An extensive effect of religiosity on the purchasing decisions of halal products

Abstract

Purpose: This study aims to examine the moderator effect of religiosity on the relationship between halal brand awareness and habit towards purchasing decisions of halal products. Design/methodology/approach: The quantitative method is used in this study. Descriptive and statistical (multiple and moderated regression) analyses are employed to test the hypothesis according to the research model. The data is collected using a cross-sectional design from 197 respondents consisting of business owners in North Sumatera, Indonesia. Findings: It is found that both halal brand awareness and habit have a positive and significant effect on the purchasing decision of halal products. Meanwhile, religiosity significantly acts as a moderating variable in the relationship between awareness and purchasing decisions, as well as habit and purchasing decisions. Research limitations/implications: This study revealed the important factor of religiosity as a moderating factor in purchase decisions of halal products. The government may need to collaborate with Islamic educational institutions to raise awareness of the halal concept and product awareness. It is assumed that individuals who know about the Islamic religion will have a higher degree of awareness of halal products compared to individuals with limited knowledge of Islam; thus, providers of Islamic education play a crucial role in raising the level of awareness of halal products. Schools may serve as catalysts for the dissemination of knowledge of halal products. Originality/value: Developing halal product markets can be done by enhancing the religiosity level of consumers, one of them through attending formal or informal religious classes.