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Procedia - Social and Behavioral Sciences 130 (2014) 120 – 128

INCOMaR 2013

Assessing Consumers’ Perception, Knowledge and Religiosity on

Malaysia’s Halal Food Products
Mahiah Saida,*, Faridah Hassanb, Rosidah Musab and Rahman, N.A.b
a
Marketing and Entrepreneur Department, College of Business Management and Accounting,
Universiti Tenaga Nasional, 26700 Muadzam Shah, Pahang, Malaysia
b
Faculty of Business Management, Universiti Technology MARA, 40450, Shah Alam, Selangor, Malaysia

Abstract

Malaysia’s Halal food market is worth RM36.63 billion or 6.3% of nominal GDP (2009 prices). Malaysian SMEs
are now at par with the major international businesses because of Malaysian Halal logo. It has global markets
accessibility and perceived as premium products. About 62.6% of the Malaysia population is between the ages of
15-64 years old (16 million) Moslem consumers with money to spend are looking for food that complies with the
Islamic requirements. The domestic Halal industry is contributing less than 2% of gross domestic product but it is
expected to increase to about 5.8% by 2020. Thus, the need to understand the factors influencing their decisions in
purchasing Malaysia-Halal food products. This study used a quantitative approach through a survey method and
multiple regression analysis was used to analyze the data. The respondents are the participants of World Halal
Forum 2011 and World Halal Research Forum 2011, academicians and students of various higher learning
institutions. The results of 740 respondents show that different nationalities have different perception towards
Malaysia in general, its products and specific Malaysia’s Halal food products. Research result shows that the
consumers’ perception and their level of knowledge and religiosity differs, although more than 94% of the
respondents are Muslim. Halal knowledge, information and education by the government agencies are perceived as
lacking. Furthermore, this research also shows that about 40 to 50% of the consumers have high level of religiosity.

Keywords: Halal food; consumer perception; knowledge; religiosity

* Corresponding author. Tel.: +09 – 455 2020 extn. 2036

E-mail address: mahiah@uniten.edu.my

1877-0428 © 2014 The Authors. Published by Elsevier Ltd. Open access under CC BY-NC-ND license.
Selection and peer-review under responsibility of the Organizing Committee of INCOMaR 2013.
doi:10.1016/j.sbspro.2014.04.015
 Mahiah Said et al. / Procedia - Social and Behavioral Sciences 130 (2014) 120 – 128 121

1. Introduction

Malaysia Halal food sector is now becoming a strong economic force locally and globally. The demand for Halal
food accelerates with the increase of awareness among the 60.4% Moslem in Malaysia. About 62.6% of the
Malaysia population is between the ages of 15-64 years old, which means that there are about 16 million Moslem
consumers with money to spend are looking for food that complies with the Islamic requirements (Ariffin, 2007).
Currently, the local Halal industry is contributing less than 2% of gross domestic product but it is expected to
increase to about 5.8% by 2020 (Povera, 2010).
There are more than 300 bodies globally offering Halal certification but only 15% are recognized by JAKIM.
Halal industry must exist alongside solid Shariah foundations. In 2003, 44.1% of the SMEs manufacturing total
output are from the food and beverage products which amounting to 84.4 billion (Aris, 2007). There are over 33,000
companies – food and non-food – certified by JAKIM currently (Ariffin, 2007). Malaysia’s Halal certification is
recognized worldwide among Muslim and Non-Muslim countries, which is ISO compliance developed by the
Department of Standard Malaysia. The standard complies with international standards such as Good Manufacturing
Practice (GMP) and Good Hygiene Practice (GHP).
Malaysia also has a balanced knowledge of both Islamic tenets and other areas including technological
development and sciences, particularly food sciences, biochemistry and microbiology as well as in business
management. Department of Islamic Development Malaysia (JAKIM) has resumed the responsibility as the Halal
Certification body effective from 1 August 2009. The Halal Directory features companies which are registered with
MATRADE and have products which are certified Halal (MATRADE, 2011)
Food producers in Malaysia did practices Halal processes during production but it is moderately correlated
(Othman et al, 2006). According to Shahidan et al (2006), the reasons for the moderately relationship are the
inconsistency of animal slaughtering definition, the introduction of Halal logo by various bodies, the use of Arabic-
sounded or Islamic-signaled brand names, the rampant display of Quranic verses and the lack of enforcement on the
misused of Halal logo. Malaysia’s suppliers of Halal food products also face various challenges in order to have a
slice of the lucrative Halal market, namely, physical present of non-Halal elements (emulsifier, gelatin, enzymes,
glycerin and lecithin), Halal awareness goes beyond meat and meat-based products, negative mindset about Halal
industry (small & segregate markets) and perception about Muslims – islamophobia.
However, Malaysia’s strengths as the Halal hub as highlighted by Ariffin (2007) include global recognition of
JAKIM Halal certification and auditing, special tax incentives for Halal food production, double tax deduction of
expenses for Halal certification, collaborating with international retailers & brands, Halal cold storage & Halal
express facilities, Port Klang Free Zone Halal for Halal products fast tracked Halal certification approvals and well-
connected routes worldwide.
The research collaboration between Oxford University and Universiti Malaya (headed by Professor Temporal),
highlighted that Malaysia does not have sufficient supply of meat and poultry to export, thus it was recommended to
penetrate the Halal global market with processed food products, ingredients (pastes and herbs), luxury items,
pharmaceutical and tourism (Temporal, 2009). Developing industry players is one of the focuses in the 10th Malaysia
Plan. 20 successful companies abroad will be given greater exposure and increase commercialization of their
products. SMEs will be nurture and develop to become bigger players and exporters (KasanAnuar, 2010).
The emergence of Halal economy (Evans, 2011) is derived from the global Muslim consumers who seek for total
Halal lifestyle (Razak, 2010). It encompass the food they eat, the pharmaceutical, personal care and cosmetic
products, banking services, travel, education, entertainment and eceteras. According to Mr Hamid Badawi of Al
Islami Foods, the demand for Halal food is on the rise and the expected growth rate is at 20% by 2025.The global
Halal trade value was estimated at US$2.1 trillion (RM7 trillion) a year and the food sector was estimated at US$693
billion (RM2.3 trillion) a year (Povera, 2010).

2. Literature Review

2.1 Halal Food

Halal is an Arabic word which means permissible or lawful. In the Holy Quran, God commands Muslims and all
of mankind to eat of the Halal things - "O mankind! Eat of that which is lawful and wholesome, and follow not the
122 Mahiah Said et al. / Procedia - Social and Behavioral Sciences 130 (2014) 120 – 128

footsteps of the devil. Lo! he is an avowed enemy of you." (2:168). Halal food encompasses meats, seafood, frozen
foods, pasta and noodles, canned food, biscuits and cookies, fruits, chocolate and candy, snack food, seasoning and
spices, sauce/ spread/vinegar, packaged cooking sauces, cereals and beverages. Halal food and drinks can be
described as anything that man can eat or drink and there is no legal evidence prohibiting it, and its constituents are
free from any unlawful or impure elements. It shall be good and pure and its consumption brings no harm. Animals'
meat must be from animal slaughtered in the Islamic manner and must not be dedicated to anyone but Allah and
must be obtained through lawful manner.
Based on Quranic verses that permit utilizing what is in the heavens, on the land and in the sea which are
associated with the implementation of the rule "the basic of things is permissibility", anything edible or drinkable is
Halal and beneficial as long as there is no legal evidence prohibiting it. This is because, in Islam, only the Legislator
(Allah) has the absolute jurisdiction to attribute Halal or haram quality to things, sources and deeds. "But say not -
false things your tongues may put forth - this is lawful and this is forbidden, so as to ascribe false things to Allah,
for those who ascribe false things to Allah will never prosper" (16:116).

The concept of Halal suggests that the word 'Halal' is associated with the word 'good' or is implicitly presented in
the context of the goodness of things. "They ask you what is lawful to them (as food), say lawful unto you are (all)
things good and pure and what you have taught pour trained hunting animals (to catch) in the manner directed to
you by Allah, eat what they catch for you but pronounce the name of Allah over it, and fear Allah for Allah is swift
in taking account. This day are (all) things good and pure made lawful to you" (5:4-5). Halal food and drinks must
not contain in their ingredients any unlawful or impure substance, in other words, their matter and ingredients must
be free from any forbidden or dirty component. Food or drinks must be safe for consumption and must not contain
any element that harms the human body and health. Since one of the main objectives of the Shari'ah is the protection
of human beings, any food or drink which may cause harm to the human body and health is forbidden even if there
is no prohibiting legal evidence. "And make not your own hands contribute to (your) destruction" (2:195); "Nor kill
(or destroy) yourselves for verily Allah has been to you most merciful" (4:29)
For animals whose meats God permits eating they must be slaughtered in the Islamic manner except for marine
life and locusts. Any food drink, despite satisfying all of the abovementioned conditions, if acquired through illegal
means (theft, robbery etc.) is considered haram (forbidden).
Sungkar (2010) indicated that there are several factors influencing consumers’ purchase decision and behavior on
Halal food products. The factors are the consumers’ religiousness and beliefs, their confidence and trust towards
Halal logo/labels, the rising income levels, the higher educational levels, the limitless access to information,
increasing demand for convenience goods (less time to prepare & consume) and rising concerns over health and
nutritional values. Thus, important questions in this field remain unanswered: What are the factors that could
influence consumers’ perception towards Malaysia halal food products? Do knowledge and religiosity have an
influence on consumers’ perception toward Malaysia halal food products?

2.2 Knowledge

Product knowledge is an important factor in consumer decision-making. It can influence how consumers
accessing the products (Rao & Monroe, 1988). Two knowledge constructs are distinguished: objective knowledge
(i.e. accurate information about the product stored in consumer’s long-term memory) and subjective knowledge (i.e.
people’s perceptions of what or how much they know about a product based on their subjective interpretation). The
level of correspondence between objective and subjective knowledge usually is not high (Park et al, 1994), with
consumers being generally overconfident about themselves (Alba & Hutchinson, 1987).

A positive relationship has been reported between knowledge and dietary health preventive behaviour (Petrovici
& Ritson, 2006) as well as between knowledge and positive beliefs towards health-related behaviour (e.g. breast-
feeding) (Swanson, 2006). Consumer knowledge is a crucial constructs in consumer behavior and it affects
information searching (Brucks, 1985; Rao & Sieben, 1992) and information processing [Alba & Hutchinson, 1987;
Bettman & Park, 1980; Rao & Monroe, 1988; Nunnally & Bernstein, 1994). Consumers make choices after they
acquire information and recall different information based on different patterns of decision making. They make
decisions based on the information in their memories (Lynch et al 1988).
 Mahiah Said et al. / Procedia - Social and Behavioral Sciences 130 (2014) 120 – 128 123

2.3 Religiosity

Religiosity is defined as the extent to which an individual is committed to the religion he or she professes and the
teachings, such as the individual’s attitudes and behaviour reflect this commitment (Sungkar, 2010). The resurgence
of Islam have led to the increase of awareness on the contents, processes, sources and other determinants of
consumer products that they are consuming (Hearty, 2007). Consumers' likes and dislikes are strongly influenced by
their religious commitment. Consumers they will consider buying new products if these products do not violate or
contradict their consecrated ideas (Zucker, 1986). Religious commitment affects consumers' orientations regarding
consumption patterns, as well as their social behavior. The supposition is that a highly religious person will evaluate
the world through religious schemas and integrate his/her religion into his/her life (Mokhlis, 2006).
Religiosity commitment plays an important role in people's lives through shaping their beliefs, knowledge, and
attitudes, regardless of their religious orientations (Muslims, Christians, Buddhists, and others). These religious
commitments and beliefs influence the feelings and attitude of people towards consumption (Jamal, 2003).

3. Research Objective

The Halal food producers in Malaysia have to face major challenges in their effort to offer Halal food products
to the Muslim consumer, domestically as well as abroad. The challenges include the numerous products with
physical present of non-Halal elements in Halal-labeled products in the form of emulsifier, gelatin, enzymes,
glycerin and lecithin, and also negative mindset about Halal industry is just a tiny portion of a bigger cake (Halal
Journal, 2009) and perception about Muslims – islamophobia. The Minister of International Trade of Trade and
Industry highlighted that the world has recognized Malaysia as an exemplary Islamic country and the global
recognition offers vast opportunity to market food and non-food products with confidence. The governments’
agencies are providing guidance and financial support to help small and medium scale entrepreneurs to market their
Halal products ournal(KasanAnuar, 2010) He urged Malaysian SMEs industry players to seize the opportunities
because the Halal industry is expected to increase by 20% this year (Povera, 2010).
Malaysia Halal marketers need to identify the position of Malaysia in the mind of various consumers throughout
the world. Knowledge on the consumers’ perception would be an advantage in order to create and offer Halal
product lines that would cater to the global market. The need to understand and define the scope and level of global
recognition towards Malaysia as an Islamic country would be crucial in order to ensure that our product penetration
is maximized. Furthermore, the research findings would be able to assist the want-to-be global entrepreneurs to
create a competitive advantage position in their product offerings. Muslims from different parts of the world are
different in terms of their food demand and purchasing power (Bidin, 2010). Thus, the research objectives identified
are as follows;

i What are the factors that could influence consumers’ perception towards Malaysia Halal food products?
ii. Do knowledge and religiosity have an influence on consumers’ perception towards Malaysia Halal food
products?

4. Research Methodology

4.1 Data Collection

Data collection method were carried out by the used of questionnaires and interview. The interview method is
chosen to identify the underlying Halal issues among the Malaysian consumers and experts from various fields
shared their opinions and advice on the current trend and scenario of Halal food industry and demand.

4.2 Instrument

The questionnaire was designed in a statement format and then tested for reliability and validity. Respondents
need to select their agreeableness level by using 5-point Likert scale, whereby “1” indicate Strongly Disagree and
124 Mahiah Said et al. / Procedia - Social and Behavioral Sciences 130 (2014) 120 – 128

“5” indicates Strongly Agree” responds. Rating 3 is for respondents who feel they are just “Not Sure” with
statements.
It was devised to collect primary data required and is divided into five sections. Section 1 collates the
demographic profile of the respondents participating in the study. Section 2 consists of statements on the consumers’
consumption behavior.
Section 3 determines the consumers’ knowledge on Halal matters, whilst Section 4 investigates their perception
on Halal products from Malaysia as well as their level of ethnocentrism. Section 5 consists of open-ended questions
on Halal key issues and the last question requires the respondents to choose the correct Halal logo from JAKIM.

4.3 Sample and Sampling Method

900 questionnaires were distributed among the participants of World Halal Forum 2011 and World Halal
Research Forum 2011, academicians and students of various higher learning institutions. 835 were returned and only
740 questionnaires were completed and analyzed.

5.0 Research Findings

5.1. Demographic Profiles

Table1depicts the demographic profile of the respondents and 58.4% of them are between the age of 20 and 35
years. Those between 36 and 50 years old are about 22%. Only 10% aged less than 20 years and 9.6% are above 51
years old. The gender of respondents is representative of Malaysia with 41% male and 59% female. About 94.5% of
the respondents are Malay, whilst the Chinese and Indian are 2.7% and 1.5% respectively. About 1.5% is in the
Others ethnic group.

Table 1. Demographic profiles

Items F % Items F %
Age Range Less Than 20 74 10.0 Education Post Graduate 143 19.4
(Yrs old) 20 - 35 432 58.4 Degree 298 40.4
36 - 50 163 22.0 Diploma 161 21.8
51-65 70 9.5 Others 138 18.3
Above 65 1 0.1
Gender Male 303 41.0 Income No Income 231 31.2
Female 437 59.0 (RM) Under 1000 52 7.0
1000 to 4999 334 45.1
4000 to 9999 98 13.2
More than 10 000 25 3.4
Race Malay 698 94.5 Occupation Self-Employed 69 9.4
Chinese 20 2.7 Employee 379 51.4
Indian 11 1.5 Student 235 31.9
Others 11 1.5 Unemployed 29 3.9
Others 28 3.4

The education level of the respondents and more than 40% of them are Degree holders and 22% are Diploma
holders. More than 19% are with Post graduate degree and 18.3% have other qualifications.
About 52% of the respondents are employees of organizations, whilst 31% are students of higher learning
institution. 10% are unemployed and Others are about 3.4%. The result also shows that more than 45% are earning a
monthly income of between RM1000 and RM4999. About 31.2% of the respondents are without any monthly
income which is consistent with the total population of students in the sample.
 Mahiah Said et al. / Procedia - Social and Behavioral Sciences 130 (2014) 120 – 128 125

From Table 2, 59% of the respondents purchase their Halal food product between 3 and 5 times a week, whilst
30% of them never make any purchase. 8.5% purchase about 2 times weekly and only 1.4% purchase their Halal
food products more than 5 times a week. More than 42% of the respondents received the information about Halal
from specialized magazines and another 32% are from newspapers. Only 11% received the information about Halal
from the social networks. About 12% are getting the information from radio, whilst from television is only 3% and
only 1.6% are from advertisements. 75% of the respondents are making their purchases of Halal food products at
major supermarkets. About 15% went to Halal shops and 9.35 at convenience shops. Only 0.1% makes their
purchase at shops near the mosque and online respectively.
Table 2 also shows the reasons the respondents are purchasing Halal food products for their consumption. About
87% purchase Halal food products because if its’ mandatory requirements for the Muslim. There are respondents
(4.2%) who purchased Halal food products because it has been endorsed by government. About 4% make the
purchase due to the quality and taste of the products is outstanding and another 0.7% due to its good promotional
offers. 4.1% make the purchase because the food products are easily available in their community and another 0.5%
purchase because it is cheaper.

Table 2. Frequency, location and reasons of purchase

Items F %
Frequency of Purchase Never 222 30.0
0 - 2 times 63 8.5
3 - 5 times 435 58.8
More than 5 times 20 1.4
Shopping Location Major Supermarket 555 75.0
Halal Shops 108 14.6
Convenience Shops 69 9.3
Near Mosque 1 0.1
Online 1 0.1
Others 6 0.8
Reasons of Purchase Mandotary 641 86.6
Endorsed by government 31 4.2
Quality and Taste 29 3.9
Promotions 5 0.7
Cheaper 4 0.5
Easier 30 4.1
126 Mahiah Said et al. / Procedia - Social and Behavioral Sciences 130 (2014) 120 – 128

5.2. Factor Analysis

In this study, factor analysis is used to summarize a large number of variables into a smaller number of factors
with a minimum loss of information. The factor analysis result shows that the items have been grouped into 4
components.
Component 1 consists of 10 factors loading which cover the consumers’ preference towards Malaysia’s Halal
food products. The factor loading of Component 2 consists of 11 items which measure the consumer perceptions on
Malaysia’s Halal food products. The third component consists of 4 items loading which focused on the consumers’
trust and confidence on Halal certification for food products from Malaysia.

The Kaiser-Mayer-Olkin (KMO) test for measuring sampling adequacy and Barlett’s test of sphericity display
significant results. Table 3 indicated that the KMO value of 0.906 is greater than 0.5, which falls in the acceptable
range and can be considered highly satisfactory. This implies that the reduced size of variables meets the elemental
requirement for factor analysis.

Table 3: KMO and Bartlett’s Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.906
Approx. Chi-Square 15133.653
Bartlett's Test of Sphericity df 1596
Sig. 0.001

This indicates that the factor analysis is enabling to be further analyzed. Furthermore the Bartlett’s Test of
Sphericity is significant at 0.00 levels. It means that there are inter correlations among the variables.

5.3 Reliability Analysis

Table 4 shows that all dimensions are reliable and acceptable for consumers’ preference, their perceptions and
trust towards Malaysia’s Halal food products.

Table 4. Reliability Analysis

Cronbach’s
Dimensions No. of items
Alpha
Consumers’ preference on Halal food 0.847 11
Perception on Malaysia’s Halal food 0.879 8
Knowledge 0.531* 7
Consumer trust and confidence 0.722 6
Religiosity 0.678** 6

Note: The results are modestly reliable and suffice as determined by Nunnally (1967)

Though the Cronbach Alpha for knowledge and religiosity are 0.531 and 0.678 respectively, these are taken in
because the results are modestly reliable and suffice (Nunnally, 1967).

5.4 Correlations

Table 5 shows the results of correlation analysis of the consumer perception variables has significant correlation
to preference (0.212), trust (0.132) and religiosity (0.223). There is also significant correlation between consumer
preference and trust (0.245), preference and religiosity (0.640), and trust and religiosity (0.280).

5.5 Multiple Regression Analysis

 Mahiah Said et al. / Procedia - Social and Behavioral Sciences 130 (2014) 120 – 128 127

Table 5 shows that the results confirmed that Knowledge, Trust and Religiosity (KTR) are the significant
determinants for the Muslim consumer to purchase Halal food products with the result of 0.001 respectively.

Table 5: Multiple Regression Analysis

Model R R Square Adjusted Std. Error of Change Statistics
R Square the Estimate
R Square F Change df1 df2 Sig. F
Change Change
1 .642 .413 .410 .66742 .413 164.793 3 704 .000

a. Predictors: (Constant), Trust, Knowledge and Religiosity

The R-square value of 0.413 shows 41.3% variations in consumer perception is explained by
KTR and decrease only to 41% (adjusted R-value = f 0.410).

6.0 Discussion and conclusion

The findings indicate that different nationalities have different perception towards Malaysia Malaysia’s Halal
food products. It also shows that the consumers’ perception and their level of knowledge and religiosity differs,
although more than 94% of the respondents are Muslim. Halal knowledge, information and education by the
government agencies are perceived as lacking. Furthermore, this study also shows that about 40 to 50% of the
consumers have high level of religiosity.

The growing awareness of Halal in non-Muslim circles presents a unique opportunity to bring the Islamic ethical
principles to the greater population through the expansion of the definition of the Halal brand. It would benefit the
society at large from using these socially conscious goods and services, but Muslims will be rightfully seen by non-
Muslims as contributing something of value to humanity (Amanullah, 2009).

7.0 Limitations and Future Research

It is exploratory in nature and due to limited resources and time constraints, the sample size was quite
small. Thus, the results of the study would show some instability of measures and may introduce some
biasness. Besides that the respondents are the participants of the various Halal food conferences, forums and
seminars. They may not reflect the population breakdown of the Moslem consumers in Malaysia. This means the
findings could not be directly generalized to other organizations or other industries. Further testing would be needed
for confirmation of the relationship in other settings. Specific dimensions have been chosen for this study because of
their particular relevance to consumer perception. It is possible that other factors would reflect different results
(Karajin et.al, 2007). Religiosity is sensitive and private in nature thus may subject to reduce validity and reliability
(King & Crowther, 2004). Further studies should be conducted to scrutinize the different Muslim consumers’
ethnicity, culture and nationality, which could be vital in designing Halal food products that could meet Moslem
consumer across the world.
The social sciences researches have to investigate the potential of Halal as the new green. The concept of Halal
and Toyyiban should be communicated differently to the non-believers, so that Halal could equate ethical. This
would expand the Halal products market beyond the Muslim of the world. The younger, more educated and techno-
savvy Muslims require different kind of music and entertainment. The popularity of Mawi and Maher Zain are due
to the cravings of modern music and religiosity. Muslim fashion also spread out like wildfire among the modern
Muslims.

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