Willingness to Pay for Halal Transportation Cost: The Moderating Effect of Knowledge on the Theory of Planned Behavior

Abstract

Halal transportation services is one of the crucial components of producing Halal products. Since Halal is unique and involves elaborate regulations and executions, therefore it requires huge investment. Like any other supply chain, the transportation cost will be transferred to the end users, normally the customers, thus increasing the price of final products. It is notably common to find studies done on Muslim customers and their preference on Halal products, however, studies on Muslims preferences towards Halal transportation could still be considered as novel. By adopting the Theory of Planned Behavior and religiosity; and by taking into account the moderating effect of knowledge, this study aims to identify the factors that lead to the customers’ willingness to pay for the Halal transportation cost. Using a purposive sampling method, the data was collected among Muslim consumers in a prominent shopping complex in Malaysia and was analyzed using Smart Partial Least Squares (PLS). Based on the finding, it is shown that the attitude and perceived behavioral control gave a positive relationship with the willingness to pay for Halal transportation. Meanwhile, subjective norm and religiosity were on the opposite as there were both hold an insignificant effect towards the willingness to pay for the Halal transportation. Knowledge has moderated the relationship between attitude and willingness to pay for Halal transportation, but not for the relationship between subjective norm and perceived behavioral control. It is expected that this study could provide a better understanding of Muslim consumers’ behavior on purchasing for Halal transportation, as well as other Halal supply chain activities.

Halal transportation adoption among food manufacturers in Malaysia: the moderated model of technology, organization and environment (TOE) framework

“…As non-Halal products cannot be loaded on the same transport, transportation costs may increase if the processes were not well planned (Jaafar et al , 2016). Halal transport providers need to charge at premium prices to cover the cost of their operation (Hafaz et al , 2019). Halal manufacturers classified it as an increase in the cost of operation instead of investment for a long-term profit, as customers nowadays are not only looking for Halal products but also Halal in the whole process.…”

“…Once new innovation is created, surely it will incur a new cost for the inventors and that cost will be embraced by the users of the innovation. Due to strict requirements in Halal, tools related to Halal activities must be solely used for Halal products, thus contribute to the increase in the cost of the operation (Iranmanesh et al , 2019; Hafaz et al , 2019; Ngah et al , 2019a).…”

Receptiveness of Gold Accumulation Program in Malaysia: An Empirical Investigation

“…The first section requires the respondents to rate the relative importance of six variables using five-point Likert scales which ranging from 1-Strongly Disagree, 2-Disagree, 3-Slightly Agree, 4-Agree, 5-Strongly Agree. The questionnaire items were emanated from prior studies (Abdul Wahab et al,2014;Agha et al 2015;Amin, 2016;Apostolakis et al, 2018;Nordin et al, 2018;Hafaz et al, 2019). Besides that, the survey questionnaire items were translated from English to Malay for a better understanding of filling up the questionnaire.…”

“…Besides that, the survey questionnaire items were translated from English to Malay for a better understanding of filling up the questionnaire. Explained in more detail, the constructs of "attitude", "subjective norm" and "perceived behavioural control" were measured and adapted from the study of (Apostolakis et al, 2018;Hafaz et al, 2019). Meanwhile, the measure of determinant "receptiveness investing in Gold Accumulation Program (GAP) was adapted from studies (Abdul Wahab et al,2014;Amin, 2016;Apostolakis et al, 2018;Nordin et al, 2018;Hafaz et al, 2019).…”

“…Explained in more detail, the constructs of "attitude", "subjective norm" and "perceived behavioural control" were measured and adapted from the study of (Apostolakis et al, 2018;Hafaz et al, 2019). Meanwhile, the measure of determinant "receptiveness investing in Gold Accumulation Program (GAP) was adapted from studies (Abdul Wahab et al,2014;Amin, 2016;Apostolakis et al, 2018;Nordin et al, 2018;Hafaz et al, 2019). Finally, the added of mediating variables "Shariah compliancy" and "knowledge on Shariah gold investment" was adapted from (Amin, 2016;Agha et al, 2015;Nordin et al, 2015).…”