THE ROLE OF HALAL PERCEPTIONS, CONSUMERS’ PRODUCT KNOWLEDGE AND RELIGIOSITY OF YOUNG-ADULT MUSLIMS ON PURCHASE DECISION IN HALAL COSMETICS

• Main Author: Ghifara Syaada, Alsyahira
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/67784
• Institution: Institut Teknologi Bandung

Muslim is currently the fastest growing population in the world. The rapid development of Muslim population is certainly very influential to the industry and economy. With this number, it certainly will make the Halal economy and Halal industry one of the significant contributors to the state revenue. This also applies to the Halal cosmetic industry in Indonesia. The trend of Halal cosmetics in Indonesia is currently victorious among existing industries. With the high number of Muslim consumers in Indonesia in the Halal Cosmetics Industry, this causes a variety of all generation of Muslim consumers in Indonesia, especially young adult generation. It found that the young adult generation is known for their strong purchasing ability. As consumers who have powerful purchasing power, usually, there are several points of consideration that become their main perception in most products and services in the marketplace before they buy the products. It stated that consumers' product knowledge, religiosity and Halal perceptions eventually influence consumer purchase decisions and behaviors as examined in previous studies However, it found that less than half of shoppers pay attention to the Halal character of the cosmetic products they buy. Furthermore, despite the importance and the promising market of the Halal cosmetics industry, there are only a limited number of studies on Halal cosmetics. This paper analyzed the hypotheses of the specific factors that influence their purchase decision towards Halal cosmetics products. The research is validated and analyzed using PLS-SEM to determine the association between variables. The findings of the analysis show that consumers’ product knowledge, religiosity and Halal perception positively influenced purchase decision of young adult Muslim towards Halal cosmetics product.