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1 The current issue and full text archive of this journal is available at 66 Predicting intention to choose halal products using theory of reasoned action Suddin Lada, Geoffrey Harvey Tanakinjal and Hanudin Amin Labuan School of International Business and Finance, Universiti Malaysia Sabah, Sabah, Malaysia Abstract Purpose Emphasis on the importance of halal products is now growing. It is fast becoming a new market force and brand identifier and is now moving into the mainstream market, affecting and changing perception on how business should be conducted, including from a marketing point of view. The purpose of this paper is to test the applicability of the theory of reasoned action (TRA) in predicting the intention to choose halal product among Malaysian consumers. Design/methodology/approach A structured questionnaire was used to elicit responses from consumers using a convenience sampling technique. A total of 485 responses were received. Needless to say, this study extends the applicability of the TRA to study halal product usage among consumers in Malaysia. Findings The findings indicated that the TRA is a valid model in the prediction of the intention to choose halal products. Attitude (b ¼ 0.288, p, 0.001) and subjective norm (b ¼ 0.814, p, 0.001) were found to be positively related to intention, with subjective norm being the more influential predictor. Subjective norm was also positively related to the attitude (b ¼ 0.336, p, 0.001) to choose halal products. Research limitations/implications The study contains a limited number of measures in the model. Nevertheless, it provides new information on the emerging issue of halal products. Practical implications The results will be primarily beneficial to restaurants, fast food restaurants and small and medium enterprises in Malaysia by offering an insight into the intentions of consumers to choose halal products. Originality/value The paper extends the understanding of TRA to newly emerging contexts such as halal products usage intentions. Keywords Islam, Food products, Consumer behaviour, Religion, Lifestyles, Malaysia Paper type Research paper International Journal of Islamic and Middle Eastern Finance and Management Vol. 2 No. 1, 2009 pp q Emerald Group Publishing Limited DOI / Introduction Halal is no longer just purely religious issue. It is in the realm of business and trade, and it is becoming a global symbol for quality assurance and lifestyle choice ( Jumaaton Azmi, 2005, Managing Director of KasehDia Sdn Bhd as cited in IslamOnline.net, 2005). Investigating consumer decisions towards halal products is topical, first, given the halal food market size and its evolution, and second, given the policy relevance of the issue. Halal s burgeoning popularity can be linked to religious fervor; and beliefs that it is cleaner, healthier and tastier (Burgmann, 2007, cited in Al-Harran and Low, 2008). Halal is an Arabic word meaning permissible or lawful and is an obligation that governs all aspect of the lives of over 1.6 billion Muslim worldwide. The realm of halal may extend to all consumables such as toiletries, pharmaceutical, cosmetics and services including finance. Total funds under Islamic finance are estimated at USD500 billion, therefore the total quantifiable size of halal industry exceeds

2 US$1 trillion (The Halal Journal, 2008). The concept of halal was taken for granted as nations were generally before self-sufficient in food production. With the onslaught of global trade and changing lifestyle non-muslim countries are dominating the trade of halal meat and processed food products. Currently, a certain degree of assurance is provided by halal certification of halal products, which in any case can be issued by any of over 100 halal certification agencies worldwide (The Halal Journal, 2008). Each organization has their own set of halal standards and guidelines. The fragmentation is further accentuated when crossing national boundaries where to date there is no functioning mechanism for mutual recognition between countries. The lack of proper regulation on certification means that non-halal produce has unknowingly ended up on the plate of Muslim households. The halal concept (especially foods) is truly from the farm to the table, and must be nutritious and prepared from permissible ingredients in a clean and hygienic manner. In relation with the halal certification, the procedures are refers to preparation, slaughtering, ingredients used, cleaning, handling and processing, right down to transportation and distribution. Halal food also adheres to stringent standards in hygiene and sanitation, and must not be harmful to health (IslamOnline.net, 2006). The study of consumer behaviour in Malaysia is vital when it comes to marketing of halal products. The fact of the matter is, Muslim consumers are very similar to any other consumer segments, demanding healthy and quality products, which must also conform to Shariah requirements (Al-Harran and Low, 2008). McDonald s in Singapore can be seen as a prime example. It has seen an influx of eight million patrons a year after obtaining a halal certification. Since being certified, Halal, KFC, Burger King and Taco Bell have all seen an increase of 20 percent in customers (Sabri, 2006). Consumers would turn their attention to a well-marketed product that does not have a halal mark but they would read its ingredients, in contrast to purchasing one that has less credibility but sports a halal logo (Al-Harran and Low, 2008). It is therefore worthwhile that we take a closer look at consumer intention to choose halal products that can be used to predict and satisfy customers and company objectives. Intention to choose halal products 67 Objective of the study The objective of this study is to identify the applicability of the theory of reasoned action (TRA) in the context of choosing halal products. In this study, the researchers proposed two research questions: RQ1. Can the TRA be used to predict the intention to choose halal products among Malaysian consumers? RQ2. Are the attitude and subjective norm important in explaining the intention to choose halal product among Malaysian consumers? TRA also been applied in organic food buying behavior research (Sparks and Shepherd, 1992), and in studying the intentions to buy environmentally friendly products (Kalafatis et al., 1999) and several studies on internet purchasing behvior (Battacherjee, 2000; George, 2002; Jarvenpaa and Todd, 1997; Khalifa and Limayem, 2003; Pavlou, 2002; George, 2004). The present study approaches the halal product consumption in Malaysia with TRA. Malaysia is multicultural and multiracial country, which is forecasted to be a growing halal market. The results concerning the consumption of halal product are almost entirely only a part of general

3 68 consumption research and the only contribution to halal products consumption research is that consumers have positive attitudes and beliefs concerning halal products. In this paper, the TRA model will be tested and the emphasis is placed on the role of attitude and subjective norm in the context of intention to choose halal products. Literature review Halal: an overview Halal (, hal al, halaal )isanarabic term meaning permissible. In English it most _ frequently refers to food that is permissible according to Islamic law. In the Arabic language, it refers to anything that is permissible under Islam (Kamali, 2003). Its antonym is Haraam. The term halal and haram will be used strictly to describe food products, meat products, cosmetics, personal care products, food ingredients, beverage and food contact materials. Which foods are halal or which foods are haram, is decided according to the Holy Quran and the Glorious Shari ah. Most diets and foods are considered to be halal unless Islamic law specially prohibits them. It is estimated that 70 percent of Muslims worldwide follow halal standards (Minkus-McKenna, 2007) and the Global Halal Market was US$12 billion in 1999 (Riaz, 1999), increased to US$150 billion in year 2001, and currently is reported as US$580 billion (Al-Harran and Low, 2008). According to Hussaini (2004), 75 percent of Muslims would follow their dietary rules in the USA, meaning that even after having migrated, most Muslims still choose halal products. The theory According to the TRA, a person s intention is a function of two basic determinants, one personal in nature and the other reflecting social influence. The personal factor is the individual s positive or negative evaluation of performing the behavior. This factor is termed attitude toward the behavior (Ajzen and Fishbein, 1980). The second determinant of intention is the person s perception of the social pressure put on him/her to perform or not to perform the behavior in question. Since it deals with perceived prescriptions, this factor is termed subjective norm (Ajzen and Fishbein, 1980). According to the theory, attitudes are a function of beliefs. A person who believes that performing a given behavior will lead to mostly positive outcomes will hold a favourable attitude toward performing the behavior, while a person who believes that performing the behavior will lead to mostly negative outcomes will hold an unfavourable attitude. The beliefs that underlie a person s attitude toward the behavior are termed behavioural beliefs (i.e. the act of consuming or buying halal or non-halal products). Subjective norm is also a function of beliefs that specify individuals or groups to think whether he/she should or should not perform the behavior. These beliefs underlying a person s subjective norm are termed normative beliefs. A person who believes that most referents with whom he is motivated to comply think he should perform the behaviour will receive social pressure to do so. TRA and intention to choose halal products Promoting halal products to foreign markets is considered on innovation especially for non-muslim countries. It is also very much related to religious types of product. According to Delener (1994) and Pettinger et al. (2004), religion can influence consumer

4 attitude and behaviour as well as food purchasing decision and eating habits (Mullen et al., 2000; Mennel et al., 1992). In many societies, religion plays one of the most influential roles shaping food choice (Musaiger, 1993; Dindyal, 2003). The impact of religion on food consumption depends on the religion itself and on the extent to which individuals interpret and follow the teachings of their religion. Most religions forbid certain foods (for example, pork in Judaism and Islam, or pork and beef in Hinduism and Buddhism), except for Christianity that has no food taboos (Sack, 2001). The consumption of animal products, and more specifically meat and meat products is most strictly regulated in cases where religious considerations prevail (Shatenstein and Ghadirian, 1997). This phenomenon can be reasonably explained by using the TRA (Figure 1). According to Lutz (1991), TRA has offered two important propositions. First is to predict purchase behaviour, in which it is necessary to measure a person s attitude toward performing that behaviour, not just the general attitude toward the object around which the purchasing behaviour is. For example, although a person s attitude toward halal products is favorable, yet the person may never buy the halal product. Second, in addition to the attitude toward the behaviour, TRA includes a second determinant of overt behaviour: subjective norm. Social norm is intended to measure the social influences on a person s behaviour (i.e. family members and friends expectations). Intention to choose halal products 69 Methodology Sample and measures The data for this study are obtained through a structured questionnaire consisting of four parts (demographic, attitude, subjective norm, and intention). The survey was conducted in Labuan, Malaysia in April 2008 in a number of selected locations (i.e. KFC restaurants, local restaurants, supermarkets and wet markets). In the process of collecting data, convenience sampling methods were used, and respondents participation is based on voluntary basis (self-administered). In more detail, the respondents were asked whether they would participate or not in study, in order to fill in the questionnaire. Once they had agreed, the researchers then handed over the questionnaire to be answered and the questionnaire was collected once completed. At the same time, the respondents were also given a token of appreciation to encourage them and to show appreciation of their participation in the study. A total of 485 responses were received from a total of 630 questionnaires distributed, which gives a response rate of 77 percent (The descriptive statistics of the overall respondents are summarized in Table I). The person s beliefs that the behaviour leads to certain outcomes and his evaluations of this outcomes Attitude toward the behavior Relative importance of attitudinal and normative considerations Intention Behavior The person s beliefs that specific individuals or groups think he should or should not perform the behaviour and his motivation to comply with the specific referents Source: Ajzen and Fishbein (1980) Subjective norm Figure 1. Factors determining a person s behavior

5 70 Table I. Factor analysis results for the independent variables Items Component 1 Component 2 Attitude Choosing halal products is a good idea I like to choose halal products Subjective norm Most people who are important to me choosing the halal products My family members prefer halal products My friends would think that I should choose halal products Eigenvalue Variance explained (87.75 per cent) The questionnaire items were extracted and adapted from selected studies (Fishbein and Ajzen, 1975; Ajzen and Fishbein, 1980; Ajzen, 1985, 1988, 1991). The respondents were required to rate their level of agreement with statements given using seven-point scales ranking from Strongly disagree (1) to Strongly agree (7). The questionnaire was written in English and Malay. Back translation was used for the translation of the language in the questionnaire (de Run and Ting, 2006). Prior to the actual survey, ten questionnaires were provided in order to facilitate a pilot study to be conducted among consumers in Labuan in the selected locations. The pilot study is important in order to detect any problems relevant to the used instrument for the study. Fortunately, all respondents to the test commented that the questions were easily understood, being similar to those employed by de Run and Ting (2006). Model and research hypothesis In this study, attitude can be seen as a direct influence to choose halal products, therefore our first hypothesis is: H1. Attitude will be positively related to intention to choose halal products (i.e. Ajzen, 1985; Chang, 1998; Dindyal, 2003). Surrounding expectation with regards to consumers society can also be seen as an important factor that may influence consumers attitude towards halal products. Therefore, our second hypothesis is: H2. Subjective norm will influence the attitude of a person intention to choose halal products (i.e. Ajzen and Fishbein, 1980; Pettinger et al., 2004) (Figure 2). Attitude H 1 H 2 Intention to choose halal products Figure 2. Research model Subjective norm Sources: Shatenstein and Ghadirian (1997), Tarkiainen and Sundqvist (2005) H 3

6 In relation to the above, our third hypothesis concerning the direct influence of subjective norm towards the intention to choose halal product can be portrayed as: H3. Subjective norm will be positively related to the intention to choose halal products (i.e. Shatenstein and Ghadirian, 1997; Tarkiainen and Sundqvist, 2005). Findings and hypotheses testing Before proceeding to the hypotheses testing, this study was assessed using the factor analysis and also reliability test. To assess the construct validity, a factor analysis with varimax rotation was performed. The results of factor analyses done on the independent and the dependent variables are shown in Tables I and II. For attitude and subjective norm construct, the total variance explained was percent, whereas for intention construct the total variance explained was percent. Both showed sufficient intercorrelations being present with measures of sampling adequacy values of and 0.784, respectively. The criteria used to identify the loadings were that each item should load 0.50 or greater on one factor and 0.35 or lower on another factor (Igbaria et al., 1995). In more detail, factors analysis is also conducted in order to confirm that the construct validity of the scales could be performed adequately by using principal component analysis. The minimum factor loading of 0.6 on its hypothesized constructs is proposed (Nunnally, 1978). An eigenvalue of more than 1.0 was used as a determinant criterion for each factor in the factor analysis. Factor loading values were obtained using varimax rotation. Tables I and II show the results of the factor analysis. As a result, most of the factor loading for each instrument exceeded 0.6, meeting the essentially significant level of convergent validity. Tables III and IV present the reliability coefficients and also the descriptive statistics. As shown, the reliabilities of the constructs are acceptable. Nunnally (1978) recommends that the instruments used in basic research have reliability of about 0.70 or better. Table V shows the profile of the respondents, with the majority of them being female (54.2 percent) and within the age of (34 percent) and (25.6 percent) Intention to choose halal products 71 Items Component 1 Intention I plan to choose halal products in the forthcoming month I am likely to choose halal products in future I will choose halal products Eigenvalue 2.39 Variance explained (79.78 per cent) Table II. Factor analysis results for the dependent variables Variables Number of items Items dropped Cronbach a Attitude Subjective norm Intention Table III. Reliability coefficients

7 72 years old. About 42.1 percent of the respondents are Muslim, followed by 24.1 percent who are Chinese, with a majority of them earning RM (37.1 percent) per month. Malay respondents are dominant with 42.1 percent and most of them still single with 50.7 percent. The hypotheses generated were tested using the regression analysis and the results presented in Figure 3. The results indicate that subjective norm positively influences the attitude to choose halal products (b ¼ 0.336, p, 0.01). It was also shown that Variables Mean SD Table IV. Descriptives for the major variables Attitude Subjective norm Intention No. Profile Description Respondents Percentage Table V. Demographic results 1 Gender Male Female Age, Above Religion Moslems Buddhist Hindu Christian Others Income, RM Above RM Race Malay Chinese Indian Others Status Single Married Attitude β = 0.288** R 2 = Figure 3. Result of the regression analysis β = 0.336** Subjective norms β = 0.814** Intention to choose halal products

8 attitude is positively related to the intention to choose halal products (b ¼ 0.288, p, 0.01). Subjective norm was also found to be positively related to intention (b ¼ 0.814, p, 0.01). Thus, H1-H3 of this study are fully supported. A closer scrutiny shows that subjective norm is the most significant predictor of intention to choose halal products. The R 2 of indicates that 66.1 percent of the variation in intention to choose halal products can be explained by attitude and subjective norm. The coefficient of determination is considered high in terms of behavioral research of this manner, thus giving further support for the model. Intention to choose halal products 73 Discussion and implications Different consumers have different beliefs about halal products, where attitudes and subjective norm plays an important role to form intention. According to Fishbein and Ajzen (1975), attitude and subjective norm might be independent of each other, but according to Tarkiainen and Sundqvist (2005), these two variables are not independent of each other. This study shows that in general, decision to choose a halal product is determined by a positive attitude and subjective norm. Therefore, the TRA is a valid model of prediction. This model has been shown to have a good explanatory power as high as 66.1 percent. Subjective norm has been shown to be the most influential driver of intention to choose halal products. This is in line with Chang (1998) and Tarkiainen and Sundqvist (2005). Subjective norms effect on attitude has been found in behaviours. However, attitude factor cannot be discounted either. In the context of a multiracial and multicultural society, Malaysia subjective norm plays an important role where family members, friends and colleague are strong referent points. Implications It is proven that Islam is the fastest growing religion on earth, both by birth and adoption, with the Muslim population estimated to reach two billion by year With the global halal market estimated to be worth US$580 billion a year and the halal food industry pegged to grow at a rate of 7 percent annually, business should indeed be tapping at this growing market segment. Companies nowadays should take advantage of these strong opportunities in halal products markets by tailoring towards consumer needs with the right marketing strategies. The results of this study have shown that intention to choose halal product is predominantly influenced by subjective norm (most significant predictor family and friends). Some practical recommendations regarding this issue can be addressed as follows. Different marketing approaches or techniques should be used to stimulate halal products versus regular product consumption. Appropriate slogan and appealing message that focus on family and friends should be a good approach to attract intention (Table VI). Variables Attitude Subjective norm Intention Attitude Subjective norm * Intention * * Note: * p, 0.01 Table VI. Inter-correlations of the major variables

9 74 Limitation and future research There are a couple of limitations related to our research to be considered for the generalization of the results. First, this study is covered only Labuan consumers, and therefore the results cannot be expected to explain the overall behaviour of Malaysian consumers toward halal products. Second, since haial products are related to religion (Islam), in future the role of religiosity (Delener, 1994; Pettinger et al., 2004) as a moderating factor should be included. The former limitation is not too serious, as it creates an opportunity for the future research by escalating the sample size to include a cross-cities study in Kota Kinabalu, Tawau, Miri, Kuching, George Town, Kuala Lumpur, Kuala Terengganu dan Johor Bahru, to name a few. Choosing these cities is owing to the fact that they are fast-growing cities linked to halal foods in Malaysia. It is also good if future research could consider a cross-countries study by involving Brunei, Malaysia, Indonesia, Taiwan, China, and India. By performing the study in these countries, the research results will be more comparable and provide workable direction on halal products in the said countries. For the latter, it is good to consider the influence of religiosity in consumer attitudes and subjective norm, as it might be good indicator to describe intention to choose halal products. In addition, we recognize that there may be some situations where behaviour is simply not under the attitudinal control of individuals; rather, the expectation of relevant others may be a major factor in ultimate behavioural performance. Conclusion The result of the present study showed that the TRA is a valid model that can be used to predict intention to choose halal products. It was also shown that attitude and subjective norm are good predictors of intention, with subjective norm being the more influential. A possible explanation for the strong presence of the subjective norm effect could be found in the societal characteristics of Malaysians. Thus, the marketers have to keep this in mind when producing and promoting halal related products, while at the same time incorporating the element of attitudes in their promotional campaigns. References Ajzen, I. (1985), From intention to actions: a theory of planned behaviour, in Kuhl, J. and Beckmann, J. (Eds), Action Control from Cognition to Behavior, Springer, New York, NY, pp Ajzen, I. (1988), Attitude, Personality, and Behavior, Dorsey Press, Chicago, IL. Ajzen, I. (1991), The theory of planned behavior, organizational behavior and human, Decision Processes, Vol. 50, pp Ajzen, I. and Fishbein, M. (1980), Understanding Attitudes and Predicting Social Behavior, Prentice-Hall, Englewood Cliffs, NJ. Al-Harran, S. and Low, P. (2008), Marketing of halal products: the way forward, Halal Journal, March, available at: Battacherjee, A. (2000), Acceptance of e-commerce services: the case of electronic brokerages, IEEE Transactions on Systems, Man, and Cybernetics Part A: Systems and Humans, Vol. 30 No. 4, pp Chang, M.K. (1998), Predicting unethical behavior: a comparison of the theory of reasoned action and the theory of planned behavior, Journal of Business Ethics, Vol. 17 No. 16, pp

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11 76 Pettinger, C., Holdsworth, M. and Gerber, M. (2004), Psycho-social influences on food choice in Southern France and Central England, Appetite, Vol. 42 No. 3, pp Riaz, M.N. (1999), Examining the halal market, Prepared Foods, Vol. 68 No. 10, pp Sabri, M. (2006), Singapore expands e-certification of halal products, available at: www. IslamOnline.net (accessed April 2, 2008). Sack, D. (2001), Whitebread Protestants, Food and Religion in American Culture, Palgrave, New York, NY. Shatenstein, B. and Ghadirian, P. (1997), Influences on diet, health behaviours and their outcome in select ethnocultural and religious groups, Nutrition, Vol. 14 No. 2, pp Sparks, P. and Shepherd, R. (1992), Self-identity and the theory of planned behavior: assessing the role of identification with green consumerism, Social Psychology Quarterly, Vol. 55 No. 4, pp Tarkiainen, A. and Sundqvist, S. (2005), Subjective norms, attitudes and intentions of Finnish consumers in buying organic food, British Food Journal, Vol. 107 No. 11, pp Corresponding author Suddin Lada can be contacted at: To purchase reprints of this article please Or visit our web site for further details: