FACTORS INFLUENCING FOREIGN CONSUMERS PURCHASING

INTENTION TOWARDS HALAL PRODUCTS IN MALAYSIA

MISLIYANA MISNAN

A thesis submitted in the fulfilment of the

Requirements for the award of the degree of
Doctor of Philosophy (Management)

Faculty of Azman Hashim International Business School

Universiti Teknologi Malaysia

JANUARY 2018
 TABLE OF CONTENTS

CHAPTER TITLE PAGE

DECLARATION ii
DEDICATION iii
ACKNOWLEDGEMENTS iv
ABSTRACT vi
ABSTRAK vii
TABLE OF CONTENTS viii
LIST OF TABLES xvi
LIST OF FIGURES xx
LIST OF ABBREVIATIONS xxii
LIST OF APPENDICES xxiii

1 INTRODUCTION 1
1.1 Halal Food Product Overview
1.2 Background of the study
1.2.1 Halal Principle in Islam
1.2.2 History of halal and the Globalisation of Halal
products and services companies in Malaysia
1.2.3 Significance of Halal products towards
globalisation
1.3 Problem Statement
1.4 Research Questions
1.5 Research Objectives
1.6 Significance of the Study
1.6.1 Theoretical Contribution
1.6.2 Practical Contribution
1.7 Scope and limitation
1.8 Definition of Key Terms
1.8.1 Halal Integrity
1.8.2 Halal Awareness
 1.8.3 Halal Certificate
1.8.4 Halal Marketing
1.8.5 Halal Knowledge
1.8.6 Acculturation
1.8.7 Foreign Consumer Purchasing Intentions
1.9 Organization of the thesis
1.10 Chapter Summary
2 LITERITURE REVIEW
2.1 Introduction
2.2 Underpinning Theory
2.3 Consumer Purchasing Intention
2.3.1 Overview of Consumer Purchasing Intention
2.3.2 Definition Consumer Purchasing Intention
2.3.3 Factors affecting Halal Consumer Purchasing
Intention
2.3.3.1 Attitude
2.3.3.2 Subjective Norm
2.3.4 Underlying Theories of Consumer Purchasing
Intention
2.3.4.1 Theory of Planned Behaviour
2.3.4.2 Theory of Reasoned Action
2.4 Halal Integrity
2.4.1 Overview of Halal Integrity
2.4.2 Definition Halal Integrity
2.4.3 Scandal in Halal Integrity
2.4.4 Role of Governments Towards Halal Integrity
2.4.5 Impact Halal Integrity to Food Industry
2.5 Halal Awareness
2.5.1 Overview of halal awareness
2.5.2 Definition of halal awareness
2.5.3 Effectiveness of halal awareness toward halal
product in Malaysia
2.5.3.1 Growing demand for Halal food products
 in Malaysia
2.6 Halal Certification
2.6.1 Overview of Halal Certification
2.6.2 Definition of Halal Certification
2.6.3Importance of Halal Certification
2.6.4 Challenges in Halal Certification
2.6.5 Opportunities in Halal Certification
2.7 Halal Marketing
2.7.1 Overview of Global Halal Marketing
2.7.2 Definition of Halal Marketing
2.7.3 Challenges of Halal Marketing
2.8 Halal Knowledge
2.8.1 Overview of halal knowledge
2.8.2 Definition of halal knowledge
2.8.3 Knowledge of halal food in supply chain element
2.8.3.1 Halal Animal Feed
2.8.3.2 Halal Slaughtering
2.8.3.3 Halal Handling and Storage
2.8.3.4 Halal Packaging
2.8.3.5 Halal Logistics
2.8.3.6 Halal Retail
2.9 Acculturation
2.10 Hypothesis Development
2.10.1 Relationship between Halal Integrity and
Consumers Purchasing Behaviour
2.10.2 Relationship between Halal Awareness and
Consumers Purchasing Behaviour
2.10.3 Relationship between Halal Certificate and
Consumers Purchasing Behaviour
2.10.4 Relationship between Halal Marketing and
Consumers Purchasing Behaviour
2.10.5 Relationship between Halal Knowledge and
Consumers Purchasing Behaviour
 (ada penambahan untuk moderating )
2.11 Development of Conceptual Framework
2.12 Chapter Summary

CHAPTER 2

LITERITURE REVIEW

2.1 Introduction
 The main purpose of this study is to explore the relationship between the halal
integrity, halal awareness, halal certification, halal marketing, halal knowledge,
foreign consumer purchasing intention towards halal product in Malaysia and
acculturation moderates the relationship between halal quality, halal awareness, halal
certification, halal marketing, halal knowledge and foreign consumer purchasing
intention. In this research, past research most focussing on implementation of halal
certification, problem, and advantages of halal certification are reviewed. This chapter
also explains the conceptual framework and research hypotheses developed for this
study. In this study also using an underpinning theory which defined as a research
theory is a general knowledge held by members of a given group about a social
phenomenon while theoretical framework provides explanations to the problem from
the existing works in a particular field of study. This chapter tries to explain the
relationship between the halal integrity, halal awareness, halal certification, halal
marketing, halal knowledge, foreign consumer purchasing intention towards halal
product in Malaysia and acculturation moderates the relationship between halal
quality, halal awareness, halal certification, halal marketing, halal knowledge and
foreign consumer purchasing intention. Literature of the mentioned theories and
discussion of relevant theories form the foundation of framework. The framework
consists five independent variables namely the halal integrity, halal awareness, halal
certification, halal marketing, halal knowledge, dependant variable namely foreign
consumer purchasing intention and moderating variable namely acculturation. These
dimensional construct are connected together and seven hypotheses are proposed to
explain each relationship.

2.2 Underpinning Theory

2.3 Consumer Purchasing Intention

2.3.1 Overview of Consumer Purchasing Intention

Attitude construct has been broadly studied of late and is considered to be a predictor
of consumer intention to purchase especially in food category. Alam and Sayuti (2011)
found that attitude poses a strong impact on consumer purchase intention and
consumers having more high/positive attitude seem to have greater intent to purchase
Halal food. Studies from (Choo et al., 2004) found that innovation oriented consumers
have a positive relationship between attitude and purchase intention. Studies from
(Lada et. al., 2009) also found a positive relationship between attitude and consumer
purchase intention of Halal food products. Research on food buying behaviors of
individuals by (Tarkiainen and Sundqvist, 2005) also established a strong positive
correlation between individual attitude and purchase intention. Latest study from
(Mukhtar and Butt, 2012) focused on Halal food found a significant relationship
between Halal food purchase intention and the attitude to purchase it.

2.3.2 Definition Consumer Purchasing Intention

Previous researchers say several meanings, for example, intention is a state of a

person’s willingness to perform the behavior, and it is considered as an immediate
antecedent of behavior (Ajzen, 1985). Other than that, intentions can be explained as
the inclination of an individual to conduct certain behaviour, and a precursor of the

behaviour (Ajzen I, Madden TJ ,1986);Sang-Hyeop Lee, Kai-Sean Lee, 김학선, &

Kong-Check Siong, 2016). Purchase intention is the state of an individual being

prepared to purchase certain products( Elbeck M, Mandernach J ,2008;Sang-Hyeop
Lee et al., 2016)

2.3.3 Factors affecting Halal Consumer Purchasing Intention

2.3.3.1 Attitude

According to Keller (2003), knowledge has levels and foundations based on the
consumer’s awareness, perceived attributes; perceived image; and opinion about
product and its experience that are closely associated with the consumer’s overall
understanding of a brand. While attitude is a psychological state and results in a good
or bad image of an entity (Chaiken, 1995). It is also said that attitude is a learned
tendency to act in a certain favorable or unfavorable manner (Schiffman and Kanuk,
2007). In other words, attitude of consumers is based on their belief and knowledge
regarding a certain commodity, which is a result of information integration process
and ultimately influences individual’s aim to behave in a certain manner (Xiao et. al.,
2011). Ajzen (1991) cited that “the more favorable the attitude with respect to a
behavior, the stronger is the individual’s intention to perform the behavior under
consideration”. It is hard to measure attitude directly, consumers have to rely on
research erasures to measure this construct (Phau et al., 2009). Subsequently, an
individual attitude for Halal food is originated from their belief that the product is halal
and it will lead to favorable attitudes, such as having an intention to purchase (Ajzen,
1991). Attitude construct has been broadly studied of late and is considered to be a
predictor of consumer intention to purchase especially in food category. Alam and
Sayuti (2011) found that attitude poses a strong impact on consumer purchase intention
and consumers having more high/positive attitude seem to have greater intent to
purchase Halal food. Studies from (Choo et al., 2004) found that innovation oriented
consumers have a positive relationship between attitude and purchase intention.
Studies from (Lada et. al., 2009) also found a positive relationship between attitude
and consumer purchase intention of Halal food products. Research on food buying
behaviors of individuals by (Tarkiainen and Sundqvist, 2005) also established a strong
positive correlation between individual attitude and purchase intention. Latest study
from (Mukhtar and Butt, 2012) focused on Halal food found a significant relationship
between Halal food purchase intention and the attitude to purchase it.

2.3.3.2 Subjective Norm

Subjective norm assesses the social pressure on individuals to perform or not to

perform certain behavior i.e. the motivation to comply with significant others’ views.
It represents the fact that important referents (other individuals or groups) think that
one should carry out the actions and the inspiration to adhere to these referents (Nilsson
et al., 2004). Very subjective standards evaluate the social demands on the individual
to execute or not to execute particular actions (Rhodes and Courneya, 2003). Very
subjective standard may have more powerful effect on purchase objective of Halal
foods if earlier topics were analyzed. Lee and Green (1991) discovered that subjective
standard was an important forecaster for behavior objective in the Philippines, while
attitude was discovered to surpass the impact of subjective standard in the United
States. One study though focuses on Organic food products (Tarkiainen and Sundqvist,
2005) while Halal food products have completely been neglected. Studies from
(Mukhtar and Butt, 2012) also found that subjective norm appears to be the strongest
of all the predictors for choosing Halal products. Similar studies from (Lada et. al.,
2009) found subjective norm to be the most influential predictor of purchase intention.

2.3.4 Underlying Theories of Consumer Purchasing Intention

There have been several proposed models for researchers to explain consumer
behaviors toward food in general. Works by Sparks and Shepherd (1992); Robinson
and Smith (2002); Shepherd, Sparks, and Guthrie (2005); Chen (2007); Arvola et al.
(2008); and Leßmann and Masson (2015) on organic food consumption, Bogers, Brug,
Van Assema, and Dagnelie (2004); Lautenschlager and Smith (2007); Emanuel,
McCully, Gallagher, and Updegraff (2012) on fruit and vegetable consumption; and
also works on attitudes toward food choice behaviors(Keith, Nikolaos, & Panagiotis
,1994 )are among the interesting topics in determining consumer behavior toward a set
of dietary preferences.(Abu-Hussin, Johari, Hehsan, & Mohd Nawawi, 2017).

More specifically, in the context of consumer behavior the most popular theoretical
models are TPB, TRA, classic attitude behavior model and behavioral perspective
model.(Hussain, Rahman, Zaheer, & Saleem, 2016)

2.3.4.1 Theory of Planned Behaviour

Based on the Theory of Planned Behavior (Ajzen, 1991), TPB deals with the
antecedents of attitudes, subjective norms and perceived behavioral control. These
elements are used in an attempt to understand people’s intention to involve directly or
indirectly in a number of activities such as willingness to vote and giving (Hrubes,
Ajzen & Daigle, 2001). In a direct measurement of these determinants, attitude refers
to an evaluative judgement about the advantages and disadvantages of performing a
behavior, while subjective norms refer to a person's perception of social pressure to
perform the behavior and a perceived behavioral control refers to an individual’s
perceived confidence in the capability of performing the behavior (Fishbein & Ajzen,
2005). In measuring the intention to purchase among consumers, TPB theory has been
widely used from the day it was developed until today. In a deeper application and
usage, TPB theory has also been used by various researchers in measuring people’s
intention to purchase, consume and accept Halal food products (Nazahah & Sutina,
2012, Syed & Nazura, 2011). By using the Theory of Planned Behavior as a
foundation, several researchers agreed that the intention to purchase indicates an
individual human belief to buy Halal food product. For instance, a Muslim consumer
has an intention to buy Halal food product which presented at the point of purchase
displays (Azis & Vui, 2012, Grewal, Dhruv, Monroe, Kent & Krishnan, 1998, Jin &
Suh, 2005). This direct measure provides a guideline to predict human social
behavior”. In addition, another researcher also concludes that “conceptualizations of
TPB presented by Ajzen imply a causal relationship between these four variables,
namely: beliefs, attitudes, intentions and behavior”. Empirical evidence had proved
that religious obligation would influence an individual’s attitude and behavioural
intention eating habits and guides decision making during purchasing [27]. The Theory
of Planned Behaviour (TPB) could be utilized for the prediction and explanation of the
human behaviour [19], especially on food related researches and Halal food choice
[28]. Based on the TPB, attitude towards the behavioural, subjective norm and
perceived behavioural control have been perceived as the elements to predict and
explain the behavioural and intention. From the theory context, attitude towards
behaviour could be determined by evaluating the pros and cons of conducting certain
behaviour; subjective norm refers to the perceived perception of an individual on the
peer or social pressure leading to performing of the behaviour; perceived behavioural
control means to an individual’s interpretation confidence of ability to perform the
behaviour [29].

2.3.4.2 Theory of Reasoned Action

Since consumer attitude and intention are two factors of TRA, the majority of studies
has tested these factors with different other factors. Many of the researchers agreed
that attitude is a mental state of an individual that represents his/her feelings toward an
object or a concept. Fishbein and Ajzen (1975) stated that the degree of an individual’s
positive or negative feeling toward any object or toward the intention of performing
any particular behavior is called attitude. In consumer behavior and marketing context,
attitude is a favorable or an unfavorable tendency of behavior of an individual toward
any object. Therefore, a consumer can have dissimilar attitudes toward the same
product in different places and situations(Schiffman&Kanuk,2010). Research proved
that consumer behavior and food consumption have an indirect relationship with one
another. In this regard, many studies used different behavioral models to determine the
relationship of consumer behavior with food consumption (Conner & Sparks, 1996;
Fishbein & Ajzen, 1975; Nooh, Nawai, Dali, & Mohammad, 2008; Thompson,
Haziris, & Alekos, 1996). These models and theories are important for researchers in
determining and investigating consumer behavior toward food consumption and of
buying behavior of food products (Acebron, Mangin, & Dopico, 2000; Alam &
Sayuti,2011; Fishbein &Ajzen, 1975; Norman & Conner, 2006). All the above-
mentioned models show that attitude, social norms, and perceived behavioral control
motivate consumers to choose food and nonfood products. Consumer attitude and
intention to buy products are widely discussed in previous literature in both Halal and
non-Halal contexts (Ozgen & Kurt, 2013). Therefore, it is worthy to test the
relationship and influence of consumer attitude with the Halal purchase intention and
the intention to purchase with their future purchase behavior of Halal products.

2.4 Halal Integrity

2.4.1 Overview of Halal Integrity

Halal food consumers are now more aware and concern about the integrity of
Halal status and also curious about all the activities involved along the supply chain
whether the products that they purchased were truly Halal all the way.(Zulfakar,
Anuar, & Talib, 2014) .Food products including Halal food products now travelled
greater distance and involved a lot of handling before it reaches its final point of
consumption. This situation has created uncertainty regarding the authenticity of the
Halal status and whether the food products are still remains Halal. Therefore, it is a
big challenge for all the parties involved to ensure the integrity of the Halal product is
intact throughout the whole supply chain.(Zulfakar et al., 2014). Lodhi (2009), Khan
(2009) and Tieman (2011) agree that Halal integrity assurance is the key factors in
developing a well trusted Halal food supply chain in the current complex and
competitive environment. All of these authors also agree that to protect the Halal
integrity, complete understanding of the whole Halal food supply chain is required.
Variations in the definitions of Halal and the unavailability of single, worldwide Halal
standard have made the process of understanding of the Halal food supply chain more
complicated. Until then, all the parties involved must be able to use every possible
action to protect the integrity of the Halal supply chain.

2.4.2 Definition Halal Integrity

Food integrity is not only related to the good quality of the food product,
nonetheless, it distresses closely more on the health, safety, religious and cultural
matters.(Ali & Suleiman, 2018). Food integrity is the subject of a large research
literature, which includes documents from both non profit organizations and
governments (Elliott, 2014; World Bank, 2005). Food integrity is understood in terms
of its wholesomeness and purity. One may argue that food integrity will make similar
demands, theoretically at least, on the supply chains for all types of food. Nonetheless,
the precise meaning of the term ‘food integrity’ does depend on the context. As noted
by Elliott (2013), how food is sourced, procured, processed and distributed, are all
important and need to be addressed specifically. As such, it is difficult to generalize
the concept of food integrity and its application into practice, and this has made the
study of integrity a specific study of each type of food. The impact of external
integration on halal food integrity Kim Hua Tan, Mohd Helmi Ali, Zafir Mohd
Makhbul, Azman Ismail.

The food integrity has been defined by(Elliott, 2014,p.84) as “Food integrity
can be seen as ensuring that food which is offered for sale or sold is not only safe and
of the nature, substance and quality expected by the purchaser but also captures other
aspects of food production, such as the way it has been sourced, procured and
distributed and being honest about those elements to consumers”. The discussion on
the food integrity is being extended by Manning (2016) which highlighted that four
elements that need to be considered in safeguarding integrity that involve a product,
process, people and data integrity. Similarly, Ali et al. (2017) proposed that four
dimensions of supply chain integrity that involving raw materials, production, service,
and information integrity. Eleven shades of food integrity: A halal supply chain
perspective

Integrity means the quality of being honest and having strong moral principles;
moral uprightness. Integrity is synonymous with solidarity, coherence and cohesion,
highly ethical, truthfulness and trustworthiness (Dictionary.com, 2015). Hence, halal
integrity in halal logistics and halal supply chain means to uphold the state of halal for
the foods and cargo; and toyyib for the manner the foods and cargo being handled and
delivered along the supply networks by the service providers from transporters,
warehouse operators and retailers; and the man himself are ethical, truthful and
trustworthy in carrying out their operations and system of works in halal industry.
Halal integrity is the assurance of the halal products particularly for halal food
industry. Protective and preventive measures must be taken to ensure that the halal
products still remain halal even throughout the transportation process within the supply
chain. Thus, halal supply chain management assures halal integrity is secured from the
source (origin) to the point of consumer purchase (end).

2.4.3 Scandal in Halal Integrity

Contaminant has varied definition; it can be in the form of solid, liquid, natural
or artificial; visible or invisible to the eyes such as microbes; odour or odourless; an
element, a substance, a process, an activity or a reaction that are intentionally or
unintentionally causing directly or indirectly ‘adulterating” or affecting the original
nature or state of a process; a medium; or an environment. Contaminants can also be
derived from the interactions or a combination of all the above. Contamination is the
act of contaminating; or of making something impure or unsuitable by contact with
something unclean, bad as by making it unsuitable, harmful, or unusable
(Dictionary.com, 2015). In the context of halal supply chain and halal logistics,
contaminants are any non-halal or detrimental (mudhorat) substances that are
intentionally or unintentionally added which render the halalan products as non-halal
(MS2400: 2010). Contamination refers to the state of being in contact, infected,
adulterated by contaminants or precursors that violates the Shariah laws (Mohd Shariff
& Ahmad, 2015). Contamination is the state of being contaminated either by
contaminants or precursor which affects the halalan toyyiban status (MS2400: 2010).
Hence, the presence of contaminants in the halal supply chain operations poses a
probability or likelihood of exposure to cross contamination to the halal products;
thereby causing the halal products to be contaminated and hence haram and non-halal.
Therefore, the contaminants in halal logistics and supply chain that are prevalent are
najs and precursors that may exist possibly in the transport and containers that are
formerly carrying non-halal products; and traces of contaminants that originate from
the non-halal products due to a combination of factors (environment, temperature,
humidity, air pressure, quality of air), or human handling at the warehouses operations
and also at retailing end (Mohd Shariff, Jaafar & Muhammad (2014).

In Islamic law, najs or najis are contaminants; things that are ritually unclean because
of their characteristics. The Malaysian MS1500: 2009 and MS2400: 2010 standards
categorized najis as shown in Table 1 below.
2.4.4 Role of Governments Towards Halal Integrity

Questions were raised about who should take the responsibilities of ensuring the
protection of Halal integrity in the supply chain. Should it be the responsibilities of the
producer? Or should it be the responsibilities of the logistics service providers? The
straight and solid answer for these questions is all the parties involved in the Halal
food supply chain should bear the responsibilities. Joint actions must be taken in order
to ensure the integrity of the Halal status is protected at the highest possible level.
Leaving the huge responsibilities to single party alone is enormous and almost
impossible. A single party, such as the food producer, can only take maximum actions
to ensure product remain Halal, such as preparing and producing the Halal food
according to the Halal standard, while the food product is still within their possession.
However, once the food products have left the company's manufacturing plant, it is
not possible for the food producer alone to guarantee that the food products can still
remain Halal at the consumption point as it is before, when it first left the producer
manufacturing plant. Jaafar et al (2011) has similar opinion on this matter. Their study
agrees that the Halal integrity of a particular food product is intact as long as the
product is in producer custody. However, once the product moves along the supply
chain, the integrity of that product will be the only intact if the next parties in charge
have similar understanding and operational practice of handling Halal product. All of
the efforts taken by the previous party in safeguarding the Halal integrity status will
crumble and thus increasing the possibility of the cross contamination. Conceptual
Framework on Halal Food Supply Chain Integrity Enhancement

The government’s role in ensuring Halal food supply chain integrity is very significant.
A research done by Melatu Samsi, Tasnim and Ibrahim (2011) identified that
government roles in ensuring Halal food supply chain integrity include planning,
developing, implementing, regulating, promoting and educating Halal industrial
players and Halal consumers. Furthermore, the government’s part covers setting up
agencies and monitoring bodies to authorized and regulate any aspects that relate to
halal certification, auditing and guidelines. Golan et al. (2004) claims that in order to
protect the consumers from unsafe and contaminated foods, halal food traceability
must be administered by specific government’s guidelines. In addition, the role of
government should include establishing agencies, collaboration among public
agencies and training professional auditors to ensure trustworthy halal food supply
chain integrity. For instance, according to Ismail (2011), Department of Syariah
Affairs from Ministry of Religious Affairs in Brunei is authorized to handle Halal
matters in the country, and is supported by Halal Food Control Division (HFDC). In
Malaysia, Department of Islamic Development Malaysia (JAKIM), a governing body
from the support of multiple government agencies, is responsible for halal certification
matters in Malaysia. Realising the potential of the industry and strengthening its
position of Halal role model in the Muslim nations, the government of Malaysia have
established Halal Industry Development Corporation (HDC) in September 2006 to
help promote and develop the Halal industry. This body will help to coordinate and
facilitate the Halal activities between the government, businesses and the consumers,
and also take necessary steps to ensure the integrity of the Halal industry is well
protected. As the Halal industry encompasses various sectors along the value and
supply chain, the move to establish such an organization is a bold and commended
move to ensure the needs of all the parties involved in the Halal industry is fully
understood from the nation and international perspective.

With sufficient involvement from the government, illegal and unethical business
practices such as falsifying Halal certificate and selling non-Halal as Halal products
can be minimised and controlled. Proper regulation and legislation can be established
and enforced so that guilty party can be prosecuted accordingly such as the
establishment of Halal Act recently in Malaysia and similar act in some of the states
in the United States. This move will help reduce the confusion and increase the
confidence level of the parties, especially the consumers of Halal products.

2.4.5 Impact Halal Integrity to Food Industry

Halal integrity is the foundation of the Halal food industry. Protective and preventive
measures must be taken to ensure that the Halal food products still remain Halal even
though it have travelled greater distance and undergone various handling activities
within the supply chain. All parties in the supply chain, downstream and upstream,
must take individual and joint responsibilities to protect the Halal food products from
being cross contaminated, whether intentionally or unintentionally. It is impossible for
any single party to oversee these huge responsibilities. Conceptual Framework on
Halal Food Supply Chain Integrity Enhancement

The key to improved halal integrity in international trade is transparency so that

consumers can make informed decisions (Alqudsi, 2014; Farouk et al., 2016). The
certifying agency located and supervising in one country must clearly define the
standards used for any particular product, especially with respect to slaughter. It must
also assure that the company/ slaughter/products comply with the standard it has
announced. In many cases agencies will certify products using different standards for
different countries and thus the certifying agencies need to also be sure to maintain
product integrity and only send a product to a receiver under a different certifying
agency that meets that agency’s standard (Figure 2). Halal standards are used to make
halal production more unambiguous (van der Spiegel et al., 2012). Ideally the role of
governments as accreditation bodies is to assure that the companies and the certifying
agencies are saying what they do and doing what they say. Having governments
staying out of certification but focusing on accreditation means that the Muslim
citizens in any one country will have access to products that meet their different
standards and the certifying agencies can compete to best serve consumers. In practice
this generally means that competing certifying agencies tend to help police each other.
Halal integrity in the food supply chain.

2.5 Halal Awareness

2.5.1 Overview of halal awareness

 The awareness of the Muslim and non-Muslim consumers describes their
perception and cognitive reaction to products or foods in the market. As such, their
awareness is an internal state or a visceral feeling by way of sensory perception
towards the products/foods they used or consumed. Given the significance role of
awareness about halal in the life of Muslims and their obligations to be Shariah
compliant; this paper will address the determinants and identify the sources of
awareness of Muslim consumers on halal products or foods. It is argued that many
things can lead to awareness of halal products or food unfortunately, most of the
previous studies only focused on halal certification logo. Many problems are
associated with halal logo (labeling) as the only source of awareness for Muslim
consumers on halal. This logo is also yet to be empirically proven as well. Awareness
on buying and consuming Halal product is essential for Muslims in Malaysia. This is
because the Halal products ranging from various local and imported foods are
produced, manufactured and handled by numbers of ethnic groups. Normally, Muslims
in Malaysia make their food choices based on Halal logo and certification by JAKIM.
According to the report published by Halal Development Corporation (2011), there are
about 116, 028 products that have obtained Halal certification from JAKIM. This sign
drives a basic assumption that Muslims are more aware the importance of Halal food
which indirectly leads to the expansion of the global Halal food industry (Che Man &
Sazili, 2010). This considered global wave proves that Muslims consumers are
becoming more conscious to take this issue into consideration more seriously. Due to
that, it is important for Muslims to have an understanding and knowledge on what
Halal is all about in measuring Halal awareness. Their concern especially on the aspect
of food consumption is also a vital factor in avoiding doubtful and uncertain food
products (CAP, 2006). This will help Muslim consumers to have a clearer picture that
will assist them to make a purchase-decision which is supposed to be aligned with their
preferences and faith. Based on the previous study, researchers have also found that a
multiracial Muslim in Malaysia is aware of Halal food (Golnaz, Zainal, Mad-Nasir &
Eddie-Chew, 2009). Therefore the measurements used by (Golnaz, Zainal, Mad-Nasir
& Eddie-Chew, 2009) study is applied in measuring Muslim

2.5.2 Definition of halal awareness

Awareness of Halal Principles Awareness can be defined as the capability to re-
cognize a certain affair, [11]. As Muslims, consuming food is quite common due to
religious obligation. Some food can be permitted to be consumed except for the case
that has been categorised as Haram in the Islamic law [12]. Awareness is the condition
to consciously interpret, identify an object which lead to the determination of
intentional behavioural [13,14]. The investigation of relationship between awareness
of Halal principles and purchase intention of Halal product has been conducted among
non-Muslim [3,11]. Non-Muslims were hypothesized to gain interest toward Halal
product if they knew about the benefit of consuming Halal concept at food production.
Due to the effect of globalization, the market in Malaysia consist of various types of
Halal products, from locally produced to imported, to different types of Halal logos
and brands from other countries. In Malaysia, Halal logo certified by the JAKIM is
deemed most reputable, which is reasoned by their utilization in Malaysian Halal
Standards MS 1500:2009. Muslim in Malaysia would make their food choice decision
according to the Halal certification and Halal logo by JAKIM to assure that the food
they consumed is within Sharia law. Awareness on halalness concept is a must for any
Muslim individual either a consumer or an entrepreneur. This is the most important
element that should be followed according to Shariah Law towards the production of
halal products and services. However, every Muslim entrepreneur has a different level
of awareness based on their background, religion (devout), culture, education and
social interaction (Rasli, 2013). So in this case, awareness can be described as a level
of attentiveness or realization among Muslim entrepreneur towards producing what is
permitted for Muslims to consume and use (Ambali & Bakar, 2012). A study in
Malaysia has disclosed a level of awareness among SME towards the granting of halal
certification is at low level (Tawil et al., 2015). Awareness in the context of Halal can
be conceptualized as the informing process for increasing the levels of consciousness
to what is permitted for Muslims to eat, drink and use. As stated by Ambali and Bakar
(2014), it means having special interest in or experience of something and/ or being
well informed of what is happening at the present time on Halal foods, drinks and
products. To understand the concept of awareness for this study, it is interesting to
examine from different sources where the consumers can be conscious of something
such as the religious belief and the role of Halal logo. The awareness among consumers
could be a major determinant factor in purchasing decision process (Mohamed et al,
2008). Due to that reason, it is important for Muslims to have and understanding and
knowledge on what is Halal is all about in measuring Halal awareness. As
mentioned by Muhamad Yunus, Wan Rashid, Mohd Ariffin and Mohd Rashid (2014),
Halal food is not only the ingredients of the product, but also cover other aspects such
as safety and quality, handling, processing equipments, processing aids, packaging,
storage, transportation, distribution and retailing

2.5.3 Effectiveness of halal awareness toward halal product in Malaysia

2.5.3.1 Growing demand for Halal food products in Malaysia

The claims that Islam is the fastest growing religion and second largest in the world
are true based on the increasing number of Muslim population by over 235 percent in
the last fifty years (Abdul Latif, 2006). Food is a basic part of existence of mankind.
Food consumed by Muslims that meets the Islamic dietary code is called halal food.
The increasing awareness of Muslims all over the world on their obligation to consume
food based on Islamic dietary requirements creates greater demand for halal foods and
products. In Malaysia, “Halal Express” by MISC Bhd has been established as a
response for a growing number and the increased volume and movement of halal
products and the demands for specialized transport and/or logistics services. As we
know, Malaysia consists of different states such as Sabah, Sarawak, Negeri Sembilan,
Kelantan, and Pahang. Malaysia has multiracial society such as Malay, Chinese, and
Indian and has multi-religion likes Islam and Buddhism. Apart from these beliefs, the
custom and tradition which they inherited from their ancestors, environment and also
states may influence their way of living especially eating habits, perception and
attitudes towards food. As an example, for a Muslim consumer, halal foods and drinks
mean that the products has met the requirements laid down by the Syariah Law
whereas for a non-Muslim consumer, it represents the symbol of hygiene, quality and
safety product as produced strictly under the Holistic Halal Assurance Management
System. Therefore, in any area such as Shah Alam, the people came from different
states and are joined together. Automatically they formed diverse group of peoples.
These groups of people are mostly Muslims and they have to eat halal food. Because
of that, it is important to identify the Muslims’ level of awareness on halal
consumption in Shah Alam.