CONSUMER SATISFACTION TOWARDS MALAYSIAN HALAL CERTIFIED LOGO: A CASE OF HALAL FOOD INDUSTRY

Transcription

1 CONSUMER SATISFACTION TOWARDS MALAYSIAN HALAL CERTIFIED LOGO: A CASE OF HALAL FOOD INDUSTRY 1

2 CONSUMER SATISFACTION TOWARDS MALAYSIAN HALAL CERTIFIED LOGO: A CASE OF HALAL FOOD INDUSTRY FINAL REPORT FEBRUARY 2017 TEAM MEMBERS: 1. Dr. Yusniza Kamarulzaman (Team leader), Faculty of Business and Accountancy, University of Malaya (yusniza@um.edu.my) 2. Dr. Azian bin Madun, Academy of Islamic Studies, University of Malaya (azianm@um.edu.my) 3. Dr. Noorhidawati Abdullah, Faculty of Computer Science & Information Technology, University of Malaya (noorhidawati@um.edu.my) 2

3 ABSTRACT The study explores consumer behavioural patterns in the context of the Malaysian halal food industry. The key objective is to identify the antecedents of consumer satisfaction towards food products with the Malaysian halal logo. The study proposes a model for the prediction of the antecedents of consumer satisfaction towards halal food products that are certified by the Malaysian authority, drawing upon Fornell s (1996) American Consumer Satisfaction Index (ACSI) model. Using data of 399 respondents that was obtained from a survey, it is revealed that consumer expectation, institutional trust, religiosity and brand trust are the independent variables that strongly influence consumers satisfaction towards halal food products with the Malaysian halal logo; and that the mediator, consumer satisfaction carry a significant influence in mediating these four independent variables to brand loyalty. By understanding the antecedents of consumer satisfaction, marketers and the certification authority would be able to get a comprehensive insight into the values that Muslim consumers assign to food products with the Malaysian halal logo and its halal certification. The findings would facilitate the industry players and the certification authority into collaboratively crafting their strategies at improving consumer satisfaction towards halal food products that are certified in Malaysia. Theoretical contribution of this study is an extension of the knowledge of consumers behaviour in the context of the Malaysian halal food industry. 1. INTRODUCTION 1.1 Overview of the Halal Food Industry In the recent years, the halal food industry has been growing so rapidly that it has gained the world s attention through its transformation from a niche market catering only for the Muslim consumers into the mainstream market that plays a vital role in the global trade. Conventionally, the halal term was used to denote meat products that are slaughtered according to the Syariah, meat products that do not contain pork as well as beverages that do not contain alcohol. Only until recently, the halal food sector has rapidly developed to include a wide range of other foods such as dairy products, baked foods, snacks, ready-made meals and other processed food and beverage products. Moreover, halal is a farm-to-fork process. Thus, halal compliance is necessary throughout the overall supply chain phases such as warehousing, transportation and logistics in order to preserve and exhibit the halal integrity. More recently, the halal food market has been growing at double the rate compared to the non-muslim food market. The world Muslim population is currently surpassing 1.6 billion consumers and is projected to reach 2.2 billion by 2030 (Pew Research Center, 2011). Thus, it is no surprise that the emerging halal food industry has become a phenomenon in the global trade market. International halal food trade is widely expanding not only to the mainstream Muslim countries such as the Middle East and Muslim majority countries in the South East Asia, but also to the Muslim population in North America and Europe. The growth of the halal food trade globally means certification has become a necessity in ensuring the Muslim consumers confidence in purchasing food and beverage products that are halal. With such growth and opportunities abound, food exporters around the world are competing to take advantage of the international halal food industry. Ironically, this evolution was not driven by the mainstream Muslim majority countries, but by the multicultural countries in South East Asia, Muslim minorities and trade associations in North America, Europe and Australia (International Trade Center, 2015). Figure 1.2 shows the regional variations in the global halal market. While there are reports showing that halal 3

4 certification started to appear in the 1960s in some Muslim majority countries, but it did not have the intended effect until the 1970s and the 1980s (The Pickering Post, 2016). In a multicultural country like Malaysia, the non-muslim communities are also among the producers of food and beverage products. Thus, the government strongly promote halal as the quality assurance mark and encourage the halal certification to be adopted by the manufacturers, retailers and food outlets to protect the religious interest of the Muslim community. The establishment of Malaysia halal standards and certification through the government-run certification body, JAKIM has created a governing system in the halal food industry that has now become more recognized worldwide. The development of similar framework among the neighbouring countries of Malaysia such as Indonesia, Singapore, Thailand and Brunei have created a regional halal hub where it is quite common to see halal logos on food and beverage products, as well as cosmetics and healthcare products. Halal food is an essential component of the Muslim identity. Thus, halal certification has become as a substantial force in the Muslim minority countries and multicultural countries with Muslim communities. For countries that are actively exporting food and beverage products to Muslim consumers, such as in Australia and in New Zealand, halal certification is an essential and a profitable element of the global trade (ITC, 2015). In 2004, the Malaysian government, through its Department of Stardards Malaysia has published an official halal standard MS 1500:2004. The standard serves as a general guideline for the production, preparation, handling and storage of halal food. The development of the framework corresponded with the government s vision to develop the country as a global halal hub. Malaysia is also championing the halal cause through MIHAS (Malaysia International Halal Showcase), a halal-only international trade exhibition. In 2006, the government formed HDC (Halal Industry Development Corporation) to facilitate the growth of the halal industry. HDC partners and work closely with the country s major government trade related agencies such as the Ministry of International Trade and Industry (MITI), Malaysian Investment Development Authority (MIDA), the Malaysia External Trade Development (MATRADE) and the Small and Medium Enterprise Corporation Malaysia (SME Corp. Malaysia), to position Malaysia as a lucrative location to invest in for halal product manufacturing. HDC provides the necessary infrastructure to facilitate investments in the Malaysian halal industry through the establishment of the Halal Park. The Halal Park is a community of manufacturers and service businesses located on a common property where the tenants of the park work together in managing halal products and resources with the common objective of seeking a collective benefit available in the Halal Park. These developments have placed the halal market on the global map and opened many doors for huge market opportunities of the halal industry. Halal seminars and trade exhibitions started to appear around the world. Startup companies and international mainstream food brands are being seen bringing in the halal food segment in their product offering. Today, halal certified food outlets and food products can be found all over the world. Moreover, natural, organic, animal welfare and environmentally-ethical initiatives have created a new opportunity for halal food producers to appeal to other niche markets. 1.2 The Role of Halal Certification Institution in Malaysia (JAKIM) The dynamics of the international trade market has raised many issues concerning doubtful meat, poultry, and ingredients used in commercialized products sold to the Muslim consumers. Hence, halal certification for food and beverage products is becoming increasingly more important to the Muslims and a challenging aspect to the Islamic certifying institutions. 4

5 In Malaysia, JAKIM started their involvement to inspect and confirm the halal status of food and beverage products in 1974, in conjunction with the Research Center of Islamic Affairs Division of the Prime Minister s Office when they began to issue halal confirmation letters for products that conformed to the Syariah law. In 1994, halal confirmation was issued in the form of halal certificates with the halal logo. Starting from 2008, all Malaysian halal certification activities within and outside the country is being officially managed by JAKIM (Halal Malaysia Portal, 2016). As the halal food industry goes global, food reaches consumers through a complex global transport system involving many different companies delivering food products along the supply chain. The more complex the supply chain, the higher is the risk of halal food contamination if placed in similar containers with non-halal products. In preserving halal food integrity, halal is a farm to fork process that requires halal compliance to be adhered to from the beginning of the food production till the food reaches the end consumer. Malaysia is the first country in the world to take the lead in formalizing a system to manage the logistics of halal products. In July 2013, JAKIM introduced halal logistic standards and halal certification for logistic companies covering transportation and warehousing sectors. Today, the halal certification granted by JAKIM is recognized by many other Islamic countries. Over the years, the credibility of the certification has helped many certified logistics operators in expanding and growing their halal distribution networks across the Muslims majority countries. Food brands need to show commitment and interest to the idea that Muslim consumers are a force to be reckoned with in order to market their brands to the Muslim crowd. Muslim consumers recognise and appreciate a brand s effort in meeting their personal religious commitment. Thus, it is of no surprise that a number of well-known brands have taken the approach of being more syariah-friendly (Ogilvy, 2016) in order to build brand loyalty among Muslim consumers. Islamic Syariah, or the Islamic Law, is the religious law governing the faith of Muslims, which is derived from the religious principles of Islam, principally the Quran and the Hadith. In this technological era, the Muslim consumers are becoming more sophisticated and knowledgeable (Manpower Inc, 2010); thus, the consumer behaviour is no longer easily foreseeable by marketers. Hence, the purpose of this research is to fill gaps in the current understanding of the potential in the emerging halal food industry and to study how consumer behaviour is being influenced in this market. This study concentrates on the background of the halal food industry, the role of halal certification bodies, the role of marketers in marketing to Muslims and consumer behaviour, as shown in Figure 1.1 Consumer Behaviour Halal Food Industry The Role of Halal Certification Marketing to Muslim Figure 1.1: Concentrations of the Research 5

6 2. RESEARCH PROBLEM 2.1 Issues regarding Halal Certification in Malaysia a) Cadbury and Porcine DNA allegations In mid 2014, Cadbury Malaysia faced a very damaging allegations that its locally made chocolate was contaminated by porcine DNA. A copy of unofficial report of routine tests by Malaysia s Ministry of Health stated that porcine (pig) DNA were found in two locally made Cadbury products, namely Dairy Milk Hazelnut and Dairy Milk Roasted Almond, the report was posted on social media sites, particularly on Facebook (Kok Blok, 2014). The issue triggered overwhelming negative responses, with many consumers criticising the chocolate company and vowing never again to buy Cadbury products. The following day after the unofficial report relating to the porcine DNA was posted on social media, Malaysia s Health Ministry confirmed the two samples were tested positive for porcine DNA. Following the Health Ministry s confirmation, JAKIM suspended the halal certificate for the two Cadbury products and Cadbury immediately recalled them both (Jaques, 2014). Subsequently, many Muslim Non-Governmental Organisations (NGO) in Malaysia have also dramatically raised the issue publicly by calling for national boycott and Jihad (Holy war) against the company (Tan, 2014). Some of the NGOs leaders were even reported suggesting for the Cadbury factory to be shut down (Kamal, 2014). The issue was also escalated further by Malaysian Muslim Wholesalers and Retailers Association when the association directed its 800 members to pull Cadbury products and other brands from the parent company, Kraft Foods stable off the shelf (Naidu, 2014). Following the allegations, JAKIM conducted new tests on 11 samples of hazelnut and roasted almond chocolate products, and none showed any traces of porcine DNA contamination (BBC World News, 2014). The company immediately launched an advertising blitz under the slogan All is good. Enjoy us again and declared that Cadbury chocolate made and sold in Malaysia is certified halal (Cadbury, 2014). Subsequent to the announcement of the fresh tests result, the Muslim Consumers Association of Malaysia demanded for explanation from the Health Ministry regarding the originality of its previous test results. However the ministry issued a statement stating that it had handed the issue over to JAKIM (BBC World News, 2014) and that the ministry will investigate the officer who leaked the premature report containing allegations of the porcine DNA before the findings could be validated (Channel News Asia, 2014). The conflicting reports caused confusion among many Muslim consumers in Malaysia, and many expressed their lack of trust in JAKIM following the episode (Malaymail Online, 2014). According to the institution, whatsapp and social media websites are to be blamed for the uproar of the viral news regarding the non-halal chocolates before validation action could be taken by the institution (Malaymail Online, 2014). Hence, what is the level of Malaysian Muslim consumers satisfaction towards Malaysian Halal logo? Do consumers trust in JAKIM and halal information disseminated through the social media platforms play vital roles in influencing their satisfaction towards the halal certification? b) Starbucks False Allegation on its Halal Status In 2011, rumours had been circulating following a bogus stating that Starbucks food and beverages were deemed non-halal by JAKIM. The rumours started when a Muslim consumer twitted that he had been receiving SMS claiming that JAKIM had announced all chocolate and vanilla used in Starbucks beverages contained E471, mono diglycefides which as of pork origin (Malaysia Marketing Interactive, 2011). Starbucks countered the claim by responding to the rumour via their social media channels. On their official Facebook page, the company asked Muslim consumers to disregards the rumour and assuring them that the 6

7 company s halal status was certified and could be checked on the JAKIM Official Halal Portal website (Malaysia Marketing Interactive, 2011). In the recent years, the rumours resurfaced again through the social media sites casting doubt over the ingredients used for making its cakes and drinks (The Star Online, 2014). Following the circulating SMS on the company s halal status, the Halal Hub Division of JAKIM released a statement reiterating that Starbuck s halal certificicate was never suspended or revoked (The Star Online, 2014). Does consumers trust in different sources of information influence their satisfaction on the halal certification? Do consumers trust the information disseminated via social media more, or the the information provided by the authority (JAKIM)? c) Aunty Anne s denied Halal Certification Aunty Anne s is a hand rolled soft pretzel franchise from the United States of America (USA). In October 2016, the company revealed that their application for halal certification had failed due to, among others, concerns over the name of its popular sausage products, namely pretzel dogs in their menu which contains the word dog. Auntie Anne's was asked by JAKIM to change the name of its "Pretzel Dog" to "Pretzel Sausage" in order to receive a halal certification (The Star Online, 2016). According to JAKIM, the pretzel store franchise is required to adhere to Section of the Malaysian halal food guidelines, which states that halal food and halal artificial flavour shall not be named or synonymously named after non-halal products such as ham, bak kut teh, bacon, beer, rum and others that might create confusion. Subsequent to the halal certification rejection by the institution, the company changed the name of its pretzel dog to pretzel sausage (Malaymail Online, 2016) in an effort to obtain the halal certification. At the same time, the company issued a statement clarifying that even though they have not been granted with halal certification, all of their ingredients are purchased from JAKIM halal certified suppliers (Malaymail Online, 2016). Nonetheless, some Muslim consumers and Muslim lawmakers have expressed their disagreement with JAKIM s decision, stating that the changes of the product name is unnecessary and that most of Muslim consumers are aware that hot dogs has always been knowm to be a western food and do not contain dogs (Malaymail Online, 2016). What is the level of consumers satisfaction towards Malaysian halal certification? Is institutional trust (trust in the authority, JAKIM) important in influencing their satisfaction towards the certification? 3. RESEARCH OBJECTIVES In accordance with the problem statements, this study has three specific objectives: 1. To determine the satisfaction level of Muslim consumers towards Malaysian Halal logo 2. To investigate the factors that affect Muslim consumer satisfaction towards Malaysian Halal logo 3. To provide guidelines to authority and businesses ways to enhance consumer satisfaction towards Malaysian Halal logo. The following research questions were derived from the problem statements in order to guide this study: 1. What is the level of satisfaction towards Malaysian Halal logo among Muslim consumers? 2. What are the factors affecting Muslim consumers satisfaction towards Malaysian Halal logo? 3. How does consumers satisfaction towards food products with the Malaysian halal logo influence their brand loyalty? 7

8 4. SIGNIFICANCE OF THE STUDY From the theoretical perspective, this study would help to understand the antecedents of consumer satisfaction towards food products with the Malaysian halal logo certified by JAKIM. It is an extension of the knowledge of consumer behavior with regards to the halal food industry. For marketers looking to engage Muslim consumers, understanding consumer awareness for Syariah-compliance food would give them the competitive edge to capitalize on this emerging and lucrative halal food market. From the policy-makers perspective, this study facilitates a better understanding on Muslim consumers sentiments towards halal food standards and certification in Malaysia. 5. LITERATURE REVIEW 5.1 The Importance of Halal Certification in the Malaysian Food and Beverage Industry The halal logo and certificate for food and beverage products is not only necessary for Muslim consumers in ensuring that their food consumption is in accordance with the Syariah law, but is also crucial in encouraging food manufacturers and retailers to meet the halal standards (Ariff, 2009). The certification and standards established by Islamic institutions give Muslim consumers assurance in food and beverage consumption without any doubts relating to its halalness (Majid et al., 2015). For the past two decades, JAKIM has been developing and establishing halal standards and certification procedures to regulate the halal food and beverage industry to protect the religious obligations of Muslim consumers. The regulations are important in assuring the confidence of Muslim consumers towards halal certified food and beverage products, food manufacturers, slaughterhouses, logistics operators, retailers, restaurants and food outlets. In a multicultural country like Malaysia, where the non-muslim communities are part of the food producers, the need for halal verification is strongly promoted by the government to ensure that the Muslim consumers would trust and accept food manufactured by non- Muslim producers. In Malaysia, JAKIM plays a crucial role in certifiying food products that meet the Islamic dietary guidelines covering domestic use, imports and exports. Today, Malaysia is the only country that has a halal regulatory framework that is controlled and managed by its government. In contrast to other countries, halal certifications are validated by the respective Islamic associations (Nasaruddin et al., 2012). Malaysia s halal standard for food and beverage, MS1500: 2004 has been receiving worldwide recognition and is regarded as a global benchmark for other countries for many years, and it has also helped others to form their foundation for halal standards (ITC, 2015). Thus, food producers and operators should capitalise on the reputation and credibility of Malaysia s halal certification in order to expand their market share in the halal food industry. Moreover, regardless of many other similar certifications that are available in the food market, the halal logo is still considered to be more meaningful in helping Muslim consumers in making the right purchase decision for their food consumption according to the Syariah rule (Majid et al., 2015). Hence, it indicates that the halal logo or certificate plays a significant role in influencing Muslim consumers purchasing intention for food and beverage products. 5.2 Determinants of Consumer Satisfaction towards Halal Certified Food Products The study proposes a model for the prediction of the antecedents of consumer satisfaction towards halal food products that are certified by the Malaysian authority, drawing upon Fornell s (1996) American Consumer Satisfaction Index (ACSI) model. This includes the 8

9 following constructs: consumer expectations, information trust, institutional trust, brand trust and religiosity as the independent variables (IV), consumer satisfaction towards food products with the Malaysian halal logo as the dependent variable (MV). Information trust is derived from the previous research conducted by Frewer et al. (1996), Liu et al. (1998) and Rosati et al. (2004). These studies were conducted to examine the relationship between information credibility regarding food products and the risk perception associated with the food products. The context of this research postulate that Information trust serves as the antecedent of consumer satisfaction towards halal certified food, which would lead to brand loyalty. Insitutional trust is derived from previous research conducted by Ross (2005). The author s trust model indicates that a community s social bond with the institution, which can best be described as trust is measured as positive beliefs about the competence of the institution, positive expectations, and the willingness to depend on the institution would predict the acceptance which would contribute to consumer satisfaction. Brand trust is derived from a number of previous studies conducted by analyzing the effect of brand trust on purchase intention (Elena, 2001; Herbst, 2012; Lien et al., 2015; Yi Xie et al., 2015) and brand loyalty (Baser et al., 2015; Song et al., 2012; Kim et al., 2014). There is limited number of studies on examining the effect of consumer s pre-purchase confidence and brand trust that could influence their satisfaction in the product s consumption. Thus, this study intends to predict the influence of brand trust on consumer satisfaction towards halal food. Religiosity is derived from previous research conducted by Worthington et al. (2003) and Jamal (2003). The authors suggests that religiosity has a significant effect on consumption behavior. Therefore, this study will investigate the influence of Religiosity on Consumer Satisfaction towards halal certified products in the context of the Malaysian halal food industry. The combination of all the literature review has contributed to a model of five factors affecting brand loyalty, mediated by consumer satisfaction namely consumer expectations, information trust, institutional trust, brand trust and religiosity. The ACSI model provides a basis for the construct of consumer satisfaction towards food products with the Malaysian halal logo to serve as a mediator which links its antecedents to brand loyalty as the dependent variable. The conceptual model is shown in Figure

10 Figure 5.1: Conceptual Framework for the Determinants of Consumer Satisfaction towards Halal Certified Food Products 6. RESEARCH DESIGN 6.1 Hypotheses The hypotheses specified below are examined and discussed in this research accordingly: i. Consumer Expectations and Consumer Satisfaction Consumer expectation denotes the total perceived value a consumer expects prior to consuming the product. Fornell (1996) stated that consumer expectations are the essential anticipated pre-consumption elements that affects the consumer satisfaction. If the halal certified food product exceeds consumers expectation, then the consumers are usually satisfied. If consumers actual experience with the halal certified foods falls below their expectation, they are usually disappointed. It can be hypothesized that: H1: There is a significant relationship between Consumer Expectations and Consumer Satisfaction. ii. Religiosity and Consumer Satisfaction Religious beliefs play a significant role in influencing Muslim consumers behaviour towards food consumption (Jamal, 2003). Muslims are required to consume food in adherence to the Syariah law (Bonne et al., 2006). According to Mokhlis (2009), consumer behaviour towards a certain product varies depending on the levels of religiosity. A research conducted by Ambali and Bakar (2013) has proven the relationship between religiosity and Muslim consumers awareness of halal food consumption which could shape Muslim consumers pre-consumption perceptions on the food products and affect their consumption experience, namely their satisfaction on the consumption. Thus, it can be hypothesized that: H2: There is a significant relationship between Religiosity and Consumer Satisfaction. iii. Information Trust and Consumer Satisfaction Trust can be defined as the quality that one can believe to be true. Information trust, hence, refers to trustable information provided by reliable sources (Frewer et al., 1996). There are a variety of sources that provide information regarding halal food products. Nevertheless, consumers are sometimes exposed to information that are often contradictory (Chan & Pereira, 2012). In the context of this study, the contradicting information refers to the halalness and wholesomeness of halal certified food products. If the consumers perceived that the negative information being communicated regarding the halal certified food 10

11 products are true, the consumers may not be satisfied with their product consumption due to the negative perceptions they have formed prior to consuming the products (Frewer et al., 1996; Lie et al., 1998; Rosati et al., 2004). Therefore, it can be hypothesized that: H3: There is a significant relationship between Information Credibility and Consumer Satisfaction. iv. Institutional Trust and Consumer Satisfaction Trust refers to social trust, which is the individual s willingness to depend on professionals and institutions in the management of hazards and risks (Earle et al, 1995). Individuals rely on institutions to make decisions for them when they lack knowledge and interest in the matters involved (Siegrist et al., 2000). Hence, if consumers perceived the certification institution (JAKIM) to be credible, they will have high confidence in the certifications issued by the institution, which in turn will increase their satisfaction level in the halal product consumption. Thus, it can be hypothesized that: H4: There is a significant relationship between Institutional Trust and Consumer Satisfaction. v. Brand Trust and Consumer Satisfaction Brand trust refers to the sense of security held by the consumers in their relationships with the brand, based on their beliefs that the brand is dependable and accountable for their well being (Elena, 2001). A brand that is perceived to be competent and reliable in accomplishing its promise by fulfilling Muslim consumers needs in ensuring that their food products are halal and toyyiban (wholesome) could lead to the consumer s satisfaction with consumption of the halal certified products. Consequently, it can be hypothesized that: H5: There is a significant relationship between Brand Trust and Consumer Satisfaction. 6.2 Methodology These methodologies will be supporting the quantitative survey chosen for this research. A total of 400 Muslim consumers with different demographics is expected to participate in this study. This survey is designed for Muslim consumers, taking into consideration the determinants that will be affecting their experience towards halal food consumption. The data collected from the questionnaires will then be analysed. The participating respondents will be asked to provide their personal data such as personal profile information, their perceptions on pre-consumption and post-consumption of food products with the Malaysian halal logo including their opinion on the halal food certification in Malaysia. In this methodology, ratings will be recorded based on the Likert Response Scale. Data is expected to be collected over several weeks. The Statistical Package for the Social Sciences (SPSS) will be used to examine the data gathered. This section also presents the findings of a pilot study that was conducted to analyse the reliability of the questionnaire s items and dimensionality of the variables, as well as the results from the specific pre-testing of the questionnaire with the pilot respondents during the questionnaire development process. 6.3 Instrument Development The questionnaire is developed and assembled based on the literature, formulated based on the research objectives and hypothesis of this study, using items that were already validated in previous research as shown in Table 6.1, which summarises the items used in each scale, and the authors as reference. 11

12 Table 6.1: Source of Measurement Scale Items Variables Source Number of Type of Variable Measurement items Consumer Expectation Fornell et al. (1996); 5 Independent (CE) Lin, Tsai and Chiu. (2009) Information trust (InfoT) Frewer, Howard, Hedderly 5 Independent and Shepherd (1996) Institutional Trust (IT) Victoria Ross (2005) 5 Independent Brand Trust (BT) Elena D. Ballester (2004) 5 Independent Religion (R) Worthington et al (2012) 5 Independent Consumer Satisfaction (CS) Fornell et al. (1996); Gustaffson et al. (2006); Hur et al. (2014); Nguyen et al (2014). 6 Dependent Brand Loyalty (BL) Lin, Tsai and Chiu. (2009) 5 Dependent The questionnaire is designed to test six hypotheses of the study. This questionnaire is divided into four main sections. The survey begins with 6 questions relating to respondents preference and attitude towards different halal foods information sources; 36 items to measure the independent, mediating and dependent variables; 7 questions relating to respondents demographic; and lastly an open ended question for respondents to contribute their opinion on the Malaysian halal certification. The Likert Scale is used for measuring the respondents preference for halal foods information sources and the multi-dimensional constructs. Attitudes of each respondent towards preferred information sources regarding halal foods was rated on a 4-point labeled scale (1= least preferred sources to 4 = most preferred sources ). Whilst, a 5-point labeled scale (1= strongly disagree to 5 = strongly agree ) is used to measure the 36 items involved and respondents are required to rate each of the dimension for each construct ranging from strongly disagree to strongly agree. The demographic section requires respondents to disclose their information such as gender, age, marital status, education qualifications, employment status, monthly income and location. 6.4 Population and Sampling Methods This study is focusing on consumer satisfaction and brand loyalty for halal certified food in Malaysia, so the target population would be Malaysian Muslims consumers between the age of 18 and above. Due to the resources constrains, the sampling frame for this study is formed based on a list of researchers contacts from all different states in Malaysia. Accordingly, the most appropriate sampling technique adopted in this research is disproportionate sampling method using a stratified random sampling frame to identify initial cases, these cases further identify members of the population and who then identify further members (Saunders et al., 2015). For this research, Roscoe (1975) rules of thumb are used for determining the sample size, which is larger than 30. Ideally, target samples should represent various backgrounds of Muslim consumers for both gender; young and old; married and singles; students and working adults; lowly as well as highly educated; low and high earning; and various states in Malaysia. 6.5 Data Collection Techniques Basically, data sources are categorized into two main types, namely primary data which are the original new data collected by the researcher for the purpose of research; and secondary data, which are produced by someone else which includes journals, books, newspapers and 12

13 some government publications (Saunders et al., 2009). A combination of both primary and secondary data collection methods have been utilized for this study. The primary data for this study is gained from the data collected through online questionnaires survey. The secondary data is obtained from the previous literature reviews and related articles. Due to cost and time constraint, the online data collection method is chosen for the final survey. The rationale of this online survey method includes cost savings, quicker response time, higher response rate and wider coverage of respondents. Since all questionnaires were distributed online, data collection was conducted from the online database over a two-week period. Eventually, a total of 405 questionnaires that were collected and completed were used for further analysis in chapter 4. Moreover, the sample size is sufficient to generalize the study. Table 6.2 presents the process and steps taken in collecting the primary data. Table 6.2: The Primary Data Collection Process Method Description Respondents Duration Questionnaire: 1st pilot test (offline) Paper-based questionnaires were tested amongst researcher s colleagues (Muslim staffs of TM Berhad) and family members. The aim was to obtain comments on the design and content of the questionnaire 7 participants 3/10/2016 8/10/2016 Questionnaire: 2nd pilot test (online) Final webbased survey Web-based questionnaires were tested on Muslim consumers mostly from TM Berhad using whatsapp invitation with a link to the survey website. The aim was to test the scale reliability and validity (details in Section and Section 4.1). Web-based questionnaires were randomly circulated to researcher s contacts in each of the different states in Malaysia, including the survey rewards of Starbucks card worth RM20 as a token of gratitude if they manage to collect a minimum of 20 respondents to participate in the survey. The final webbased questionnaire is shown in the Appendix A 30 participants 405 participants 12/10/ /10/ /10/ /11/ Pilot Study Pilot testing refers to the testing of questionnaire on a smaller sample of respondents prior to conducting a survey on a larger scale. The survey aims to identify and eliminate potential problems (Hunt et al., 1982). The first pilot surveys were performed offline to test all aspects of the questionnaire, including the sequence, content, question clarity and difficulty. 7 pilot respondents participated in this offline survey, and they were encouraged to give their own opinion on whether the research protocol is practical, and whether the items proposed are representative to the constructs being measured. The outcome of the offline pilot study suggested several changes to be made on the questionnaires content specifically on the items measured which are due to redundancy and incomprehensibility of the questions being asked. The sequence of the questions for each variable are also rearranged to create a better flow of questions in order to increase the respondents understanding and to avoid confusions between different variables. 13

14 The second pilot test is conducted online with 30 pilot respondents to test on the feasibility of the full scale survey. The preliminary data is then collected and analyzed using quantitative approach in examining the reliability and factor analysis of the seven multidimensional constructs in this study. 6.7 Statistical Analysis Techniques This study used the SPSS, a widely used statistical analysis software, to perform statistical analysis such as the analysis of data distribution; descriptive analysis; inferential analysis such as bivariate analysis; and multivariate analysis, that will be deliberated in detailed in the following chapter. Table 6.3 below shows the statistical analysis and its purposes in this study. Table 6.3: Summary of Statistical Analysis Techniques Analysis Methods Objective Descriptive Statistics Normality test Histogram To examine the normality of data Skewness distribution Kurtosis Outlier analysis Box Plots To identity the presence of outliers Descriptive analysis Frequencies To explore the pattern of respondents demographics Inferential Statistics Mean comparison Independent T-test To examine the mean difference of two groups Reliability and Validity Test Exploratory Factor Analysis (Dimensionality) Cronbach s alpha Corrected Item total correlation Principal component analysis (PCA); To confirm the internal consistency of all measured items in the questionnaire and assess whether the item measures what it is supposed to measure. To verify the dimensionalities of measured constructs Bivariate Analysis Pearson correlation To analyze the strength and direction of the relationship between two continuous variables Multivariate Analysis (Multiple Regression) Linear multiple To explore the predictive ability of a regression set of independent variables on one Sobel test continuous dependent variable based on linear relationship among variables To test whether a mediator carries the influence of an independent variable to a dependent variable Source: Saunders et al. (2009) 14

15 7. RESULTS 7.1 Preliminary Data Screening Outlier Analysis (Box Plot) Outliers are values that are distant from a main group of data in a sample. It is important to detect outliers as they may indicate bad data that may distort the results of correlation analysis (Pallant, 2007). The outlier test is performed using descriptive statistics method by analysing extreme values which appear in each box plot of the constructs. Summary for the results is shown in the Table 7.1. Table 7.1: Outliers Analysis Findings Variables Box Plot Extreme Values* (Case Number) Consumer Expectations 343 Institutional Trust 147, 224, 282, 336 Brand Trust 301 Religiosity 282 Consumer Satisfaction 147, 343 Brand Loyalty 282, 336 Six case numbers (respondent s ID number) that are considered extreme values with asterisk (*) on the boxplots are identified, namely case number 147, 224, 282, 301, 336 and 343. After exploration of the outliers test, six outliers were removed from the sample data set prior to Pearson s correlation and multiple regression analysis. Hence, the total sample size was reduced from n=405 to n= Descriptive Analysis Demographic Profile of Respondents The final web-based questionnaires were shared and distributed in the form of online surveys through electronic channels namely s and social media mediums to working professionals, self-employed individuals, unemployed individuals, students and retirees who are Muslims and aged 18 and above in each state of Malaysia. The entire sample is collected within a two-week period. A total of 405 responses were collected, however, 6 were incomplete for analysis. Therefore, 399 complete responses were usable for this study where their profile is shown in Table 7.2 below. Table 7.2: Demographical Profiles of the Respondents Variable Category Frequency Percent (%) Gender Male Female Total Age and above Total Marital Status Married with children Single Married without children Separated/Divorced Total Education Level SPM Diploma

16 Bachelor Degree Postgraduate Degree Total Employment Status Employed Student Retiree Unemployed Total Monthly Income Less than RM5, Between RM5,000 and RM8, More than RM8, Not applicable Total States Selangor Kelantan Kuala Lumpur & Putrajaya Sabah & Labuan Johor Kedah Pahang P. Pinang Perak Melaka N. Sembilan Perak Perlis Sarawak Total The number of female respondents outnumbered male respondents in this sample, with 57% out of total sample whilst male respondents making up 43% of the total sample. The majority of the sample consists of respondents in the (34.3%) age range, followed by second highest age range which are those in the (25.2%), those above 46 years old (21.5%) and those in the age range of (19%). From the marital status perspective, majority of the respondents are married with children (49.9%), followed by single respondents (40.7%), and a relatively small number of respondents who are married without children (6.7%) and divorced (2.7%). In terms of respondents highest education level, since the questionnaires were distributed mostly to working professionals, the highest group of respondents are among the bachelor degree holders (56.5%), followed by diploma holders (16.3%), SPM holders (15.8%) and postgraduate degree holders (11.4%). Thus, it can be summarised that 67.9% of the respondents are of individuals with higher formal education. In respect to respondents occupation profiles, the majority are employed individuals (68.4%), followed by students (23%), and a comparatively small percentage of retirees (5.9%) and unemployed individuals (2.7%). The large percentage of employed individuals can be explained by the large percentage of highly educated respondents. The employed individuals comprised of executives, professionals, managers and self-employed respondents who are mostly businessmen or businesswomen. As for the sample respondents monthly income, majority of the respondents are earning less than RM5,000 (31.4%), followed by those with monthly income of between RM5,000 16

17 and RM8,000 (22.5%), and those earning more than RM8,000 (14.8%). On the other hand, respondents who are not earning any income also contribute to a significant percentage of the total sample (31.4%) which can be explained by the large percentage of student respondents. Since the questionnaires were distributed nationwide, the respondents comprised of all states in Malaysia. A large number of respondents come from Selangor (32.1%), followed by Kelantan (25.2%), and the Federal Territories Kuala Lumpur and Putrajaya (15.8%). In short, the population of Muslim consumers are well-represented by 399 respondents in terms of gender, age, marital status, education level, employment status, and income level Preferred Source of Information Regarding Halal In assessing the public perceptions of preference and trust towards different types of information sources that the public could gain information pertaining to halal foods, respondents were asked to rate their experience and preference with the Malaysia Halal Official Portal, a website owned and operated by the halal certification authority (JAKIM); and other information sources available namely the social media, the newspapers, television and radio channels. Table 7.3 summarizes their preferred sources of information. Table 7.3: Halal Source of Information Preference No. Sources of Information Category Frequency Percent 1. Malaysia Official Halal Portal Have checked ( Never To check halal food status. Don t know Total Social Media : WhatsApp, Facebook, YouTube, Blogs, Twitter Least preferred Neutral Preferred Most preferred Total Newspaper Least preferred Neutral Preferred Most preferred Total Television The least preferred Neutral Preferred The most preferred Total Radio Least preferred Neutral Preferred Most preferred Total Table 7.3 above shows that about half of respondents (50.4%) claimed that they have checked the halal status of food products through the Malaysian Official Halal Portal, which is the sole authority in halal certification. However, a significantly large number of respondents said that they have never use the halal portal (45.7%); and a relatively small percentage of the respondents (4%) do not know about the halal portal website at all. 17

18 In terms of the respondents preference for information sources regarding halal food, social media is ranked as the most preferred category of information sources among the respondents, followed by television, newspaper and radio. Respondents who frequently check the halal status of their food purchases through Malaysia Official Halal Portal also shared their positive experience of checking halal food status through JAKIM s halal directory available through its mobile application called myjakim. The halal directory is highlighted as the most referred-to source of information regarding halal food status, other preferred information sources stated by respondents also comprised of Islamic books and magazines such as Al-Islam; family and friends; food product information leaflets; seminars or talks organised by religious organisations and the respective state s Islamic departments. In short, nearly half of respondents do not check and verify halal status with JAKIM who has the authority to issue halal certificate. Instead, they still rely on other sources of information which could sometimes mislead or give the wrong information on halal status of food products. We will further explore and analyse this matter in the following section The Level of Consumer Satisfaction The level of consumer satisfaction is measured using six statements based on 5-point Likert scale which is shown in Table It is found that the level of satisfaction is on the high note where more than 80% of respondents are satisfied with halal food certification for all six items that are used to measure consumer satisfaction as shown on Table 7.4 below. Moreover, five out of six items have mean score of more than four points on 5-point Likert scale. Items CS1 CS2 CS3 CS4 CS5 CS6 Strongly Disagree Table 7.4: The Level of Consumer Satisfaction Strongly Disagree Neutral Agree Mean Agree (0.3%) (1.8%) (16%) (60.7%) (21.3%) (0.5%) (0.5%) (14%) (60.4%) (24.6%) (1%) (13.3%) (56.4%) (29.3%) (3%) (18.8%) (61.2%) (17%) (0.5%) (1.3%) (17.3%) (55.9%) (25.1%) (2%) (13.8%) (61.9%) (22.3%) Average score (n=399) Std. Dev Consumer Satisfaction and Demographic Profile In the next analysis, we examine the level of consumer satisfaction according to their demographic profile. To achieve this, we calculate the mean score for each respondent and if the mean score is below 3 we define the respondent as dissatisfied. However, if the mean score is 3 and above, we define as satisfied. Based on this category, we analyze the 18

19 relationship between the level of satisfaction level and demographic profile which are shown from Table 5 to Table 11. In general, most of the respondents are satisfied with the halal food certification where only 11 out of 399 considered themselves not satisfied. Since the number of unsatisfied consumers is too small, there is not much useful statistical analysis that could be performed; however, there are two distinctive characteristics with regard to the group of satisfied consumers. First, it is found that the level of satisfaction declines as the level of education increases as shown in Table 9. Second, the level of satisfaction declines as the level of income increases as shown in Table 11. This could indicate the influence of education and social status in halal awareness among Muslims. Nonetheless, the large percentage of satisfied respondents signifies high level of satisfaction for halal certification among respondents. Gender and Consumer Satisfaction on Halal Certification Table 7.5 shows the most satisfied respondents belong to the female group (97.4%), followed by the male group (97.1%). There are not much difference between the satisfaction levels between the different gender groups. Overall, the consumer satisfaction levels on halal certification are considered high for both female and male. Table 7.5: Gender and Consumer Satisfaction Consumer Satisfaction Total Gender Not Satisfied Satisfied Male Count % 2.9% 97.1% 100.0% Female Count % 2.6% 97.4% 100.0% Total % 2.8% 97.2% 100.0% Age and Consumer Satisfaction on Halal Certification Table 7.6 shows the most satisfied respondents are in the year old age range (98.5%), followed by second highest age range which are those in (96.9%), those above 46 years old (96.6%), and those in the age range of 36 to 45 (96.1%). Generally, there are not much difference between the satisfaction levels between the different age groups. Overall, the consumer satisfaction level on halal certification is high for all the age groups. Table 7.6: Age and Consumer Satisfaction Consumer Satisfaction Age Not Satisfied Satisfied Count Total % 3.1% 96.9% 100.0% Count % 1.5% 98.5% 100.0% Count % 3.9% 96.1% 100.0% 46 and above Count

20 % 3.4% 96.6% 100.0% Total % 2.8% 97.2% 100.0% Marital Status and Consumer Satisfaction on Halal Certification According to Table 7.7, the most satisfied respondents group are respondents that are married without children (100%) and respondents who are separated or divorced (100%), followed by those who are single (97.5%), and those who are married with children (96.5%). The lowest percentage of the respondent group who are married with children (96.5%) could be associated with the factor that families with children are more concern and particular about their family s halal food consumption compared to other group of respondents with no children. Table 7.7: Marital Status and Consumer Satisfaction Consumer Satisfaction Marital Status Not Satisfied Satisfied Total Single Count Married without children % 2.5% 97.5% 100.0% Count %.0% 100.0% 100.0% Married with children Count % 3.5% 96.5% 100.0% Separated/Divorced Count %.0% 100.0% 100.0% Total % 2.8% 97.2% 100.0% Education Level and Consumer Satisfaction on Halal Certification Table 7.8 shows the most satisfied respondents are diploma holders (100%), followed by SPM holders (98.4%), bachelor degree holders (96.4%), and postgraduate degree holders (95.7%). Postgraduate degree holders have the lowest satisfaction percentage, followed by bachelor degree holders. It can be postulated that respondents with higher education are more particular about their halal food consumption compared to other respondents. Table 7.8 : Education Level and Consumer Satisfaction Consumer Satisfaction Education Not Satisfied Satisfied Total SPM Count % 1.6% 98.4% 100.0% Diploma Count %.0% 100.0% 100.0% Bachelor Degree Count Postgraduate Degree % 3.6% 96.4% 100.0% Count % 4.3% 95.7% 100.0% Total

21 % 2.8% 97.2% 100.0% Employment Status and Consumer Satisfaction on Halal Certification Table 7.9 shows that the most satisfied respondents are those who are unemployed (100%), followed by students and employed respondents (97.8%), and retirees (87.5%). Retiree respondents have the lowest satisfaction percentage, and unemployed respondents with highest satisfaction percentage. It can be postulated that older respondents (retirees) are more particular in their daily halal food consumption, thus they are more difficult to be satisfied compared to younger respondents. Table 7.9: Employment Status and Consumer Satisfaction Consumer Satisfaction Total Employment Not Satisfied Satisfied Student Count % 2.2% 97.8% 100.0% Employed Count % 2.2% 97.8% 100.0% Unemployed Count % 0% 100.0% 100.0% Retiree Count % 12.5% 87.5% 100.0% Total % 2.8% 97.2% 100.0% Income Level and Consumer Satisfaction on Halal Certification Based on Table 7.10, the most satisfied respondents are those who are earning between RM5,000 and RM8,000 (98.9%), followed by those who are earning less than RM5,000 (98.4%), respondents with no income (96%) and those who are earning more than RM 8,000 (94.8%). The highest income group has the lowest satisfaction percentage. Overall, all respondents with different income levels have high satisfaction percentage towards halal certification. Table 7.10: Income Level and Consumer Satisfaction Consumer Satisfaction Income Level Not Satisfied Satisfied Total Less than RM5,000 Count % 1.6% 98.4% 100.0% RM5,000 - RM8,000 Count % 1.1% 98.9% 100.0% More than RM8,000 Count % 5.2% 94.8% 100.0% Not applicable Count % 4.0% 96.0% 100.0% Total % % 97.2% 100.0% 21

22 States and Consumer Satisfaction on Halal Certification Based on Table 7.11, there are 9 states with 100% of its population that are satisfied with halal certification: Johor, Melaka, Perak, Pahang, Perlis, Sabah and Labuan, Sarawak, N. Sembilan and Perak; followed by Selangor (97.7%), Kelantan (97.0%), Kuala Lumpur and Putrajaya (95.1%), Kedah (92.9%), and Pulau Pinang (90.0%) with the lowest satisfaction percentage. Table 7.11: Consumer Satisfaction and States Consumer Satisfaction Location Not Satisfied Satisfied Kuala Lumpur & Putrajaya Total Count % 4.9% 95.1% 100.0% Selangor Count % 2.3% 97.7% 100.0% P. Pinang Count % 10.0% 90.0% 100.0% Johor Count % 0% 100.0% 100.0% Melaka Count % 0% 100.0% 100.0% Kedah Count % 7.1% 92.9% 100.0% Perak Count % 0% 100.0% 100.0% Kelantan Count % 3.0% 97.0% 100.0% Pahang Count % 0% 100.0% 100.0% Perlis Count % 0% 100.0% 100.0% Sabah & Labuan Count % 0% 100.0% 100.0% Sarawak Count % 0% 100.0% 100.0% N. Sembilan Count % 0% 100.0% 100.0% Perak Count % 0% 100.0% 100.0% Total % 2.8% 97.2% 100.0% Level of Consumer Satisfaction and Preferred Source of Information In this section, we analyze the level of satisfaction with respondents preferred source of information. The purpose of analysis is to determine whether respondents satisfaction towards halal food certification is related to their own preferred source of information. In 22

23 other words, people s over-reliance on their preferred source of information could influence their judgement towards halal food certification. Using the same method as described earlier, we calculate the mean score of consumer satisfaction for each respondent and if the mean score is below 3 we define the respondent as unsatisfied consumer. However; if the mean score is 3 and above, we define the respondent as satisfied consumer. Based on this category, we analyze the relationship between the level of satisfaction level and preferred source of information which are shown from Table 7.12 to Table Generally, we do not find evidence that the source of information can significantly influence the level of consumer satisfaction with regard to halal certification. Consumer Satisfaction and Familiarity with Halal Portal As previously discussed in section 7.2.3, most of the respondents are pleased with halal food certification; however, how does it related with familiarity of halal portal? Table 7.12 shows that there are not much difference in terms of consumer satisfaction and their familiarity with halal portal. Of whether or not they are aware of the portal, both groups are satisfied with halal food certification. The result signifies that respondents familiarity with JAKIM halal portal does not affect their satisfaction. Table 7.12: Consumer Satisfaction and Halal Portal Familiarity Halal Portal Knowledge Have checked portal Consumer Satisfaction Not Satisfied Satisfied Total Count % 3.4% 96.6% 100.0% Never check portal Count % 2.0% 98.0% 100.0% Total % 2.8% 97.2% 100.0% Consumer Satisfaction and Social Media Preference In this study, respondents were asked to rate their preferred source of information pertaining halal food using 5-point scale where 1 being the least preferred and 5 being the most preferred; however, we consider neutral as the less preferred source. Table 7.13 below shows that there is no difference in terms of their preferred source of information and satisfaction. Respondents who do not rely on social media have high degree of satisfaction similar to those who rely on social media. 97% of respondents who do not rely on social media are satisfied with halal certification. This is the same with respondents who heavily rely on social media at 97%. Therefore, the result signifies that social media influence is not significant to affect their satisfaction on halal certification. Table 7.13: Consumer Satisfaction and Social Media Preference Consumer Satisfaction Social Media Preference Total Not Satisfied Satisfied Less Preferred Channel Count % 2.8% 97.2% 100.0% More Preferred Channel Count % 2.7% 97.3% 100.0% 23

24 Total % % 97.2% 100.0% Consumer Satisfaction and Newspaper Preference Based on the same method of category described, Table 7.14 shows that there is no significant difference on consumer satisfaction in terms of using newspaper as the preferred source of information on halal. Respondents who do not rely on newspaper media have high degree of satisfaction similar to those who rely on newspaper. 96.7% of respondents who do not rely on newspaper are satisfied with halal certification. This is the similar with respondents who heavily rely on newspaper at 97.9%. Therefore, the result signifies that newspaper does not significantly influence their satisfaction on halal certification. Table 7.14: Consumer Satisfaction and Newspaper Preference Newspaper Consumer Satisfaction Not Satisfied Satisfied Total Less Preferred Count % 3.3% 96.7% 100.0% More Preferred Count % 2.1% 97.9% 100.0% Total % 2.8% 97.2% 100.0% Consumer Satisfaction and Television Preference Table 7.15 shows there is no significant difference in terms of television as a preferred source of information and the level of satisfaction on halal certification. Respondents who regularly obtain their halal information through television have similar level of satisfaction with respondents who do not use television consumers, i.e. 98.7% versus 95.3%. The result signifies that television influence is not significant to affect consumer satisfaction on halal certification. Table 7.15: Consumer Satisfaction and Television Preference Consumer Satisfaction Total Television Not Satisfied Satisfied Less Preferred Count % 4.7% 95.3% 100.0% More Preferred Count % 1.3% 98.7% 100.0% Total % 2.8% 97.2% 100.0% Consumer Satisfaction and Radio Preference Similar to television, Table 7.16 also shows that there is no difference on the consumer satisfaction in terms of radio as the source of information on halal. Respondents who rely on radio channels have similar level of satisfaction with those do not, i.e. 97.2% versus 97.3%. The result indicates that radio influence is not significant to affect consumer satisfaction on halal certification. 24

25 Table 7.16: Consumer Satisfaction and Radio Preference Radio Consumer Satisfaction Total Not Satisfied Satisfied Less Preferred Count % 2.7% 97.3% 100.0% More Preferred Count % 2.8% 97.2% 100.0% Total % 2.8% 97.2% 100.0% The Level of Information Trust Information trust in the context of halal food industry refers to the trustworthiness of information sources regarding halal food. The value of the information is dependent on the credibility of the information itself. Credible information should have the quality of being trusted or believed in (Frewer et al. 1996). Therefore, in this section we analyze respondents trust in information sources they used with regard to halal. In this study, there are five measurements of information trust using 5-point Likert scale as indicated in Table The frequency and mean score of each measure are shown in Table 7.17 below. Table 7.17: The Level of Information Trust Items Strongly Disagree Disagree Neutral Agree Strongly Agree Item Mean score Std. dev. Inf. Tr (3%) (16%) (29.1%) (43.1%) (8.8%) Inf. Tr (3.5%) (16.5%) (35.1%) (39.6%) (5.3%) Inf. Tr (1.5%) (13.8%) (31.3%) (44.6%) (8.8%) Inf. Tr (2.8%) (17%) (28.3%) (42.4%) (9.5%) Inf. Tr (3%) (20.1%) (39.3%) (33.6%) (4%) Mean Score (n=399) It is evident from Table 7.17, the mean score of each five items that are used to measure information trust is less than consumer satisfaction. All five items received mean score below 4 point on the 5-point Likert scale. Similarly, the overall mean score for information (3.33) is also less than consumer satisfaction (4.04). Nonetheless, four out of five measures of information are well-received where more than 50% of respondents have high information trust. For example, the third item I believe the information disseminated is factual received more than 52% approval. It means that high degree of consumer satisfaction does not always indicate a high level in trust. 25

26 Using the same method of categorizing of consumer satisfaction, the mean score for information trust is computed for each respondent. The mean score of below 3 means that the respondent does not trust the information, whereas mean score of 3 and above means that the respondent does have trust in the information. Based on this category, we analyze the relationship between the level of information trust with the respondents preferred medium of information. The results of this analysis are shown on Table 7.18 to Table It is found that the level of information trust is related to the preferred medium of information used for halal particularly social media, newspaper and radio. Information Trust and Familiarity with Halal Portal Based on Table 7.18 below, most of the respondents put their trust in the information they received on their preferred channel, i.e. 74.1% agree versus 25.9% disagree. It is also obvious that there is no significant difference on the information trust between the consumers who have checked halal status of products through the portal operated by JAKIM (74.9%) and those who have not check the portal (73.3%). It can be said that respondent s familiarity with the halal portal does not affect their trust towards the information they received online via social media, or any other information channels such as newspaper, television, and radio. Table 7.18: Information Trust and Familiarity with Halal Portal Information Trust Disagree Agree Total Have checked portal Count % 25.1% 74.9% 100.0% Never check portal Count % 26.7% 73.3% 100.0% Total % 25.9% 74.1% 100.0% Information Trust and Social Media Preference Table 7.19 shows the relationship between information trust and source of information. It is found that among the respondents who do not use social media, 79.3% of them have high information trust. On the other hand, among respondents who used social media, 69.9% of them have high information trust. Therefore, there is a big difference between respondents who do not use social media and respondents who used social media. The significant difference is supported by statistical test called chi-square test shown in Table 23. The purpose of chi-square tests is to determine if there is any significant relationship between two categorical variables. Based on Table 23, the p-value is for Pearson Chi-Square which is statistically significant at 5% level. It means that respondents preference for social media do influence their level of information trust. Thus, the result reveals that consumers preference in social media as their preferred channel on obtaining halal information does play a vital role in affecting their information 26

27 trust. Even though the respondents utilise social media sites in getting halal information, it does not necessary mean they trust the information they received. Therefore, respondents who do not regularly utilise social media platforms in getting halal information are more trusting towards information they received compared to respondents who regularly obtain information through social media. In other words, the sample respondents are inclined to trust information they received other than social media sites such as newspaper, television and radio. Table 7.19: Information Trust and Social Media Preference Information Trust Social Media Preference Disagree Agree Total Less Preferred Count Expected Count % 20.7% 79.3% 100.0% More Preferred Count Expected Count % 30.1% 69.9% 100.0% Total Expected Count % 25.9% 74.1% 100.0% Table 7.20: Chi-Square Test for Information Trust and Social Media Preference Value df Sig. (2-sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 398 Information Trust and Newspaper Preference Based on Table 7.21, 67.9% of respondents who do not prefer newspaper as their prime information source in getting halal information trust the information they received. Whilst 81% of the total respondents who prefer newspaper as their main information source on getting halal information trust the information they received. The difference between the two groups of respondent is statically significant as shown in Table The p-value is for Pearson Chi-Square which is significant at 5% level. It means that respondents who regularly obtain halal information through newspapers are more trusting towards information they received compared to respondents who obtain information through other channels. In other words, the sample respondents are inclined to trust information they received from the newspapers compared to any other channels. Thus, the result indicates that newspapers do play significant role in influencing Muslim consumers trust towards halal information. Table 7.21: Information Trust and Newspaper Preference Information Trust Newspaper preference Disagree Agree Total Less Preferred Count

28 Expected Count % 32.1% 67.9% 100.0% More Preferred Count Expected Count % 19.0% 81.0% 100.0% Total Expected Count % 25.9% 74.1% 100.0% Table 7.22: Chi-Square Test for Information Trust and Newspaper Preference Value df Sig. (2-sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 398 Information Trust and Television Preference Table 7.23 shows that there is no significant difference on the information trust between respondents who prefer television and those who do not, i.e. 75.0% versus 72.9%. It means that there is no significant relationship between information trust and television as preferred source of information on halal. Therefore, the result signifies that television news do not have any effects on influencing the information trust of Muslim consumers. Table 7.23: Information Trust and Television Preference Television preference Information Trust Total Disagree Agree Less Preferred Count % 27.1% 72.9% 100.0% More Preferred Count % 25.0% 75.0% 100.0% Total % 25.9% 74.1% 100.0% Information Trust and Radio Preference According to Table 7.24, 81.1% of total respondents who prefer radio as their prime information source in getting halal information trust the information they received, whilst 71.6% of the total respondents who do not prefer radio as their main information source on getting halal information trust the information they received. This difference is statistically significant at 10% level as shown in Table 7.25, where the p-value for Pearson Chi-Square is This means that there is significant relationship between source of information and the level of information trust. Respondents who regularly obtain halal information through radio are more trusting towards information they received compared to respondents who prefers to obtain information through other channels. In other words, the sample respondents are 28

29 somehow inclined to trust information they received from the radio channels compared to any other channels. Thus, the result indicates that radio news do play significant role in influencing Muslim consumers trust towards halal information. Table 7.24: Information Trust and Radio Preference Information Trust Radio Preference Disagree Agree Total Less Preferred Count Expected Count % 28.4% 71.6% 100.0% More Preferred Count Expected Count % 18.9% 81.1% 100.0% Total Expected Count % 25.9% 74.1% 100.0% Table 7.25: Chi-Square Test for Information Trust and Radio Preference Value df Sig. (2-sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases Mean Comparison Between Two Groups of Respondents One of the objectives of the study is to determine satisfaction level of Muslim consumers towards halal logo; hence, we asked respondents whether they do check Malaysian Official Halal Portal, operated by JAKIM. As shown in Table 7.3, it is evident that nearly half of the respondents (196 out of 399) do not check and verify with JAKIM regarding the halal status of a product. This raises questions whether this group of respondents has different perceptions towards halal certification, as compared to the group of respondents that do check halal portal. In order to determine the difference of perceptions between these two groups, we use the mean score of the seven measurement items, namely, consumer expectation, information trust, institutional trust, brand trust, religiosity, consumer satisfaction and brand loyalty. If there are significant differences of mean scores of any of the measurement items, it means that they have different perceptions and opinions towards JAKIM. Since there are more than items for each of the variables, we calculate the mean scores for each variable according to the groups, i.e. check halal portal versus not check, and then use two-sample t-test in order to determine whether the difference is statistically significant., which are illustrated in Table 7.26 below. It is evident that respondents that do not check halal portal have lower mean score for six out of seven variable measurements. We test the mean score difference to see whether it is statistically significant as shown in Table

30 Table 7.26 Mean and Standard Deviation of Measurement Scales of Two Groups Variables Measurement Group of Respondents Number of respondents Mean Score Standard Deviation 1. Consumer Check portal Expectation (5 items) Do not check Information Trust Check portal (5 items) Do not check Institutional Trust Check portal (5 items) Do not check Brand Trust Check portal (5 items) Do not check Religiosity Check portal (5 items) Do not check Consumer Check portal Satisfaction (6 items) Do not check Brand Loyalty Check portal (5 items) Do not check Table 7.27 shows that the difference of mean score between respondents who do and do not check halal portal is statistically significant for all variable measurements except one, namely, consumer expectation. It means that respondents who do check halal portal have higher level of satisfaction, compared to respondents who do not. Their trust, loyalty and religiosity are also higher, compared to respondents who do not check halal portal. Table 7.27: T-test for Equality of Mean Scores Variable measurements t-value d.f. Sig. (2-tailed) 1. Consumer Expectation * 2. Information Trust Institutional Trust * 4. Brand Trust * 5. Religiosity * 6. Consumer Satisfaction * 7. Brand Loyalty * note: * significant at 5% Normality Analysis Pallant (2007) described that a normal data should be distributed in a symmetrical bell shaped curve, with the greatest frequency in the middle, and the smaller frequencies towards the extreme. It is significant for the data to be normally distributed in order to continue with other parts of the analysis such as bivariate and multiple regression. There are a number of tests designed to analyse the normality of data distribution. However for this study, we will be conducting the test using histograms and descriptive statistics (skewness and kurtosis). Histogram The findings from this analysis show a normally distributed curve in the histogram chart, which indicate that the sample data from each of the seven constructs being examined are normally distributed. The results allow us to proceed with further analysis. The histograms are shown in Appendix B. Skewness and Kurtosis 30

31 Table 7.28 below shows the simplified code for each item of measured constructs, whilst Table 7.29 presents the mean, standard deviation, skewness and kurtosis of the items. Table 7.28: Simplified Code for Each Item of Measured Constructs Variable Item Item Code Consumer I expect food and beverage product labelled with Malaysian halal logo CE1 Expectations quality to be satisfactory. I expect food and beverage product with Malaysian halal logo to be CE2 worth the price I paid for. I believe that things could not go wrong with food and beverage CE3 labelled with Malaysian halal logo Food and beverage with Malaysian halal logo fulfil my consumption CE4 requirement for halal and wholesome food. My overall expectation for food and beverage product with Malaysian CE5 halal logo quality is high. Information I believe the information disseminated on the halal issue is true. InfoT1 trust I believe the information disseminated does not contain elements of InfoT2 interest to certain parties. I believe the information disseminated is factual. InfoT3 I believe those who disseminate information about the halal products InfoT4 are knowledgeable about halal foods. I believe information about halal products distributed through the InfoT5 information source of my choice has never been proven wrong before. Institutional The institution listen to concern raised by consumer like me. IT1 Trust I feel confident with the halal certification issued by the IT2 Institution. I believe the institution has the same opinion as me when it comes to IT3 halal food and beverage standard. The institution is unbiased in issuing halal certification to food and IT4 beverage manufacturers. The halal certification issued by the institution is acceptable in IT5 guaranteeing the food and beverage product adherence to Islamic standard. Brand Trust I purchase the food products because I find the brand convincing. BT1 The brand of my choice guarantees my satisfaction. BT2 I could rely on the brand. BT3 The brand would make any effort to satisfy me. BT4 The brand would compensate me if I encountered problem with the BT5 product. Religiosity My religious beliefs shape the aspects of my life. R1 I spend time to deepen my understanding of religion. R2 It is important for me to refer to reading materials to deepen their R3 religious knowledge. I enjoy participating in the activities of organizations / associations for R4 religious purposes. I enjoy spending time with others of my religious affiliation. R5 Consumer I am satisfied with my decision to purchase food and beverage product CS1 Satisfaction with Malaysia halal logo. I did the right decision by buying food and beverage product with CS2 Malaysia halal logo. I would purchase food and beverage products with Malaysia halal logo CS3 in the future. The food and beverage product with Malaysia halal logo that I purchase usually meet or exceed my expectations. CS4 31

32 Brand Loyalty I think Malaysia's halal certification can be considered equivalent to global halal certification standard. Overall, I am satisfied with food and beverage products with Malaysia halal logo. I will continue to purchase food and beverage products with Malaysia halal logo. I will recommend to friends and relatives to purchase food and beverage products with Malaysia halal logo. I will offer others positive information about food and beverage products with Malaysia halal logo. I would still choose the brand of food and beverage products bearing the Malaysia halal logo, although there are other cheaper options. I also tend to buy other non-food products from the same brand (such as cosmetics, toothpaste and so on). CS5 CS6 BL1 BL2 BL3 BL4 BL5 INDEPENDENT VARIABLES MEDIATOR DEP Table 7.29: Mean, Standard Deviation, Skewness and Kurtosis of each item Constructs Item Mean Standard Deviation Skewness Kurtosis Consumer CE Expectations CE CE CE CE Information trust InfoT InfoT InfoT InfoT InfoT Institutional Trust IT IT IT IT IT Brand Trust BT BT BT BT BT Religiosity R R R R R Consumer Satisfaction CS CS CS CS CS CS Brand Loyalty BL

33 BL BL BL BL The skewness value indicates the level of symmetry of the data distribution while kurtosis indicates the level of peakedness of the distribution, when referring to whether the distribution is heavy-tailed or light-tailed comparative to normal data distribution. Table 7.29 shows that all items show absolute values below 2 for skewness and below 3 for Kurtosis. The values for skewness between -2 and +2 (George & Mallery, 2010) and value below 3 for kurtosis (Bryne, 2010) signify all items are within the normality curve Exploratory Factor Analysis (EFA) Validity Assessment Factor analysis is necessary to assess the construct validity of the research questionnaire, which would confirm the dimensionality the construct being measured (Ratray & Jones, 2007). It is important for the dimensions of the research concept to be properly defined, as well as ensuring which of the items are most appropriate for each dimension. In the SPSS, factor analysis is included as a data reduction technique. In other words, it reduces a large set of variables by summarising the data with a smaller set of components. For this purpose, groups among the intercorrelations of a set of variables are identified. If the research constructs are valid, all items should be clumped together representing the underlying construct. Tabachnick and Fidell (2007) also suggested an inspection of the correlation matrix of coefficients values above 0.3. There are two statistical measures that will be generated by SPSS in assessing the factorability of the data, which are Bartletts s test of sphericity and Kaiser-Meyer-Olkin (KMO). According to Bartlett (1954), the Barlett s test of sphericity should be significant (p<0.05) for a good factor analysis. Whereas the KMO index ranges from 0 to 1, with the suggested minimum value of 0.6 is deemed to be suitable for factor analysis (Tabachnick & Fidell, 2007). Table 7.30 : KMO and Bartlett's Test for All 7 Variables Kaiser-Meyer-Olkin Measure of Sampling Adequacy..935 Bartlett's Test of Sphericity Approx. Chi-Square df 630 Sig..000 A total of 36 items from the seven variables were analysed using the principal component analysis (PCA) method. Prior to the test, the data is tested for its suitability for the PCA. From the Table 7.28, it can be seen that the KMO value is 0.935, which is way above the recommended value of 0.6, and the Bartlett s Test of Sphericity reveals significant value (p=0.000), supporting the factorability of the correlation matrix for the seven variables. The principal component analysis indicated six components with eigenvalues exceeding one (13.055, 3.441, 2.337, 2.137, 1.309, 1.209), explaining 36.3%, 9.6%, 6.5%, 5.9%, 3.6% and 3.4% of the variance respectively. These six components accounted for a total of 65.2% of the variance. Once these factors have been identified, they are then extracted and rotated utilising the Varimax rotation method (see Table 7.31). 33

34 As seen in the Table 7.31, all items showed strong loadings and are clustered together representing the underlying six components even though there are seven categories of variables being examined in this study. Six items from the mediator (consumer satisfaction) and five items from the dependent variable (brand loyalty) show strong loadings and are clustered together in the same component. Based on the literature review in section 5, it is obvious that the six items CS1, CS2, CS3, CS4, CS5 and CS6 belong to consumer satisfaction and the 5 items BL1, BL2, BL3, BL4, and BL5 belong to brand loyalty. Thus, both variables are treated as two separate components in this study despite results from the Varimax rotation showing both the mediator and dependent variable loaded in the same component. Componen t Table 7.31: Total Variance Explained Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings Total % of Cumulative % of Cumulativ Total Variance % Variance e % Total

35 Extraction Method: Principal Component Analysis. Table 7.32: Rotated Component Matrix for All 7 Variables Rotated Component Matrix Component InfoT InfoT InfoT InfoT InfoT BT BT BT BT BT CE CE CE CE CE IT IT IT IT IT R R R R R CS CS CS CS CS CS BL BL BL BL BL Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization." Rotation converged in 8 iterations Reliability Assessment Reliability test is performed to ensure the scale s internal consistency. The aim is to assess whether the items in the questionnaire measure the same underlying construct (Pallant. 35

36 2007). The internal consistency is indicated by the Cronbach s alpha coefficient. According to DeVellies (2003), Cronbach s alpha coefficient that is above 0.7 indicates the reliability of the scales. Based on Table 7.32, Cronbach s alpha coefficient for all measured constructs are above 0.7, indicating that all the items are reliable in measuring the same underlying constructs. Corrected Item-Total Correlation values provide indication on how accurately a test measures what it is supposed to measure. Corrected Item-Total Correlation values that are below 0.3 signify that the item is measuring something completely different from the scale. It can be seen from the Table 7.31 that the Corrected Item-Total Correlation values for all items are above 0.3, confirming the validity of each item in the scale. INDEPENDENT VARIABLES MEDIATOR DEPENDENT VARIABLES Table 7.32: Reliability Test Results Constructs Item Corrected Item Total Correlation Consumer Expectations Cronbach s Alpha Coefficient CE CE2.720 CE3.728 CE4.754 CE5.712 Information trust InfoT InfoT2.647 InfoT3.799 InfoT4.635 InfoT5.636 Institutional Trust IT IT2.748 IT3.738 IT4.711 IT5.723 Brand Trust BT BT2.717 BT3.636 BT4.665 BT5.563 Religiosity R R2.686 R3.555 R4.630 R5.634 Consumer Satisfaction CS CS2.785 CS3.708 CS4.720 CS5.719 CS6.781 Brand Loyalty BL BL2.784 BL3.726 BL4.701 BL

37 Bivariate Analysis: (Pearson s Correlation) Bivariate analysis is performed to assess the correlation between two variables. For this study, Pearson s correlation test is utilized to examine the correlation and assessing the strength and the direction of the liner relationship between the two variables. Pearson s correlation value ranges from -1 to +1. Positive value indicates positive correlation between two variables, which means as one variable increases, the other variable increases. Negative value indicates negative relationship between the two variables where one variable increases, the other decreases. The stronger is the value to +1 or -1, the stronger is the correlation. Whilst a zero correlation value indicates there is no relationship between the variables at all. Evans (1996) suggested that the strength of the correlations can be interpreted as per below: Very weak Weak Moderate Strong Very strong InfoT 1 Table 7.33: Correlations between variables InfoT BT CE IT R CS BL BT.281 ** 1 CE.219 **.369 ** 1 IT.257 **.412 **.681 ** 1 R.299 **.296 **.227 **.316 ** 1 CS.247 **.413 **.735 **.748 **.343 ** 1 BL.352 **.424 **.604 **.617 **.502 **.774 ** 1 **. Correlation is significant at the 0.01 level (2-tailed). Consumer Expectation and Consumer Satisfaction Note: InfoT Information Trust; BT Brand Trust; CE Customer Experience; IT Institutional Trust; R Religiosity; CS Customer Satisfaction; BL Brand Loyalty The correlation analysis reveals that consumer expectations has a strong positive relationship (0.735) on consumer satisfaction. Consumers who are well-informed about the products and services through good marketing communications are more likely to reach the confirmation stage, which would lead to their satisfaction (Oliver, 1980). The more positive and realistic the consumer expectations towards the halal food products are, the higher is his or her satisfaction, if those expectations are met. Information Trust and Consumer Satisfaction The correlation analysis indicates that information credibility has a weak positive relationship (0.247) on consumer satisfaction. The weak correlation means that the information that is obtained by the consumer from his or her preferred sources regarding halal food products has very little positive influence towards the consumer s satisfaction on his or her halal food consumption. Institutional Trust and Consumer Satisfaction 37

38 The correlation analysis indicates that institutional trust has a strong positive relationship (0.748) on consumer satisfaction. The strong positive correlation indicates that the higher the consumers trust in the certification institution (JAKIM) is, the higher is the consumer satisfaction towards their halal food consumption. Brand Trust and Consumer Satisfaction The correlation analysis indicates that brand trust has a moderate positive relationship (0.413) on consumer satisfaction. The moderate correlation reveals that consumers trust in their preferred brand will positively influence their satisfaction towards the halal food product consumption in a moderate manner. Religiosity and Consumer Satisfaction The correlation analysis indicates that religiosity has a weak positive relationship (0.343) on consumer satisfaction, which means that the consumer s level of religiosity has little positive influence towards his or her satisfaction on the halal food consumption. Consumer Satisfaction and Brand Loyalty The correlation analysis indicates that consumer satisfaction has a very strong positive relationship (0.774) on brand loyalty. The strong positive relationship denotes that the higher the consumers satisfaction on the halal certified food product consumption is, the higher is their loyalty towards the brand. All the independent variables show positive relationships with the mediator, with institutional trust and consumer expectations showing substantially significant correlation value of and Whilst the mediator and dependent variable also revealed a strong positive relationship with the correlation value of Multivariate Analysis The multivariate analysis is conducted using standard multiple regression in order to examine the relationship between a number of independent variables and the dependent variable. In this research, standard multiple regressions are used to test on the five independent variables (consumer expectation, Information trust, institutional trust, brand trust and religiosity) in relation with consumer satisfaction towards food products with the Malaysian halal logo as shown in Figure 7.1. Consumer satisfaction, which is the mediator of the overall framework as shown in Figure 5.1, will be treated as a dependent variable in this analysis. The result from this analysis will provide information with regards to the framework and each variable which contributes to the model. Moreover, the findings from the analysis would be able to assist the researcher in determining how well a set of variables perform in predicting a particular outcome and which variables are the best predictors. 38

39 Figure 7.1 Conceptual Model for Antecedents of Consumer Satisfaction towards Halal Certified Food Products Assumption Tests Before the multiple regression test can be done, there a few assumptions tests that are necessary to be conducted, namely Multicollinearity, Normality, Outliers, Linearity, Homoscedasticity and Independence of Residuals (Tabachnick and Fidell, 2001). The multicollinearity can be checked by looking at correlations between variables the Table Multicollinearity appears when the independent variables are highly correlated to each other (r=0.9 and above). As seen in the Table 7.33, all the independent variables showed correlations with each other by having values above 0.3. However, none of the correlation values are above 0.9, indicates that there are no multicollinearity between the variables. Next, normality is checked by observing the histogram in Figure 7.2, which is seen to have symmetrical and bell-shaped curve which indicates the normality of the data distribution. Also, the points in the Normality Probability Plot in the Figure 7.3 lie in a straight sloping line from bottom left to top right, which indicates that there are no major abnormalities in the data. Outliers can also be detected based on the Scatterplot in Figure 7.4. As seen in the scatterplot, there are no outliers (cases that have a standardized residual of less than -3.3 and more than 3.3) being detected. In addition, Linearity, Homoscedasticity and Independence of Residuals are observed through the scatterplot of the standardized residuals in Figure 4.4. Based on the scatterplot, the residuals are distributed in a rectangular manner, with most of the scores concentrated in the center. The scatterplot is a good indication of a normal data distribution. Overall, there are no violations to the assumptions. 39

40 Figure 7.2: Histogram of the Dependent Variable: Consumer Satisfaction Figure 7.3: Normal Probability Plot of Regression Standardized Residual of The Dependent Variable: Consumer Satisfaction Figure 7.4: Scatterplot of the Dependent Variable: Consumer Satisfaction 40

41 Multiple Linear Regression The purpose of the multiple regression test is to generate results that could form an equation that best represents the relationship and predictive ability of the independent variables towards the dependent variable. Table 7.34 : Multiple Linear Regression - Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate a a. Predictors: (Constant), Religiosity, Consumer Expectation, Information Credibility, Brand Trust, Institutional Trust b. Dependent Variable: Consumer Satisfaction The model is first evaluated based on the Regression Model Summary in Table The variance in the dependent variable (consumer satisfaction) is indicated by the value of R Square. A total of five independent variables is explained by 66.9% variance (R square) of consumer satisfaction towards foods with the Malaysian halal logo. The independent variables are further evaluated based on Table 7.35 which shows the coefficients of the independent variables. The values in the Beta column under Standardised Coefficients indicate which variables contributed to the prediction of the dependent variable. The larger the absolute Beta value is, the stronger is the contribution of the independent variable in explaining the dependent variable, when the variance explained by all the other variables are being controlled. Model Table 7.35 : Coefficients of the Independent Variables Unstandardized Coefficients Standardized Coefficients B Std. Error Beta 1 (Constant) Information Trust Brand Trust (*) Consumer Expectation (**) Institutional Trust (**) Religiosity (**) a. Dependent Variable: Consumer Satisfaction ** Significant at 1% level * Significant at 10% level Table 7.35 shows consumer expectation, institutional trust and religiosity identified as statistically significant at sig. level below 1%. Whilst Brand Trust sig. value of is statistically significant at the significant level of 10%. In terms of Standardised Coefficients Beta, institutional trust has the largest value (0.411), followed by consumer expectation (0.409), religiosity (0.101) and brand trust (0.063). Hence, these four independent variables are considered as statistically significant to the equation. All four variables showed positive relationship towards consumer satisfaction. Information trust is not making significant contribution in predicting the dependent variable due to its sig. value of more than The Unstandardized Coefficients B value is used to form an equation for the model. t Sig. 41

42 From the results shown in Table 7.35, the regression equation is formed as per below: *Consumer satisfaction = (brand trust) (consumer expectation) (institutional trust) (religiosity) In terms of B value for the independent variables, institutional trust has the highest significant positive relationship with consumer satisfaction (B=0.450), followed by consumer expectation (B= 0.427), religiosity (B=0.118) and brand trust (B=0.072). From the equation, it can be concluded that 1 unit increase in brand trust will result in increase in consumer satisfaction when other variables are being controlled; 1 unit increase in consumer expectation will result in increase in consumer satisfaction when other variables are being controlled; 1 unit increase in institutional trust will result in increase in consumer satisfaction when other variables are being controlled; and 1 unit increase in religiosity will result in increase in consumer satisfaction when other variables are being controlled. The summary of the research model result is presented in Figure 4.5. Figure 7.5 Summary of Multivariate Research Model Result Mediating Test (Sobel Test) The Sobel test is designed to test whether a mediating variable significantly carries the influence of an independent variable in predicting a dependent variable (MacKinnon et al., 1995). These tests were conducted using a web-based online calculator using the input value of coefficient and standard error for the path of independent variable mediator and mediator dependent variable. These tests are aimed at testing the mediator (consumer satisfaction) significance in mediating each path of the relationships between each independent variable (consumer expectations, information trust, institutional trust, brand trust and religiosity) and the dependent variable (brand loyalty) as shown in Figure

43 Figure 7.6: Proposed Structural Model and Hypotheses Paths The tests results for each path of the relationships between each independent variable and the dependent variable (brand loyalty) through its mediator (consumer satisfaction) are shown from Table 7.36 to Table Table 7.36 Sobel Test: Information trust Consumer Satisfaction Brand Loyalty Coefficients Standard Error Independent Variables Mediator Information trust Consumer Satisfaction Mediator Brand Loyalty Test Statistics Sig. Sobel Test Aroian Test Goodman Test Sobel test statistic and its p- value are and p > Thus, the mediating variable is not significant for this path. Table 7.37 Sobel Test: Brand Trust Consumer Satisfaction Brand Loyalty Coefficients Standard Error Independent Variables Mediator Brand Trust Consumer Satisfaction Mediator (Consumer Satisfaction) Brand Loyalty

44 Test Statistics Sig. Sobel Test (*) Aroian Test Goodman Test *Significant at 0.05 level Sobel test statistic and its p- value are 2.55 and p < Thus, the mediating variable is significant for this path. Table 7.38 Sobel Test: Consumer Expectation Consumer Satisfaction Brand Loyalty Coefficients Standard Error Independent Variables Mediator Consumer Expectation Consumer Satisfaction Mediator (Consumer Satisfaction) Brand Loyalty Test Statistics Sig. Sobel Test (**) Aroian Test Goodman Test ** Significant at 0.01 level Sobel test statistic and its p- value are 9.40 and p < Therefore, the mediating variable is significant for this path. Table 7.39 Sobel Test: Institutional Trust Consumer Satisfaction Brand Loyalty Coefficients Standard Error Independent Variables Mediator Institutional Trust Consumer Satisfaction Mediator (Consumer Satisfaction) Brand Loyalty Test Statistics Sig. Sobel Test (**) Aroian Test Goodman Test ** Significant at 0.01 level Sobel test statistic and its p- value are 9.10 and p < Therefore, the mediating variable is significant for this path. Table 7.40 Sobel Test: Religiosity Consumer Satisfaction Brand Loyalty Coefficients Standard Error Independent Variables Mediator Religiosity Consumer Satisfaction Mediator (Consumer Satisfaction) Brand Loyalty Test Statistics Sig. Sobel Test (**) Aroian Test Goodman Test * Significant at 0.01 level Sobel test statistic and its p- value are 3.16 and p < Therefore, the mediating variable is significant for this path. Table 7.41: Mediating Test Summary 44

45 Independent Variables Mediator Dependent Variables (Relationship Paths) Information trust Consumer Satisfaction Brand Loyalty Brand Trust Consumer Satisfaction Brand Loyalty Consumer Expectation Consumer Satisfaction Brand Loyalty Institutional Trust Consumer Satisfaction Brand Loyalty Religiosity Consumer Satisfaction Brand Loyalty Mediator s Influence Not significant Significant Significant Significant Significant Hypothesis Results Consumer Expectation and Consumer Satisfaction H1: There is a significant relationship between Consumer Expectation and Consumer Satisfaction. The correlation analysis reveals that consumer expectation has a strong positive relationship on consumer satisfaction (Table 4.10). The relationship is further supported by the multiple regression coefficients of consumer satisfaction (Table 4.13) where the consumer expectation sig. value is statistically significant at Sig. value < The Sobel test result (Table 4.19) also reveals that there is a significant relationship between Consumer Expectation Consumer Satisfaction Brand Loyalty paths. Therefore, H1 is supported. Religiosity and Consumer Satisfaction H2: There is a significant relationship between Religiosity and Consumer Satisfaction. The correlation analysis indicates religiosity has a positive relationship on consumer satisfaction (Table 4.10). This is further supported by the multiple regression coefficients of consumer satisfaction (Table 4.13) where the religiosity sig. value is significant at Sig. value < The Sobel test result (Table 4.19) also reveals that there is significant relationship between Religiosity Consumer Satisfaction Brand Loyalty paths. Therefore, H2 is supported. Information trust and Consumer Satisfaction H3: There is a significant relationship between Information trust and Consumer Satisfaction. The correlation analysis reveals that information credibility has a weak positive relationship on consumer satisfaction (Table 4.10). This is further supported by the multiple regression coefficients of consumer satisfaction (Table 4.13) where the information credibility sig. value is statistically insignificant at Sig. value > 0.1. The Sobel test result (Table 4.19) also reveals that there is no significant relationship between Information trust Consumer Satisfaction Brand Loyalty paths. Therefore, H3 is not supported. Institutional Trust and Consumer Satisfaction H4: There is a significant relationship between Institutional Trust and Consumer Satisfaction. The correlation analysis indicates that institutional trust has a strong positive relationship on consumer satisfaction (Table 4.10). This is further supported by the multiple regression coefficients of consumer satisfaction (Table 4.13) where the institutional trust sig. value is statistically significant at Sig. value < The Sobel test result (Table 4.19) also reveals that there is significant relationship between Institutional Trust Consumer Satisfaction Brand Loyalty paths. Therefore, H4 is supported Brand Trust and Consumer Satisfaction H5: There is a significant relationship between Brand Trust and Consumer Satisfaction. 45

46 The correlation analysis indicates that brand trust has a moderate positive relationship on consumer satisfaction. (Table 4.10). This is further supported by the multiple regression coefficients of consumer satisfaction (Table 4.13) where the brand trust sig. value is close to significant level of Moreover, Sobel test result (Table 4.19) also reveals that there is significant relationship between Brand Trust Consumer Satisfaction Brand Loyalty paths. Therefore, H5 is supported. Consumer Satisfaction and Brand Loyalty H6: There is a significant relationship between Consumer Satisfaction and Brand Loyalty The correlation analysis indicates that consumer satisfaction has a very strong positive relationship on brand loyalty (Table 4.10). From Table 4.19, the result shows that consumer satisfaction towards food products with the Malaysian halal logo has significantly affected the relationship between the four independent variables (consumer expectation, institutional trust, religiosity, brand trust) and the dependent variable brand loyalty. Therefore, H6 is supported. Figure 7.7 Summary of Hypotheses Results 46

47 8 DISCUSSION AND CONCLUSION Bivariate Pearson s correlation test was conducted between each independent variable and the mediating variable (consumer satisfaction towards halal food products with the Malaysian halal logo), and the mediating variable with the dependent variable (brand loyalty). The bivariate analysis result shows that all five independent variables are positively correlated with consumer satisfaction, and that consumer satisfaction is also highly correlated to brand loyalty. The data analysis then continued with a multiple regression test, where four out of five independent variables, namely consumer expectation, institutional trust, religiosity and brand trust are found to have statistically significant influence on the mediator, which is consumer satisfaction towards food products that are certified with the Malaysian halal logo. The four independent variables are then used to form an equation for the consumer satisfaction model. The mediating role of consumer satisfaction in carrying out the influence of independent variables towards predicting the brand loyalty was further analysed using the Sobel test. The results reveal that consumer satisfaction carries a significant influence on four out of the five independent variables, namely consumer expectation, institutional trust, religiosity and brand trust in predicting brand loyalty. Both multiple regression and the Sobel test indicate that the information credibility factor is not a statistically significant contributor towards consumer satisfaction, nor that consumer satisfaction carry any influence of information credibility in predicting brand loyalty. Table 8.1 lists a summary of the hypothesis and its result. Table 8.1 Summary of Hypothesis and the Results Hypothesis Result H1 H2 H3 H4 H5 H6 There is a significant relationship between Consumer Expectations and Consumer Satisfaction. There is a significant relationship between Religiosity and Consumer Satisfaction. There is a significant relationship between Information Trust and Consumer Satisfaction. There is a significant relationship between Institutional Trust and Consumer Satisfaction. There is a significant relationship between Brand Trust and Consumer Satisfaction. There is a significant relationship between Consumer Satisfaction and Brand Loyalty Supported Supported Not Supported Supported Supported Supported In addressing the research questions outlined in Section 3, this section is devoted to the examination of each path in the hypothesis, which includes investigating the interrelationships among constructs, and examining several related constructs simultaneously. Subsequently, by responding to the research questions, it is able to explicitly highlight the contributions of this study. Research Question 1 What is the level of satisfaction towards Malaysian Halal logo among Muslim consumers? Based on the descriptive analysis in Section 7, 97.2% (388 respondents) of the total respondents are satisfied with halal certification, whilst only 2.8% (11 respondents) of the total respondents are not satisfied with halal certification. The result signifies high level of 47

48 satisfaction for halal certification among the total respondents. Overall, majority of the respondents are satisfied with Malaysian halal logo. Research Question 2 What are the factors affecting Muslim consumers satisfaction towards Malaysian Halal logo? The researcher had analyzed Pearson s correlation between each independent variable (consumer expectations, Information trust, institutional trust, brand trust, and religiosity) and consumers satisfaction towards food products with the Malaysian halal logo. Four out of the five hypotheses were accepted and one was rejected. A summary of the hypotheses results is shown in Table 8.1 and Figure 7.7. From the data analysis findings, four antecedents of the consumers satisfaction were identified, namely consumer expectations, institutional trust, brand trust and religiosity. A brief summary on the findings on each independent variable s relationship with consumers satisfaction is detailed as per below: Consumer Expectations Pearson s correlation shows a strong positive relationship between consumer expectation and consumer satisfaction. The relationship is further supported by multiple regression coefficients showing the significant role of consumer expectation in the consumer satisfaction model. The Sobel test also reveals that consumer satisfaction serves as a mediating role between consumer expectation and brand loyalty. Based on the results of the analysis, the hypothesis (H1) is supported. This result is further supported by findings from several researchers who have identified the positive relationship between consumer expectations and consumer satisfaction (Oliver, 1980; Churchill et al., 1982; Ernest et al., 1987; Anderson, 1994; Fornell, 1996). Information trust Pearson s correlation shows a weak correlation between Information trust and consumer satisfaction. Multiple regression analysis also reveal that Information trust does not play a significant role in the consumer satisfaction equation. Furthermore, the Sobel test indicates that consumer satisfaction does not serve as a mediating role between information credibility and brand loyalty. Even though Coveney (2007) and Edward Ku (2012) argued that information trust has a direct influence on the consumer s food intake and purchasing decision, however there is limited literature to support the influence of information credibility towards consumer satisfaction. Based on the results of the analysis and literature review, there is no sufficient evidence to support the relationship between information credibility and consumer s satisfaction. Thus, this hypothesis (H2) is not supported. Institutional Trust Person s correlation result indicates that institutional trust has a strong positive relationship on consumer satisfaction, supported by the multiple regression results which shows that institutional trust plays a significant role in the consumer satisfaction equation. Moreover, the Sobel test results reveal that consumer satisfaction plays a significant role in carrying the influence of institutional trust in predicting brand loyalty. Based on the statistical analysis, H3 is accepted. This result is further supported by findings of Ross (2005), which mentioned that institutional trust plays a significant role in determining consumer satisfaction. Brand Trust 48

49 Pearson s correlation analysis indicates that brand trust has a moderate positive relationship on consumer satisfaction. The positive relationship is further supported by the multiple regression analysis where brand trust is considered significant to the consumer satisfaction regression model. Moreover, the Sobel test results indicate that consumer satisfaction does play a significant role in mediating brand trust in influencing brand loyalty. The hypothesis (H4) is accepted. This research findings fill in the research gap in answering the relationship between consumer s pre-consumption confidence levels towards a brand, namely brand trust outcomes on their product consumption s satisfaction. Even though an overview of a prior research resulted in limited studies on the brand trust effects on consumers satisfaction, the statistical analysis results from this research confirms the positive relationship between the two variables. Furthermore, many of the previous researches have shown a positive relationship between brand trust and brand loyalty, the result from this study contributes in revealing consumer satisfaction as the mediator that carries the influence of brand trust towards predicting brand loyalty. Religiosity Pearson s correlation result indicates that religiosity has a positive relationship on consumer satisfaction. The finding is further supported by the multiple regression results that show religiosity as a significant factor in influencing consumer satisfaction. The Sobel test also reveals that consumer satisfaction plays a significant role as mediator in carrying the influence of religiosity towards predicting the brand loyalty. Based on the results from the analysis, the hypothesis (H5) is accepted. Although there are quite a number of studies conducted on analyzing the effect of religiosity on product acceptance (Rehman et al., 2010), consumer behavior and purchasing decision (Alam et al., 2011; Mokhlis, 2009), studies that explored the effect of religiosity on consumer s satisfaction are limited. Therefore this research findings fill in the research gap by confirming the relationship between religiosity and its effect on consumer satisfaction towards food products with the Malaysian halal logo. What are the most contributing antecedents of consumers satisfactions towards food products with the Malaysian halal logo? Multiple linear regressions were used to determine the dominant variables that influence consumers satisfaction towards food products with the Malaysian halal logo. It is found that institutional trust is the most dominant factor, followed by consumer expectation, religiosity and brand trust that contributed a significant positive influence on consumers satisfaction towards certified halal food products. Information trust on the other hand, did not contribute significantly to consumers satisfaction towards certified halal food products. In Section 4, a descriptive analysis on the respondents behavior on halal food information search revealed that 50.4% of the respondents have experienced checking the halal status of food products through the Malaysian Official Halal Portal, operated by JAKIM; and 55% of the total respondents prefer social media as their most referred-to source of information for halal products, thus indicating that consumers in Malaysia are likely to consider factual information disseminated by JAKIM through its halal portal, and other people s opinions and thoughts when buying halal food products. 49

50 The respondents tendency on information search for halal food products prior to purchasing the products could signify the importance of the information in managing their perceived risks towards food consumption (Frewer et al., 1996), consumption behaviour (Love et al., 2013) and purchasing decisions (Edward Ku, 2013). Notwithstanding the importance of information search regarding halal food products among the respondents, the statistical analysis from this study revealed that the Information trust factor is not significant enough to influence their satisfaction in halal food products certified in Malaysia. Research Question 3 How does consumers satisfaction towards food products with the Malaysian halal logo influence their brand loyalty? Pearson s correlation result indicates that consumer satisfaction has a very strong positive relationship with brand loyalty. Furthermore, the Sobel test result shows that consumer satisfaction towards food products with the Malaysian halal logo has significantly affected the relationship between the four independent variables (consumer expectation, institutional trust, religiosity, brand trust) and the dependent variable of brand loyalty. Based on the statistical analysis, the hypothesis (H6) is accepted. This finding is further supported with prior researches which suggested that consumer satisfaction is a significant indicator to brand loyalty (Heskett, 1994; Fornel, 1996; Pugg, 2002). This study has made a significant contribution to academicians, marketers, and manufacturers of halal food and beverage products and the industry as a whole. It has been found that consumer expectation, institutional trust, religiosity and brand trust to be dominant in influencing consumers brand loyalty towards halal food products certified by JAKIM through the mediation of consumer satisfaction. From the theoretical perspective, it is an extension of the knowledge of consumers concerning the determinants of satisfaction towards halal certified food products and the influence level of the satisfaction towards brand loyalty. However, for the marketers and brand owners of halal food products, the findings can serve as a reference in developing better marketing strategies in order to improve consumer s satisfaction towards food products that are halal and certified by JAKIM, which in turn could help in enhancing consumer s loyalty for the halal certified brand. On the other hand, these findings also facilitate the authority in understanding the consumers perceptions towards its certification standards, and providing insights on how to overcome the misconceptions of the public towards the authority. Knowing that consumer satisfaction plays a role in determining brand loyalty for halal certified food products, brand owners, marketers and the certification authority can work collaboratively in finding ways to improve consumer satisfaction towards food products with the Malaysian halal logo. 50

51 9 CONTRIBUTIONS OF THE STUDY The research contributions are divided into two subsections, addressing contributions to theory and practice. Theoritical Contributions Contributions towards the Consumer Satisfaction Model in the context of Halal Food Industry The comprehensive model developed in the present study makes an important contribution to the emerging literature on consumer satisfaction. This study adapted the well-accepted general model of the American Consumer Satisfaction Index (ACSI) as the basic framework in guiding the research process. The three variables of the ACSI were retained for this study: consumer expectation as an independent variable, consumer satisfaction as mediator, and consumer loyalty as a dependent variable. New variables are then added into the ACSI model, and then applying them to a new context of the halal food industry. Based on the ACSI model, this study integrates a few other independent variables that have been drawn from previous literature pertinent to consumer behavior in the context of the halal food industry. As a result, the proposed model of consumer satisfaction towards food products with the Malaysian halal logo highlights the influence of consumer expectations, institutional trust, brand trust, and religiosity on consumers satisfaction. In this context, the dependent variable is brand loyalty instead of consumer loyalty as in the ACSI model. The consumers satisfaction is then proven to have a significant influence on brand loyalty. This study is conducted based on the previous research of Muhamad and Mizerski (2016), Machali et al. (2014), Ahmad et al. (2015), Kordnaiej et al. (2013), Mohamed and Shamsuddin (2012), Othman and Hashim (2010), and Mohamed et al. (2008). The above mentioned research have been conducted to study the determinants of purchase intention and purchase decision towards halal food; factors affecting consumer s confidence, perception and behaviour towards halal products, by sampling the population in Malaysia, Indonesia and Brunei. Whilst previous studies have been focusing on consumer s perception, behaviour and purchase intention towards halal products, there are limited research on determinants affecting consumer s satisfaction towards halal certified products, which could lead to brand loyalty. This study enables others to understand the significant factors that contribute to consumer satisfaction towards food products with the Malaysian halal logo (certified by JAKIM), which in turn could influence the consumers loyalty towards the brand they consume. The study has verified that consumer s brand loyalty for halal certified products by JAKIM is very much reliant on their positive consumption experience with the food products. This consumption experience is referred to as consumer satisfaction, which is strongly influenced by consumer expectations, consumers trust towards the certification authority (JAKIM), consumers religious beliefs, and consumers trust towards the brand. Despite researchers suggesting that consumer s satisfaction is the determinant factor in influencing brand trust (Song, Hur and Kim, 2012), this study however suggested an inverse relationship. The analysis shows that consumer s confidence and trust towards a brand plays a significant role in influencing their satisfaction towards their consumption of the food products labelled with the Malaysian halal logo. Thus, the result is acceptable due to the nature of the study with its own set of setting. 51

52 Practical Contributions This study contributes to a greater understanding of the emerging halal food industry which includes the industry s revolution, challenges faced by the industry, the regulatory framework and the significance of the halal certification. In addition to emphasizing the role of halal certification bodies, this research provides an in-depth understanding of the consumers awareness and behavioral patterns relating to halal food in the current era of dynamic food supply chains. An understanding of the important elements that supports the industry is particularly relevant in the context of predictions made regarding consumer satisfaction of a halal certified food product. By understanding the antecedents of consumer satisfaction toward halal certified food products that would lead to brand loyalty, marketers and the certification authority would be able to get a comprehensive insight into the value that Muslim consumers assign to food products with the Malaysian halal logo and halal certification. From a managerial viewpoint, the findings provide support for investment decisions, and for decisions relating to the development of marketing strategies for a better consumer experiences to gain a competitive edge over their counterparts in this highly competitive halal food industry. In addition, the findings would be beneficial for brand managers to craft strategies that involves planning and functioning consumer loyalty solutions that builds brand loyalty. In addition, the findings from this study can assist the certification authority (JAKIM) to have a better understanding regarding the factors that influence consumer s satisfaction in consuming food products that are halal and certified by the authority and their perception towards the halal certification for food products, which in turn will enable the authority to have a fuller comprehension of the Muslim s food consumption needs. 10 SUGGESTIONS AND RECOMMENDATIONS From the overall findings found that consumer satisfaction in halal certified food products is a significant factor in influencing the consumer s loyalty towards the brand; and that consumer satisfaction is influenced by these four determinants, namely consumer expectation, institutional trust, religiosity, and brand trust. Food companies that intend to compete in the Malaysian halal food industry must keep in mind these factors and use it to their advantage. This research survey has collected a total of 171 responses from the sample respondents (see Appendix C) when being asked about their opinion towards the halal certification for food and beverage products in Malaysia. These respondents sentiments from the openended questions were recorded and would guide the discussions in this section. Consumer Expectation and Institutional Trust It is important to note that halal food consumers do not only form their expectation through their previous experience with the product consumption but also through non-experiential information received about the products through word-of-mouth, editorial content, traditional and online advertising. Thus, food companies and the certification institution have a role to play in understanding these expectations by managing consumers expectations and their performance in meeting those expectations. Hence, it is important for both the certification authority and food producers to understand Muslim consumers motivation for choosing halal certified food products in order to meet their expectations, and by being able to meet their expectations then only will these consumers be satisfied. 52

53 Out of the 171 total responses received from the open-ended questions (see Appendix C), 89 responses show highly positive comments towards the certification institution and the standards of halal food and beverage in Malaysia. The responses includes consumers high confidence, trust and reliance towards the halal certification and the sense of security that the halal logo creates in terms of food consumption in accordance with Syariah rules. Moreover, the respondents believe that the stringent assessment process that food manufacturers have to go through in order to get the products certified halal reflects the high quality of food products with the JAKIM halal label, and that the halal standards enforced by the authority are at par with international standards. In addition, the fact that Malaysia s halal standard for food and beverage, MS1500: 2004, developed by JAKIM has received worldwide recognition and regarded as a global benchmark for other countries, has helped to contribute positively in forming Muslim consumers pre-consumption expectation in forecasting the food producers ability in delivering the halal food quality as expected. Thus, it is highly important for the authority to ensure that the food products bearing the Malaysian halal logo have met their strict regulations and portray a high standard of food quality in terms of halal and the wholesomeness aspects of the food as per Muslim consumers expectations. Issues Concerning the Malaysian Halal Logo on Food and Beverage Products Whilst the halal logo is supposed to guarantee the hygiene, halalness and wholesomeness of the food products, many respondents expressed their concerns about the legitimacy of the halal logo labelled on many of the food and beverage products in the retail store. The validity of halal logo label for many food products in Malaysia still remains an issue to be addressed by the certification authority. Among the issues highlighted by the respondents are the falsification of halal logo by certain food manufacturers and the misuse of the halal logo despite the expiration of its accreditation. Thus, it is important for the authority to constantly monitor the halal certificate issued to prevent irregularities thereafter. Moreover, in order to strengthen the monitoring and enforcement operations on halal certificate holders who abuse the halal logo, the halal certification authority complaints and enquiries hotline should be advertised next to the halal logo label on the food products. With the authority hotline stated on the halal certified products, it would be convenient for consumers to channel their enquiries and complaints regarding halal issues they have encountered and having doubts with the products. By making the procedures compulsory, cases involving falsification and the misuse of the halal logo can be drastically reduced. Additionally, many respondents expressed their concerns on the identification of the halal logo authorised by the Malaysian authority. The official halal logo issued by JAKIM as shown below can only be issued to the food producers in Malaysia once the certification process has been successfully completed. In addition, the authority also recognises halal logos or certifications issued by 60 foreign halal certification bodies and authorities (Halal Hub Division JAKIM, updated August 2016). 53

54 Figure 10.1: Mobile Application to Check for Foreign Halal Logo Authorised by JAKIM Figure 10.1 shows the mobile application developed by JAKIM enables Muslim consumers to check for authorised foreign halal logo recognised by the authority, with the purpose of helping consumers in their purchasing decision when shopping for foreign food products in Malaysia or overseas. In other words, apart from the Malaysian halal logo, there are another 60 types of foreign halal logos recognised by the authority. Nowadays, with the globalisation of the halal food industry, imported food products are often spotted on modern retail shelves. The variety of halal logos recognised by the authority can be confusing to the Muslim consumers when purchasing for imported food products. Moreover, not everyone is technology savvy and proficient to check for halal food status via JAKIM mobile application, Malaysian Official Halal Portal or short message services (sms). Thus, it would be convenient for the consumers if all imported halal products are required to have a standardised halal logo issued by the authority so that the halal logo would easily be recognisable. Even though the locally produced food products and imported food products are labelled with a halal logo, it does not give the consumers assurance in confirming the validity of the halal logo. It is recommended for the authority to include more sophisticated security features to the halal logo such as a barcode, with a mobile application platform for consumers to scan the barcode to verify the authenticity and validity of the halal certification for specific food products. This would be very convenient for consumers in facilitating their purchase decision making, and for the authority to facilitate their inspection on the authenticity and validity of the halal logo. Furthermore, this security feature prevents the logo from being plagiarized. In a nutshell, it is obvious that the concerns raised by the consumers regarding the halal logo signifies the need for the authority to take action and pay attention in order to improve and streamline the halal certification system. 54

55 Lack of knowledge, awareness, and understanding of the halal concept and the role of the halal certification authority among Malaysian Muslim consumers The lack of knowledge and awareness among the Muslims regarding the requirement for halal certification issuance to food producers is the main reason for the misconceptions of halal certification standards among the Muslim consumers. Some of the respondents stated that they believed the authority is somehow biased in the process of the certification issuance to certain food producers; other respondents claimed that they are unsure of the validity of halal certifications in the market, due to their unfamiliarity of the requirement for the halal certification. It is important for the authority to educate the consumers on what the certification means to the consumers and the process involved in the certification issuance. Consumers need to be educated that the food manufacturer will have to undergo strict procedures which involves all aspects of the food preparation such as the source of raw materials, preparation, storage, preparation area, cleanliness and the logistics of moving the foodstuffs; and that these areas are being regulated strictly each time the application is submitted to the authority. If there are non-compliance before and during the procedure, the application will be rejected and the license will not be renewed. Consumers who understand the process and the role of the authority are less likely to immediately jump the gun following the dissemination of controversial halal issues. In order to address the raising concerns of the consumers towards the validity of halal certifications, the authority should emphasize on creating awareness among consumers regarding their role on the ongoing monitoring of halal certifications on food products after the certifications have been issued. Audits conducted on an ad-hoc basis are necessary as part of the comprehensive ongoing monitoring process in ensuring that food producers follow the standards required of them in preparing halal and toyyiban foods. The supervision on the use of halal certifications should be enhanced so that the certifications are not misused by irresponsible parties. More importantly, the authority should educate and create more awareness among the public regarding the importance of halal certifications and the platforms made available for them to make enquiries, and to validate the halal status of food products. Thus, these recommendations would likely help them to make wiser decisions in their choice of food preference. The Element of Religiosity This study concludes that religiosity is significantly influential towards consumer satisfaction for halal certified food products. Thus, it is important for the marketers to improvise their marketing strategies by adopting the element of religiosity to influence halal conscious consumers in order to be competitive in the Malaysian food industry. Hence, it is very important for food producers to apply for halal certification for their food products since halal certifications are seen as one of the main branding strategies that is necessary for food companies in order to be competitive in this country. Building Brand Trust It would be beneficial for brand managers to gain consumer s trust by emphasizing their beliefs and respect for the Muslim community s consumption needs for halal and toyyiban foods. In order to gain consumer s trust, it is very important for the brand to respond to consumers identity needs in a given context. It is the brand s responsibility to ensure that the personal needs of the community they serve are being met. In the context of this study, 55

56 it would be highly beneficial for the marketers to ensure that their food products are all halal certified in order to protect the interest of their Muslim consumers. Nevertheless, consumers who have good feelings, sensations, or memories about a brand would still consume a product without halal certification if they believe that there are no doubtful ingredients in the food, as long as nothing goes wrong with the food consumption. Marketers who are able to genuinely connect with their consumers and their community of supporters will have a strategic advantage over those who don't. For instance, there are certain consumers who are convinced that some premises are serving halal food and would still be patronising these premises even though the premises only claimed that they do not serve pork and do not display any halal certification the on premise. It is with great hope that the suggestions mentioned above would be a useful tool for scholars, the certification authority and the marketers in understanding the determinants influencing Muslim consumers satisfaction towards halal certified products. These recommendations also serve as a guide for marketers in formulating effective marketing strategies, either local or international to compete in the halal food industry. The theoretical importance of this study lies in the insight it provides into how consumers are becoming more conscious about the halal brand. Finally, it is recommended that stakeholders deploy this proposed model empirically. 11 LIMITATION & FUTURE RESEARCH A few limitations have been identified throughout this research. Due to resources constraint, the number of respondents from each state is not proportionate to the actual percentage of Muslim consumers in Malaysia. In order to achieve a better overall objective and reduce the sampling bias, future research should be conducted throughout all states in Malaysia based on the percentage of Muslim population provided by the Department of Statistic Malaysia so that the data is more representative of Malaysian population. Secondly, limited constructs are being considered in this study. This study only measured seven variables, and may have omitted other significant factors such as consumer s knowledge regarding halal concepts, perceived quality, perceived value, consumer complaints, and price. As such, these factors influence on consumers satisfaction towards halal certified food products are unknown. These factors could be included in future studies for enhancing a wider coverage of study on consumer s satisfaction and brand loyalty in the context of the halal food industry. Thirdly, this research is focused specifically on the halal food and beverage industry in Malaysia. In order to fully understand the overall halal industry, future research could include the studies of other aspect of halal products and services namely Islamic tourism, halal cosmetics and personal care, Islamic finance and halal pharmaceutical. Fourthly, the research design of the present study was cross-sectional, whereby all the constructs incorporated in the hypothesised model were assessed at a single point of time. Thus, this research is lack of time element and no definite conclusions can be drawn regarding the causality of relationships amongst constructs (De Wulf, 1999). Hence, future research via longitudinal research design for continuous measurement of the constructs would provide more significant contributions to the study. Finally, there is always the issue of generalisability in consumer behaviour studies, and the present study is no exception. As this study was conducted on Malaysia Muslim consumers, 56

57 whose consumption behavioral patterns might be influenced by the multicultural lifestyle, the generalisability of the findings to other countries may be limited. If the study had been conducted in Muslim majority countries such as in the Gulf Cooperation Council (GCC) countries, or Muslim minority countries such as in the United Kingdom, the United States, France, Australia or New Zealand, the pattern of findings and related constructs may have been entirely different. This calls for research to address the issue by an examination of the deeper cross-cultural generalisability issues. 11 BUDGET UTILIZATION Total amount of fund allocated for this study is RM20,000 for a period of one year commencing June As of February 2017, approximately RM12,000 have been spent for the following purposes: Activities Expenses (RM) 1. Research Assisstant RM1,500/month x 6 month x 1.1 = RM9, Fieldwork (transportation, RM2,100 stationery) Total RM12,000 The balance of the fund will be utilized for the following activities: Future Activities Expected Expenses RM) 1. Editing and proofreading of manuscipts RM1, Workshop for manuscript writing RM3, Seminar and Conference Presentation RM4,000 Total RM8, WORK SCHEDULE AND GANTT CHART As of February 2017, the writing up of the report has been finalized for consideration of final submission. The schedule of works that have been undertaken and will be perform in the near future are outlined as follows: Activities Jun-Jul 2016 Aug-Sep 2016 Oct-Nov 2016 Dec-Jan 2017 Feb-Mar 2017 Apr-May 2017 Literature review of consumer satisfaction Fieldwork and data collection Data analysis Write-up manuscript Final report submission, conference presentation 57

58 13 REFERENCES Ahmad A.N., Rahman A. A. & Rahman S. A. (2015). Assessing Knowledge and Religiosity on Consumer Behaviour towards Halal Food and Cosmetic Products. International Journal of Social Science and Humanity, Vol. 5, No. 1, January Baser, Cintamur and Arslan (2015). Examining the Effect of Brand Experience on Consumer Satisfaction, Brand Trust and Brand Loyalty. BBC World News (2014), Cadbury Chocolate pork free, says Malaysian Islamic body, 2 June, available at: (accessed 13 January 2017). Cadbury (2014d), Our chocolates are halal, Cadbury Malaysia Press statement, 3 June, available at: (accessed 13 January 2017). Calleros O.L., Rivera H., Serrato H., Gomez M. E., Ramirez M. (2015). Methodology for Setting a Mexican User Satisfaction Index for Social Programs. International Journal of Social Quality 5(1), Summer 2015: Chan C., Pereira S., Kam B.H., Coulthard D., Button P. (2012). Consumer Trust of Food Product Information and its Sources. GS1Australia: RMIT University Publishers. Channel News Asia (2014c), Malaysian NGOs lodge police report in pig DNA controversy, 5 June, available at: (accessed 13 January, 2017). Churchill, Gilbert A, Jr; Surprenant, Carol (1982). An Investigation into the Determinants of Consumer Satisfaction. Journal of Marketing Research (pre-1986); Nov 1982; 19; ProQuest Central pg Darwis, M.F. (2014), Malay NGO to sue Cadbury for RM100 million over pig DNA found in chocolates, The Malaysian Insider, 26 May, available at: (accessed 13 January, 2017). D, Kanyakumari (2016), Jamil Khir: Jakim to meet Auntie Anne's reps over halal issue, The Star Online, 20 October, available at: (accessed 13 January 2017). Delgado-Ballester E. (2003). Development and Validation of a Brand Trust Scale. International Journal of Market Research, Vol. 45 (1). Edward C.S. Ku. (2012). Beyond Price: How Does Trust Encourage Online Group's Buying Intention? Internet Research, Vol. 22 Iss 5 pp Frewer L. J., Howard J. C., Hedderley D. and Shepherd R. (1996). What Determines Trust in Information about Food-Related Risks? Underlying Psychological Construct. Risk Analysis, Vol. 16, No. 4. Fornell, C., Johnson, M. D., Anderson, E. W., Cha, J., & Everitt Bryant, B. (1996). The American Consumer Satisfaction Index: Nature, Purpose, and Findings. Journal of Marketing, 60(4), Gustaffsson, A., Johnson, M. J., & Roos, I. (2006). The Effects of Consumer Satisfaction, Relationship Commitment Dimensions, and Triggers on Consumer Retention. Journal of Marketing, 69(4), Halal Malaysia Official Portal (2016). Halal History. Available at: <URL: [Accessed: 29 th October 2016] Halal Industry Development Cooperation (2016). Malaysia as a Global Halal Hub. Available at: <URL: [Accessed: 29 th October 2016] Hersbt K.C., Finkel E.J., Allan D. & Fitzsimons G.M. (2011). On the Dangers of Pulling a Fast One: Advertisement Disclaimer Speed, Brand Trust, and Purchase Intention. Journal of Consumer Research, Vol. 38. HKDTC Research (2014). Halal in Malaysia: Beyond Food and Drink Sector. Available at: <URL: [Accessed: 29 th October 2016] International Trade Center (2015). From Niche to Mainstream: Halal Goes Global. Trade Impact for Good. Geneva ITC Conference, Jalil, Melati A. (2016), Auntie Anne s confirms pretzel dog now pretzel sausage to satisfy halal cert, Malaymail Online, 28 November, available at: (accessed 13 January 2017). 58

59 Kamal, S.M. (2014), Muslim groups declare jihad on Cadbury: claim wider agenda to weaken faith, MalayMail, 27 May, available at: muslim-groupsdeclare-jihad-on-cadbury-claims-wider-agenda-to-weaken-faith (accessed13 January 2017). Kamarulzaman Y., Veeck A., Mumuni A. G., Luqmani M., Quraeshi Z.A. (2016). Religion, Markets, and Digital Media: Seeking Halal Food in the U.S. Journal of Macromarketing, Vol. 36 (4) Sage Publications. Kok Blok (2014), The Malaysian Pork Choc Controversy, weblog post, 27 May, available at: (accessed 14 January 2017). Kordnaeij A., Askaripoor H., Bakhshizadeh A. (2013). Studying Afffecting Factors on Consumers Attitude toward Products with Halal Brand (Case Study: Kuala Lumpur, Malaysia). International Research Journal of Applied and Basic Sciences. Vol, 4 (10): Science Explorer Publications. Kotler, P., & Keller, K. L. (2009). Marketing Management. Upper Saddle River, N.J: Pearson Prentice Hall. KPMG (2015), How to Woo the Millenials, Tapping Into the Buying Power of the Selfie Generations, KPMG Online, 15 June, available at: (accessed 1 February 2017). Kristensen K., Martensen A. & Granholdt L. (1999). Measuring the Impact of Buying Behaviour on Consumer Satisfaction. Total Quality Management, Vol. 10, Nos 4&5. Kumar, K. (2016), JAKIM Denies dog term cost pretzel chain halal cert, blames media for furore, Malaymail Online, 20 Oct 2016, available at: (accessed 13 January 2017). Lien C.H., Wen M. J., Huang L. C., and Wu K. L. (2015). Online Hotel Booking: The Effects of Brand Image, Price, Trust and Value Purchase Intentions, Asia Pacific Management Review 20 (2015) pp Lin C.P., Tsai Y.H., Chiu C.K. (2009). Modeling Consumer Loyalty from an Integrative Perspective of Self-Determination Theory and Expectation-Confirmation Theory. J Bus Psychol (2009) 24: Springer Publications. Machali M. M., Abdullah R. and Razak L.A. (2013). The Effect of Halal Food Awarenesson on Purchase Decision with Religiosity as Moderating Variable: A Study at Higher Education Institutions in Brunei Darusalam. ResearchGate Publications. MalayMail (2014), Health Ministry to work closely with JAKIM after Cadbury Saga, 3 June, available at: (accessed 13 January 2017). Marketing Charts (2016), So How Many Millennials Are There in the US, Anyway? (Updated), 3 May, available at: (accessed 1 February 2017). Mironova A. A. (2015). Trust, Social Capital and Subjective Individual Well-Being. Sociological Research, vol. 54, no. 2, 2015, pp Taylor & Francis Group, LCC. Moriuchi E., Takahashi I. (2016). Satisfaction Trust and Loyalty of Repeat Online Consumer within the Japanese Online Supermarket Trade. Australasian Marketing Journal 24 (2016) Muhamad N. & Mizerski D., (2010). The Constructs Mediating Religions' Influence on Buyers and Consumers. Journal of Islamic Marketing, Vol. 1 Iss 2 pp Mukhtar A. & Butt M. M. (2012). Intention to Choose Halal Products: The Role of Religiosity. Journal of Islamic Marketing, Vol. 3 Iss 2 pp Naidu, S. (2014), Malaysia s pig DNA controversy spreads beyond Cadbury, Channel News Asia, 29 May, available at: html (accessed 13 January 2017). Nguyen T.T.M., Takahashi Y. & Nham P. T. (2014). Determinants of Online Consumer Satisfaction in an Emerging Market. A Mediator Role of Trust. International Journal of Contemporary Management, 13(1), Pew Research Center (2011). The Future of the Global Muslim Population. Pew Forum Publications. Rodrigues I. C. S., Menegazzo W. F., Chaves E.P.S (2014). Brand Loyalty Influence Factors: Positioning and Brand Identity Comparison. Asian Journal of Business and Management Sciences. ISSN: Vol. 3 No. 07[58-70]. 59

60 Ross V. (2005). The Determinants of Trust and Satisfaction with Drinking Water Quality. ARCWIS Occasional Paper. Rosetta (2015). How to Make the Move from Loyal Consumers to Engaged Consumers. Available at: <URL: [Assessed: 1 st November 2016]. Safran, R.Z.R. (2014), Cadbury confident chocolates halal, Cadbury corporate statement, Malaymail, 30 May, available at: (accessed 13 January 2017). Siniah, M. (2011), Starbucks counter non-halal claim, Advertising Marketing Malaysia, 8 August, available at: (accessed 13 January 2017). Song, Hur and Kim (2012). Brand Trust and Effect in the Luxury Brand Consumer Relatiosnhip, Social Behaviour and Personality, Vol. 40 No. 2, pp Tan, E. (2014), Jihad declared against Cadbury. What should the brand do?, PR Week (Asia), 29 May, available at: (accessed 13 January 2017). The Environics Communications Can Trust Index (2016). Trust in Information Sources. Available at: <URL: [Assessed: 17 th September 2016]. The Pickering Post (2016). The Origins of Halal Certification Schemes. Available at: <URL: [Accessed: 29 th October 2016] Tony Jaques, (2015)," Cadbury and pig DNA: when issue management intersects with religion ", Corporate Communications: An International Journal, Vol. 20 Iss 4 pp Ward PR, Miller E, Pearce AR, Meyer SB (2016) Predictors and Extent of Institutional Trust in Government, Banks, the Media and Religious Organisations: Evidence from Cross-Sectional Surveys in Six Asia-Pacific Countries. Worthington, E. L., Jr., Wade, N. G., Hight, T. L., Ripley, J. S., McCullough, M. E., Berry, J. W., Schmitt, M. M., Berry, J. T., Bursley, K. H., & Conner, L. (2012). The Religious Commitment Inventory-10 (RCI-10). Measurement Instrument Database for the Social Science. World Halal Conference (2015). Status of the Halal Industry. Driving Transformation, Powering Growth, MIHAS Ministry of International Trade and Industry Malaysia. Zakarian Z., Salim M.R., Ahmad Z., Ahmad F.H.M, Kamaludin M.A. (2015). Trust as a Mediator in Determining Consumers Purchase Intention of Halal Frozen Food. International Academic Research Journal of Social Science 1(2) 2015 Page Zuraini, A.R. (2014), Whatsapp, social media to blame for Cadbury Uproar, Says JAKIM, Malaymail Online, 20 June, available at: (accessed 13 January 2017). 60

61 APPENDIX A: Web-based Survey 61

62 62

63 63

64 64

65 65

66 66

67 67

68 68

69 69

70 70

71 71

72 72

73 APPENDIX B: Histograms for all variables 73

74 74

75 75