Procedia

Social and
Behavioral
Sciences

Procedia - Social and Behavioral Sciences 00 (2013) 000000

www.elsevier.com/locate/procedia

International Islamic Business Conference 2013

(IIBSC 2013)

Consumer Perception towards Halal Logo at Non-Muslims

Business Premises
Abd Rahman Ahmad*, Aizad Esdi Mohd Sidek, Mohd Nazir Mohd Adi, Nur
Aniza Quantaniah Jusoh, Ng Kim Soon
Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia
86400 Batu Pahat, Johor, Malaysia

Abstract
The purpose of this study is to investigate the consumer perception towards halal logo at non-Muslims business
premises. Respondents in this study were included the academic, non-academic and students in Batu Pahat, Johor.
This paper presents the preliminary results by using the descriptive statistics and mean scores. Data were analysed by
using the Statistical Package for Social Sciences (SPSS). The results from the quantitative survey questionnaire
indicate that the perception towards halal logo is very high. It is found that the consumers are confident to purchase
foods even at non-Muslims business premises with the halal logo. Therefore, it is recommended that continuous
monitoring programme on the status of halal logo on business premises by the relevant authorities to be made to
sustain the high confidence level among Muslim and non-Muslim consumers.

2013 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of Universiti
Teknologi MARA Malaysia.
Keywords: halal; consumers; logo;products; business

1. Introduction
The issue of halal and haram products is a current issue not only in Malaysia but also worldwide.
Islam has clear outlines about what is halal and what is haram; these outlines are based on the verses in
the Qurn and Hadth (Danesh et al., 2010). It is a duty of Muslims to ensure that the food that they eat is
free from filth and illegal sources, starting from the preparation of raw materials, storage, cooking,
manufacturing, packaging, and transportation (Mohamad, 2005). Today, the halal and haram concepts are
not only relevant to food-related products, but also to all types of products and services. Said and Musa
(2011) point out that the halal industry is currently growing towards a total halal lifestyle.

Corresponding author e-mail address: arahman@uthm.edu.my

Author name / Procedia - Social and Behavioral Sciences 00 (2012) 000000

The Department of Islamic Development Malaysia or known as JAKIM was established by the
Malaysian Federal Government on 1st January 1997. One of the important functions of this department is
to monitor and enforce halal implementation guidelines by the operators in this country. Halal certificate
and logo provided by JAKIM to local entrepreneurs are recognitions that state that their products are
halal. The standard guidelines and logo are intended to reduce the potential of misunderstanding and
uncertainty among Muslim consumers on halal issues or purity of foods, beverages, and consumables
produced in this country. In this paper, the halal logo means the logo issued by JAKIM as indicated in the
figure below.

Source: JAKIM (2012)

Fig. 1: Halal Logos by JAKIM

As of 1st January 2012, JAKIM is the only halal certification body in Malaysia. This is to avoid
confusion among Muslims in the country when it comes to issuance of the halal logo (JAKIM, 2012).
2. Literature Review
Imran (1999) defines consumer perception as the users point of view on the product or service
offered. The perception depends on internal and external factors such as quality, design, and the services
or goods offered.
The halal industry in Malaysia have been growing since 2001 (Fisher, 2007). They include food,
fashion, farming products, pharmaceuticals, banking, branding, and many other types of businesses that
involve use of halal logo and certification. Due to the increasing population of the Muslim community
that has now exceeded a quarter of the world population, it cannot be denied that the halal issues have
begun to have an impact not only on the market in Malaysia, but also in the international market.
Malaysia now has gone through the various developments and reforms in the field of food technology;
these have then causes food-processing methods to become increasingly complicated. Thus, consumers
are exposed to a variety of products that may contain non-halal ingredients.
The clear guideline from JAKIM about the process of getting halal certification helps businesses to
obtain the halal certification and logo easily. By having the halal certification and logo, consumers should
thus not be hesitant to use the goods and services. However, when there are issues raised about the halal
certification and logo, consumer confidence towards the goods and services begins to erode.
Standardisation of halal logo should be done to avoid confusion among consumers (Noriah, 2006).
This paper discusses the issues related to halal logo at non-Muslim business premises. In addition, the
conceptual model of consumer food and purchase from Ruth, Yeung and Morris (2001) is used in this
study to simplify the actual situation of a consumer perception.

Author name / Procedia - Social and Behavioral Sciences 00 (2012) 000000

2.1 Conceptual Model of Consumer Food and Purchase

The three main categories of sources of risk associated with the safety of foods are microbiological
source, chemical source, and technology used in the manufacturing process. Ruth et al. (2001) report that
consumers are able to assess the sources of risk even though they do not fully understand the context of
the risks. In addition, the perception towards safety food is also influenced by a combination of user
perception and effects from these exposures i.e., risk with the food safety. Meanwhile, the perception of
risk can be categorised as not known i.e., an unknown food safety features (Ruth et al., 2001). Figure
below depicts the consumer perceptions towards food purchase.
Source of Food
Risk

Food Risk
Characteristic

Risk
Perception

Purchase
Likelihood

Risk Reduction
Source: Adapted from Ruth et al. (2001)
Fig. 2: Conceptual Model of Consumer Food Purchase

The study on consumer perceptions towards food safety is very complex. Barnett and Breakwell
(2001) point out that consumer perceptions towards food safety is influenced by the risk experienced by
the individual. Other researchers indicate that factors such as worry (Baron et al., 2000) and anxiety
(Boyur et al., 2001) might also contribute to consumer perceptions towards food safety. From Islamic
point of view, halal food is clean and safe to eat. Based on the concept of halal, jurisprudists have
established that foods containing anything that could bring harm to consumers are prohibited to be
consumed (Che Hassan, 2005).
According to the Consumers Association of Penang (2006), halal products count heavily on food
hygiene. However, some current issues involving halal logo and food producers who do not respect the
religious sensitivities among Muslims have resulted in doubt of the status of halal logo. Muslims in
Malaysia were put in surprise when the issue of pork stored together with other clean meats was revealed
(Daily News, 2005). Other issues were when some food producers especially among the non-Muslims
have abused the halal certificate issued to them and the discovery of pig intestines in sausage (Utusan
Malaysia, 2005).
Moreover, the Federation of Malaysian Consumers Associations (FOMCA) requests Muslims in
Malaysia to eat only in premises that display the halal logo issued by JAKIM and the State Islamic
Religious Council (Sinar Harian, 2012). The advice is issued to ensure that Muslim consumers are more
careful with the choices they make when it comes to consuming halal products.
Noriah (2006) states that the offence of abuse of the halal logo should not be borne solely by JAKIM.
Moreover, JAKIM has shown its determination in making the halal food market in Malaysia comes true.
This determination can be seen from the establishment of the Development Division and the efforts made
to position Malaysia as a halal hub in this region.
Thus, this research is conducted with the objetive to identify the consumer perception towards halal
logo at non-Muslim business premises.

Author name / Procedia - Social and Behavioral Sciences 00 (2012) 000000

Research Methodology

The instrument used to collect data in this research is questionnaire. According to Chua (2006),
questionnaire is a set of written questions in which the respondents are required to answer based on the
options or alternatives given. In this research, probability sampling procedures and sample size table by
Krejcie and Morgan, 1970 are used. Respondents were included the academic, non-academic and students
in Batu Pahat, Johor. In order to answer the research question of the research, descriptive statistics is
used. Chua (2006) further states that descriptive statistics is used to convert the data into a form that is
easy to understand. The five-point Likert scales, ranging from strongly agree to strongly disagree, is used
in this research. From the analysis, the Cronbach alpha from the pilot test is 0.89. This indicates that
respondents are able to understand and answer the questionnaire.
4. Finding and Discussion
From 2345 questionnaires distributed, only 275 are returned and used in the data analysis. The
respondents demographic particulars included in this discussion are sex, race, religion, and age.
Data collected are analysed using frequency and percentage. Majority of the respondents are females
(72.4 per cent) and the rest are males (27.6 per cent). In terms of race, the highest percentage of the
respondents is Malay (92.4 per cent) followed by Chinese respondents (3.6 per cent), Indian (2.5 per cent)
and the remaining 1.5 per cent represents other races.
In terms of religion, the highest percentage is Muslim respondents (92.4 per cent) followed by Buddhists
(3.6 per cent), Hindus (2.5 per cent), Christians (0.4 per cent) and others (0.4 per cent). In terms of age,
0.7 per cent of respondents are 19 years old and below, 37.1 per cent of the respondents are in the range
of age 20 to 22 years old, 34.5 per cent of the respondents are between 23 and 25 years old, and 60.7 per
cent of the respondents are between 26 and 28 years old.
4.1 Mean Analysis
In this research, mean scores are used in each question in Part B of the questionnaire in order to
answer the research questions. Overall mean items are analysed to determine the tendency of respondents
to the questions as indicated in Table 1.
Table 1. Mean Analysis
Statement

Mean Score

I feel free to buy or use products from non-Muslim business premises that have halal logo.

2.85

Products produced by non-Muslim business premises that have halal logo are safe to eat.

2.83

The halal logo can convince Muslims to buy products at non-Muslim business premises.

3.35

The halal logo could guarantee the purity of a resultant product by non-Muslim business premises.

3.28

Products produced by non-Muslims business premises that have halal logo ensure that the products sold are
halal.

3.00

Guidelines set by JAKIM could raise the level of consumer confidence to use products that have halal logo.

4.49

Guidelines established by JAKIM could guarantee consumers to use the products with the halal logo without
hesitance.

4.38

Regular monitoring of the halal logo status at business premises by the authorities is very important to create
consumer confidence.

4.75

Author name / Procedia - Social and Behavioral Sciences 00 (2012) 000000

Statement

5
Mean Score

Provisions related to laws on the use of the halal logo are sufficient to combat the misuse of halal logo.

4.73

The halal logo issued by the JAKIM and the JAIN creates consumer confidence.

4.59

JAKIM shows determination and commitment to the success of the halal industry in Malaysia.

3.99

Various efforts have been taken by the Government to ensure that the products sold in non-Muslim business
premises meet the halal requirements.

3.71

Products that have halal certification and logo are safe to use.

4.29

The understanding among non-Muslim businesses about halal issues will bring mutual benefit to all parties.

4.75

As indicated in table above, the respondents are asked about their perception on the halal certification
and logo at non-Muslim business premises. Some of the questions are also related to the monitoring
activities by the authorities in order to create consumer confidence. There are two statements that share
the same highest mean score (4.75), which are The understanding among non-Muslim businesses about
halal issues will bring mutual benefit to all parties and Regular monitoring of the halal logo status at
business premises by the authorities is very important to create consumer confidence.
These results indicate that the respondents perception towards the understanding of halal issues
enhances their confidence to buy the products. Furthermore, the respondents believe that regular
monitoring on the halal logo status might help to increase consumer confidence. Therefore, authorities
should play their role in improving consumer confidence by monitoring and enforcement.
Meanwhile, the lowest mean score is for the statement Products produced by non-Muslim business
premises that have halal logo are safe to eat. This score indicates that the respondents have moderate
perception towards this statement. This perception could be because there is a sense of doubt about the
use of the halal logo at the time. However, JAKIM has implemented several new approaches to enhance
consumer awareness. These approaches include developing information on halal directory of food and
beverage production, food premises, hotels, consumables, and slaughter house that has JAKIM halal
certificate. Meanwhile, JAKIM has introduced only one standardised logo in order to facilitate the
enforcement across the country.
Based on the analysis, the researchers have identified two proposals namely proposal to the Islamic
State Department or JAIN and JAKIM and a proposal to the ministry and local authorities, and some
recommendations for future researchers. The first proposal, which is for the two religious administrative
bodies, seeks to help JAIN and JAKIM in increasing consumer confidence towards halal logo.
Meanwhile, for the second proposal to the ministry and local authorities need to continuously monitoring
several aspects of the process and maintain the halal implementation in Malaysia, it is expected that the
proposal can help them in reducing the incidence of abuse of the halal logo. Meanwhile, a proposal to
future researchers are expected to help strengthen the study and to provide useful information in the study
to be undertaken.
5. Conclusion
This study discusses the consumer perception towards the status of halal logo at non-Muslim business
premises. Based on the analysis, it can be concluded that the level of consumer understanding on halal
issues is at a high level. Therefore, continuous monitoring of the status of the halal logo on business
premises by the authorities is very important to keep the standards of the products. Through continuous

Author name / Procedia - Social and Behavioral Sciences 00 (2012) 000000

monitoring, abuse of the halal logo will be reduced and eventually improve consumer confidence towards
the halal logo.
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