FACTORS INFLUENCING HALAL PRODUCTS PURCHASE INTENTION AND ACTUAL PURCHASE IN INDONESIA

• Main Author: Emira, Nabila
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72431
• Institution: Institut Teknologi Bandung

The awareness and demands for Halal increase overtime as the Muslim population grows rapidly. This phenomenon does not only happen in Islamic based country but also in several countries with small Muslim population. As the world’s most populous Muslim country, Indonesia has a bigger role and responsibility to protect its citizen’s right in obtaining Halal products. While the consumers’ need of halal product extended to non-food sector, the needs of halal product certification are also increasing from the non-food industry side. Owing to the diversity of consumers and industries needs in halal certified product related, this research necessarily conducted to investigate factors behind Indonesian Muslim’s intention in purchasing halal products, which also affected the actual purchase. Theory of Planned Behavior (TPB) that originally proposed by Ajzen (1985) is used in this study as the guidance to develop research model and questionnaire. The questionnaires are distributed to Muslim in Indonesia. Using data from 832 people, this study applies structural equation modeling (SEM) techniques with confirmatory factor analysis (CFA) for testing the hypothesis and estimating the relationship among variable. The result shows that attitude does not have a significant relationship with purchase intention. This is contrary to TPB theory and previous studies that took place in Malaysia. On the other hand, subjective norms and perceive behavioral control have a significant relationship with purchase intention, while the purchase intention has a significant relationship with the actual purchase. This study will give some recommendation that might be useful for industries for creating expectation regarding halal products purchasing and improving consumer’s sense of ability to buy Halal products.