Purchasing Behavior of Islamic Brands: An Experimental Research

Author: OZGE OZGEN - Email: ozge.ozgen@deu.edu.tr

University: DOKUZ EYLL UNIVERSITY

Track: Product and Brand Management

Co-author(s):SumeyraDuman Kurt(DokuzEylulUniversity)

Access to this paper is restricted to registered delegates of the EMAC 2013 Conference.

Purchasing Behavior of Islamic Brands: An Experimental Research

Abstract
Islamic branding has become a popular topic among academicians due to increasing
demand for Islamic products and intensified competition among companies to capture this
customer segment. This study is the first to apply an experimental research in this field to
predict and observe purchase behavior for Islamic brands through theory of reasoned
action (TRA). Specifically, the applicability of TRA for Islamic branding alternatives (true
Islamic brand, inbound Islamic brand, domestic brand with halal certificate) is assessed via
a between-subjects experimental design. The results show that consumers have more
unfavorable attitude and subjective norm for buying true Islamic brand whereas the actual
purchase behavior did not differ across conditions.
Keywords: Islamic branding, halal certificate, theory of reasoned action, experimental research
Track: Product and Brand Management

1. Introduction
Multinational companies (MNC) (both with and without Islamic nuance) started to
concentrate on Islamic branding as demand for Islamic brands increased which also created
considerable attention among academicians. Different versions of Islamic branding practices can
be seen not only in the markets with majority of Muslim consumers but also in markets with
non-Muslim-majority consumers. For example, products with halal certificates receive
significant attention from Muslim consumers in European countries. Turkey has a majority of
Muslim population but at the same time is a secular and democratic country. Islamic branding
practices increased in Turkey as consumers with religious tendency started to have higher
income and became more brand-conscious in terms of Islamic marketing. Although all products
produced in Turkey are assumed as halal in default by consumers, due to the widening of the
customer segment with Islamic sensitivities (Sandikci & Ger, 2002; Sandikci & Ekici, 2009)
many Turkish brands started to obtain halal certificates. This tendency created new marketing
opportunities in Turkey whereas whether this strategy will turn itself into a positive attitude or
purchase behavior still remains unquestioned by the researchers. In this respect, the aim of this
study is to analyze the applicability of TRA and mediating effect of intention to purchase three
distinct types of Islamic brands; (1) true Islamic brand, (2) inbound Islamic brand, (3) Turkish
brand with halal certificate. This study fills the gap in the Islamic branding literature by
addressing the consumer attitudes and purchase behavior for Islamic brands and is the first study
conducting an experimental research in this field, which constitute its originality.

2. Islamic branding
Halal is an Arabic word which means permissible or lawful in Islam and 70 per cent of
Muslims follow halal standards (Alserhan, 2010a). There are 1.57 billion Muslims living in the
world today and are expected to account for 30 per cent of the worlds population by 2025
(Roberts, 2010). Additionally, the halal market accounts for $2.1 trillion and is increasing $500
billion a year (Ogilvy Noor, 2012). The halal market has grown to other sectors besides meat
such as halal chocolate, halal soap and halal perfume in a way that this growth in halal industry
can be assessed as a paradigm (Wilson & Liu, 2010 and 2011). Besides Muslim originated
companies, non-Muslim MNCs (e.g. Nestle, Unilever, LOreal) also have growing interest for
addressing Islamic dietary, lifestyle and consumption requirements (Alserhan, 2010a). The first
reason underlying this trend is that Islamic market derives attention not only from Muslims but
also from non-Muslims who are motivated by simplicity, purity and humanity that Islamic
brands are assumed to possess (Alserhan 2010a, 2010b). Additionally growing interest in Islamic
consumption, greater empowerment of Islamic consumers, attempts of Islamic countries to create
Islamic brands, increasing quality standards of Islamic products and increasing availability of
Islamic products in non-Muslim-majority markets (Alserhan 2010a, 2010b; Temporal, 2011)
contribute to increasing popularity of Islamic brands.
Brands are described as Islamic when; (1) these brands are Shariah-compliant; (2) they
originate from an Islamic country; (3) their target is Muslim consumers (Alserhan, 2010a).
Alserhan (2010b) proposes a four type-categorization for Islamic brands which is also used in
this study; (1) true Islamic brands (halal, produced in Islamic country, target Muslims), (2)
traditional Islamic brands (assumed to be halal, originate from Islamic countries, target

Muslims), (3) inbound Islamic brands (halal, originate from non-Islamic countries, target
Muslims), (4) outbound Islamic brands (halal, originate from Islamic countries, not necessarily
target Muslims). This categorization may result in different attitudes, subjective norms, intention
and purchase behavior because Muslims pay attention to their actions in the context of Islamic
rules which pertains Muslims to be careful about what, when, where, how, from who and how
much to consume (Alserhan, 2010b). Therefore, the researchers propose the following
hypotheses:
H1: Attitude towards the chocolate brand differs among the three types of Islamic brands
H2: Subjective norms related to the chocolate brand differs among the three types of Islamic
brands
H3: The intention to choose the chocolate brand differs among the three types of Islamic brands
H4: Purchasing behavior of the chocolate brand differs among the three types of Islamic brands

3. Theory of reasoned action

The model of the present study is derived from TRA developed by Fishbein and Ajzen
(1975). According to TRA, a persons actual behavior can be predicted through behavioral
intention, which refers to the expectance and probability of buying (Tuu & Olsen, 2012) and
individuals conscious plan to make an effort to purchase a brand (Spears & Singh, 2004).
TRA defines a persons intention as a function of two basic determinants. First determinant
includes individuals favorable and unfavorable evaluation about object/performing behavior and
called as attitude toward the object/behavior (Fishbein & Ajzen, 1975; Ajzen, 2001). Second
determinant is subjective norm defined as the person's beliefs about what important referents
think (s)he should do (Wiener, 1982).
TRA model has received significant attention within the field of consumer behavior and
Sheppard, Hartwick and Warshaw (1988) concluded, as a result of a meta-analysis of past
research on TRA, that the predictive utility of the model was strong across conditions. Evidently,
the theory has also been applied to Islamic marketing contexts. For example, Hanudin (2012)
analyzed Islamic credit card usage intention among Islamic banks customers through TRA.
Additionally, Lada, Tanakinjal and Amin (2009) used TRA to predict intention to purchase halal
product. Alam and Sayuti (2011) used Theory of Planned Behavior, which is an extension of
TRA, to examine halal food purchasing behavior in Malaysia. In the same context, Mukhtar and
Muhammad (2012) investigated the role of Muslim attitude towards Halal products, their
subjective norms and religiosity in predicting intention.
According to TRA, the more favorable attitude and the greater social pressure lead to a
stronger intention that turns into an actual behavior (Ajzen & Fishbein, 1980). Hence, three
additional hypotheses can be portrayed as:
H5: The relation between attitude and behavior is mediated by intention for Keyif (Turkish brand
with halal certificate)
H6: The relation between attitude and behavior is mediated by intention for Friedel (inbound
Islamic brand)
H7: The relation between attitude and behavior is mediated by intention for Noor (true Islamic
brand)

4. Method
One hundred-twenty undergraduate students at a major Western university in Turkey
participated the experiment. The experiment was announced through flyers posted around the
faculty building. The between-subjects experimental design consisted of three conditions
(adapted from Alserhan, 2010b): true Islamic brand (n=40), inbound Islamic brand (n=40) and
Turkish brand with halal certificate (n=40). The item used in the experiment was chosen as
chocolate because food plays an important role in Islam, and Muslims expenditure on groceries
is high due to their large families and the literature is in its infancy in terms of halal branding in
FMCG (Alserhan, 2010a; Wilson & Liu, 2010). Subjects were paid 2.5 TL (approx. 1.00) prior
to the presentation of the choice and were randomly assigned to one of the three conditions.
Different scenarios were designed for the conditions, which provide information about the brand.
In each scenario brand name was depicted as a fictitious brand name in order to minimize prior
attitudes, which may result in subject bias. The brand names manipulated in the scenarios were
selected through a pretest in which 21 participants rated alternatives for the brand names on
seven-point scales (1= Islamic brand name, and 7= non-Islamic brand name, 1=not a domestic
brand name, and 7= domestic brand name). As a result, Noor (MIslamic=5.10, Mdomestic=2.81) was
selected for true Islamic brand condition, Friedel (MIslamic=2.19, Mdomestic=2.19) for inbound
Islamic brand condition, and Keyif (MIslamic=2.71, Mdomestic=5.29) for Turkish brand with halal
certificate condition. Background information, which covers three different conditions about the
company and brand, is presented. For Islamic brand condition the following scenario was used:
Noor Chocolates plans to launch a new product in the Turkish market. They are produced in a
Muslim country and target Muslim consumers. For inbound Islamic brand condition: Friedel
Chocolates as a MNC plans to launch a new product in the Turkish market. They have halal
certificate issued by Turkish Standards Institution (TSI) was used. In Turkish brand with halal
certificate condition: Keyif Chocolates as a Turkish company plans to launch a new product in
the Turkish market. They have halal certificate issued by TSI was used.
After reading these scenarios, subjects filled the questionnaire about attitude, subjective norm
and behavioral intention for purchasing the brands. Attitude was assessed with a five-item
semantic differential scale based on Shimp and Kavas (1984) and Chang (1998). On a sevenpoint scale, subjects were asked whether they think buying the brand was good-bad, usefuluseless, foolish-wise, valuable-worthless, harmful-beneficial. The subjective norm was measured
by two-items on a seven-point scale based on Shimp and Kavas (1984): My family thinks I
definitely (should not/should) buy this brand, My close friends think I definitely (should
not/should) buy this brand. The subjects intention to buy the brand in the relevant condition
was measured using two seven-point items based on Chang (1998): I intend to buy this brand in
the future, I will make an effort to buy this brand in the future. Since the study was conducted
in Turkey, back translation was used to assure the accuracy of the translation of the questions.
After completing the questionnaire, the chocolate brand mentioned in the relevant scenario was
presented to the subject. Chocolates were packaged compatibly (brand name, logo and halal
certificate, depending on the condition, were designed resembling a real chocolate) to the three
conditions. The experimenter asked the subjects whether they wanted to buy the chocolate or not
for 1.00 TL (approx. 0.40).
Since the constructs were formed through a theoretical framework, which was derived from a
widely accepted theory, construct validity of the instrument is justified. Convergent and
discriminant validities were also tested. Convergent validity is indicated by evidence that

different indicators of theoretically similar constructs are strongly interrelated (Brown, 2006).
Therefore, a preliminary confirmatory factor analysis was undertaken to test the adequacy of the
measurement model for TRA model, which consisted of three latent constructs and nine
observed variables, was performed. Three nested models were compared and the hypothesized
model treated the three variables as distinct. This most differentiated model was compared to a
two-factor model, which combined attitude and subjective norm as one single construct, and to a
one-factor model, which combined all three variables. The results revealed that the hypothesized
three-factor model fit the data better than the two alternative models as indicated by significant
2 differences (2(df) for three-factor model: 80.9(24), two-factor model:173.8(26) one-factor
model: 223.9(27)). Thus, the results provide evidence for discriminant validity (Anderson &
Gerbing, 1988). Next, an exploratory factor analysis was used to confirm the dimensionality of
the constructs. 75.4 per cent of variance is explained by three constructs (Attitude=32.2%,
Subjective Norm= 22.3%, Intention= =20.9%). All factor loadings range from 0.54 to 0.89.
These results provide evidence for convergent validity (Bagozzi, Yi & Phillips, 1991). Internal
reliability was computed independently within each of the constructs and yielded favorable
results (Cronbachs for Attitude = .890, Subjective Norm = .846, Behavioral Intention = .843).
5. Results
Univariate analysis of variance, log linear analysis and regression analysis were conducted in
order to test the hypotheses and mean scores for each construct were used. First of all, the
univariate analysis of variance was used to test the hypotheses 1-3 which shows that attitude
(F(2,117) = 5.111, p < .01, Adj. R2 = .065), subjective norm (F(2,117) = 6.875, p < .01, Adj. R2 =
.090) and behavioral intention (F(2,117) = 5.730, p < .01, Adj. R2 = .074) significantly differed
across conditions. Group comparisons of the conditions for H1- H3 through difference contrasts
indicated that attitude (p > .05, for 95% CI, LB = -1.094, UB = .044), subjective norm (p > .05,
CI = 95% for LB = -.620, UB = .686), and intention (p > .05, for 95% CI, LB = -.949, UB =
.349) for purchasing Keyif and Friedel did not differ, whereas each dependent variable
significant differences for purchasing Noor compared to other brands (Attitude: p < .05, for 95%
CI, LB = -1.145, UB = -.160; Subjective Norm: p < .05, for 95% CI, LB = -1.624, UB = -.493;
Intention: p < .05, for 95% CI, LB = -1.487, UB = -.363). Results indicate that the mean score of
attitude toward purchasing Noor was 4.02 (SD = 1.310), which shows less favorable attitude
compared to other brands. Additionally, subjects stated that their family and close friends think
that they should not purchase Noor (M = 2.71, SD = 1.38) and also their buying intention for
Noor was relatively lower than other brands (M = 3.49, SD = 1.55). In order to test H4, log-linear
analysis was employed and results revealed that conditions explained only 0.42% variance of
behavior and buying behavior of three brands did not differ (p > .05), therefore H4 is rejected.
Log-linear analysis also reveals that more than 50% of respondents selected buying option.
A series of regression models were employed according to Baron and Kenny (1986)s
methodology to test H5-H7. No mediating effect was observed for the conditions Keyif and
Friedel both for attitude and subjective norm. Therefore H5 and H6 are rejected. On the other
hand TRA model worked as intended for purchasing Noor and H7 is accepted. To test the
mediating effect of intention on the relation between attitude and behavior, first, a significant
effect of attitude on intention was found ( = .816, p = .000, t = 5.866). Second, attitude
significantly affected behavior ( = .883, p = .019). Finally, including intention in behavior as a
mediator variable resulted as a loss in significance in the relation between attitude and behavior

( = .481, p = .266), while the effect of intention remained significant ( = .721, p = .048). A
Sobel test for the mediation model was also significant (z = 2.0, p < .05). To test the mediating
effect of intention on the relation between subjective norm and behavior, first, a significant effect
of subjective norm on intention was found ( = .639, p = .000, t = 4.246). Then, subjective norm
significantly affected behavior ( = .556, p = .041). Finally, including intention in behavior as a
mediator variable resulted as a loss in significance in the relation between subjective norm and
behavior ( = .122, p = .751), while the effect of intention remained significant ( = .823, p =
.026). A Sobel test for the mediation model was also significant (z = 2.25, p < .05).
6. Conclusion
This paper provides preliminary assessment about Islamic branding concept in the framework
of TRA. It is shown that in general, attitude, subjective norm, and intention did not differ for
buying inbound Islamic brand or Turkish brand with halal certificate. On the other hand, buying
true Islamic brand has been perceived differently compared to other brands. Consumers had
more unfavorable attitude and subjective norm for purchasing true Islamic brand. In this respect,
companies targeting Turkish consumers can be recommended to prefer using foreign or Turkish
brand, which has halal certificate rather than a brand name which has Islamic means and points
out an Islamic origin. Consumers may have shown a politically motivated brand rejection
behavior (Sandikci & Ekici, 2009) but this inference needs further investigation. It is also
important to note that actual buying behavior did not differ across brands and most of the
consumers chose the option to buy. These brands were introduced as new brands entering the
Turkish market and the products were low involvement products. Therefore consumers may have
been triggered to try the products. On the other hand, even though the purchase behavior did not
show difference at the initial launch in the market, consumer purchase behavior may change
unfavorably in time depending on the attitude, subjective norm and intention formation since
TRA was significantly meaningful for true Islamic brand. Nevertheless, Islamic brands can
benefit from the first trial of the products on condition that they follow accurate marketing
strategies that focus on converting attitudes from negative to positive.
In this study, rather than decision making process, the outcome was examined which ignores
the underlying thoughts that subjects spontaneously generate in the three conditions. This
limitation also points out promising areas for further research.

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