The Influences of Islamic

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Islamic retail
The influences of Islamic mix approach
retail mix approach on
purchase decisions
Hilda Monoarfa, Juliana Juliana and Rahman Setiawan
Islamic Economics and Finance, Universitas Pendidikan Indonesia,
Bandung, Indonesia, and Received 29 July 2020
Revised 5 January 2021
15 March 2021
Rizuwan Abu Karim 11 April 2021
Pengurusan dan Perniagaan, UiTM Melaka, Jasin, Malaysia 8 June 2021
12 July 2021
Accepted 5 August 2021

Abstract
Purpose – This study aims to investigate the influence of the Islamic retail mix of product, price, promotion
and store atmosphere on consumers’ purchase decisions.
Design/methodology/approach – The research method is a survey with a purposive sampling
technique, involving 100 respondents. The data was analyzed using the SEM PLS analysis tool.
Findings – Products and promotions are partially insignificant to purchasing decisions in Islamic retail.
This is because consumers are convinced of all the products offered by the sharia retail mix, so they are less
concerned with products and promotions. However, this study reinforces that price and store atmosphere has
a significant impact on purchasing decisions in Islamic retail.
Research limitations/implications – This study focuses on product, price, promotion and store as its
variable dependent, with two of the variables are less significant compared to the rest. In addition, the
samples are relatively small, leading to concerns about its ability to generalize the results of the study. The
instruments that are used are also relatively limited. Additionally, the relevant characteristics of respondents
are not evenly distributed. Thus, further study investigating similar topics might need to increase the number
of samples, expand the characteristics of the sample, and including such variables as process, location, brand
equity and customer’s trust level.
Practical implications – To encourage consumers to make purchases on Islamic retail, companies
should emphasize price and store atmosphere, which are the main considerations for consumers in making
purchases at Islamic retail. Product and promotion are less prominent in Islamic retail because they are
similar to those carried out by conventional retail.
Originality/value – This paper is significant in investigating the effect of sharia retail product mix,
price, promotion and store atmosphere on consumer purchasing decisions at Sehati Muslim Mart Daarut
Tauhid (SMM-DT), which is located in a famous boarding school in Indonesia. This study has succeeded
in revealing the strengths and weaknesses of the variables that influence consumer purchasing decisions
in Islamic retail.
Keywords Price, Store atmosphere, Promotion, Islamic retail, Purchase decision, Product
Paper type Research paper

Introduction
The discussion about retail mix cannot be separated from Islamic marketing. Studies on
Islamic marketing began to emerge in 2011 (Wilson, 2014; Wilson and Liu, 2011; Wilson,
Journal of Islamic Marketing
© Emerald Publishing Limited
1759-0833
This research is an independent research that does not use sponsors from outside parties. DOI 10.1108/JIMA-07-2020-0224
JIMA 2012), in which it was initially associated with a strategic foundation centered on the outside
to inside cultural aspects with considerations on social and psychological, anthropological,
communal and ethnic perspectives. Islamic marketing also assimilates into the world of
retail, particularly in the retail mix. The retail mix is one of the marketing procedures that is
embraced by retailers to influence consumer’s purchase decisions (Omer, 2019). Business
strategies related to the retail mix are expected to encourage consumers in making
purchases (Kashif and Rehman, 2014). According to Abdullah et al. (2015a, 2015b), the retail
mix consists of product, price, promotion, retail service, location and store atmosphere.
Meanwhile, Hashim et al. (2014) specifically define that Islamic retail mix consists of
location, product, price and store atmosphere. As those aspects affect consumers in choosing
stores, management could now evaluate their marketing strategy to be more effective
(Muhamad and Alwi, 2015). Consumers will choose to store at a store if they feel the retail
mix at the store is under their preferences (Nurcholifah, 2014). Hence, strategies emphasizing
retail mix are essential for retail companies (Elbeck and Dedoussis, 2010).
Studying and analyzing consumer behavior in terms of purchase decisions are crucial for
the knowledge would provide significant input on a company’s strategic planning (Wilson
and Grant, 2013). In addition, to survive and thrive, a company needs to understand
consumer behavior because such understanding would serve as a valuable asset in
competing with other companies (Lin, 2014). In this case, one of the Muslim consumers’
behaviors is considering halal labels in choosing and consuming foods and beverages (Jamal
and Sharifuddin, 2015).
The process of evaluating, finding, buying, using, or disposing of a product in
consumer’s decision perceptions. Companies should completely understand the factors
taken into account by customers in purchase decisions and the factors that could facilitate
the management in evaluating the effectiveness of its marketing (Ishak et al., 2016). One of
those decisions can be influenced by the marketer who provides information about the
product or service to influence the process of consumers’ assessment (Farah and El Samad,
2014).
Nowadays, more people embrace Islam rules, and this has improved the growth of
Islamic retail within societies (Rassool, 2018). However, Islam does not specifically regulate
the realization of the marketing mix to be following Islamic teachings (Dwiyananda and
Mawardi, 2015). Wilson (2012) stressed that Islam is a way of life and belief that Islam
teachings could provide a revolutionary means for mankind to balance the existing liberal
system. These facts should become the spirit for Muslims in doing economic activities as it
could serve as a way of worshiping Allah, striving to provide prosperity for the whole not
only to the interests of oneself or a particular group. This is in line with one of Prophet
Mohammad’s teachings, encouraging his followers to trade while upholding the values of
Islam (Iqbal and Nisha, 2016). For entrepreneurs, this could also be an attractive business
opportunity.
Shahijan et al. (2014) points out that the variables in the Islamic retail mix, namely,
location, product, price and store atmosphere influence purchase decisions. Nurcholifah
(2014) further explains that retail-marketing mix consists of location, product, price,
promotion, store atmosphere and service; all have significantly positive effects on purchase
decisions. In addition, research by Bin Haji Ishak and Abdullah (2012) shows that retail
marketing mix consisting of product, promotion, place, price, percentage and personnel have
a positive and significant impact on customer’s purchase decisions.
Essentially, every economic activity, including trading carried by modern retailers, that
does not flaw the laws of Islam (also referred to as sharia) is allowed (Muhammad et al.,
2016; Juliana et al., 2019). The economic system should create a marketing mix that is
following the Islamic laws, as it is believed to be able to overcome poverty and create Islamic retail
prosperity for all (Saeed et al., 2014). Furthermore, there are some concerns over the slow mix approach
growth of Islamic retail amid stricter economic competition. There seems to be a need to
stipulate regulations on a retail establishment that are following the principle of Islamic
Marketing mix (Ireland and Rajabzadeh, 2011). Accordingly, the current study is expected to
answer questions related to factors that influence purchase decisions at Islamic retail. The
originality of this study is to retest the retail mix to retail Islamic mix theory because there
are still few studies researching at Islamic retail.

Literature review
Purchase decision
The purchase decision is stages involved when a customer decides whether he/she would
buy a particular product or service (Alam et al., 2011). Purchase decision becomes important
as customers’ considerations will influence a company’s marketing strategy (Hamdan et al.,
2013; Wilson, 2012). Before consumers make a purchase, they usually go through various
stages in the buying process (Azam, 2015).
Ishak et al. (2016) argue that purchase decision involves the act of choosing one from two
or more alternative purchase choices. This means that for someone to come up with a
decision, there have to be several available alternatives, and the act of making a purchase
can lead to the process of how that decision is made (Yousaf and Malik, 2013). The decision
of purchasing retail products includes the process of opting for convenience, fastness and
ease because what customers buy is their daily needs (Wilson et al., 2013).

Product
Variations of products in a store include the range, depth and quality of various goods
offered by the seller; consumers will choose that outlet (Amin et al., 2017). Accordingly, by
considering those factors on its products, a company could immediately increase the rate of
customers’ purchases (Shahid et al., 2018). Products that consumers want are of high quality
and satisfying. The product concept emphasizes the view that consumers prefer products
with good quality, good performance and the latest innovations (De Boni and Forleo, 2019).
Some products are prohibited for consumption in Islam, namely, carcasses, pork, alcohol
and animal blood (Aziz and Chok, 2013). In Islam, these products are often called non-halal.
Both halal and non-halal products and services are offered in the global market. Thus, it is
very important to understand the production of goods or services for the sake of the
customers (Annabi and Ibidapo-Obe, 2017). According to Islamic laws, trading such
products or services as alcohol, gambling, prostitution and magic is not permitted (Hong
et al., 2019).
Islam has specific regulations on product definitions. Some requirements need to be
fulfilled when offering a product. First, the product offered has to have definite goods, size
and composition, be not broken or expired and use good materials. Second, the product is
halal (Ab Rashid and Bojei, 2019). A Muslim is required to consume halal products (Hashim
and Musa, 2013). Regarding the relationship with purchasing decisions, there is a
relationship between products and consumer purchasing decisions where the quality of the
product will increase the opportunity to buy the product (Nawi et al., 2019). Additionally,
consumers would like a product that offers the highest characteristics of quality,
performance and innovation (Yener, 2015). Consequently, this study assumes that the
product will affect the decision in purchasing a product at Islamic retail. Below is the
hypothesis developed in this study.
JIMA H1. Product has a positive effect on consumer’s purchase decisions at Islamic retail.

Price
Definite price is the amount of money charged for a product or the amount of value that
consumers exchange for the benefit of owning or using a product or service (Maghrifani,
2018). Furthermore, Islam tries to set a price that is fair for both buyers and sellers of
products to prevent wrong propaganda or publicity on the internet to influence offers and
demands to manipulate the price (Saeed and Baig, 2013). However, under certain conditions,
such as the lack of supply, Islam recognizes the need to charge higher prices and to regulate
sellers’ and buyers’ behavior. Islam recommends operating independently of the
mechanism of adjustment of prices and competition which is healthy (Hashim, et al., 2014).
Regarding the relation to purchasing decisions, several experts such as Hussin et al.
(2013), Mohayidin and Kamarulzaman, (2014), Syukur and Nimsai (2018) have emphasized
that price influences purchase decisions. Thus, this study assumes that price will affect the
purchase decision of a person at Islamic retail. Below is the hypothesis developed in the
study.

H2. Price has a positive effect on consumer purchase decisions at Islamic retail.

Promotion
Promotion in particular is an activity of informing, introducing, persuading and reminding
consumers about the products being sold (Junaidi, 2020). It aims to change behavior by
attracting consumers’ attention to get them familiar with the product and interested to buy
it (Hashim et al., 2014). Promotion within the perspective of Islam is an attempt to convey
correct information about the product or service to prospective customers (Abdullah et al.,
2015a). Mohayidin and Kamarulzaman (2014) further emphasize that in Islam promoting a
product must reflect the truth, fairness and honesty to the public and all information related
to the product must be expressed transparently so as there are no potential elements of
fraud. Promotions that do not reflect a product’s true quality or competence, ones that
exaggerate, deceive and lie, are prohibited. Such promotions are strongly prohibited in Islam
(Muhamad and Alwi, 2015). Concerning purchase decisions, varied opinions were expressed
by previous research by Effendi et al. (2020), Mohayidin and Kamarulzaman (2014);
Nurcholifah (2014), Syukur and Nimsai (2018), arguing that promotion has a significant
effect on purchase decisions. Hence, this study assumes that promotion will affect purchase
decisions at Islamic retail. Below is the hypothesis developed in the study.

H3. Promotion has a positive effect on consumer purchase decisions at Islamic retail.

Store atmosphere
Store atmosphere consists of cleanliness, comfort, the attractiveness of the place and
customer’s intention, attitude and behavior (Kelly, 2006). Studies show that store
atmosphere, covering appealing layout, effective appearance, good fragrance and music, can
directly affect customers to extend their staying period in the store, revisit the store and
strengthen their relationship with the store (Shuhaimi, 2012). In terms of store layout, Islam
strictly prohibits men and women to share the same space within the store (Abdullah et al.,
2015a). Accordingly, Islamic retailers must provide a separate room for men and women
each (Abdullah et al., 2015a, 2015b). Such features should also be provided by malls,
supermarkets and banks like praying rooms, cashiers and benches (Nurcholifah, 2014). Islamic retail
Regarding purchase decisions, it has been suggested that the store atmosphere has an mix approach
impact on purchase decisions (AHMED, 2015; Bin Haji Ishak and Abdullah, 2012; Haque
et al., 2017).

H4. Store atmosphere has a positive effect on consumer purchase decisions at Islamic
retail.
With the four hypotheses above, purchase decisions could be affected by product, price,
promotion and store atmosphere. Therefore, the research develops a purchase decision
model at Islamic retail as depicted in Figure 1.

Research methods
The methodological approach of the study is survey research (Sekaran and Bougie, 2013). A
survey is a system for collecting information from or about people to describe, compare or
explain their knowledge, attitudes and behavior. The survey method is used because this
study aims to describe and portray the influence of Islamic retail mix variables on purchase
decisions at Sehati Muslim Mart Daarut Tauhid (SMM-DT).
In this study, retail mix variables are the objects under study. There are three exogenous
latent variables (X) which include the product (X1), price (X2), promotion (X3), store
atmosphere (X4), and one endogenous latent variable (Y) that is purchase decision. The
research site is Sehati Muslim Mart Daarut Tauhid (SMM-DT) retail store. The distribution
of the Google-form questionnaire was done online.
This study uses the Slovin formula, because this population is known, the sample size in
this study can be formulated as follows:

N

1 þ Ne2

Information:
S: sample size
N: population size = monthly average of 1650 visitors
e: significance level = 0.05%
Then the sample calculation from the SMM - DT consumer population is as follows:s =
16501 þ 1650(0.05)2 = 97,5

Product
H1

Price H2
Purchasing at Islamic
retail
H3
Promotion
H4
Figure 1.
Theoretical
Store atmosphere
framework
JIMA Based on these calculations, the number of respondents in this study was 98 people.
However, for a more representative result, in the end, the sample was taken to be 100
respondents.
Hair et al. (2017) recommend the number of respondents in this type of study to be 100
because the study is to use analysis partial least square-structural equation modeling (PLS-
SEM). Participants were chosen through purposive sampling. Criteria for the participants
are:
 consumers who have never come and store at SMM-DT; and
 consumers whose minimum age is 19 years old.

To test its hypotheses, the study used data partial least square (PLS) based on the structural
equation model (SEM). This method is useful in verifying the model proposed in the study. PLS
offers several advantages, namely, being able to reveal the latent variable both reflexive and
formative which are not possible to do with SEM-based covariates such as LISREL and AMOS,
not being based on many assumptions and conditions, not requiring data that is normally
distributed because estimation was done directly using a bootstrap technique and being able to
manage sample that is not very large. SEM-PLS can process multivariate data (Kusnendi, 2008a).
To ensure whether the questionnaire is valid or not, a discriminant validity test was
carried out which can be seen through the Fornell–Lacker Criteria analysis. This is a
validity test that is done by comparing the correlation between variables or constructs with
root squares of average variance extracted (AVE) (H). Predictions are assumed to have a
high AVE value if the root square value of each latent variable is higher than the correlation
between other latent variables. Based on the results of discriminant validity testing through
the Fornell–Lesser criteria, it can be seen that the AVE root (H) for each average construct is
higher than the correlation of each construct with other constructs. Hence, the questions in
the research questionnaire are valid.
To determine whether there is a reliability problem, it can be seen in the composite reliability
value and Cronbach’s alpha. The study is considered to be robust if the composite reliability and
Cronbach’s alpha values are more than 0.70 (Kusnendi, 2008a). However, Hair et al. (2017) argue
that if Cronbach’s alpha is less than 0.50 but the composite reliability value is more than 0.70,
then the construct can be accepted and considered reliable.

Results
This study observes male (27%) and female (73%) respondents. The respondent’s
characters are described in Table 1 as follows:

Model estimation
Based on the results of construct reliability testing, it is known that the constructs of price,
purchase decision, store atmosphere, product quality and promotion have values higher
than 0.70. In reference to Hair et al. (2016), it can be assumed that the model built has a very
high level of reliability. Thus, it can be concluded that the study does not have a reliability
problem (Table 3).

Structural model
In analyzing the structural models and the hypotheses, this study uses SmartPLS 3.0. In
reference to Hair’s recommendation, this study uses a bootstrap technique with 5,000
repetitions to test the strength of the path coefficient and the value of the indicator. To
determine the suitability of the model, Kusnendi (2008a, 2008b) suggests testing goodness of
Variable Description No. (%)
Islamic retail
mix approach
Gender Male 27 27
Female 73 73
Married Married 11 11
Not married yet 89 89
Age 19–25 94 94
26 –25 5 5
36 – 45 1 1
>46 0 0
Education Primary School 0 0
Junior High School 0 0
Senior High School 48 48
Undergraduate 52 52
Postgraduate 0 0
Number of visits 1 time 9 9
2 times 9 9
3 times 6 6
More than 3 times 75 75
Income <1,000,000 53 53 Table 1.
1,100.00 – 3,000,000 37 37 Description of
3,100.00 – 5,000,000 8 8 respondent
> 5,100,000 2 2 characters

fit (GoF) with low (0.02), moderate (0.25) and high (0.36) criteria. The results of the
calculations shown in Table 4 demonstrate that the GoF of the study is 0.53, which means
the model developed in this study is good.
To test the hypotheses in this study, a significance level of 5% is set; a statistical t-test
with a t-table at the level of significance of 5% is 1.96 for the sample more than 30. Thus, Ha
is accepted and H0 is rejected if the t-statistic is higher than 1.96. Meanwhile, the Ha is
accepted through the probability test if the P-value is lower than 0.01 or 0.05.
From the bootstrap test, it can be seen that the t-statistic value for price and store atmosphere
variables has values above the t-table value of 1.96. Meanwhile, quality of product and promotion
variables have values below the t-tables value. Testing the hypotheses uses a one-tail test, which
can interpret whether the identified impact is positive or negative. The following tables illustrate
the results of the complete hypotheses test (Table 5).

Discussions and implications


The results of the tests reveal that the quality of the product does not affect purchase
decisions. The results clarify the theory which states that the quality of product affects
purchase decisions. They are also on the contrary with previous findings from Nawi et al.
(2019) and Hashim and Musa (2013) who argue that products have a significant influence on
purchase decisions. Instead, the results of the current study are in line with Alserhan (2010),
pointing out that if a product sold in Islamic retail already has an Islamic brand, it is less
influential because the atmosphere within the store has already represented the image of
Islam. It is particularly so in the case when the store is located in an Islamic boarding school.
Moreover, nowadays almost all products that are sold at both conventional and Islamic
retail stores already put halal labels.
In the study, the reason that makes products do not affect purchase decision, inter alia, is
indicated in the statement “I store at SMM-DT because the products that are sold there
JIMA Variables Value CR AVE

Price 0.935 0.705


I store at SMM-DT because the price of the products is in line with their quality 0.856
I store at SMM-DT for products sold there are price-labeled 0.844
I store at SMM-DT because money paid for a product is following its price label 0.833
I store at SMM-DT because the store does not offer interest-based credit loans 0.769
I store at SMM-DT because the price is following my presumption 0.874
I store at SMM-DT because the price is affordable 0.857
STORE ATMOSPHERE 0.931 0.660
I store at SMM-DT because I feel safe 0.835
I store at SMM-DT because I feel comfortable 0.884
I store at SMM-DT because the store is always fragrant 0.811
I store at SMM-DT because of the store’s Islamic ambiance 0.834
I store at SMM-DT because the store is closed during the fardhu (obligatory) prayer 0.769
I store at SMM-DT because the cashiers separate men and women 0.758
I store at SMM-DT because the cashiers always greet with salam 0.788
PROMOTION 0.959 0.643
I store at SMM-DT for the images of the products in
the advertisement under the real product 0.653
I store at SMM-DT because there are discounts 0.652
SMM-DT represents Islamic brand so I store there 0.735
SMM-DT has an Islamic slogan so I store there 0.714
I store at SMM-DT because the employees are always honest in promoting the
products 0.704
SMM-DT always accepts criticism and suggestions. That is why I store there 0.600
I store at SMM-DT as it always plays Koran recitations and religious lectures
around the store 0.576
I store at SMM-DT because its advertisements use Islamic music 0.626
I store at SMM-DT for the image in the advertisement under the real
product original 0.554
I store at SMM-DT because there are interesting discounts 0.653
SMM-DT represents Islamic brand so I store there 0.642
SMM-DT has an Islamic slogan so I store there 0.501
PRODUCT 0.911 0.595
I store at SMM-DT for the products sold do not contain harmful substances 0.567
I store at SMM-DT because the products are marketed by Muslim sellers 0.705
I store at SMM-DT because the products are produced by Muslims. 0.548
I feel proud of storeping at SMM-DT 0.688
I get satisfaction when storeping at SMM-DT 0.623
I store at SMM-DT because the products sold are varied 0.590
I store at SMM-DT because the products on sale are available all the time 0.567
PURCHASE DECISION 0.940 0.692
I intend to store at SMM-DT 0.732
I store at SMM-DT because the products are following sharia 0890
I store at SMM-DT because the price is following sharia 0.882
I store at SMM-DT because its promotional activities are following sharia 0.887
I storeping at SMM-DT because the store atmosphere reflects Islamic values 0.882
I will repurchase products at SMM-DT 0.818
I will recommend SMM-DTT to others 0.780
Table 2.
Model indicator Note: **Significant at p <0.05
already have a halal label” categorized as low. It indicates that consumers strongly believe Islamic retail
in the products sold by SMM-DT so they are willing to store there. In addition, most mix approach
consumers rarely check whether the products have halal label halal or not. This is because
the participants live in a country where Islam is the predominant religion, further
strengthened by the fact that the products are sold at a store located in an Islamic boarding
school. The condition of the products also does not affect consumers’ purchase decisions.
Smart consumers are likely to choose products in good condition. Likewise, Islamic retails
only sell products that are halal and good. Halal and thoyyib goods are not only needed by
Muslims, but everyone will look for halal and thoyyib items (Muflih and Juliana, 2020), as
written in The Al Baqarah 168 (Syaamil Al Quran Miracle the Reference). This can be a
market opportunity for Islamic retail.
On the contrary, price affects purchase decisions. The study is in line with Hussin et al.
(2013), Mohayidin and Kamarulzaman, (2014), Syukur and Nimsai (2018) who argue that
price influences purchase decisions. The findings of this study corroborate previous
research, where prices have a positive and significant effect on purchasing decisions. Thus,
to increase the number of purchases, SMM-DT should maintain the prices free of fraud and
usury and are affordable and reasonable. The customers of SMM-DT believe that the prices
of the products are acceptable as they consider any purchases there as investments to the

Price Purchase decision Store atmosphere Product Promotion

Price 0.839 – – – –
Purchase decision 0.765 0.832 – – –
Store Atmosphere 0.744 0.879 0.812 – – Table 3.
Product 0.821 0.766 0.796 0.772 – Heterotrait–
Promotion 0.724 0816 0.858 0.797 0.802 monotrait ratio

Average variance extracted (AVE) R2

Price 0.705 0.077 –


Purchase decision 0.692 – –
Store atmosphere 0.660 0.382 –
Product quality 0.595 0.000 –
Promotion 0.643 0.034 –
Average 0.659 – – Table 4.
AVE p R2ffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi – – 0.532 Goodness of fit (GoF)
GoF ¼ AVE  R2 – – 0.149 indicator

Variables b T-statistics P-value

Price (X2) -> Purchase decision (Y) 0.088 2.530 0.012


Store Environment (X4) -> Purchase decision (Y) 0.102 5.666 0.000 Table 5.
Product (X1) -> Purchase decision (Y) 0.091 0.091 0.927 Hypothesis
Promotion (X3) -> Purchase decision (Y) 0.124 1.364 0.173 estimation
JIMA boarding school where the store is located. It is similar to strategies implemented by retails
in general, with a package bundling cheaper than the normal price. This technique is proven
effective in increasing purchases because there would be psychological effects on consumers
accepting the price is lower. Segmentations by SMM-DT also affect the pricing strategy
done by the retailer (Alserhan, 2010; Wilson et al., 2013).
On the other hand, promotion does not affect purchase decisions. It is because the Islamic
marketing campaign emphasizes the benefits of the product and its production process, not
on such artificial features as attractive models in its advertisement (Islam, 2020). This
finding rejects the theory stating that promotions affect purchase decisions. Furthermore,
the results of the study are different from those of Effendi et al. (2020), Mohayidin and
Kamarulzaman (2014), Nurcholifah (2014), Syukur and Nimsai (2018), which state that
promotion has a significant effect on purchase decisions.
In addition to that, this study shows that promotional advertisements do not impact
purchase decisions, based on the fact that states “I store to SMM-DT because the displayed
advertisements following the information” scores low. This means that SMM-DT’s
consumers pay less attention to the promotion done by the store. Except SMM-DT promote
their products and services nationally, it can increase the number of people who shopped at
SMM-DT. Because the promotional activities conducted by SMM-DT are still local in scope
(around an Islamic boarding school), they do not influence purchase decisions by much. It
can be concluded then that promotional activity to not affecting purchase decisions cannot
be generalized to all retail but only to Islamic retail, specifically, that is located around or
within Islamic boarding schools. People believe that as a good Muslim, Islamic retail
managers will not do things that will harm consumers by lying and cheating Al Baqoroh 42
(Syaamil Al Quran Miracle the Reference). This is one of the reasons the promotion variable
is less influential in decision-making.
Finally, the study also reveals that store atmosphere has a significant effect on purchase
decisions. Thus finding is following several studies (Ahmed, 2015; Bin Haji Ishak and
Abdullah, 2012; Haque et al., 2017). Therefore, SMM-DT can improve comfort, cleanliness,
product layout and adequate parking space to attract more customers to shop at Islamic
retail. Conveniences here also mean the temperature in the room is cool, not hot. If the
temperature is hot, consumers are not going to spend a long time at the sop, decreasing the
chance to make a purchase. Likewise, the cleanliness and tidiness of the store play important
roles to make consumers feel at home and stay at the store longer. Therefore, to encourage
customers to make purchases comfortable, clean and tidy atmosphere and adequate parking
are necessary.

Conclusion
In conclusion, the product does not have a negative nor significant effect on purchase
decisions among SMM-DT consumers. Furthermore, for Muslim consumers, product quality
is also less important compared to products having halal labels, not containing substances
harmful, marketed and/or produced by Muslims and product diversity and availability,
which are determinant factors in purchase decisions. Overall product, price, promotions,
store environment are all categorized as good and contribute to SMM-DT’s consumer’s
decision-making process. Though, the price and store atmosphere that is following the
sharia has a strong impact on purchase decisions. In SMM-DT’s case, when it offers high
prices and the store atmosphere does not meet consumer expectations, consumers could
choose other stores. In addition, price positively and significantly influences purchase
decisions in that the consumers expect the price to be worth the product’s quality, tagged on
the product, to pay the exact amount as the price tag, not to have loan credit-based interest
and to be affordable. Promotion does not have a negative nor significant effect on purchase Islamic retail
decisions because consumers do not pay much attention to the store’s such promotional mix approach
activities as information, pictures, discounts, Islamic brand and slogans, Quran recital,
religious lectures, Islamic music, Islamic educational values. Store atmosphere, instead, has
a positive and significant impact on purchase decisions.

Limitation and further research


The study focuses on product, price, promotion and store as its variable dependent, with two
of the variables are less significant compared to the rest. In addition, the samples are
relatively small, leading to concerns about its ability to generalize the results of the study.
The instruments that are used are also relatively limited. Additionally, the relevant
characteristics of respondents are not evenly distributed. Thus, further study investigating
similar topics might need to increase the number of samples, expand the characteristics of
the sample and including such variables as process, location, brand equity and customer’s
trust level.

References
Ab Rashid, N. and Bojei, J. (2019), “The relationship between halal traceability system adoption and
environmental factors on halal food supply chain integrity in Malaysia”, Journal of Islamic
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Further reading
Noor-Book.com (2021), “Noor-Book.com syaamil Al quran miracle the reference ‫ﺍﻝﻕﺭﺁﻥ ﺵﺍﻡﻝ‬
‫ﺃﻥﺩﻭﻥﻱﺱﻱ‬.pdf”.

Corresponding author
Hilda Monoarfa can be contacted at: hildaborman@upi.edu

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