A study on non-muslim consumers' purchase intention of halal food in Korea

Paudel, Tulsi; Li, Wen Ya; Kim, Yeong Gug; Ji, Yunho Article A study on non-muslim consumers' purchase intention of halal food in Korea Global Business & Finance Review (GBFR) Provided in Cooperation with: People & Global Business Association (P&GBA), Seoul Suggested Citation: Paudel, Tulsi; Li, Wen Ya; Kim, Yeong Gug; Ji, Yunho (2024) : A study on nonmuslim consumers' purchase intention of halal food in Korea, Global Business & Finance Review (GBFR), ISSN 2384-1648, People & Global Business Association (P&GBA), Seoul, Vol. 29, Iss. 2, pp. 1-16, https://doi.org/10.17549/gbfr.2024.29.2.1 This Version is available at: https://hdl.handle.net/10419/305955 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by-nc/4.0/ I. Introduction Globalization has led to countries becoming increasingly multicultural, multi-religious, and multiethnic. This shift has significantly influenced food and beverage consumption trends, with the exchange of cultures and traditions playing a pivotal role (Hendriyani et al., 2020). Ethnic foods and beverages, such as halal food, have gained global acceptance, Received: Oct. 19, 2023; Revised: Nov. 11, 2023; Accepted: Dec. 18, 2023 † Corresponding author: Yunho Ji E-mail: [email protected] even in non-Muslim countries. People now embrace diverse cuisines, enjoying Western foods in the East and Asian foods in the West (Choi & Choi, 2018). Social norms, practices, and religious principles influence the decision to consume ethnic foods. In the Muslim community, everyone is bound to consume halal foods. However, halal food consumption is becoming popular in non-Muslim societies. As a result, halal food producers and marketers are expanding their businesses worldwide, targeting non-Muslim consumers (Mathew et al., 2014). The global halal food market, valued at approximately 2.47 trillion in 2018 (Reuters & Standard, 2018), is shaped by GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 2 (MARCH 2024), 1-16 pISSN 1088-6931 / eISSN 2384-1648∣Https://doi.org/10.17549/gbfr.2024.29.2.1 ⓒ 2024 People and Global Business Association GLOBAL BUSINESS & FINANCE REVIEW www.gbfrjournal.org for financial sustainability and people-centered global business1) A Study on Non-Muslim Consumers' Purchase Intention of Hala l Food in Korea Tulsi Paudela, Wen Ya Lia, Yeong Gug Kimb, Yunho Jib† aEntrepreneurial Management College, Sanming University, Fujian province, 365004, China bDepartment of Tourism Administration, Kangwon National University, Gangwondaehak-gil 1 KR, Korea A B S T R A C T Purpose: The demand for halal foods among non-Muslim customers is increasing in non-Muslim countries. This study investigates South Korean non-Muslim customers' halal food purchase intentions using an extended model of goal-directed behavior (EMGB). Design/methodology/approach: The study model combines halal awareness with the existing model of goal-directed behavior (MGB) variables and examines the moderating effect of word of mouth (WOM). Findings: The results indicated that attitudes, positive anticipated emotions, perceived behavioral control, and halal awareness influenced non-Muslim consumers' desire to purchase halal foods. Desire and halal awareness also predicted purchase intentions. Moreover, word of mouth (WOM) had a significant moderating effect on the desire to purchase intentions of halal foods. Research limitations/implications: The results of this study can be utilized in managing the halal food business by providing information on non-Muslim consumer characteristics. Originality/value: This study aims to provide implications for the globalization of halal food by identifying specific variables that affect the halal food consumption behavior of non-Muslim consumers. Keywords: Halal food, Non-Muslim consumer, Model of goal-directed behavior, Purchase intention, Word of mouth, South Korea ⓒ Copyright: The Author(s). This is an Open Access journal distributed under the terms of the Creative Commons Attribution Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution , and reproduction in any medium, provided the original work is properly cited. GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 2 (MARCH 2024), 1-16 2 Muslim and non-Muslim consumers worldwide. With this growing market share of halal products, marketers and producers seek to understand purchase intentions and attitudes toward halal products (Söderlund, 2006). In Arabic, 'halal' means "allowed" or "permissible" under Islamic law (Halal Malaysia Official Portal, 2022). Halal principles prohibit the consumption of pork and alcohol and stipulate that cattle should be slaughtered according to the Zabihah method. Halal food products are produced from trusted sources and contain only permitted ingredients (Ab Talib et al., 2019). The purchase and consumption of halal food are wholly based on Islamic law and the Quran, and food producers must meet nutrition standards and use only permitted ingredients. According to the Korean Muslim Federation (KMF), Korea is home to around 200,000 Muslims, including native Koreans and foreigners. Additionally, Korea welcomes thousands of Muslim visitors from Malaysia, Indonesia, and the Middle East. Korean travelers also visit Muslim countries and experience halal culture there. As a result, interest in halal food products among the non-Muslim community is increasing in Korea, providing business opportunities in the halal food sector. Countries like Malaysia and Turkey are actively promoting halal hospitality, targeting nonMuslim customers (Stephenson, 2014). Exploring the behavioral factors behind this trend becomes imperative as the halal food market expands in non-Muslim countries. Unlike existing research focused on production processes, certification standards, and consumer preferences in the halal food industry, this study examines the moderating influence of Word of Mouth (WOM) on consumer perceptions and choices. Despite the acknowledged influence of WOM on consumer decisions across various domains, its specific role within the halal food industry remains relatively underexplored. The acceptance of halal food among non-Muslim consumers presents an intriguing research avenue with direct relevance to halal marketing strategies in non-Muslim countries. This study is grounded in the goal-directed behavior (MGB) model, widely utilized in consumer decisionmaking studies (Prestwich et al., 2008). The MGB underscores the significance of desire in shaping individuals' decision-making processes and behaviors (Perugini & Bagozzi, 2001). Therefore, this framework is suitable for examining non-Muslim consumers' halal food purchase intentions. Additionally, the study integrated the halal awareness construct to gauge non-Muslim consumers' understanding of halal culture and principles. The study's practical recommendations for stakeholders aiming to expand the halal food market in non-Muslim countries are invaluable for attracting non-Muslim consumers with halal food products. II. Literature Review A. Halal Food and its Commercialisation Religions influencing food and consumption establish distinct behavioral rules and regulations, with Islam prescribing regulations on food consumption through the concepts of 'halal' and 'haram'. The Quran states that any food not deemed haram is considered halal (Bonne & Verbeke, 2008) and explicitly prohibits the consumption of blood, pork, and alcohol (Nasir & Pereira, 2008); furthermore, the concept of halal aligns with Shariah rules. Nations have established halal certification protocols to comply with global food production standards, making the mandatory display of the halal logo integral to producing and selling halal products (Afendi et al., 2014). Globalization has facilitated the widespread availability of halal products, propelling the halal food market's growth and fostering acceptance among nonMuslim populations. Notably, nations like Argentina, Australia, Brazil, Canada, France, and New Zealand are prominent exporters of halal food items (Ahmed, 2023). The halal products market, spanning foods, pharmaceuticals, and cosmetics, is poised for substantial growth in the next decade (Reuters & Standard, 2018). Leading multinational corporations, such as Nestlé, McDonald's, and KFC, strategically emphasize halal products to attract new customers Tulsi Paudel, Wen Ya Li, Yeong Gug Kim, Yunho Ji 3 (Adams, 2011). The increasing acceptance of halal food in non-Muslim communities is pivotal for expanding the halal food market (Alam & Sayuti, 2011). Recent research in the field of halal food is diverse, addressing critical aspects like authenticity (NG et al., 2022), consumer preferences (Windasari et al., 2023; Adekunle & Filson, 2020), sustainability, and the integration of new technologies (Bux et al., 2022; Ali et al., 2021). The escalating demand for halal goods from non-Muslim consumers has prompted marketers to refine their understanding of halal products and processes and identify suitable channels for gathering pertinent information about non-Muslim consumers' perceptions (Golnaz et al., 2010). Existing research on the purchasing decisions of consumers regarding halal foods has delved into various antecedents, including intentions and consumer attitudes (Mukhtar & Butt, 2012), word of mouth (Söderlund, 2006), and religiosity (Worthington et al., 2003). Alam and Sayuti (2011) have contended that religious beliefs and behavior significantly influence the purchase of halal foods. The theory of planned behavior (TPB) is commonly applied to investigate purchase intentions of halal foods, revealing the pivotal roles of attitude and subjective norms among Muslim consumers (Lada et al., 2009; Afendi et al., 2014). B. Halal Food Awareness among Non-Muslim Consumers Halal awareness, crucial for Muslim and nonMuslim consumers, refers to understanding food and beverages processed or produced according to halal principles (Ambali & Bakar, 2014; Golnaz et al., 2010). The global growth of halal markets is fuelled by rising consumer awareness, extending beyond religious considerations, such as attitudes perceived behavioral control, and broader concerns like environmental and health issues (Teng et al., 2013). Non-Muslim customers are increasingly aware of halal food, but limited literature exists on their perceptions. Researchers have studied this demographic's perceptions, acceptance, and purchase intentions (Lee et al., 2016). Consumers prioritize reputable certification for food safety, believing that halal products adhere to stricter standards than non-halal ones (Hoang et al., 2022), fostering confidence in halal foods associated with high-quality goods and services suitable for nonMuslim consumers (Rezai et al., 2012). With an increasing number of Muslim tourists, South Korea is evolving into a "halal-friendly" destination, prompting the government to recognize the potential of halal tourism (Marlinda et al., 2022). Achieving halal-friendly status in Korea requires heightened halal awareness among employees in hotels and restaurants (Han et al., 2019). C. Model of Goal-Directed Behaviour (MGB) and Hypothesis Development The model of goal-directed behavior (MGB), an extension of the theory of planned behavior (TPB), emphasizes values as essential components predicting behavior (Hagger & Chatzisarantis, 2009). Integrated into the MGB are additional constructs, including desire, positive and negative emotions, and past behaviors. Desire, a critical predictor of intention, mediates the predecessors of behavior, including attitudes, subjective norms, and perceived behavioral control (Perugini & Bagozzi, 2001). While more commonly applied in the hospitality sector, researchers have extended and modified the MGB for various contexts. For example, Han and Ryu introduced switching costs and repurchasing intentions in a full-service restaurant environment. Lee et al. (2012) utilized an extended MGB to explore potential travelers' decision-making processes during the 2009 H1N1 outbreak. Song et al. (2012) expanded the MGB for casino visitors' behavioral intentions, and Shin et al. (2018) investigated intentions to visit food trucks using the MGB. 1. Attitude, subjective norms, and desire The literature suggests that customers with favorable attitudes are more likely to engage in purchasing GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 2 (MARCH 2024), 1-16 4 behavior (Ajzen, 1991). According to Baker et al. (2007), individuals engage in a particular behavior to accrue a benefit or avoid a loss based on their attitude. Numerous studies within the Model of Goal-Directed Behaviour (MGB) have consistently established a positive relationship between attitude and desire (Perugini & Bagozzi, 2001; Lee et al., 2012). On the other hand, subjective norms refer to whether an individual believes that a relevant group advocates a given behavior (Perugini & Bagozzi, 2001). They represent the perceived social pressure to perform or refrain from a particular behavior (Ajzen, 1991). Individuals typically consider other people's opinions before undertaking specific actions (Cheng et al., 2006). Thus, we assume that the nonMuslim consumer's attitude toward halal food and the recommendation to consume halal food must influence the desire to purchase halal foods, leading to the following hypotheses. H1: Attitudes significantly influence the desire to purchase halal food. H2: Subjective norms significantly influence the desire to purchase halal food. 2. Anticipated emotions and desire Individuals consider the emotional consequences of goal achievement or failure, corresponding to positive and negative anticipated emotions (Perugini & Bagozzi, 2001). The Model of Goal-Directed Behaviour (MGB) underscores the importance of taking the necessary steps to achieve a goal and considering the emotions associated with failure (Perugini & Bagozzi, 2001). People often make behavioral decisions to avoid adverse effects (Dholakia & Bagozzi, 2002). However, studies on anticipated positive and negative emotions have yielded inconsistent findings. Studies differ on the impact of anticipated emotions on desire. Some indicate that only expected positive or negative emotions affect desire (Dholakia & Bagozzi, 2002), while others suggest that both positive and negative anticipated emotions significantly influence desire (Song et al., 2012). In this context, we anticipate that non-Muslim customers' positive and negative emotions toward halal food lead to the desire to purchase halal foods, proposing the following two hypotheses. H3: Positive anticipated emotions significantly influence the desire to purchase halal food. H4: Negative anticipated emotions significantly influence the desire to purchase halal food. 3. Perceived behavioral control, desire, and intention MGB studies have consistently shown that attitude, subjective norms, and perceived behavioral control influence intention through desire (Prestwich et al., 2008). Perugini and Bagozzi (2001) argued that desire is a mediator between behavioral intention and actual behavior, with desire having less immediate association with actions but evolving over extended periods. Perceived behavioral control, as defined by Ajzen (2005), refers to an individual's confidence or ability to perform a specific action. Malle (1999) suggested that including desire in the model enhances predictive power, where intention is the primary motivator for action. Desire is considered the proximal cause of intentions, and other antecedents of the TPB operate through desire (Meng & Choi, 2016). Building on these arguments, we posit that non-Muslim customers possess behavioral control that influences their desire and intention to purchase halal foods. Thus, two additional hypotheses are developed as follows: H5: Perceived behavioral control significantly influences the desire to purchase halal food. H6: Desire significantly influences the intention to purchase halal food. 4. Halal awareness, desire, and intention Awareness refers to the capacity to notice, feel, and be conscious of events, items, or materials. Consumers with a higher level of awareness tend to purchase or experience halal products (Vizano et al., 2021). Empirical evidence from Lada et al. (2009) confirms that awareness is significantly linked Tulsi Paudel, Wen Ya Li, Yeong Gug Kim, Yunho Ji 5 to the intention to purchase halal products. A positive attitude was associated with knowledge of halal principles and foods (Golnaz et al., 2010). The study by Follows and Jobber (2000) also reported a positive correlation between brand awareness and purchase intentions. In the context of our research, we believe that the level of knowledge about halal foods and the process influences the desire to consume or purchase that particular food. Therefore, we propose the following two hypotheses: H7: Halal awareness significantly influences the desire to purchase halal food. H8: Halal awareness significantly influences the intention to purchase halal food. 5. Frequency of past behavior and purchase intention The frequency of past behavior is usually considered a proxy for habit; if an individual engages in a particular behavior frequently, i.e., habitually, that behavior will enhance their desire and behavioral intentions (Perugini & Bagozzi, 2001). Existing studies have observed relationships between the frequency of past behavior and other antecedents such as desire, intention, and behavior. For instance, Song et al. (2012) found that past behavior significantly influenced desire and intention while investigating a responsible gambling strategy. Han et al. (2014) investigated players' attitudes (favorable vs unfavorable) toward a computer golf game, reporting that past behavior influenced their intention to play it. Based on the above studies, we also argue that the frequency of past behavior certainly impacts the purchase of halal foods. Thus, two more hypotheses are proposed. H9: Frequency of past behavior significantly influences desire. H10: Frequency of past behavior significantly influences purchase intention. D. Impact of Word of Mouth (WOM) Word of mouth (WOM) is an informal, noncommercial communication between the communicator and the receiver concerning products, services, or companies (Higie et al., 1987). Face-to-face interactions, phone calls, emails, and other forms of communication among users or customers of a particular product can be regarded as WOM communications (Goyette et al., 2010). In marketing literature, researchers describe word of mouth as a probable consumer decision-maker (Chevalier & Mayzilin, 2006). According to Silverman (2011), "Word of mouth is the most effective way of making decisions easier and simpler in an overwhelmingly difficult and complex world" (p.30). Word of mouth can be both negative and positive; satisfied customers will continue to buy and tell others about products, while customers who are not satisfied will tell others about disadvantages (Richins, 2009). Sernovitz et al. (2013) pointed out that people are interested in talking about goods and services they have ordered, and they even speak about the manufacturer of the goods and the service provider. Word-of-mouth communication influences and shapes consumers' behavior and attitudes (Xia & Chae, 2021). Few research studies have been conducted using WOM as a construct in the context of halal food purchase and consumption behavior. Wardi et al. (2018) found no association between halal tourism and WOM among Indonesian Muslim consumers. However, the study by Battour (2019) found a positive linkage between halal tourism and WOM by examining non-Muslim tourists' behavior. Thus, we assume that WOM has a crucial moderating effect on the desire for halal foods and the purchase intention of halal foods, constituting the hypotheses. The proposed research model is depicted in Figure 1. H11: WOM significantly moderates the relationship between desire and purchase intention. GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 2 (MARCH 2024), 1-16 6 III. Methods A. Research Instruments This study investigated the purchase intentions of non-Muslim consumers in the context of halal food, employing the extended Model of Goal-Directed Behaviour (MGB) framework. Attitude, subjective norms, perceived behavioral control, and purchase intentions were assessed using the four-item scales developed by Ajzen (1991). The positive and negative anticipated emotions of desire (Perugini & Bagozzi, 2001) were also evaluated using a four-item scale. The frequency of past behavior (Perugini & Bagozzi, 2001), halal awareness (Golnaz et al., 2010; Ambali & Bakar, 2014), and Word of Mouth (Brown et al., 2005) were measured using three items. All responses to questions were recorded on a five-point Likert scale. B. Data Collection This study employed a quantitative approach to investigate non-Muslim consumers' halal food purchase intentions in South Korea. Convenience sampling was facilitated through an online (Google) survey and was utilized to collect data. Self-administered questionnaires, adapted from prior literature, were adjusted to fit the research context. A pilot study involving 50 respondents was conducted to refine the questionnaires. The complete survey took place in May 2020, targeting non-Muslim Korean consumers who had consumed halal foods within or outside Korea. Of the 450 distributed questionnaires, 394 valid responses were obtained and analyzed using statistical software. To ensure a representative sample of halal consumers, the survey included targeted screening questions at the beginning, allowing only participants who indicated consumption of halal food to be included in the analysis. Regarding demographics, 54.1% of respondents were male. The 30-39 age group constituted 38.1% of the cohort, with the 20-29 age group accounting for 29.9%. Most participants held graduate degrees (45.2%) or university degrees (40.6%). The most common annual income range was 30,000-39,999 dollars (32.2%), followed by 20,000-29,999 dollars (25.9%), 10,000-19,999 dollars (22.1%), under 10,000 dollars (6.6%), and 50,000 dollars or more (4.3%). A significant portion of participants (74.4%) had purchased halal food fewer than three times. The majority (76.4%) visited halal restaurants for halal Figure 1. Proposed research model Tulsi Paudel, Wen Ya Li, Yeong Gug Kim, Yunho Ji 7 food purchases. Table 1 presents the descriptive demographics of the collected data. Variables Classifications N=394 Percentage Gender Male 213 54.1% Female 181 45.9% Age 20-29 118 29.9% 30-39 150 38.1% 40-49 84 21.3% 50-59 23 5.8% More than 60 19 4.8% Education High School 10 2.5% College 35 8.9% Undergraduate 160 40.6% Graduate 178 45.2% Others 11 2.8% Marital status Single 168 42.6% Engaged 12 3.0% Married 210 53.3% Others 4 1.0% Job Office workers 129 32.7% Students 53 13.5% Manufacturing workers 15 3.8% Sales Service 23 5.8% Professionals 129 32.7% Self-Employment 37 9.4% Others 8 2.0% Monthly Income(USD) ~1000 26 6.6% 1000~2000 87 22.1% 2000~3000 102 25.9% 3000~4000 127 32.2% 4000~5000 35 8.9% More than 5000 17 4.3% Monthly halal food purchase frequency ~3 times 293 74.4% 3~5 times 42 10.7% 5~10 times 42 10.7% More than 10 times 17 4.3% A place to buy halal foods Halal restaurants 301 76.4% Large marts 48 12.2% Family restaurant 23 5.8% Fine dining restaurant 17 4.3% Online shopping 5 1.3% Table 1. Demographic result GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 2 (MARCH 2024), 1-16 8 IV. Results A. Confirmatory Factor Analysis The results of confirmatory factor analysis (CFA) showed excellent model fit to the data ( χ 2 = 880.006, df = 437, χ 2/df = 2.014, p < 0.001, root mean square error of approximation [RMSEA] = 0.051, comparative fit index [CFI] = 0.967, incremental fit index [IFI] = 0.967, Tucker-Lewis index [TLI] = 0.958). All observed variables were significantly loaded onto their latent constructs (p<0.01). The composite reliability values ranged from 0.691 to 0.994, exceeding the reliability threshold of 0.60 (Hair et al., 2009). Average variance (AVE) values were then calculated, indicating good construct validity. The confirmatory factor analysis (CFA) result is presented in Table 2. Items Factor loadings CCR (AVE) Cronbach's α Attitude Purchasing halal food is good for me 0.801 0.891 (0.671) 0.903 Purchasing halal food is valuable for me 0.866 Purchasing halal food is beneficial for me 0.873 Purchasing halal food is necessary for me 0.804 Subjective Norms People who are important to me agree that I should purchase halal food 0.902 0.938 (0.792) 0.931 People are important to me support I purchase halal food 0.884 People are important to me understand I purchase halal food 0.914 People are important to me and recommend I purchase halal food 0.860 Positive Anticipated Emotions If I succeed in achieving my goal (purchasing halal food), I will feel excited 0.904 0.960 (0.856) 0.967 If I succeed in achieving my goal (purchasing halal food), I will feel glad 0.921 If I succeed in achieving my goal (purchasing halal food), I will feel satisfied 0.939 If I succeed in achieving my goal (purchasing halal food), I will feel happy 0.975 Negative Anticipated Emotions If I fail to achieve my goal (purchasing halal food), I will feel unsatisfied 0.902 0.955 (0.842) 0.964 If I fail to achieve my goal (purchasing halal food), I will feel disappointed 0.954 If I fail to achieve my goal (purchasing halal food), I will feel worried 0.950 If I fail to achieve my goal (purchasing halal food), I will feel sad 0.958 Perceived Behavioural Control If I want, I can purchase halal food 0.812 0.870 (0.627) 0.850 I am capable of purchasing halal food 0.794 I have enough financial resources to purchase halal food 0.777 I have enough time and opportunities to purchase halal food 0.746 Desire I want to purchase halal food in the future 0.944 0.922 (0.748) 0.934 I am eager to purchase halal food shortly 0.823 I hope to purchase halal food shortly 0.902 I wish to purchase halal food shortly 0.904 Table 2. 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