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IMEFM
2,1 Predicting intention to choose
halal products using theory
of reasoned action
66
Suddin Lada, Geoffrey Harvey Tanakinjal and Hanudin Amin
Labuan School of International Business and Finance,
Universiti Malaysia Sabah, Sabah, Malaysia

Abstract
Purpose – Emphasis on the importance of halal products is now growing. It is fast becoming a new
market force and brand identifier and is now moving into the mainstream market, affecting and
changing perception on how business should be conducted, including from a marketing point of view.
The purpose of this paper is to test the applicability of the theory of reasoned action (TRA) in
predicting the intention to choose halal product among Malaysian consumers.
Design/methodology/approach – A structured questionnaire was used to elicit responses from
consumers using a convenience sampling technique. A total of 485 responses were received. Needless to say,
this study extends the applicability of the TRA to study halal product usage among consumers in Malaysia.
Findings – The findings indicated that the TRA is a valid model in the prediction of the intention to
choose halal products. Attitude (b ¼ 0.288, p , 0.001) and subjective norm (b ¼ 0.814, p , 0.001)
were found to be positively related to intention, with subjective norm being the more influential
predictor. Subjective norm was also positively related to the attitude (b ¼ 0.336, p , 0.001) to choose
halal products.
Research limitations/implications – The study contains a limited number of measures in the
model. Nevertheless, it provides new information on the emerging issue of halal products.
Practical implications – The results will be primarily beneficial to restaurants, fast food
restaurants and small and medium enterprises in Malaysia by offering an insight into the intentions of
consumers to choose halal products.
Originality/value – The paper extends the understanding of TRA to newly emerging contexts such
as halal products usage intentions.
Keywords Islam, Food products, Consumer behaviour, Religion, Lifestyles, Malaysia
Paper type Research paper

International Journal of Islamic and
Middle Eastern Finance and
Management
Vol. 2 No. 1, 2009
pp. 66-76
q Emerald Group Publishing Limited
1753-8394
DOI 10.1108/17538390910946276
Introduction
Halal is no longer just purely religious issue. It is in the realm of business and trade, and
it is becoming a global symbol for quality assurance and lifestyle choice ( Jumaaton
Azmi, 2005, Managing Director of KasehDia Sdn Bhd as cited in IslamOnline.net, 2005).
Investigating consumer decisions towards halal products is topical, first, given the
halal food market size and its evolution, and second, given the policy relevance of the
issue. Halal’s burgeoning popularity can be linked to religious fervor; and beliefs that it
is cleaner, healthier and tastier (Burgmann, 2007, cited in Al-Harran and Low, 2008).
Halal is an Arabic word meaning “permissible” or “lawful” and is an obligation that
governs all aspect of the lives of over 1.6 billion Muslim worldwide. The realm of halal
may extend to all consumables such as toiletries, pharmaceutical, cosmetics and
services including finance. Total funds under Islamic finance are estimated at
USD500 billion, therefore the total quantifiable size of halal industry exceeds
US$1 trillion (The Halal Journal, 2008). The concept of halal was taken for granted as Intention to
nations were generally before self-sufficient in food production. With the onslaught of
global trade and changing lifestyle non-Muslim countries are dominating the trade of
choose halal
halal meat and processed food products. Currently, a certain degree of assurance is products
provided by halal certification of halal products, which in any case can be issued by
any of over 100 halal certification agencies worldwide (The Halal Journal, 2008). Each
organization has their own set of halal standards and guidelines. The fragmentation is 67
further accentuated when crossing national boundaries where to date there is no
functioning mechanism for mutual recognition between countries. The lack of proper
regulation on certification means that non-halal produce has unknowingly ended up on
the plate of Muslim households. The halal concept (especially foods) is truly from the
farm to the table, and must be nutritious and prepared from permissible ingredients in
a clean and hygienic manner. In relation with the halal certification, the procedures are
refers to preparation, slaughtering, ingredients used, cleaning, handling and
processing, right down to transportation and distribution. Halal food also adheres to
stringent standards in hygiene and sanitation, and must not be harmful to health
(IslamOnline.net, 2006).
The study of consumer behaviour in Malaysia is vital when it comes to marketing of
halal products. The fact of the matter is, Muslim consumers are very similar to any
other consumer segments, demanding healthy and quality products, which must also
conform to Shariah requirements (Al-Harran and Low, 2008). McDonald’s in Singapore
can be seen as a prime example. It has seen an influx of eight million patrons a year
after obtaining a halal certification. Since being certified, “Halal, KFC, Burger King and
Taco Bell have all seen an increase of 20 percent in customers” (Sabri, 2006).
Consumers would turn their attention to a well-marketed product that does not have
a halal mark but they would read its ingredients, in contrast to purchasing one that has
less credibility but sports a halal logo (Al-Harran and Low, 2008). It is therefore
worthwhile that we take a closer look at consumer intention to choose halal products
that can be used to predict and satisfy customers and company objectives.

Objective of the study

The objective of this study is to identify the applicability of the theory of reasoned
action (TRA) in the context of choosing halal products. In this study, the researchers
proposed two research questions:
RQ1. Can the TRA be used to predict the intention to choose halal products among
Malaysian consumers?
RQ2. Are the attitude and subjective norm important in explaining the intention to
choose halal product among Malaysian consumers?
TRA also been applied in organic food buying behavior research (Sparks and
Shepherd, 1992), and in studying the intentions to buy environmentally friendly
products (Kalafatis et al., 1999) and several studies on internet purchasing behvior
(Battacherjee, 2000; George, 2002; Jarvenpaa and Todd, 1997; Khalifa and Limayem,
2003; Pavlou, 2002; George, 2004). The present study approaches the halal product
consumption in Malaysia with TRA. Malaysia is multicultural and multiracial
country, which is forecasted to be a growing halal market. The results concerning
the consumption of halal product are almost entirely only a part of general
IMEFM consumption research and the only contribution to halal products consumption
2,1 research is that consumers have positive attitudes and beliefs concerning halal
products. In this paper, the TRA model will be tested and the emphasis is placed on
the role of attitude and subjective norm in the context of intention to choose halal
products.

68 Literature review
Halal: an overview
Halal ( , hal a
l, halaal ) is an Arabic term meaning “permissible”. In English it most
_
frequently refers to food that is permissible according to Islamic law. In the Arabic
language, it refers to anything that is permissible under Islam (Kamali, 2003). Its
antonym is Haraam. The term halal and haram will be used strictly to describe food
products, meat products, cosmetics, personal care products, food ingredients, beverage
and food contact materials. Which foods are halal or which foods are haram, is decided
according to the Holy Quran and the Glorious Shari’ah. Most diets and foods are
considered to be halal unless Islamic law specially prohibits them. It is estimated that
70 percent of Muslims worldwide follow halal standards (Minkus-McKenna, 2007) and
the Global Halal Market was US$12 billion in 1999 (Riaz, 1999), increased to US$150
billion in year 2001, and currently is reported as US$580 billion (Al-Harran and Low,
2008). According to Hussaini (2004), 75 percent of Muslims would follow their dietary
rules in the USA, meaning that even after having migrated, most Muslims still choose
halal products.

The theory
According to the TRA, a person’s intention is a function of two basic determinants, one
personal in nature and the other reflecting social influence. The personal factor is the
individual’s positive or negative evaluation of performing the behavior. This factor is
termed attitude toward the behavior (Ajzen and Fishbein, 1980). The second
determinant of intention is the person’s perception of the social pressure put on him/her
to perform or not to perform the behavior in question. Since it deals with perceived
prescriptions, this factor is termed subjective norm (Ajzen and Fishbein, 1980).
According to the theory, attitudes are a function of beliefs. A person who believes that
performing a given behavior will lead to mostly positive outcomes will hold
a favourable attitude toward performing the behavior, while a person who believes that
performing the behavior will lead to mostly negative outcomes will hold an
unfavourable attitude. The beliefs that underlie a person’s attitude toward the behavior
are termed behavioural beliefs (i.e. the act of consuming or buying halal or non-halal
products). Subjective norm is also a function of beliefs that specify individuals or
groups to think whether he/she should or should not perform the behavior. These
beliefs underlying a person’s subjective norm are termed normative beliefs. A person
who believes that most referents with whom he is motivated to comply think he should
perform the behaviour will receive social pressure to do so.

TRA and intention to choose halal products

Promoting halal products to foreign markets is considered on innovation especially for
non-Muslim countries. It is also very much related to religious types of product.
According to Delener (1994) and Pettinger et al. (2004), religion can influence consumer
attitude and behaviour as well as food purchasing decision and eating habits Intention to
(Mullen et al., 2000; Mennel et al., 1992). In many societies, religion plays one of the choose halal
most influential roles shaping food choice (Musaiger, 1993; Dindyal, 2003). The impact
of religion on food consumption depends on the religion itself and on the extent to products
which individuals interpret and follow the teachings of their religion. Most religions
forbid certain foods (for example, pork in Judaism and Islam, or pork and beef in
Hinduism and Buddhism), except for Christianity that has no food taboos (Sack, 2001). 69
The consumption of animal products, and more specifically meat and meat products is
most strictly regulated in cases where religious considerations prevail (Shatenstein and
Ghadirian, 1997). This phenomenon can be reasonably explained by using the TRA
(Figure 1).
According to Lutz (1991), TRA has offered two important propositions. First is to
predict purchase behaviour, in which it is necessary to measure a person’s attitude
toward performing that behaviour, not just the general attitude toward the object around
which the purchasing behaviour is. For example, although a person’s attitude toward
halal products is favorable, yet the person may never buy the halal product. Second, in
addition to the attitude toward the behaviour, TRA includes a second determinant of
overt behaviour: subjective norm. Social norm is intended to measure the social
influences on a person’s behaviour (i.e. family members’ and friends’ expectations).

Methodology
Sample and measures
The data for this study are obtained through a structured questionnaire consisting of
four parts (demographic, attitude, subjective norm, and intention). The survey was
conducted in Labuan, Malaysia in April 2008 in a number of selected locations (i.e. KFC
restaurants, local restaurants, supermarkets and wet markets). In the process of
collecting data, convenience sampling methods were used, and respondents’
participation is based on voluntary basis (self-administered). In more detail, the
respondents were asked whether they would participate or not in study, in order to fill in
the questionnaire. Once they had agreed, the researchers then handed over the
questionnaire to be answered and the questionnaire was collected once completed. At the
same time, the respondents were also given a token of appreciation to encourage them
and to show appreciation of their participation in the study. A total of 485 responses were
received from a total of 630 questionnaires distributed, which gives a response rate of 77
percent (The descriptive statistics of the overall respondents are summarized in Table I).

The person’s beliefs that the behaviour

leads to certain outcomes and his Attitude toward
evaluations of this outcomes the behavior

Relative importance of attitudinal Intention Behavior

and normative considerations

The person’s beliefs that specific

individuals or groups think he should
or should not perform the behaviour Subjective norm
and his motivation to comply with the
Figure 1.
specific referents Factors determining a
person’s behavior
Source: Ajzen and Fishbein (1980)
IMEFM
Items Component 1 Component 2
2,1
Attitude
Choosing halal products is a good idea 0.171 0.985
I like to choose halal products 0.171 0.985
Subjective norm
70 Most people who are important to me choosing the
halal products 0.928 0.098
My family members prefer halal products 0.903 0.194
Table I. My friends would think that I should choose halal
Factor analysis results products 0.798 0.167
for the independent Eigenvalue 2.95 1.43
variables Variance explained (87.75 per cent) 59.04 28.71

The questionnaire items were extracted and adapted from selected studies (Fishbein and
Ajzen, 1975; Ajzen and Fishbein, 1980; Ajzen, 1985, 1988, 1991). The respondents were
required to rate their level of agreement with statements given using seven-point scales
ranking from “Strongly disagree” (1) to “Strongly agree” (7). The questionnaire was
written in English and Malay. Back translation was used for the translation of the
language in the questionnaire (de Run and Ting, 2006). Prior to the actual survey, ten
questionnaires were provided in order to facilitate a pilot study to be conducted among
consumers in Labuan in the selected locations. The pilot study is important in order to
detect any problems relevant to the used instrument for the study. Fortunately, all
respondents to the test commented that the questions were easily understood, being
similar to those employed by de Run and Ting (2006).

Model and research hypothesis

In this study, attitude can be seen as a direct influence to choose halal products,
therefore our first hypothesis is:
H1. Attitude will be positively related to intention to choose halal products
(i.e. Ajzen, 1985; Chang, 1998; Dindyal, 2003).
Surrounding expectation with regards to consumers’ society can also be seen as an
important factor that may influence consumers’ attitude towards halal products.
Therefore, our second hypothesis is:
H2. Subjective norm will influence the attitude of a person intention to choose
halal products (i.e. Ajzen and Fishbein, 1980; Pettinger et al., 2004) (Figure 2).

H1
Attitude

Intention to choose
H2 halal products

Figure 2. Subjective norm H3

Research model
Sources: Shatenstein and Ghadirian (1997), Tarkiainen and Sundqvist (2005)
In relation to the above, our third hypothesis concerning the direct influence of Intention to
subjective norm towards the intention to choose halal product can be portrayed as: choose halal
H3. Subjective norm will be positively related to the intention to choose halal products
products (i.e. Shatenstein and Ghadirian, 1997; Tarkiainen and Sundqvist, 2005).

Findings and hypotheses testing

Before proceeding to the hypotheses testing, this study was assessed using the factor
71
analysis and also reliability test. To assess the construct validity, a factor analysis with
varimax rotation was performed. The results of factor analyses done on the
independent and the dependent variables are shown in Tables I and II. For attitude and
subjective norm construct, the total variance explained was 87.75 percent, whereas for
intention construct the total variance explained was 79.78 percent. Both showed
sufficient intercorrelations being present with measures of sampling adequacy values
of 0.619 and 0.784, respectively. The criteria used to identify the loadings were that
each item should load 0.50 or greater on one factor and 0.35 or lower on another factor
(Igbaria et al., 1995).
In more detail, factors analysis is also conducted in order to confirm that the
construct validity of the scales could be performed adequately by using principal
component analysis. The minimum factor loading of 0.6 on its hypothesized constructs
is proposed (Nunnally, 1978). An eigenvalue of more than 1.0 was used as a
determinant criterion for each factor in the factor analysis. Factor loading values were
obtained using varimax rotation. Tables I and II show the results of the factor analysis.
As a result, most of the factor loading for each instrument exceeded 0.6, meeting the
essentially significant level of convergent validity.
Tables III and IV present the reliability coefficients and also the descriptive
statistics. As shown, the reliabilities of the constructs are acceptable. Nunnally (1978)
recommends that the instruments used in basic research have reliability of about 0.70
or better.
Table V shows the profile of the respondents, with the majority of them being
female (54.2 percent) and within the age of 21-30 (34 percent) and 31-40 (25.6 percent)

Items Component 1

Intention
I plan to choose halal products in the forthcoming
month 1.000
I am likely to choose halal products in future 0.843 Table II.
I will choose halal products 0.994 Factor analysis results
Eigenvalue 2.39 for the dependent
Variance explained (79.78 per cent) 79.78 variables

Variables Number of items Items dropped Cronbach a

Attitude 2 – 1.000
Subjective norm 3 – 0.843 Table III.
Intention 3 – 0.994 Reliability coefficients
IMEFM years old. About 42.1 percent of the respondents are Muslim, followed by 24.1 percent
2,1 who are Chinese, with a majority of them earning RM1001-2000 (37.1 percent)
per month. Malay respondents are dominant with 42.1 percent and most of them still
single with 50.7 percent.
The hypotheses generated were tested using the regression analysis and the results
presented in Figure 3. The results indicate that subjective norm positively influences
72 the attitude to choose halal products (b ¼ 0.336, p , 0.01). It was also shown that

Variables Mean SD

Table IV. Attitude 6.16 0.77

Descriptives for the Subjective norm 4.81 1.23
major variables Intention 5.07 1.15

No. Profile Description Respondents Percentage

1 Gender Male 222 45.8

Female 263 54.2
2 Age , 20 75 15.5
21-30 165 34.0
31-40 124 25.6
41-50 93 19.2
Above 50 28 5.8
3 Religion Moslems 204 42.1
Buddhist 105 21.6
Hindu 27 5.6
Christian 110 22.7
Others 39 8.0
4 Income , RM1000 100 20.6
1001-2000 180 37.1
2001-3000 18 3.7
3001-4000 77 15.9
Above RM4000 110 22.7
5 Race Malay 204 42.1
Chinese 117 24.1
Indian 27 5.6
Others 137 28.2
Table V. 6 Status Single 246 50.7
Demographic results Married 239 49.3

Attitude β = 0.288** R2 = 0.661

Intention to choose
β = 0.336** halal products
Figure 3.
Result of the regression
analysis Subjective norms β = 0.814**
attitude is positively related to the intention to choose halal products (b ¼ 0.288, Intention to
p , 0.01). Subjective norm was also found to be positively related to intention choose halal
(b ¼ 0.814, p , 0.01). Thus, H1-H3 of this study are fully supported. A closer scrutiny
shows that subjective norm is the most significant predictor of intention to choose halal products
products. The R 2 of 0.661 indicates that 66.1 percent of the variation in intention to
choose halal products can be explained by attitude and subjective norm. The coefficient
of determination is considered high in terms of behavioral research of this manner, 73
thus giving further support for the model.

Discussion and implications

Different consumers have different beliefs about halal products, where attitudes and
subjective norm plays an important role to form intention. According to Fishbein and
Ajzen (1975), attitude and subjective norm might be independent of each other, but
according to Tarkiainen and Sundqvist (2005), these two variables are not independent
of each other. This study shows that in general, decision to choose a halal product is
determined by a positive attitude and subjective norm. Therefore, the TRA is a valid
model of prediction. This model has been shown to have a good explanatory power as
high as 66.1 percent. Subjective norm has been shown to be the most influential driver
of intention to choose halal products. This is in line with Chang (1998) and Tarkiainen
and Sundqvist (2005). Subjective norms’ effect on attitude has been found in
behaviours. However, attitude factor cannot be discounted either. In the context of
a multiracial and multicultural society, Malaysia subjective norm plays an important
role where family members, friends and colleague are strong referent points.

Implications
It is proven that Islam is the fastest growing religion on earth, both by birth and
adoption, with the Muslim population estimated to reach two billion by year 2010.
With the global halal market estimated to be worth US$580 billion a year and the halal
food industry pegged to grow at a rate of 7 percent annually, business should indeed be
tapping at this growing market segment. Companies nowadays should take advantage
of these strong opportunities in halal products markets by tailoring towards consumer
needs with the right marketing strategies. The results of this study have shown that
intention to choose halal product is predominantly influenced by subjective norm (most
significant predictor – family and friends). Some practical recommendations regarding
this issue can be addressed as follows. Different marketing approaches or techniques
should be used to stimulate halal products versus regular product consumption.
Appropriate slogan and appealing message that focus on family and friends should be
a good approach to attract intention (Table VI).

Variables Attitude Subjective norm Intention

Attitude 1.000
Subjective norm 0.396 * 1.000
Intention 0.288 * 0.814 * 1.000 Table VI.
Inter-correlations
Note: *p , 0.01 of the major variables
IMEFM Limitation and future research
2,1 There are a couple of limitations related to our research to be considered for the
generalization of the results. First, this study is covered only Labuan consumers, and
therefore the results cannot be expected to explain the overall behaviour of Malaysian
consumers toward halal products. Second, since haIal products are related to religion
(Islam), in future the role of religiosity (Delener, 1994; Pettinger et al., 2004) as
74 a moderating factor should be included. The former limitation is not too serious, as it
creates an opportunity for the future research by escalating the sample size to include
a cross-cities study in Kota Kinabalu, Tawau, Miri, Kuching, George Town,
Kuala Lumpur, Kuala Terengganu dan Johor Bahru, to name a few. Choosing these
cities is owing to the fact that they are fast-growing cities linked to halal foods in
Malaysia. It is also good if future research could consider a cross-countries study by
involving Brunei, Malaysia, Indonesia, Taiwan, China, and India. By performing the
study in these countries, the research results will be more comparable and provide
workable direction on halal products in the said countries. For the latter, it is good to
consider the influence of religiosity in consumer attitudes and subjective norm, as it
might be good indicator to describe intention to choose halal products. In addition, we
recognize that there may be some situations where behaviour is simply not under the
attitudinal control of individuals; rather, the expectation of relevant others may be a
major factor in ultimate behavioural performance.

Conclusion
The result of the present study showed that the TRA is a valid model that can be used
to predict intention to choose halal products. It was also shown that attitude and
subjective norm are good predictors of intention, with subjective norm being the more
influential. A possible explanation for the strong presence of the subjective norm effect
could be found in the societal characteristics of Malaysians. Thus, the marketers have
to keep this in mind when producing and promoting halal related products, while at the
same time incorporating the element of attitudes in their promotional campaigns.

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Corresponding author
Suddin Lada can be contacted at: suddin@ums.edu.my

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