The Importance of Halal Product Label to Building Customer Trust

Abstract

The survey, conducted by the Research Institute for Food, Drugs and Cosmetics –The Council of Indonesian Ulama (MUI) shows that there are still some consumers who pay less attention to the existence of the halal label on cosmetics products, whereas it indicates the halal status of a product. The better understanding of the religion makes Muslim consumers selective in choosing the product to be consumed. This study is aimed at determining the effect of the halal product label of Mustika Ratu cosmetic products on consumer trust in Bandung City. The research sample consists of 115 female Muslims in Bandung who actively use MustikaRatu cosmetic products. The sampling technique in this study is purposive sampling. The data collection was conducted using questionnaires. The data analysis in this research is descriptive and verification analysis using Partial Least Square (PLS) approach with Smart-PLS 3.0. The results of this study illustrate that the halal product label has a positive and significant effect on consumer trust. It is proven from the finding of this research that the existence of halal product label in green and round shape with the writings of halal in Arabic and the Council of Indonesian Ulama, attached to the packaging, affects customer trust.

Consumption Behavior of Halal Cosmetic Products: The Mediating Role of Trust on the Effect of Halal Certification on Purchase Intention

“…The results of this study are consistent with the research results by Novagusda & Deriawan, (2019) and Yusuf et al, (2019), which shows that halal certification has a positive and significant effect on consumer trust. The existence of halal certification impacts increasing consumer trust to buy halal products.…”

“…Halal certification can build consumer trust to not hesitate to buy products (Yusuf et al, 2019). Based on the Commitment-Trust Theory of Relationship Marketing, trust plays an essential role in instilling consumer trust and…”

“…Halal product manufacturers include halal certification to increase consumer trust (Rahman et al, 2015). Halal certification has a positive and significant effect on consumer trust (Novagusda & Deriawan, 2019;Yusuf et al, 2019). Halal certification is proven to increase consumer trust in halal products (Mangkarto, 2005).…”

A Community Marine Tourism as a Business Sector: Challenges Faced by Local Community

“…As mentioned by Jeddi & Zaiem (2010), certi�ication can alleviate consumers' doubt about product quality. Halal label is positively linked to customers' trust (Yusuf et al, 2019) and potentially increasing sales (Segati, 2018). Through halal labeling and certi�ication policy, the Indonesian government wants to protect Indonesian society from irresponsible food producers, which are certi�ied by LPPOM-MUI (Lembaga Pengkajian Pangan, Obat-obatan, dan Kosmetika Majelis Ulama Indonesia) (Adisasmito, 2008), an attempt to protect Muslim consumers, especially in the globalization era (Charity, 2017;Hartati, 2019).…”

Halal cosmetics and consumer behavior: Insight from Millennials

“…This aligns with the findings of Omar et al (2012), emphasizing the importance of a credible halal logo as the primary means for consumers to ascertain a product's halal status. Manufacturers include halal certification to bolster consumer confidence (Rahman et al, 2015), with numerous studies affirming the positive impact of halal certification on consumer confidence in halal products (Novagusda & Deriawan, 2019;Yusuf et al, 2019;Mangkarto, 2005).…”