American Journal of Economics, Finance and Management
Articles Information
American Journal of Economics, Finance and Management, Vol.1, No.2, Apr. 2015, Pub. Date: Mar. 5, 2015
Country-of-Origin Effect on Consumer Purchase Intention of Halal Brands
Pages: 25-34 Views: 4527 Downloads: 2940
[01] Mahdi Borzooei, Business Management Faculty, Universiti Teknologi MARA, Shah Alam, Malaysia.
[02] Maryam Asgari, Business Management Faculty, Universiti Teknologi MARA, Shah Alam, Malaysia.
Purpose – The purpose of this study is to explore if country of origin influences the purchase intention in selecting Halal brands from Muslim and non-Muslim countries. Design/methodology/approach – This research paper is based on a participant observation in a simulation shopping environment to identify the effect of country of origin on Muslim consumers when purchasing Halal brands, and using a semi-structured in-depth interview to elicit the perception of Muslim consumers. Findings – The results of the study indicate that country of origin has no effect on the consumers when choosing Halal brands. Although there are claims that Muslim countries are more reliable, in reality, country of origin does not affect the purchase intention when selecting Halal brands. Indeed, the decisions to select Halal brands for majority of respondents were based on taste, price and packaging. It was also found that when talking about Halal, the majority of respondents did say that they have different opinion in Halal certified by Muslim countries versus the non-Muslim ones. Thus, a model was achieved that reveals the factors affecting the purchase intention of consumers in the marketplace which are: Halal requirements, Halal industry procedures, business environment, Halal interpretation and manpower resources. Finally, another finding indicates that the United Kingdom is the most reliable non-Muslim country, while Saudi Arabia has been found to have stringent legislation in Halal compliance among Muslim countries. Research limitations – This research used a qualitative approach to analyze 35 Muslim respondents from the campus of Universiti Teknologi MARA (UiTM). Furthermore, the majority of the respondents were single and young adult students. Practical implications – Practical implication extends to a new window for Halal certification bodies, marketers and businesses in different countries involved in the Halal industry. Social implications – Some countries need to pay more attention to the Halal not only as a commercial activity but also as a spiritual need of Muslim consumers, and to establish their credibility in the marketplace. Originality/value – This is a pioneer study to seek a more accurate understanding of how consumers select Halal brands from Muslim and non-Muslim countries.
Halal, Country of Origin, Muslim and Non-Muslim Countries, Halal Brands, Muslim Consumers, Purchase Intention, Simulation Shopping Environment
[01] Abdul, M., Ismail, H., Hashim, H., and Johari, J. (2009), “Consumer decision making process in shopping for halal food in Malaysia”, China-USA Business Review, Vol.8 No.9, pp. 40-48.
[02] Abedniya, A., and Zaeim, M. N. (2011), “The Impact of Country of Origin and Ethnocentrism as Major Dimensions in Consumer Purchasing Behavior in Fashion Industry”, European Journal of Economics, Finance and Administrative Sciences, No.33, pp. 222-232.
[03] Ahmed, S. A., and d'Astous, A. (2008), “Antecedents, moderators and dimensions of country-of-origin evaluations”, International Marketing Review, Vol.25 No.1, pp. 75-106.
[04] Alserhan, B. A. (2010), “Islamic branding: A conceptualization of related terms”, Brand Management, Vol.18 No.1, pp. 34-49.
[05] Aziz, Y. A., and Vui, C. N. (2012), “The Role of Halal Awareness and Halal Certification in Influencing non-Muslims' Purchase Intention”, in Business and economic research 2012 proceedings of the 3rd ICBER, Indonesia, 2012, pp. 1819-1830.
[06] Ghani, U., Salaria, R.M. and Jan, F.A. (2007), “Country-of-Origin Effect on Consumer Purchase Decision of Durable Goods in Pakistan”, Journal of Managerial Sciences, Vol.1 No.1, pp. 40-51.
[07] Gold R.L. (1958),”Roles in sociological field observations”, Social Forces, Vol.36, pp. 217-223.
[08] Griffin, A., and Hauser, J. R. (1993), “The Voice of the Customer”, Marketing Science, Vol.12 No.1.
[09] Ha-Brookshire, J. (2012), “Country of origin factors influencing US consumers’ perceived price for multinational products”, Journal of Consumer Marketing, Vol.29 No.6, pp. 445-454.
[10] Haigh, D., and Knowles, J. (2005), “What's in a name? Branding: What it means to you and your customer”, Strategic Direction, Vol.21 No.6, pp. 27-29.
[11] Hermelo, F. D., and Vassolo, R. (2012), “How much does country matter in emerging economies? Evidence from Latin America”, International Journal of Emerging Markets, Vol.7 No.3, pp. 263-288.
[12] Hoffmann, R. (2000), “Country of origin- a consumer perception perspective of fresh meat”, British Food Journal, Vol.102 No.3, pp. 211-229.
[13] International Halal Integrity Alliance (2011), “Halal in a box”, available at: (accessed 15 February 2013).
[14] Krueckeberg, H. F. (1989), “Supermarket Customer Observation and Electronic Data Analysis with Implications for the Marketing Plan”, Journal of Food Distribution Research, pp. 79-89.
[15] Lada, S., Tanakinjal, G. H., and Amin, H. (2009), “Predicting intention to choose halal products using theory of reasoned action”, International Journal of Islamic and Middle Eastern Finance and Management, Vol.2 No.1, pp. 66-76.
[16] Machado, J. C., Vacas-de-Carvalho, L., Costa, P., and Lencastre, P. (2012),”Brand mergers: examining consumers’ responses to name and logo design”, Journal of Product & Brand Management, Vol.21 No.6, pp. 418–427.
[17] Mohamed, Z., Rezai, G., Shamsudin, M. N., and F.C., E. C. (2008), “Halal logo and consumers’ confidence: What are the important factors?”, Economic and Technology Management Review, Vol.3, pp. 37-45.
[18] Mohd, M. N. b. H., Wahab, M. H. b. A., and Yaakob, A. b. (2008), “‘Halal’ Logo Detection and Recognition System”, in Information technology and multimedia 2008 proceedings of the 4th international conference, UNITEN, Malaysia, 2008, pp. 618-625.
[19] Muhammad, N. M. N., Isa, F. M., and Kifli, B. C. (2009), “Positioning Malaysia as Halal-Hub: Integration Role of Supply Chain Strategy and Halal Assurance System”, Asian Social Science, Vol.5 No.7, pp. 44-52.
[20] Mukhtar, A., and Butt, M. M. (2012), “Intention to choose Halal products: the role of religiosity”, Journal of Islamic Marketing, Vol.3 No.2, pp. 108-120.
[21] Offmann, R. (2000), “Country of origin - a consumer perception perspective of fresh meat”, British Food Journal, Vol.102 No.3, pp. 211-229.
[22] Patterson, P., and Tai, S.-K. (1991), “Consumer Perceptions of Country of Origin in the Australian Apparel Industry”, Marketing Bulletin, Vol.2, pp. 31-40.
[23] Parkvithee, N., and Miranda, M. J. (2012), “The interaction effect of country-of-origin, brand equity and purchase involvement on consumer purchase intentions of clothing labels”, Asia Pacific Journal of Marketing and Logistics, Vol.24 No.1, pp. 7-22.
[24] Pham, L., Pallares-Venegas, E., and Teich, J. E. (2012), “Relationships between logos stories, storytelling complexity, and customer loyalty”, Academy of Banking Studies Journal, Vol.11 No.1, pp. 73-92.
[25] Phau, I., and Suntornnond, V. (2006), “Dimensions of consumer knowledge and its impacts on country of origin effects among Australian consumers: a case of fast-consuming product”, Journal of Consumer Marketing, Vol.23 No.1, pp. 34-42.
[26] Prendergast, G. P., Tsang, A. S. L., and Chan, C. N. W. (2010), “The interactive influence of country of origin of brand and product involvement on purchase intention”, Journal of Consumer Marketing, Vol.27 No.2, pp. 180-188.
[27] Rajagopal, S., Ramanan, S., Visvanathan, R., and Satapathy, S. (2011), “Halal certification: implication for marketers in UAE”, Journal of Islamic Marketing, Vol.2 No.2, pp. 138-153.
[28] Saunders, M., Lewis, P., and Thornhill, A. (2009), Research methods for business students, Pearson Education, England.
[29] Sekaran, U. (2006), Research Method for Business, a Skill- Building Approach, Wiley, New Delhi.
[30] Shafie, S., and Othman, N. (2006), “Halal Certification: an international marketing issues and challenges”, Journal of Marketing Research, No.15, pp. 565-575.
[31] Slack, F., and Hallam, S. (2001), “Observation: Perspectives on Research Methodologies for Leisure Managers”, Management Research News, Vol.24 No.1/2, pp. 35-42.
[32] Supanvanij, J., and Amine, L. S. (2000), “Consumer Perception of Country-of-Origin Effect and Brand Effect”, Latin American Business Review, Vol.1 No.4, pp. 47-60.
[33] Suter, W. N. (2012), “Qualitative Data, Analysis, and Design”, in McDaniel, D. (Ed.), Introduction to Educational Research: A Critical Thinking Approach, Sage Publications, California, pp. 342-386.
[34] Temporal, P. (2011), Islamic Branding and Marketing: Creating a Global Islamic Business, Wiley, United States.
[35] Thurmond, V. A. (2001), “The Point of Triangulation”, Journal of Nursing Scholarship, Vol.33 No.3, pp. 253-258.
[36] Vinten, G. (1994), “Participant Observation: A Model for Organizational Investigation?”, Journal of Managerial Psychology, Vol.9 No.2, pp. 30-38.
[37] Wang, Y. J., Hernandez, M. D., Minor, M. S., and Wei, J. (2012),”Branding not just a matter of luck: Making sure logos don't fall foul of superstition”, Strategic Direction, Vol.28 No.9, pp. 9-11.
[38] Wilson, J. A. J., and Liu, J. (2010),”Shaping the Halal into a brand?”, Journal of Islamic Marketing, Vol.1No.2, pp. 107-123.
[39] Wilson, J. A. J., and Liu, J. (2011),”The challenges of Islamic branding: navigating emotions and halal”, Journal of Islamic Marketing, Vol.2 No.1, pp. 28-42.
[40] Zakaria, Z. (2008), “Tapping into the World Halal Market: Some Discussions on Malaysian Laws and Standards”, Shariah Journal, Vol.16, pp. 603-616.
MA 02210, USA
AIS is an academia-oriented and non-commercial institute aiming at providing users with a way to quickly and easily get the academic and scientific information.
Copyright © 2014 - American Institute of Science except certain content provided by third parties.