Halal consumption determinants: The mediating role of risk perception and muslim lifestyle

Abstract

Malaysia has been known as one of the top five leading countries in centralising the halal market globally. Although the government has actively promoted the halal food market, it is found that only 4% of SMEs (Small and Medium Enterprises) in Malaysia possess the Halal Certification Food from JAKIM (MITI, 2016). This points to several factors that can implicate the consumption of halal food, such as Muslim lifestyle, green consumerism, and government policy. Hence, the objective of this paper was to examine the factors that might influence halal food consumption, as well as the mediating effects of risk perception and Muslim lifestyle on the proposed relationships. This quantitative study consisted of five variables and measured by a total of 41 items using a seven-point Likert scale. For this study, data were obtained from 350 Muslim household consumers and analysed through the Partial Least Square, SEM (Smart PLS 3.0). The empirical result showed that green halal consumerism, government policy, and Muslim lifestyle posed significant impacts on halal consumption patterns. Muslim lifestyle was thus proven to be a mediator for the relationship between green halal consumerism and halal consumption pattern. The finding also suggested that food producers must abide in good manufacturing practices, especially in halal labelling to reduce consumer concerns and ensure the sustainability of halal food businesses. It is henceforth recommended that Muslim consumers may never sit on their laurel in combating non-halal food issues. From the consumer market perspective, such non-halal issues may be endless and contributed by various industry players. Hence, a monitoring committee should be formed, consisting of government agencies, halal industry representatives, and non-government organisations. This committee should meet regularly to solve contemporary halal issues, wherein improvements of the halal food product quality can promote the Malaysian economy to be the global halal hub, namely by ensuring quality halal products for exports.