Could Halal Label Enhance Sales?: Indonesian Consumer Behaviour Research

A Muslim is obliged to consume halal products according to the commandments of his religion. To what extent is the halal label a determinant of a Muslim's purchasing decision? This study aims to analyze the extent to which halal-labeled products, compared to other important variables, affect a product's selling power, both partially and simultaneously. The data analysis method used is Structural Equation Modeling (SEM). The study's results indicate that only aspects of product quality and ease of purchase access partially affect consumer satisfaction, while halal label and price aspects do not. Moreover, not all independent variables partially affect purchasing decisions. However, the study's results using the F test showed that the halal label variables, ease of purchase access, and product quality significantly affect satisfaction. Likewise, all independent variables mediated by the satisfaction variable affect the purchasing decision of a product. This means that in addition to the halal label, support for ease of purchase access and quality is also needed to increase consumer satisfaction and purchasing decisions. Research limitations: Respondents are only consumers of 1 cosmetic product, so they do not represent consumer behaviour towards halal products, of which there are many types in Indonesia. The implication is that in addition to the halal label, support for ease of purchase access and quality is also needed to increase consumer satisfaction and purchasing decisions. Value producers must also prioritize product quality, ease of purchasing access, and price, not just the halal label. JEL Classification: D12, M31, Z12