Analysis of Millennial Generation Behavior in Consuming Halal Products: Structural Equation Model-Partial Least Square (SEM-PLS) Method

Arifin, Ahmad Zaenal; Salam, Annisa Nur

doi:10.21043/iqtishadia.v12i2.5725

Cited by 5 publications

(5 citation statements)

References 2 publications

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“…The Structural Equation Model (SEM) analysis method was used in this study to estimate the effect of exogenous and endogenous variables with unobserved variable properties. SEM was a statistical analysis that combined two techniques: factor analysis and simultaneous models in econometrics [9]. SEM enables the estimation of a series of multiple regression equations that are independent but have a close relationship [8,10].…”

Section: Methodsmentioning

confidence: 99%

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Indonesian consumers’ willingness to pay for organic coffee

Khaliqi,

Ramadhani,

Pane

et al. 2023

IOP Conf. Ser.: Earth Environ. Sci.

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The use of organic certification benefits farmers as well as the environment. Organic coffee farmers, on the other hand, face the challenge of determining how much consumers are willing to pay for the organic coffee they produce. The purpose of this study was to investigate the factors that influence Indonesian consumers’ willingness to pay for organic coffee, as one of the indicators that influence consumer purchasing decision behavior. A structural equation model analysis was used to collect data by distributing questionnaires to a total of 766 respondents. The model was created by combining variables from the Theory of Planned Behavior and consumer awareness. This study was successful in demonstrating the direct impact of attitude, subjective norms, PBC, and consumer awareness on consumers’ willingness to pay for Indonesian organic coffee. On the other hand, health and environmental sustainability factors had an indirect influence on consumers’ willingness to pay for organic coffee. Meanwhile, regional development factors had no effect on consumers’ willingness to pay, either directly or indirectly.

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Section: Methodsmentioning

confidence: 99%

“…The reliability test used the value of loading factor and composite reliability [13,14]. There were two validity tests used in SEM, namely convergent and discriminant validity [9]. Loading factor and composite reliability (CR) values had thresholds, namely loading factor > 0.5 and CR > 0.7 [10].…”

Section: Measurement Modelmentioning

confidence: 99%

Indonesian consumers’ willingness to pay for organic coffee

Khaliqi,

Ramadhani,

Pane

et al. 2023

IOP Conf. Ser.: Earth Environ. Sci.

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“…Numerous factors contribute to the decision-making process when purchasing halal cosmetics and skincare. These factors extend beyond religious beliefs to encompass elements such as price (Arifin & Salam, 2019;Hasibuan et al, 2023;Sinaga & Puruwita, 2024;Umah & Herianingrum, 2018), islamic branding (Arifin & Salam, 2019;Amri et al, 2023), halal label (Genoveva & Utami, 2020;Hasibuan et al, 2023;Susilawati et al, 2023;Umah & Herianingrum, 2018), and promotion (Fauzi et al, 2022;Hasibuan et al, 2023;Umah & Herianingrum, 2018).…”

Section: Introductionmentioning

confidence: 99%

Analysis of Literacy Levels and Determinant the Purchase of Halal Cosmetics and Skincare among High School Students

Juliastuti,

Salsabila,

Taqiyyah

et al. 2024

Likuid Jurnal Ekonomi Industri Halal

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Saat ini kosmetik menjadi barang yang wajib dimiliki dalam kehidupan sehari-hari yang tidak hanya digunakan oleh wanita, tetapi juga pria. Umat muslim saat ini sangat memperhatikan kehalalan makanan yang dikonsumsi, termasuk kehalalan kosmetik yang digunakan. Oleh karena itu, penelitian ini bertujuan untuk mengetahui tingkat literasi dan faktor-faktor yang mempengaruhi keputusan siswa Sekolah Menengah Atas (SMA) di Kota Bogor dalam pembelian produk kosmetik halal. Analisis data yang dilakukan dalam penelitian ini menggunakan metode analisis deskriptif kuantitatif dan metodeStructural Equation Model – Partial Least Squares (SEM-PLS). Analisis deskriptif digunakan untuk mendeskripsikan tingkat literasi siswa, sedangkan analisis SEM-PLS digunakan untuk mengetahui faktor-faktor yang mempengaruhi keputusan pembelian kosmetik dan skincare halal pada siswa. Hasil penelitian ini menunjukkan bahwa kegiatan penyampaian materi yang dilakukan oleh peneliti memberikan dampak positif terhadap peningkatan literasi halal di kalangan pelajar SMA di Kota Bogor. Sementara itu, hasil analisis SEM-PLS menunjukkan adanya pengaruh positif dan signifikan antara labelisasi halal terhadap keputusan pembelian kosmetik dan skincare halal di kalangan pelajar SMA.Sedangkan Islamic branding, harga, dan promosi tidak berpengaruh signifkan.

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“…In the context of halal purchase intention, the millennial generation is an age group that is very active in seeking information regarding the halalification of a product (Arifin and Salam, 2019). This is because the millennial generation masters various social media platforms and can access digital information quickly.…”

Section: Introductionmentioning

confidence: 99%

“…The millennial generation is more curious about the product’s production process, which they will choose and consume (Osman and Solehah Bt Aziz, 2019). Secondly, millennials have different tastes and behaviours in buying and how to choose the available products and services (Arifin and Salam, 2019; Nisa et al , 2018). These reasons are the foundation for concluding that millennials are a unique group with a sense of halal issues.…”

Section: Introductionmentioning

confidence: 99%

Maqasid-based consumption intelligence: an empirical model of its application to the intention of halal purchase

Sholihin

Shalihin²,

Ilhamiwati

et al. 2022

IJOES

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Purpose This study aims to gain new insight into how a set of maqasid-based consumption intelligence variables mediates exogenous variables (i.e. religiosity, Islamic university role and normative belief) and halal purchase intention as an endogenous variable. Design/methodology/approach The research model is empirically tested with a data set of 370 responses retrieved from the students of the millennial generation from the cross Islamic state university in Indonesia. Data were analysed with Partial Least Square Structural Equation Modelling (PLS-SEM). The sample size of this study is computed with preliminary power analysis. Findings The SEM finding revealed that two maqasid-based consumption intelligence variables had mediated the exogenous and endogenous variables, i.e. halal purchase intention. These variables mediating the exogenous and endogenous variables have explained 63.5 R2 variances in halal purchase intention. Concerning individual impact size of cognition and motivation as a component of maqasid-based consumption intelligence has shown medium-level effect size (f2) in mediating the halal purchase intention. Interestingly, the exogenous variable does not directly affect halal purchase intention but must be mediated with maqasid-based consumption intelligence variables. However, before including variables of maqasid-based consumption intelligence, the R2 was relatively small. It is just 30.4% in R2 that explains the variance of halal purchase intention. Research limitations/implications This study explores maqasid-based consumption intelligence as a relatively new model to explain the variable halal purchase intention. Therefore, it takes many types of exogenous variables to test how relevant maqasid-based consumption intelligence variables can define endogenous variables. Notwithstanding, this study does not do that because it only limits three exogenous variables (i.e. religiosity, Islamic university role and normative belief). Therefore, in further research, these limitations seem to be perfected by other scholars concerned about halal purchase intention. Practical implications The findings of this study allow Islamic universities to mainstream halal issues as a subject of learning, especially concerning consumption ethics. In addition, the empirical results of this study encourage the industry to pay attention to the essential components in determining the halal quality of the products offered because the millennial generation is now very aware of the importance of halal products. Originality/value This study contributes to the existing literature on halal purchase intention by testing maqasid-based consumption intelligence variables as mediators. Moreover, this is a pioneer study to consider and construct maqasid-based consumption intelligence as a model that explains halal purchase intention.

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Analysis of Millennial Generation Behavior in Consuming Halal Products: Structural Equation Model-Partial Least Square (SEM-PLS) Method

Cited by 5 publications

References 2 publications

Indonesian consumers’ willingness to pay for organic coffee

Indonesian consumers’ willingness to pay for organic coffee

Analysis of Literacy Levels and Determinant the Purchase of Halal Cosmetics and Skincare among High School Students

Maqasid-based consumption intelligence: an empirical model of its application to the intention of halal purchase

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