The Effect of Possessing Information About Halal Logo on Consumer Confidence in Malaysia

Abstract

Abstract Consumer confidence in Halal food and logo are shaped by numerous factors that include information on food ingredients, various Halal claims, and warnings on non-Halal products. The study attempted to construct consumer behavior of respondents through 3 approaches: after giving information, before giving information, and without information on Halal food based on the 2006 publication by the Consumer Association of Penang. This was done in order to predict the effect of Halal information on consumers' confidence while purchasing Halal-manufactured foods from 1,560 Muslim respondents residing in Malaysia. The multinomial logit model was used to estimate the parameters and the likelihood of the level of confidence differing among the 3 groups of respondents in this study. The results indicate that consumers are sensitive to the fact that any false information may result in the loss of their confidence level and it would also affect their intended purchasing decisions. KEYWORDS: consumer confidenceHalal informationHalal logomultinomial logitMalaysia Notes Source. Study survey, 2010. Source. Study survey, 2010. Source. Study survey, 2010. ***Statistically significant at the .01 level and **at the .05 level. 0 is set as a basic alternative. Halal Haram was published by the Consumer Association of Penang in 2006. It contains information on what is permitted (Halal) and prohibited (Haram) by Islam for food consumption by Muslims. Food ingredients used by food manufacturers that carry a Halal logo are highlighted and are classified as Halal or Haram. Additional informationNotes on contributorsZainalabidin Mohamed Zainalabidin Mohamed is a professor of Agribusiness Marketing in the Department of Agribusiness and Information Systems, Faculty of Agriculture, Universiti Putra Malaysia, Serdang, Selangor, Malaysia. Mad Nasir Shamsudin Mad Nasir Shamsudin is a professor of Agriculture Economics in the Department of Agribusiness and Information Systems, Faculty of Agriculture, Universiti Putra Malaysia, Serdang, Selangor, Malaysia. Golnaz Rezai Golnaz Rezai is a senior lecturer of Agribusiness in the Department of Agribusiness and Information Systems, Faculty of Agriculture, Universiti Putra Malaysia, Serdang, Selangor, Malaysia.