Understanding the effect of cosmetics brand perception, halal label, and product composition on habitual buying behaviour through perceived price

Abstract

Objective - The development of technology also encourages the creation of new products, which makes people more selective in choosing the brand, and halal products consist of natural or organic ingredients by Islamic law. The further study aimed to determine the effect of brand perception, halal label, and product composition of cosmetics on habitual buying behaviour. Besides, this study also tests the mediating effect of perceived price. Methodology/Technique - This research was conducted on 169 respondents using open-ended questions. The survey sample is customers willing to take a field survey and come to the three largest cosmetic stores. The reason for choosing data collection on cosmetics stores in Banjarmasin, South Kalimantan, is the ease of access to this business. Second, Banjarmasin is a city with a number and quality of these cosmetic shops. It had specific difficulted regarding the customers who came to the store, and it seemed impossible to express the population size clearly. For data analysis, this study used SPSS ver.26 and determined the mediation effect using PROCESS macro version 4 model 4. Findings – The results of this study indicate that the most influential variables are product composition and halal labels. Meanwhile, brand perception contributes only 1% and is negative. This is because healthy and safe product composition will increase consumer confidence to buy repeatedly. In addition, the inclusion of halal labels is the essence of consumers and producers. This halal label intends to provide a sense of security for consumers and guarantee that the products produced are halal and ethical. Price can represent quality and status, while people tend not to pay attention to the brands. Novelty - The empirical results of this study stated several factors that cause brand perception to have little effect, such as cultural, social, personal, and psychological factors. Type of Paper: Empirical JEL Classification: M31, M37, M39. Keywords: Brand Perception, Halal Label, Product Composition, Price, Habitual Buying Behaviour Reference to this paper should be made as follows: Baron, I.S; Melania; Agustina, H. (2022). Understanding the effect of cosmetics brand perception, halal label, and product composition on habitual buying behaviour through perceived price, J. Mgt. Mkt. Review, 7(3), 138 – 149. https://doi.org/10.35609/jmmr.2022.7.3(6)