Millennial’s Decision on the Use of Online Halal Marketplace in Indonesia

Abstract

This study aims to analyze the Millennials' behavior influence on their decision to use an online halal marketplace in Indonesia, which is mediated by their perception as an intervening variable. A probability sampling technique with convenience sampling was used to calculate 100 from 125 collected primary data sets. The SEM-PLS statistical technique was used to analyze the relationships among variables. The findings showed that only technology adoption, opinions, broader activities, and Millennials’ perception influenced their decisions to use the online Halal marketplace, while success & status, personal health, and brand value & reward did not. Millennials’ perception is not an intervening variable for all indirect effects. It implies that Millennials consider online Halal marketplace has not been addressed to reserve the Muslim concerns, and their decision to use it did not necessarily derive from religious reasons. Online Halal marketplaces must combine more suitable marketing strategies to increase customer engagement with the Islamic brand by consistently delivering reliable Halal products and services to meet Millennials' needs while penetrating this segment.JEL Classification: M31, M37, L92