KnE Social Sciences | International Conference on Economics, Business and Economic Education 2018 (ICE-BEES 2018) | pages: 518–529

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1. Background

The question of halal products is increasing as consumers become more religious through knowledge and information about halal concern [18]. Halal products are not only safe for consumption and high quality, but also produced and processed in a safe way for the environment [16]. The demand for halal products not only focuses on food but has also evolved into other products such as cosmetics. The demand for cosmetic products in Indonesia reaches USD 5,502 million in 2018, making cosmetics industry to grow rapidly in Indonesia, so it is expected that by 2021 the market growth in the cosmetic industry can continue to increase up to about 7.2% every year [2]. The cosmetics and toiletries industry also affects global halal awareness. Where the demand for cosmetic products globally to USD 22.47 billion in 2016 and is expected to continue to grow to reach USD 51.40 billion by 2022, this resulted in increased kosher cosmetic demand worldwide. [1]. This phenomenon drives marketers in search of halal certificates on products to capture growing markets.

The halal labeling can give information and create perception of trust for the consumer. The attachment of halal labeling on the product is to give information that the product is safe and can be trusted by the Muslim consumer who uses the product [26]. Halal is an Islamic certification used to support either product or service which are based on the requirements and basic foundation of Islam. (Burhan, 2000) also states that the halal concept becomes one line of guidance for Muslim in all aspects of consumerism and utilitarian of the product. This certificate of halal on certain products will ensure consumer especially for Muslim consumer that all ingredients and the process of productions are based on sharia [31]. This becomes an attention that the high demand on halal industry will attract more Muslim consumer. This halal market will not only focus for Muslim countries but also this market is expected to grow for the non-Muslim country [12]. The religiosity factor becomes role factor which influences the Muslim's everyday attitude on choosing product. It means religiosity is related to the principle of way of life which is reflected in the values and attitudes of society and individuals [11]. Religiosity is translated as the trust of someone towards God and it is a commitment to act based on the rules regulated by Allah SWT [20]. In buying a product, consumers will compare between one product with another product and will pay more attention to products that provide benefits. Therefore, the company must have good information about a product, so that consumers are interested in the products issued by the company. Product Knowledge is defined as consumer awareness of specific information about the product [6]. The main sources of product knowledge include the consumer's experience of the product and the actual advertising shown to influence the consumer's purchase intention to select the product [23]. The factor of religiosity, being the main factor affecting daily life in the selection of products for Muslim behavior. consumer [5]. It is very important for the Muslim consumer to have a positive attitude and awareness about the halal cosmetics. The Muslim consumer's attitude must have contribution for the development of future industry of halal cosmetic. Therefore, the objectives of this research are a) to know the product knowledge towards the purchase intention, b) to find out the consumer's attitude towards the purchase intention, c) to identify the religiosity in moderating the product knowledge towards the purchase intention d) to identify the religiosity in moderating the attitude towards the purchase.

2. Theory, Research Framework and Hypothesis

Product knowledge (K)

Product knowledge is defined as the awareness of consumer to look for information about a product [6]. The main source of product knowledge includes the consumer's experience towards the product and the advertisement media which are stated to influence the consumer's decision to buy or to choose the product [23].

Attitude (AT)

In the context of consumer's attitude, various general attitude of the consumer will give a big strategic advantage. The attitude is the act formed from the direct experience on the product, the oral information from other consumer, the advertisement shown in the mass media or in the internet, and the various forms of direct marketing (Shiffman and Kanuk, 2008). The attitude is the tendency to study in order to act consistently towards the product. [10]. According to (Shiffman and Kanuk, 2008) there are three main components of attitudes model: cognitive component, affective component and conative component.

Religiosity (R)

Religiosity is defined as how far an individual pledges towards her religion and acknowledge its religion teaching, such as the behavior and attitude which mirror her commitments [14]. The level of religiosity becomes the key factor to indicate the Muslim consumer's attitude. [28]. According [9] states that religiosity includes five dimensions, which are: rituals, ideology, intellectual, experience and consequence.

Purchase intention (PI)

Purchase intention is explained by Assael (2002) as the consumer's tendencies to buy certain brand of product and service as well as to take an action related with the purchasing which is measured by the level of possibilities of the consumer on buying products. [30] defines purchase intention as a possibility of a consumer plans to buy certain product within range of time.

Research framework

Based on the background, this research framework is pointed for Picture 1. In this research, product knowledge and attitude become the independent variables, religiosity as the moderation variable and purchase intention as the dependent variable.

Figure 1

Framework.

fig-1.jpg

Hipotesis

The demand for halal products is increasing as consumers become more religious through knowledge and information about halal concern [18]. The effect of knowledge facilitates the consumer on obtaining information and improves on new information in the efficiency of knowledge seeking on halal products. Information product knowledge one way producers in communicating to consumers in order to bring interest in consumer buying interest in halal products, product knowledge listed accurately can see how many or few consumers in understanding the product. However, the size of the product knowledge is never completely objective in the minds of consumers, it certainly depends on some form of communication determined by the manufacturer that can be captured by the consumer in seeking information on the product [6]. Thus the hypothesis is:

H1 : The existence of influence between product knowledge and purchase intention

Halal products on Muslim consumers will have an impact on purchasing behavior attitudes. Attitudes Against kosher cosmetic products is an important antenna of the intention to buy kosher cosmetic product [5]. Consumer attitudes can form a positive impact on the intention to buy halal products [3]. Strengthen some previous research results on the influence of positive attitudes on kosher cosmetic products. Thus the next hypothesis is:

H2 : The existence of influence between the attitude and purchase intention

Religiosity is the most important factor as a social force that affects the consumption behavior of halal products. Muslim consumers are very concerned about the products used. [24] Religiosity has a positive relationship to awareness of halal product expenditure on Muslim consumers. [13] Stating that religiosity can moderate horizontally good relationships of collectivism and intentions in enhancing British Muslim consumer shopping experience. Thus the hypothesis is:

H3: The existence of influence between the religiosity which moderates product knowledge and purchase intention

[28] This study is associated with the role of religiosity in influencing consumer attitudes and buying intentions. [25] Religiosity can mediate positively between purchasing intentions. A major principle in Islam is that every Muslim to follow Islamic law in all aspects of consumerism and the use of utilitarian products. Thus the hypothesis is:

H4 : The existence of influence on religiosity which moderates attitude towards purchase intention

3. Method

Population and sample

The population in this research is woman Muslim consumer using cosmetics in her everyday life in the area of Jabodetabek. The samples collecting method used in this research use non probability sampling approach, and the sampling techniques used is the purposive sampling. The purposive sampling techniques aim to choose the respondent based on the criteria stated. The samples in this research use [19].

Therefore, by the result of sample counting above, the total of sample in this research is 96 respondents through the spread of questioners. This research is analyzed by Structural Equation Modeling (SEM) with partial least square (PLS) version 4.0. PLS is part of SEM. PLS is the latest techniques which are mostly chosen, because it does not need normal distribution data or any research with few sample [27]. SEM is used to interpret, to confirm, and to show the fact of hypothesis towards the phenomenon observed (Chin, 1997). In this research, the range of observation use the Likert scale with score of 1 – 5, in which value 1 means strongly disagree (STS), 2 disagree (TS), 3 neutral (N), 4 agree (S), 5 strongly agree (SS).

4. Result and Discussion

Result

Table 1 The Characteristic of Respondent Basic Attribute. This table shows that the age of 65% respondents are 18 – 25 years old, and 59% of the respondents level of education is undergraduate. Approximately 50% of the respondents have the monthly allowance of Rp. 500.000 – Rp. 1.000.000., around 39% of the respondents are the women students and 32% of the respondents live in Jakarta and South Tangerang.

Table 1

The Characteristic of Respondent.


Statement Frequency % Statement Frequency %
Age Job
< 17 years 5 5% Entrepreneur 17 17%
18 - 25 years 62 65% Worker 19 20%
26 - 35 years 16 17% Student 38 39%
> 35 years 13 13% Lecturer 6 6%
Level of Education Others 16 17%
High School 27 28% Address City
Diploma 8 8% Jakarta 31 32%
Undergraduate 56 59% Bogor 9 9%
Graduate 4 4% Depok 10 11%
Doctorate 1 1% Tangerang 13 14%
Monthly Allowance South Tangerang 31 32%
< Rp. 500.000 13 13% Bekasi 2 2%
Rp. 500.000 – Rp. 1.000.000 48 50%
Rp. 1.000.000 –Rp. 2.000.000 21 22%
> Rp. 2.000.0000 14 15%
Table 2

The Result of Validity and Reability.


Model construct Measurement item Loading AVE CR CA
PRODUCT KNOWLEDGE PK 1: I understand the Islamic law about halal and haram for the halal label on cosmetic. 0.724 0.797 0.829 0.709
PK2: I feel like I have the knowledge about the cosmetics ingredients banned in Islam. 0.876
PK3: I have the knowledge to differentiate the allowed and banned product in Islamic law. 0.784
ATTITUDE AT1: I always choose halal labeled cosmetic. 0.79 0.79 0.891 0.844
AT2: I always see the halal label before buying cosmetic product 0.811
AT3: The halal labeled cosmetic product is very important. 0.865
AT4: Using the halal labeled cosmetic is my first choice. 0.867
SK5: I believe that the cosmetics I own have the halal label 0.581
IDEOLOGY ID1: I believe that there is only one God. 0.728 0.831 0.978 0.976
ID2: I believe that Muhammad SAW as the last prophet. 0.685
ID3: I believe in Al Quran is the revelation without any changes 0.762
ID4: I have knowledge about basic ideology dimension on Islam. 0.766
RITUAL RT1: Every day, I do five time prayers regularly 0.776
RT2: Every day, I read Al Quran regularly 0.675
RT3: I believe that one's religious commitment can lead to a better life. 0.849
RT4: I practice Ramadhan fasting continuously. 0.832
RT5: I believe that Hajj pilgrimage is a must for every Muslim who has the ability to do that. 0.877
CONSEQUENCE CO1: I try to stay away from any activity which hurt other people. 0.907
CO2: I always try to help other people who may need help 0.901
CO3: I try to be honest and fair with others. 0.865
CO4: I try to stay away from activities which embarrass others. 0.916
INTELLECTUAL IN1: I always try to stay away from little wrongdoing and big wrongdoing. 0.857
IN2: I have a basic knowledge about my religion. 0.858
IN3: I always try to follow all the commands in Islamic religion in all aspects of my life. 0.757
EXPERIENCE EX1: I feel Allah's sentence if I have done mistake 0.908
EX2: I feel happy if other person follows the Islamic teaching. 0.847
EX3: I have a fear feeling towards Allah. 0.877
EX4: I feel sad and unsatisfied if I conduct activity which contradicts the religion. 0.907
PURCHASE INTENTION PI1: I always buy a cosmetic product by seeing the halal label on it 0.724 0.826 0.797 0.843
PI2: I always wait the innovation from the halal cosmetic product. 0.843
PI3: I highly trust the cosmetic with halal label 0.874
PI4: I have intention to purchase halal cosmetic for a long term period. 0.855

Sugiyono, 2009 states that if the correlation value is above 0,3 on the the convergent validity test, then, it could be concluded that the instrument point is valid. The results on table 2 show that the loading data > 0.3 on the variable of Product Knowledge, attitude, religiosity and purchase intention in this research are valid. Based on the result of this research in table 2 can be seen in the square AVE. This result mirrors all indicators fulfill discriminant validity because the validity is said to be good if every AVE square construct is bigger than the correlation among the construct in the model. For the reliability test towards this statement, the method used is cronbach alpha method and composite reliability method. According to the results taken from the value of composite reliability for each variable are 0.829; 0,891; 0,978, 0.979 and the value of cronbach's alpha for each variable are 0,709, 0.844, 0.976, 0,843. In which they are bigger than 0,7, so that, it can be concluded that all variables in this research has fulfilled the requirements of reliability.

Table 3

PLS the result of Coefficient line and Hypothesis test.


Hypothesis Line Coefficient p-Value Note
H1 X1    Y1 0.188 0.023 Sign
H2 X2    Y1 0.342 < 0.001 Sign
H3 X1*X3   Y1 0.231 0.007 Sign
H4 X2*X3    Y1 -0.111 0.124 No Sign
Note: Significant p–value > 0.05

Discussion

Based on the result of table 3, there are some results gained from the hypothesis test:

  • The coefficient value of the line of product knowledge towards the consumer's purchase intention is 0,188. This means that the higher product knowledge value, the higher consumer's purchase intention value. Besides, the result shows that the p-value of 0,023 is less than 0,05. This means that product knowledge influences both significantly and positively. This research result is in line with (Lai, 1991), [4],

  • The coefficient value from the line of attitude towards the consumer's purchase intention is 0,342. This means that the higher value of attitude, the higher consumer's purchase intention. Moreover, the research result shows that p-value is < 0.001, which is less than 0,05, it indicates that attitude influences significantly towards consumer's purchase intention. This result is in line with the research of [5,3,21,15].

  • The coefficient value from the line product knowledge towards consumer's purchase intention which is moderated by religiosity is 0,231 which means that the product knowledge develops towards the consumer's purchase value moderated by religiosity. Furthermore, the result of research shows that the p-value is 0.007. When the value of P > 0.10, this can be said that it is weakly significant. Thus, religiosity is the moderation variable. On the other side, the direct influence of product knowledge towards the purchase intention is significant. This result is in line with the research from [24,13,8].

  • The coefficient value from the line of attitude towards the consumer's purchase intention moderated by religiosity is 0,111, in which, this means the attitude cannot develop the consumer's intention. Moreover, the research result shows that p-value is 0,124. When the value of P > 0.10, then, it is said to be not significant, therefore, religiosity cannot moderate the attitude towards the purchase intention. This result is not in line with the research of [28,25,22].

5. Conclusion and Implication

There are some results based on the research about product knowledge and attitude towards the purchase intention, with religiosity as the moderation variable of halal cosmetic. First, Product Knowledge influences the purchase intention both positively and significantly. Second, the attitude influences the purchase intention positively and significantly. Third, religiosity can moderate positively and significantly between product knowledge towards purchase intention. Fourth, religiosity cannot moderate the purchase intention positively between attitudes towards purchase intention.

The implication on this research is that religiosity can influence the attitude of purchase of someone. The level of religiosity can influence the purchase attitude. The higher level of religiosity, the more intense consumer to buy and to use a product. On the other hand, when the religiosity level becomes lower, then, the level of product information awareness becomes not really significant, so that the consumer will buy and use the product without seeing the halal information on the product.

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