Islamic branding and brand resonance: A multi-group analysis of Malaysia & Pakistan

Bukhari, Syeda Nazish Zahra; Syed Asim Ali Bukhari; Salmi Mohd Isa; Goh Yen Nee; Arif, Muhammad Article Islamic branding and brand resonance: A multi-group analysis of Malaysia & Pakistan Pakistan Journal of Commerce and Social Sciences (PJCSS) Provided in Cooperation with: Johar Education Society, Pakistan (JESPK) Suggested Citation: Bukhari, Syeda Nazish Zahra; Syed Asim Ali Bukhari; Salmi Mohd Isa; Goh Yen Nee; Arif, Muhammad (2025) : Islamic branding and brand resonance: A multi-group analysis of Malaysia & Pakistan, Pakistan Journal of Commerce and Social Sciences (PJCSS), ISSN 2309-8619, Johar Education Society, Pakistan (JESPK), Lahore, Vol. 19, Iss. 2, pp. 226-248 This Version is available at: https://hdl.handle.net/10419/325337 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. 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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/ Pakistan Journal of Commerce and Social Sciences 2025, Vol. 19(2), 226-248 Pak J Commer Soc Sci Islamic Branding and Brand Resonance: A Multi-Group Analysis of Malaysia & Pakistan Syeda Nazish Zahra Bukhari (Corresponding Author) Institute of Business & Information Technology, University of the Punjab, Lahore, Pakistan Email: [email protected] Syed Asim Ali Bukhari Head – ESG Unit, The Bank of Punjab, Lahore, Pakistan Salmi Mohd Isa, Goh Yen Nee Graduate School of Business, Universiti Sains Malaysia, Malaysia Muhammad Arif Govt. Sadiq Graduate College of Commerce, Bahawalpur, Pakistan Article History Received: 04 Apr 2025 Revised: 14 June 2025 Accepted: 18 June 2025 Published: 30 June 2025 Abstract The study examines the underlying heterogeneity within the global Muslim consumer market in connection with Islamic branding and its impact on the brand resonance of an Islamic brand. This comparative study empirically examines the differences existing within the Muslim consumer in Malaysia and Pakistan with respect to the influence of religiosity, Islamic brand knowledge and Islamic corporate social responsibility (ICSR) on Islamic branding perceptions and its subsequent impact on the brand resonance of an Islamic brand. This study uses the Partial Least Squares - Structural Equation Modeling (PLS-SEM) analysis in which the constructs scores are calculated according to a composite algorithm. The Measurement Invariance of Composite Models (MICOM) was applied before conducting Multi-Group Analysis (MGA) in PLS-SEM. The MICOM procedure consisted of three steps, including measurement of configural invariance, measurement of compositional invariance, and assessment of the equality of a composite’s mean value and variance across groups. The study reveals significant differences between the two Muslim consumer markets in terms of Islamic branding antecedents and the influence of this branding ideology on brand resonance of an Islamic brand. It can provide valuable insights to brand managers targeting the global Muslim consumers and policymakers. Currently, limited studies have applied the PLS-SEM, MGA technique through MICOM analysis. Keywords: Branding, Islamic brand knowledge, brand resonance, Islamic corporate social responsibility, religiosity, multi-group analysis. Bukhari et al 227 1. Introduction With the advancements in the field of brand management, marketers have realized that ultimately, the power of a brand lies in the minds of consumers. To build a strong brand, the right knowledge structures had to exist in the minds of the consumers. In the heart of all this branding revolution was the consumer. Marketers realized that if the brand held no value or meaning to the consumer, it would be of no value to any of the other stakeholders (Cheng, Tung, Yang, & Chiang, 2019). Brands are developed and exist in the consumer's mind and inculcate all the feelings and emotions that the consumer associates with the offering (Kotler et al., 2017). Due to the multifold benefits of creating brands customized according to various target markets (Chatzipanagiotoua et al., 2016). A vast repository of concepts, variables, and constructs in the field of branding has been developed (Veloutsou & Guzmán, 2017). This led to a much wider and deeper understanding and implementation of branding. Brands evolved to become multi-dimensional and multi-functional entities (MacInnis & Folkes, 2017; Sarmad & Ali, 2023). Consumers have been defined as the co-creators of brands. In addition to their brand perceptions, consumers also have the power to influence brand-related perceptions of other consumers (France et al., 2015). The Muslim consumer market has emerged as a substantial target market for brands due to its increasing size and purchasing power. A large number of global brands are targeting Muslim consumers through various product and service offerings. The increasing attractiveness of this consumer market has accelerated both academic and organizational interest in this segment (Iranmanesh et al., 2020). Compared to other consumer segments, the Muslim consumers have distinct characteristics concerning their consumption behaviors and the values and principles guiding their consumption behavior. All the acts of a Muslim consumer are anchored in his/her religious beliefs and values, making Islam the basic premise for their consumption behavior. Muslim consumers do not use brands that they perceive to be against Islamic principles and values. Brands depicting congruence to Islamic values will be favored by the Muslim consumers (Zafar et al., 2024). The long-term success of any brand is dependent on the creation of brand resonance. Brand resonance refers to the emotional attachment and sense of community developed between the brand and the consumer. The problem addressed in this research is the lack of brand resonance in the brands targeting Muslim consumers (Raut et al., 2020). Past research and various incidents have revealed that Muslim consumers do not feel a self-brand attachment, which triggers anti-consumption behavior when they perceive the brand to be against their religious values and beliefs. Numerous boycotts by Muslim consumers all around the world have cost various global brands a significant amount of monetary losses as well as damage to brand equity. Heterogeneous consumer markets need customized branding strategy (Sungnoi & Soonthonsmai, 2024). The C.B.B.E pyramid of brand development explains that to create brand resonance, a brand should first develop brand salience followed by Islamic Branding and Brand Resonance 228 brand meaning and afterwards brand response based on the earlier developed strategies. Without the development of these brand-building blocks, the brands targeting Muslim consumers cannot generate brand resonance (Kalliny et al., 2018). The study is a comparative study conducted in Malaysia and Pakistan. The reason for the selection of these two countries is their strong potential for the development of Islamic branding, but opposite status in the current global halal trade market. Malaysia is considered the world leader in the development of halal standards and halal exports, whereas Pakistan is underperforming in the global halal trade market due to a weak regulatory framework for Islamic branding and low awareness of Islamic branding among the stakeholders. The study fulfills the gaps in the field of Islamic branding by providing various theoretical, methodological, and practical contributions. The findings of the study can prove beneficial to both the brand managers and the policymakers in various Muslim countries. The observed heterogeneity in the research findings provides a basis for customization in Islamic branding for different Muslim consumer markets. This study can prove beneficial for expanding the global halal market and increasing halal exports of Muslim countries through the development of Islamic branding. Islamic branding is the key to the development of a long-term relationship between brands and Muslim consumers. 2. Literature Review With time, the Muslim consumer markets have emerged as a heterogeneous target market for global brands. For Muslims, all of their beliefs and actions are either pleasing or displeasing to Allah (God). Thus, they are very careful about their consumption behavior. This greater inter-connectivity of religion with all aspects of their life makes Muslim consumers a complex consumer market for the brands (Garg & Joshi, 2018; Samidi et al., 2016). Research reveals varying consumer attitudes and behavior due to varying levels of Islamic religious intensity. Consumers’ country-of-origin and percentage of Muslim population have been studied as some of the basic predictors of Islamic religious intensity in a number of studies (Hosseini, Mirzaei, & Iranmanesh, 2019; Jumani & Sukhabot, 2020; Memon, Memon, Pitafi, & Panhwar, 2020). The global Muslim consumers are similar based on their consumption decisions that are shaped by their religious code of life. They also have a similar lifestyle and dietary requirements and are bound together by a sense of community, welfare, and oneness because of their religion (Floren et al., 2019; Yunus et al., 2010). This creates homogeneity within the Muslim consumer markets in terms of what they deem permissible or nonpermissible consumption across various industries. But this homogeneity does not mean that brand managers can apply the same branding strategy for Muslim consumers all over the world (Abuznaid, 2020). Diversity exists within the consumption behaviors of the Muslim consumer markets due to diverse geographic locations, different languages, varying cultures, different levels of religiosity, and demographic profiles (Temporal, 2011). This creates the need for the development of customized Islamic branding elements, resulting in the formation of brand resonance for the Islamic brand (Bukhari & Isa, 2019; Bukhari et al 229 Pasha et al., 2019). Research has revealed that no matter how valuable a brand, it is never completely immune to competitive attack and negative publicity (Ismail et al., 2016). This vulnerability of brands towards external threats and various uncontrollable negative events has caused businesses to invest more proactively in building a brand’s reputation, goodwill, and a sense of oneness with the concerned target market and society at large (AminChaudhry, 2016). Brands started looking for diverse business strategies to achieve brand resonance among the target market, including CSR (Teck, Ayadurai, & Chua, 2019). 2.1 Islamic Branding Islam is a strong brand in itself with strong, favorable, and unique brand associations in the minds of its followers, i.e., the Muslims (Al-Hajla et al., 2018). When a brand associates itself with Islam, it leverages the secondary associations of the religion and uses them to increase its brand equity in the minds of the Muslim consumer. This process of connecting Islamic associations with each aspect of a brand’s life cycle, from pre-consumption to postconsumption and during all the elements of the brand’s marketing mix, is the basis of Islamic branding. Islam is deeply connected with every aspect of its followers’ lives. For this reason, a brand may borrow all the associations of Islam in the Muslim consumer's mind and leverage it as an Islamic brand’s associations (Bukhari & Isa, 2021; Samidi et al., 2016; Temporal, 2011). Due to the growing Muslim consumer markets, brands are trying to develop Islamic branding strategies for the Muslim consumers in different parts of the world (Butt et al., 2017; Floren et al., 2019; Jumani & Sukhabot, 2020; Suhartanto et al., 2020). The presence of Islamic branding elements, such as the halal logo, results in increasing Muslim consumers' repurchase intention and positive word-of-mouth about an Islamic brand (Zafar et al., 2025). The presence of brand elements in a brand that connects a Muslim to the wider community and makes him feel like a devoted follower of his religion will increase his/her emotional attachment to the brand (Alserhan, 2010a; Izberk-Bilgin & Nakata, 2016; Wilson & Liu, 2011; Yusof & Jusoh, 2014). Research shows that if two brands have the same attributes, Muslim consumers will prefer the brands that have Islamic branding elements. Islamic branding elements are inculcated by brands because they increase the brand’s goodwill, market share, and ultimately the brand's resonance. When a Muslim consumer perceives the brand to be consistent with similar religious associations, the brand resonance of that particular brand increases in his mind (Aziz & Chok, 2013; Butt et al., 2017; Khan et al., 2019). 2.2 Theory of Self-congruity The theory of self-congruity examines the consumer’s identification with the brand. The brand personality is evaluated positively by a consumer if it matches his/her self-image. It is based on the assumption that perceived congruity between the consumer and the brand influences the consumer’s pre-purchase and post-purchase behavior. It also has a profound Islamic Branding and Brand Resonance 230 effect on the consumer’s behavioral and attitudinal attachment towards the brand (Frías‐ Jamilena et al., 2019; Sirgy, 2018; Willems & Brengman, 2019). Islamic branding should create congruence between the Muslim consumer’s self-concept and Islam’s functional, hedonic, and symbolic associations regarding that product category. Islamic brands should be developed to achieve brand-consumer congruence through Islamic branding. Thus, the brand elements required for an Islamic brand will be different from those required for conventional brands. Islamic branding requires strategies that serve as antecedents to the formation of Islamic brand resonance. The Islamic branding antecedents perceived as important for the development of an Islamic brand by Muslim consumers result in the creation of an Islamic brand with brand resonance. This study proposes Religiosity, Brand Knowledge, and Islamic Corporate Social Responsibility (ICSR) as the antecedents or the building blocks of Islamic branding. 2.3 Islamic Branding and Brand Resonance This study proposes that if a Muslim consumer perceives higher importance of Islamic branding, he/she will have a greater level of brand resonance for an Islamic brand. Varying perceptions of Islamic branding may result in varying brand resonance for Islamic brands. Previous research has supported that consumers’ involvement with a brand is positively related to brand affection and brand engagement (Algharabat et al., 2020). Based upon the above discussion, it can be inferred that the brand resonance within the minds of different consumers may vary based upon the strength of the brand-self congruity perceived by the consumers. Research has shown a positive relationship between emotional attachment and brand resonance, but the strength of the relationship may vary among different consumers. The perceived importance of various brand elements can also influence the level of brand resonance (Boateng et al., 2020; Dwivedi et al., 2018; Japutra et al., 2019; Muhamed et al., 2015). Thus, different Muslim consumer segments may depict a varying relationship between Islamic branding and the brand resonance of Islamic brands. The discussion leads to the development of the following comparative hypothesis: ➢ H1 There is a significant difference between the influence of Islamic branding on the brand resonance of Islamic brands in Malaysia and Pakistan. 2.4 Islamic Branding and Religiosity Islamic branding is based on religion and has a strong connection with the religiosity existing within the Muslim consumer market. High religious intensity acts as a predictor of Muslim consumers’ preference for halal products and the importance given to halal logos and symbols. Muslim consumers with a high level of religious commitment will place high importance on Islamic branding. Highly religious Muslim consumers tend to have a greater positive attitude towards halal products and services (Ahmadova & Aliyev, 2019; Al-Hajla et al., 2018; Butt et al., 2017). They have greater connectivity with their religion and are more sensitive towards various aspects of Islamic branding, such as halal transportation and storage, and halal labels (Iranmanesh et al., 2020b; Islam & Chandrasekaran, 2020; Maison et al., 2019). Muslims across the globe vary in terms of Bukhari et al 231 religiosity (Temporal, 2011). The magnitude of the religion’s impact varies from one Muslim to another all over the world. Muslims cannot be categorized as experiencing the same level of religious influence. It is the level of religiosity rather than being a follower of that religion that influences a Muslim consumer’s decision-making (Abuznaid, 2020). Consumers with different levels of religiosity comprehend and react towards various religious brand associations differently (Anam et al., 2018; Liu & Minton, 2018). Islamic branding will be more important to Muslim consumers who have a high level of religiosity as opposed to those consumers who do not have a strong religious intensity (Floren et al., 2019). This leads to the development of the following comparative hypothesis: ➢ H2 There is a significant difference between the influence of religiosity on Islamic branding in Malaysia and Pakistan. 2.5 Islamic Branding and Brand Knowledge The key to creating successful brands lies in the creation and representation of the desired brand knowledge (Keller, 2003). A brand can't achieve brand resonance without creating and establishing the appropriate knowledge structures in the consumer’s mind (Keller, 2016). Islamic branding is based on leveraging religious brand associations to form secondary associations for the Islamic brand. If consumers do not have sufficient knowledge about Islamic principles relevant to the product category, then a brand will not benefit from leveraging secondary brand associations of Islam (Bukhari & Bukhari, 2025). Brand knowledge about Islamic branding includes the awareness of Islamic teachings relating to the lawful and prohibited consumption habits. It influences the Muslim consumer’s consciousness in consuming products produced and delivered through permissible practices. The halal knowledge of Muslim consumers has a positive influence on their purchase decisions (Hartani et al., 2020; Muslichah et al., 2019; Pasha et al., 2019). The presence of greater awareness and knowledge about various halal issues makes the Muslim consumers more sensitive towards the Shariah compliance by brands. Muslim consumers who had prior knowledge of a brand’s religious guidelines were more sensitive towards the presence of those requirements in the brands they consume (Jaiyeoba et al., 2019; Sunaryo, 2018). The following comparative hypothesis is proposed. ➢ H3 There is a significant difference between the influence of brand knowledge on Islamic branding in Malaysia and Pakistan. 2.6 Islamic Branding and Islamic Corporate Social Responsibility (ICSR) Islamic branding has a direct connection with religiosity; the increase in the demand for Islamic brands has also increased the researchers' focus on ICSR (Alfakhri et al., 2018b). The concept of ICSR integrates the consumer’s spirituality and religiosity into his/her brand expectations (Alshammary, 2014; S. A. A. Bukhari et al., 2020c). Islam requires similar principles of responsibility and accountability to be followed by both organizations and individuals. For this reason, Muslim consumers expect the brands they consume to Islamic Branding and Brand Resonance 232 adopt ICSR practices (Issalih et al., 2015). Muslim consumers, who hold high ICSR expectations from the brands they consume, consider the brand’s Shariah compliance and God-consciousness brand associations as important to the purchase decision (Maulan et al., 2016). Consumers, who are more knowledgeable about ICSR practices, perceive greater importance of ICSR as an antecedent to an acceptable business ideology (S. A. A. Bukhari et al., 2020a; Darus et al., 2015). It is proposed that Muslim consumers’ perception about the importance of ICSR practices will be translated into his/her perception of Islamic branding. Different groups of Muslim consumers may have varying ICSR perceptions. ➢ H4 There is a significant difference between the influence of ICSR on Islamic branding in Malaysia and Pakistan. The conceptual framework of the study is presented in Figure 1. Figure 1: Research Framework 3. Methodology In view of the heterogeneity existing within the Muslim consumers residing in different parts of the world, this study conducts a comparative analysis to examine the antecedents of Islamic branding in Malaysia and Pakistan. Malaysia is a multi-racial country with approximately. 61% Muslim, and Pakistan is a Muslim majority country with approximately. 96% Muslim population (CIA, 2020). The Muslim consumers in both countries display high levels of religious sensitivity, but varying degree of knowledge exists concerning Islamic branding in the two consumer markets. Malaysia is the current leader and pioneer in the development of the global halal economy. The various areas of Islamic branding, such as halal certification, are regulated by the country’s government (Tieman & Ghazali, 2014). In contrast, Pakistan has a significant untapped Islamic branding potential but suffers from low stakeholder knowledge and insufficient regulatory mechanisms for the development of the country’s halal economy (Ahmad, 2019; Qureshi, Bukhari et al 233 2017). A comparative study between the two countries aimed to highlight the heterogeneity within the Muslim consumer markets and identify the implicit homogeneity. The study applied purposive sampling under the non-probability sampling technique. The sample was collected from three cities in Malaysia, i.e. Kuala Lumpur, George Town, and Johor Bahru and three cities in Pakistan, i.e. Karachi, Islamabad, and Lahore. The cities were selected based on having the highest GDP (Gross Domestic Product) per Capita in the respective country. The criterion of high GDP was applied because high GDP is an indicator of the high level of economic activity and purchasing power of the consumers in that area. The unit of analysis was individual, i.e. Muslim consumer of halal products. A total sample of 649 was collected through self-administered questionnaires, 326 from Malaysia and 323 from Pakistan. Quantitative research methodology was used in this study. This research methodology is in congruence with the deductive approach of research. Quantitative methodology assists in the objective and deductive reasoning of assumptions and generalizes the findings. Furthermore, the study adopted the survey method to collect data from the sampling frame. The survey method is considered the best option available in social science research when direct observation is almost impossible because of the larger population (Babbie, 2016). The Multi-Group Analysis (MGA) test was performed to test if pre-defined data groups have significant differences in their groupspecific parameter estimates. The Measurement Invariance of Composite Models (MICOM) was conducted as a precondition to MGA. Permutation analysis was conducted to analyze whether the model has partial or full measurement invariance (Murshid et al., 2023). Once the MICOM was passed, comparative hypotheses were assessed using the Henseler’s MGA, Permutation test, and the Welch-Satterthwait test. The results of the MGA were further explained through the f² and q² values calculated in the measurement and structural model analysis. 4. Data Analysis and Results The data analysis technique of Partial Least Square-Structural Equation Modeling (PLSSEM) was used in the study. Data analysis was conducted through SmartPLS (Ringle et al., 2024) and IBM SPSS. It consisted of three steps, i.e. measurement model analysis and Multi-Group Analysis (MGA). 4.1 Measurement Model Analysis The research model in this study was a reflective measurement model consisting of reflective measurement items. Measurement model analysis was conducted on the data through assessing convergent validity, internal consistency reliability, and discriminant validity. The results are shown in Tables I & II, showing the results of measurement model analysis on three data sets, i.e. data collected from Malaysia (326), data collected from Pakistan (323) and combined data from both Malaysia and Pakistan (649). Analysis was run on all three data sets to ensure measurement items and constructs’ reliability and validity for the next analysis steps. The results displayed in Table 1 show values between Islamic Branding and Brand Resonance 240 heterogeneity between Muslims residing in countries with varying percentages of Muslim population has been observed. Both Pakistan and Malaysia are Muslim majority countries, but unlike Pakistan, Malaysia has a substantial representation of other religious groups in its total population. The difference in the effect of Islamic branding on the brand resonance in different countries is explained by the varying level of brand-self connection among the Muslim consumers. High religious sensitivity increases the importance of Islamic branding in the minds of Muslim consumers. This, in turn, causes them to be more emotionally attached to Islamic brands. The lesser impact of Islamic branding on the brand resonance in Pakistan is explained by the lack of knowledge among Muslim consumers regarding Islamic branding. A variation in the ICSR perceptions and importance of Islamic branding reveals that ICSR can be used as a brand-building strategy in some Muslim consumer markets like Pakistan. This supports the need for a customized branding strategy, i.e., Islamic branding for the global Muslim consumer markets. The proposed antecedents prove the strong connections between the Islamic brand building blocks and Islamic principles and values. 5.2 Implications of the Study This study has significant theoretical, methodological, and practical implications. The research framework explores the use of Islamic branding as a tool for increasing the brand resonance of an Islamic brand based on the Theory of self-congruity. This theoretical foundation has not been extensively applied in the area of brand customization for Muslim consumers. The development of brand resonance has been stated as a branding strategy for promoting positive consumer behavior as well as minimizing or eliminating anticonsumption behavior against the brand. The research examines the brand building blocks for Islamic branding and proves the need for customization of branding strategy according to the differences existing in the consumer markets. Results of MGA show that the same branding strategy cannot be applied to two groups of Muslim consumers with varying levels of the Muslim population. The brand manager should develop the Islamic branding strategy according to the level of religiosity, brand knowledge, and ICSR expectations of the Muslim consumer market. The study can also have significant regulatory and policy implications for the global Islamic consumer markets in different countries. Malaysia and Pakistan consumer markets differ significantly based on the advancement in the regulatory and policy framework for Islamic branding. This difference is that the regulatory and policy structure of the two countries was also mirrored in the findings of the study, which reveals a stronger Islamic branding influence on brand resonance in Malaysia as compared to Pakistan. A stronger Islamic branding policy framework in Malaysia also created a greater influence of brand knowledge on Muslim consumers’ Islamic branding perceptions in Malaysia. Thus, the study highlights the importance of the formation of regulation and sector-specific guidelines for the development of various Islamic branding elements by the country’s government. Stronger regulations for the development of Islamic branding will create greater consumer knowledge and result in the creation of Islamic brands having high brand resonance. The research framework can also benefit the governments of the Muslim Bukhari et al 241 countries as they can capture the halal export markets through the development of Islamic brands that have a high level of brand resonance. Despite the large potential, Pakistan has a minimal share in the various global halal industries. Through the development of Islamic branding, the country can produce local Islamic brands that can capture the lucrative halal export markets. The study holds important implications for brand managers by providing them with a customized brand-building framework for different Muslim consumer markets. 5.3 Limitations and Future Research The study was conducted in selected cities of both countries due to time and financial constraints. It is currently empirically examining a limited number of Islamic branding antecedents, which may be expanded in future research. This study provides many avenues for future research in the area of Islamic branding. The research framework can be applied to other Muslim minorities, Muslim majorities, or multi-racial countries to gauge the effectiveness of the proposed antecedents and Islamic branding in creating brand resonance. The research framework can be applied to various Islamic brands to examine, modify or develop Islamic branding strategies. 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