Determinants of Purchase Decision on Halal Product: The Mediating Effect of Halal Certification

Abstract

Many food and beverage products circulating among Muslim communities do not meet the standards for halal products, one of which is the display of halal certification labels. Halal certification is a major factor in a Muslim's purchase decision as part of observing Islamic law in terms of food and beverages. This study aimed to analyze the extent to which religiosity, viral marketing, and price affect the purchase decision of halal products for the Muslim community through halal certification as a mediation variable. The research model was quantitative and involved 174 respondents with non-probability sampling and purposive sampling sampling techniques. This study used primary data collected through questionnaires in Google Forms distributed through social media. The analysis technique utilized the Smart PLS software. The main findings confirm that religiosity and viral marketing have a significant influence on the decision to purchase halal products directly. In contrast, prices do not have a significant effect on the decision to purchase halal products directly. Meanwhile, the halal certification testing is mediation, and it is not able to mediate the relationship between religiosity, viral marketing, and price variables towards the purchase decision of halal products indirectly. A limitation of this study is the lack of references to halal certification as a mediating variable. The variables used are still limited to three independent variables, and the respondents obtained are still dominated by students and Generation Z. For further research, it is recommended to use independent variables other than those used in this study and embrace respondents from the general public.