The Effect of Brand Perception, Halal Label, and Product Composition of Cosmetics to Habitual Buying Behaviour: The role of Perceived Price as Mediator

Abstract

As a Muslim individual who lives in a Muslim-majority country, of course, it is necessary to pay attention to brand, halal label and product composition of cosmetics. The development of technology also encourages the creation of new products, which makes people have to be more selective in choosing brand, halal products and consist of natural or organic ingredients in accordance with Islamic law. The purpose of this study was to determine the effect of brand perception, halal label and product composition of cosmetics to habitual buying behaviour. This research was conducted on 169 respondents using SPSS ver.26 and PROCESS macro v.4 model 4 for data analysis and to determine the effect of mediation. The results of this study indicate that brand perceptions, halal labels and product composition of ingredients affect habitual buying behaviour. However, the most influential variables in this research are product composition and halal label. While brand perception contributes only 1% and is negative. The reason is a healthy and safe product composition will increase consumer confidence to buy repeatedly. In addition, the inclusion of halal labels is important not only for consumers, but also for producers. This halal label is intended to provide a sense of security for consumers. Also, as a guarantee for them that produced in a halal and ethical. Price can signal product quality, represent elegance and status, while people tend not to pay attention to brands. Keywords: brand perception, halal label, product composition, price, habitual buying behaviour.