Building halal industry in Indonesia: the role of electronic word of mouth to strengthen the halal brand image

Abstract

Purpose This present study aims to investigate the effect of electronic word of mouth (e-WoM) behavior in Muslim social media on building a halal brand image (HBI) and its influence on purchase intention (PI). Also, Muslims’ altruism (ALT) and moral obligation (MO) were hypothesized as motivators to engage in e-WoM behavior. Design/methodology/approach A survey involving 320 members of a Muslim halal forum was conducted. Further, structural equation modeling was used to assess the proposed hypotheses. Findings It is found that ALT and MO positively influence e-WoM behavior. Furthermore, E-WoM also significantly affects HBI and PI. Meanwhile, HBI has a positive effect on PI. Practical implications Indonesian halal marketers face difficulties developing a halal image as a critical differentiator, mainly due to the upsurging number of halal certifications and the consumer’s perception that all products available in the market are halal. This present study offers an alternative strategy for Indonesian marketers to strengthen the HBI through Muslim social media amidst the cluttering halal brands in the market. Social implications The development of HBI combined with social media interactions will accelerate the halal brand awareness and usage among society, especially in Indonesia, a Major Muslim country. Originality/value This present study provides empirical evidence that social media e-WoM, despite its lack of physical interaction and opportunity to scrutinize the halal features, effectively creates HBI and influences PI among Muslims.

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