the above discussion, principally this research has two main objectives. Firstly, is to examine the differences of attitude on Halal Food consumption across different ethnicity. Secondly, is to examine the perception in terms of religiosity and five different hypothetical constructs of Halal perception among Arab Muslims and Non Arab Muslims consumers.

Literature Review

Halal Concept

Muslims must eat Halal food (Hussaini, 1984). These laws are found in the Quran and in the Sunnah, the practice of the Prophet Muhammad. Halal is an Arabic word meaning lawful or that what is permitted and allowed by the lawgiver (Allah), whereas Haram means unlawful or prohibited (Al Qaradawi, 1995). The law prohibits the consumption of alcohol, pork, blood, dead meat and meat that has not been slaughtered according to Islamic rulings (Bonne, 2009). This paper will introduce a number of variables related to Halal issue and to see the different between Arab Muslims and Non Arab Muslims consumers in terms of religiosity and Halal Perception (understanding the concept of Halal, Halal consciousness, Halal cautiousness, the importance of Halal logo and Product originated from Muslim countries).

Religiosity

In Islam, the term religiosity means fulfilling the requirements of Islam, faith, belief and charity in word and deed, where do God's sake, and save the people's rights and follow the orders of Islam altogether, and avoid the prohibitions and taboos, worship, and greater religious duties and recommended (Al Goaib, 2003). Research on religiosity proved that it does affect consumer behavior and influence the decision process on Halal food consumption (Bonne, 2007). The attitude on food consumption depends on individuals’ level of religious commitment or the importance placed on religion in their life (Moklis, 2006). Past studies show that Muslims with

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higher religiosity is said to have a halal consciousness and looking for products that satisfy their needs when purchasing halal food products, for example with the Halal logo (Shafie et al, 2006).

Halal Perception

Recently, Muslims are more aware of the importance of Halal food, which has led to the rapid expanding of World Halal Food industry (Che man et al, 2010). In other words, the global Halal wave is happening and shows that Muslim consumers becoming more conscious to take the issue of Halal seriously (Husain, 2006). It is important for Muslims to understand the concept of Halal and Haram that meet the demands of the religion (CAP, 2006). By having such understanding and knowledge, the consumer will have a better picture of what is Halal food consumption, besides be able to make an intelligent decision according to their preferences and faith (Ahmad, 1996). Muslim consumers must check and judge their consumption, such as the ingredients of any particular of food and drinks before consuming and make a wise decision (Hussaini, 1984). Thus, every Muslim individual must be cautious and concern in the aspect of food consumption to avoid any doubtful and uncertain food products (CAP, 2006).

On the other hand, the main challenge is the different interpretations of what Muslims consider what as Halal. This has led to misunderstand and even fraud (Bonne, 2009). It was probably because Halal and Haram concepts are profoundly embedded in the Arab-Muslims tradition and history. This affects the Arabs’ and non Arab’s Muslims way of thinking and acting. Research found that Arabic texts are inadequately explained, and inaccurately translated into other languages (Al Jallad, 2008). Another possible reason why the different occurs may be due to social structures, such as immigration and generation differences (Bonne, 2006).

The easiest way for the Muslim consumers is by purchasing food products with Halal certification and logo as a significant way to inform and to reassure that the products are Halal (Shafie et al., 2006). Past studies show that the Halal logo did play a role in the Muslim consumer’s purchase decision (Shaari, 2009; Golnaz, 2008). Muslim consumers had no means or time to check or obtain the necessary information on the products to satisfy their principles when making a purchase (Zakaria, 2008). Thus, the Halal logo is the label they can rely on in determining the Halal status of a product (Zakaria, 2008). Alternatively, the Muslim consumers generally check and identified from which country a food product is originated before purchasing them (Ahmed, 2008). Past country of origin (COO) studies have proven that COO as product info, affect consumers evaluation and responses of products (Bilkey & Nes, 1982). Previous studies also has proven that Muslim consumers are still preferred to purchase and consume Halal food from their own country or countries, which are predominantly Muslims (Bonn et al., 2007).

Research hypotheses

The following is the proposed hypotheses for this study:

H1 There is a significant difference on the importance of Halal logo when purchasing selected food products between Arab Muslims and Non Arab Muslims in three different product categories.

H2 There is a significant difference in terms of the level of religiosity and five different hypothetical constructs of Halal perception among Arab Muslims and Non Arab Muslims.

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Methodology

From six of the introduced variables, only religiosity was taken from an established scale while the rest was self developed by the authors. The constructs used are Religiosity (21 items), understanding the concept of Halal (20 items), Halal consciousness (10 items), Halal cautiousness (9 items), the importance of Halal logo (10 items) and product originated from Muslim countries (10 items). Firstly, the entire instrument was pretested on a group of respondents with similar characteristics as the main sample population (n = 20). A minor modification was made based on the feedback from the pretest respondents, and then a survey was conducted. The target population was Muslim adult, over 18 years old and quota sampling was used. Data were collected from Muslim consumers (Arab Muslims and Non Arab Muslims) in Malaysia.

A total of 300 questionnaires was distributed and 211 were returned and analyzed. The respondents consisted of mainly younger respondents (53.6 percent under 35 years of age) and married respondents (57.8 percent). The proportion of the Arab Muslims and non Arab Muslims was about the same, Arab Muslims consisted of 50.7 percent and non Arab Muslims consisted of 49.3 percent. In general, more male respondents (67.8 percent) completed the survey compared to female respondents (35.2 percent). The majority of the respondents had obtained tertiary education with 82 percent (first degree and above) and only 18 percent have a diploma or secondary school qualification.

Analysis and Results

The scales developed in the studied constructs were subject to exploratory and confirmatory factor analysis. The result shows the Cronbach’s alpha values are above of acceptable level. Halal consciousness, Halal cautiousness, the importance of Halal logo, product originated from Muslim countries was 0.85, 0.88, 0.86, and 0.79 respectively. One factor was extracted for each of the constructs in EFA except for religiosity; two factors were extracted EFA. They are faith (factor 1) and Ibadah or worship (factor 2). The Cronbach’s alpha value was 0.84 and 0.79 respectively. Based on the EFA, CFA was performed. The summary of the CFA results is shown in Table 1.

Table 1: The summary of CFA results

Measures Halal consciousness

Halal cautiousness Logo COO Reli_

faith Reli_Ibadah

X2 8.654 62.694 1.596 4.257 0.343 8.707 df 2 27 2 2 2 5 p 0.013 0 0.45 0.119 0.843 0.121 CMIN/df 4.327 2.322 0.798 2.128 0.171 1.741 GFI 0.98 0.936 0.996 0.99 0.996 0.985 AGFI 0.902 0.893 0.982 0.951 0.999 0.954 NFI 0.981 0.922 0.996 0.83 0.999 0.969 TLI 0.955 0.938 1.003 0.972 1.013 0.973 CFI 0.985 0.954 1 0.991 1 0.986 RMSEA 0.126 0.079 0 0.073 0 0.059

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Table 2 shows the result of respondent’s reactions on the importance of Halal logo when purchasing three categories of food products, which consisted of 29 items. The scale was measured by using 7 point category scale (not important at all- very important). In general, there is a significant difference on the reactions between Arab Muslims and Non Arab Muslims when purchasing those items. The result shows that non Arabs Muslims are significantly higher when compared to Arabs Muslims in all products items. Non Arab Muslims are more careful when purchasing food products compared to Arab Muslims. However, the table also showed that higher mean was found when purchasing meat-based products. For non meat based products generally lower mean were recorded especially among Arab Muslims. For drinks, lower mean was found. Meat based products were recorded in a higher mean because Islamic ruling prohibits pork, dead meat and meat that have not been slaughtered according to Islamic rulings. Meat, for instance, cattle and goat have to be slaughtered using to Islamic method. Fish or any animal from the sea is not a problem to be consumed.

Table 2: The importance of Halal logo when purchasing selected food products: a comparison between Arab Muslims and Non Arab Muslims consumers.

Food products Arab Muslims

Non Arab Muslims Significance**

Mean meat based products sausages 6.1028 6.7596 0.000 nuggets 6.028 6.7981 0.000 meat ball 6.2523 6.8365 0.000 pizza 6.0374 6.7308 0.000 meat based processed food 6.3178 6.7692 0.000

Non meat based food products 0.000 pasta 5.5047 6.4519 0.000 noodles 5.3925 6.4904 0.000 vegetable based canned food 4.6542 6.2981 0.000 fish based canned food 4.6542 6.2788 0.000 cookies 5.4486 6.3077 0.000 fruit based canned food 4.4299 6.0865 0.000 chocolate 5.6636 6.4519 0.000 candy 5.486 6.4712 0.000 snack food 5.3832 6.375 0.000 seasoning 4.8692 6.4038 0.000 soy sauce 4.8785 6.2596 0.000 tomato sauce 4.7757 6.1731 0.000 chilli sauce 4.6355 6.1635 0.000 spices 4.2897 5.7692 0.000 butter 5.5701 6.5769 0.000 margarine 5.2523 6.5865 0.000 cheese 5.6168 6.5673 0.000 cake 5.6542 6.5192 0.000 muffin 5.5421 6.5 0.000

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vinegar 4.7757 6.0385 0.000 cereals 4.3551 6.1058 0.000 Drinks 0.000 non alcoholic drink 4.6355 6.0192 0.000 fruit juices 4.1589 5.5577 0.000 mineral water 3.7009 5.1731 0.000

*Based on likert scale of 1- 7 in which 1 equivalent to strongly disagree and 7 equivalents to strong agree.

**Level of significance using T- test.

Table 3 presents the result of t- test of the measured variables. There are significant differences for all the studied variables between Arab Muslims and Non Arab Muslims consumer, except for Ibadah (worship). Inspection of the means results, it was clearly discovered that the level of religiosity and Halal perception among Non Arab Muslims is higher compared to Arab Muslims. H1 was supported and were shown in Table 2; while H2 was partly supported and were shown in Table 3.

Table 3: Mean differences of seven hypothetical constructs.

Arab Non Arab Significance** Mean

Religiosity Faith

26.36

27.32

0.010

Ibadah 26.55 27.8 0.093 Halal Perception Understanding the concept of Halal

12.47

13.79

0.00

Halal consciousness 25.81 27.23 0.00 Halal cautiousness 53.9 58.57 0.00 The importance of Halal logo 24.16 26.41 0.00 Product originated from Muslim countries 21.58 22.83 0.045

**Level of significance using T- test.

Discussion and conclusion

Overall, these findings have supported the assumption of the dissimilarity of Muslim consumers across different ethnicity. This study introduces a set of construct to describe the basic process of behavioural intention towards Halal food products. Results from the research is hoped to assist marketers in formulating effective marketing strategy both in local and international markets. The results also will provide an important insight for marketing strategists. Further research is also required to explore a wider geographical scope to generalize the overall population as well as avoiding from sampling bias. This research was only limited in Klang Valley (state of Kuala Lumpur and Selangor) area. It is also to note that this study limited its discovery to Arab Muslims and non Arab Muslims. Therefore, future research should be able to examine Muslim consumers from different other ethnic groups in a diverse province around the world.

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