Religious Commitment, Halal Logo, and Willingness to Pay

Slamet Ahmadi, Atika Nur Aini

Abstract

Indonesia has a large market potential in the halal food industry, thus attracting other countries to enter developing business in Indonesia, including Shihlin Taiwan Street Snacks. This needs to be highlighted because it relates to non-halal issues at several critical points, such as the supply chain, starting from the procurement of raw materials, and storage, to distribution. This study aims to examine and analyze the effect of halal logo, food quality, and price consciousness, which is moderated by religious commitment. This study uses secondary and primary data to obtain information based on structured questions. A total of 176 respondents, Muslim Indonesian citizens (WNI) participated in filling out online questionnaires through the Google Forms media, which were then processed using WARP-PLS 7.0. The findings showed that the direct influence on willingness to pay was accepted, then the role of religious commitment as a moderating variable in the fifth hypothesis was rejected, the sixth hypothesis was accepted and the seventh hypothesis was rejected. This can be explained if the role of religious commitment can only prove if it can strengthen the relationship of the influence of food quality on willingness to pay. With the up-to-date conditions, the number of the respondents, and the emphasis on the case, the study can provide constructive implications. This research encourages halal food companies, including domestic MSMEs, to emphasize and pay attention to price fixing, product quality improvement, and the essence of the halal supply chain by procuring a halal logo.

 

Keywords: halal food, religious commitment, willingness to pay.


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References


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