Muslim Awarensss of Food Labelling in Malaysia

Archives Des Sciences Vol 66, No. 6;Jun 2013

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Muslim Awarensss of Food Labelling in Malaysia

Zul Ariff Abdul Latiff (Corresponding Author)

Department of Agribusiness and Information System, Faculty of Agriculture

Universiti Putra Malaysia

43400 UPM Serdang, Malaysia

Tel: +6019 2231584 E-mail: [email protected]

Zainal Abidin Mohamed



Tel: +603-8947 4930 E-mail: [email protected]

Golnaz Rezai



Tel: +603- 03-8947 4899 E-mail: [email protected]

Nitty Hirawaty Kamarulzaman



Tel: +603- 03-8947 4907 E-mail: [email protected]

The research is financed by Universiti Putra Malaysia

Abstract

Food labels play significant role in the food marketing system through their impact on consumer confidence

in food quality, and consumer education on diet and health. However information provided by labels

attributes such halal logo, ingredient and nutrient are limited to consumers' information processing abilities

and time. The fact remains that food labels to some extent provide and a priori information to consumers

about the food item and the manufacturer standard but the priority of the food labels for consumers is still

uncertain. Therefore the purpose of this paper is to investigate the effect of food labeling on consumers

purchasing behavior. 1219Muslims consumers were interviewed in Klang Valley through structured

questionnaire survey. The study employed a full-fledged Structural Equation Modeling (SEM) to confirm

the dimensionality and the psychometric properties of the scale, and the factors which influence consumers

purchasing behavior. Finding from the study indicated that Muslims awareness of attributes (like Halal

logo, ingredient and nutrient) of food labeling made them to be cautious and selective in purchasing of food

items. This goes a long way to inform the policy makers as well as label regulatory bodies to give

consideration to the benefits of immeasurable roles labels serve, with appraisal of alternative rules and

regulations on labeling food based on their impacts on consumer behavior and seller strategy.

Key words: Muslims awareness, purchasing behavior, food labels.


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1.0 Introduction

Nowadays, many products are flourishing the market as well as supermarket, but some are not in compliance

with direction or follow the standard recognize by Muslims. Many studies have shown that there are large

demographic and socio-economic differences with regard to the use of food labeling (Wandel, 1997; Food

Marketing Institute, 1989; Bender and Derby, 1992; Wandel, 1995). Food labels are the panel found on a

package of food which contains a variety of information about the nutritional value of the food item.

Wandel, (1997), Caswell & Padberg (1992), argue that labeling is a direct shopping aid impact. There are

many pieces of information which are standard on most food labels, including serving size, number of

calories, grams of fat, included nutrients, and a list of ingredients. This information helps people who are

trying to restrict their intake of fat, sodium, sugar, or other ingredients, or those individuals who are trying to

get enough of the healthy nutrients such as calcium or Vitamins. Food labels thus provide information from

the manufacturer to the consumer. It also provides information about the product so that the consumer

knows exactly what they are buying and ultimately, they allow consumers to compare food products for

value for money.

Neo-classical economic theory suggests that two key elements are basic to the conception of value: customer

tastes and preferences and manufacturer efforts to advance consistent, safe, affordable and adorable fare that

meets customer demand. The theory also suggests that most of these elements can and should be produced

within minimally control or regulated markets. The literature is thus pointing to variables of trust and

aplomb in the conception and operation of markets (Fukuyama 1995 and Stiglitz 1999). Markets for

abounding articles or goods are generally not able to create, by themselves, the altitude of trust that

accomplishes the socially optimal quantities of products and services produced and consumed.

Therefore, there is an abundant added absolute role for public and clandestine (private) adjustment in

markets than neoclassical approach suggests. This is especially accurate for consumable products, where

perceived risks and public uncertainties abound. Tirole (1988) identifies three types of goods: search goods,

where consumers can visually analyze attributes before consumption; experience goods, which crave

burning to determine the attributes; and credence goods, where the unaided customer cannot know the

complete attributes of consuming a good, at least for some period subsequent to consumption. Markets for

these three goods require a considerable element of trust or conviction, which must involve active

communication about the product’s attributes. Those product factors that absorb probabilistic or hypothetical

public health and safety risks are usually adapted and regulated by the state. Formal communication of this

regulation is sometimes signaled through labels. Thus, mandatory and voluntary labeling systems would


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signal a wide variety of ―non-risky‖ processes and awareness that consumers prefer, such as ingredient,

nutrient status, organics, and Halal logo

To understand the level of awareness of Muslims regarding halal logo, nutrient, ingredient, brand and price

of food labeling in Malaysia, it is important to explore the rationale behind this purchasing behavior. The

goal of this research therefore, is to have better understanding of the relationship between Muslims

awareness of food labeling by looking at the following food labeling factors (halal-logo, nutrient, ingredient,

brand, and price) and their purchasing behavior.

1.1 LITERATURE REVIEW

Consumer’s socio-economic characteristics play a significant in processing the information about

consumable product to purchase. Search attributes such as safety and health assist a consumer to determine

the product’s quality and can be researched or examined by the consumer before buying the product

(Efthalia and Dimitris, 2005). A part from food labeling factors like nutrient, ingredient, factors like halal-

logo, has increasingly became a search attribute for both Muslims and non-Muslims in Malaysia and has

consistently augment their awareness of labeling of food (Golnaz. et al). Schiffman and Kanuk (1997) posit

that members of different religious groups are likely to make purchase decisions influenced by their

religious identity. Thus label attribute like Halal logo, ingredient and nutrient can shape the awareness of

Muslims about quality food and religion dictates, before the products is purchased or when deciding on

food to purchase. Nevertheless, as Muslims consumers are acknowledge and getting awareness of some

attribute pertaining to the preparation of food products, they have to search through the aforementioned food

labeling attributes.

Consumers today understand the importance of healthy and they are searching for food that can keep them

healthy, prevent diseases and improve their mental state and quality of life (Ahmed, 1996; Hasler, 1998;

Milner, 1999; Poulsen, 1999). Muslims consumers also share this attribute in addition their religion

command. Taking responsibility for one life and adequately preserving it from harm both physical and in

spiritual is conspicuously spelt out in the Quran that:

―Everything good that happens to you (O humankind) is from God, Everything evil that

happens to you is from your own actions (Quran, 4: 79)‖

In the context of Malaysia, Muslim now understand the full meaning of halal and this concept had spread to

individual consumers through certification body. For many faiths, including Islam, food constitutes an

important aspect of the religious and spiritual rituals (Hassan, 2011). In responding to the needs of Muslims

on food labeling content, a symbol is a standard and recognized by Muslim worldwide. This symbol is

called Halal-logo. It is a guidelines complied by Malaysia’s Department of Islamic Development (Jabatan

Kemajuan Islam Malaysia or JAKIM), the country’s central Islamic authority, are based on Quranic

interpretations by the Mazhab Maliki, Hambali, Syafie and Hanafi. This logo give awareness to all Muslim


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that item is purchasable products, without halal-logo Muslim consumers have to boycott such product. This

is because Prophet Muhammad says; ―Halal (lawful) is clear and Haram (Prohibited) is also clear‖, thus,

based on Quran 4:79 above, with halal logo it is a clear awareness for Muslims as a food labeling

information concept for permissible.

Muslim awareness of food labeling remains on JAKIM guidelines, where Nutrient in the food must adequate

with proportion display on the labeling part. Nutrition is judge by consumers, Efthalia and Dimitris (2005)

posit that consumers cannot judge experience attribute of food product through labeling until after they buy

and use the product, they always run a risk of purchasing a product that will not satisfy them or that will not

increase their utility and their health. Thus, Muslim needs to be careful on purchasing product that absent in

term of labeling and that are not in compliance with Shariah.

Muslim awareness of food labeling remains on JAKIM guidelines, where Nutrient in the food must adequate

with proportion display on the labeling part. Nutrition is judge by consumers, Efthalia and Dimitris (2005)

posit that consumers cannot judge experience attribute of food product through labeling until after they buy

and use the product, they always run a risk of purchasing a product that will not satisfy them or that will not

increase their utility and their health. Thus, Muslim needs to be careful on purchasing product that absent in

term of labeling that not compliance with Shariah. Food labeling is a power of information about content of

a product, food labeling should be aware by Muslim in the context of Sub-standard Ingredient that are not

compliance with JAKIM guideline. Food labeling and product should not contain haram ingredient such as

Fat from pig, dog meat, blood and other ingredient not permissible for consumptions as well as use.

1.2 Theoretical framework

1.2.1 Theory of Planned Behavior

The core hypothesis of the current study is the beliefs about the relationship between Muslims awareness of

food labeling and their purchase behavior. The leading theoretical framework to analyze the Malaysian

consumer behavior is Theory of Plan Behavior (TPB) (Ajzen, 1985, 1991). Theory of planned behavior is

about the link between attitude and behavior. There are three independent factors which are attitude,

subjective norm and perceived control. The TPB model states that an individual’s performance of a certain

behavior is determined by his or her intent to perform that behavior.

In this study, TPB was used to assume the attitude and awareness of Muslims in Malaysia towards the

concept of food labeling. An attitude or awareness towards a concept or behavior is a positive or negative

evaluation of performing that behavior (Ajzen, 1991).

TPB describe the attitude and awareness of Muslims towards food labeling is substantially regulated by their

religion, food labels—Halal logo, price, ingredient, nutrient, brand and expiry date, becomes more of

concern and a determining factor for Muslims buying behavior. External factor such as social demographic

profiles and background like age, education level, gender, income, religious and knowledge. These factors


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support the consumer confidence and trust in consuming food label and bring positive attitude from

consumers

In addition, subjective norm in this study include friends, family, government and the changing of lifestyle

has become a factor that influence consumers’ behavior awareness in purchasing the food labels product.

Consumer will act when there is a pushing factor which lead them to fulfill the need. Furthermore control

factor could posses in consumers’ to act upon certain behavior such as environmental friendly, health

consciousness, food safety and other factors. Hence the stronger the awareness of consumers’ to consume

food with label, the likely they will purchase.

1.2.2 Hypotheses development

To examine the relationship between the independent variables (Muslims awareness) and the dependent

variable (purchasing behavior), hypothesis was developed. The directionality stated in the hypothesis is

derived from the previous researches which were conducted on the basis of TPB. Therefore, this study has to

find out whether there is a direct positive relationship between Muslims awareness (subjective norm,

perceived behavioral control), and purchasing behavior. Based on the extensive study of previous research,

the hypothesis below was proposed:

H1. There is a significant relationship between Muslims awareness of food labeling and their buying

behavior.

1.3 Methodology

1.3.1 Sampling Frame

The population of study comprises of Muslims consumers in Klang Valley Malaysia. A stratified random

sampling technique was adopted in selecting 1219 samples of respondents. A total of 1500 questionnaires

were distributed, but (1219) 85% of the questionnaire were incomplete.

1.3.2 Instrumentation

The first part consists of the demographic information, age, gender, level of education, income and years of

service. This is followed by items on Muslim consumers’ attitude, perception, knowledge and preference

toward Food labelling and later by items on labels (price, ingredient, health, halal, expiry date, nutritional

factor & ownership). All the questions used a seven-point Likert scale in which 1 indicating strongly

disagree, 2 somewhat disagree, 3 disagree, 4 neutral, 5 somewhat agree, 6 agree, 7 strongly agree

The indicators use for Muslims awareness construct are subjective norm, perceived control and personal

attitude and these indicators are measure through the food labels such as halal logo, expiry date, nutrient,

ingredient and brand.


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1.4 Method of Analysis

The study employed Structural Equation Modeling (SEM) and the Analysis of Moment Structures (AMOS

16.0) software (Arbuckle and Wothke, 2006), a multivariate technique combining the aspects of multiple

regression and factor analysis to estimate the series of interrelated dependence relationships simultaneously

(Hair et al., 2006; Loehlin, 1992). AMOS 16.0 software employed the Maximum Likelihood Estimation

(MLE) in generating estimates of the full-fledged SEM and analyzed covariance matrices, the estimation

procedure that satisfied the underlying statistical distribution theory, and thereby yielding estimates of

desirable properties (Arbuckle and Wothke, 2006). Once the estimates of the model were established, the

study applied a set of measures to evaluate its good-fit. The consistency of the model with the data was

determined by four measures, which reflected the overall model fit. Next, the study examined the magnitude

and direction of individual parameter estimates to determine its reasonableness. The examination included

the offending estimates such as negative error variances and theoretically inconsistent coefficients that could

undermine the validity of the model. Five manifest variables namely Ingredient1 (Ing1), Ingredient2 (Ing2),

Ingredient 3(Ing3), Ingredient4 (Ing4), and Halal logo4 (Hal4) measured the latent variable, Muslims

Awareness (Awareness). Four manifest variables namely the PB2-PB5 measured the latent variable,

Purchasing Behavior (PurchaseB).

1.5 Results

Demographic profile of respondents

This study covered Muslims consumers in Klang Valley area Malaysia one thousand two hundred and

nineteen (1219) Muslims consumers responded to the survey. The confidence interval and margin of error

were 95 per cent and 0.05 per cent respectively (Ferguson, 1981; Vockell and Asher, 1995). In terms of

gender, 56% were females and 44% males. 95.4% of the respondents were Malays, 1.9% Chinese and 1.6%

were Indians. Majority (38%) of the respondents were Bachelor degree holders. Only 7% of the respondents

earned more than RM6,000 per month. Most (43%) of the respondents were more than 30years of age and

they mostly (68%) resides in urban area. In general, the respondents seemed to be evenly distributed and

almost covered the whole of Klang Valley areas. As required, the study conducted data screening to

overcome problems such as sample size and missing data, multivariate normality and absence of outliers,

linearity, absence of multi-colinearity and singularity (Tabachnick and Fidell, 2001). The study considered

the final sample size of 1219, as adequate Hair et al., 2006).

1.5.1 Underlying factors of Muslims awareness to food labeling and purchasing behavior in Malaysia

In general, all nine variable on the final CFA model possess considerably high Cronbach alphas (ingredient1

0.7895, purchase behavior 2 0.8911, halal logo4 0.8074, purchase behavior 5 0.5118, ingredient4 0.6420,


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ingredient5 0.5380, ingredient6 0.9040 purchase behavior 3 0.8238, and purchase behaviour4 0.7346) and

hence indicating high internal consistency (Nunnally, 1978). The study employed Confirmatory Factor

Analysis (CFA) on the data (1219) to confirm the factors underlying the Muslims awareness towards food

labeling in Malaysian and their buying behavior. Hence, the study also shows the relationship between the

two latent variables. The study employed AMOS 16.0 (Arbuckle and Wothke, 2006) for maximum

likelihood estimation in generating estimates of parameters in the measurement model. As shown in Figure

3, all measured variables for awareness and purchasing behavior are heavily loaded into their respective

latent variables and hence fulfill the construct validity. The results of the CFA as depicted in Table I

produced fit indices, which exceeded their respective threshold value. The likelihood-ratio chi-square

statistic (X2) is the most fundamental measure of overall fit (Hair et al., 2006). Hence as in Table I, the

hypothesized model exhibits the likelihood-ratio chi-square (X2) of (118, N 1219, 1737.22). However, the

model yields an unacceptable level of discrepancy between the observed data and the hypothesized model.

Other fit indices particularly the Root Mean Square Error of Estimation (RMSEA) also did not fulfill the

threshold value, in addition, the values of other fit indices, Comparative Fit Index (CFI) is also below the

threshold and hence these reflect the need for the model’s revision and re-evaluation. According Barbara

(2010), model revision or re-specification is required if the hypothesis model fall below threshold of the fit-

indices. As indicated in the CFA model below, that CMIN (Chi-square), CFI and RMSEA are all below their

respective threshold stated in Table 1 below.

1.5.2 Revised evaluation model of Muslims awareness towards food labeling in Malaysian

Tabachnick and Fidell (2001) suggested that there are at least two reasons for modifying a SEM model.

First, to improve fit and parsimony and second, to test the hypotheses. The re-specification of the model

involved omitting certain parts of the model with the aim of improving the significance of the model and

hence improving its good-fit. Thus, the revised model (Figure 3) is supposedly able to display better causal

relationships compared to the hypothesized model (Figure 2 and 3). As a basic model modification

procedure, the study employed the Chi-square difference test (Tabachnick and Fidell, 2001). The Chi-square

for the hypothesized model with 118 degrees of freedom is X2 1737.22, and the Chi-square for the revised

model with 26 degrees of freedom is X2187:363 Therefore the Chi-square difference test (or likelihood ratio

for maximum likelihood) yielded X2= (1737.22-1550) =187.363 , df= (117-91) 26. This proves that the re-

specification of the model significantly improved the model’s fit as shown by Table I, where the level of

discrepancy between the observed data and the revised model Chi-square yielded better fit at

CMIN=187.363, compared to 17137.22 for the hypothesized model. As for the comparative fit index

CFI=0.932 for the revised model. The RMSEA 0:071 that is well below the threshold value of 0.08. All

these values indicate better fit for the revised model. There were also no indications of insignificant values,

thus proving that the revised model almost perfectly fitted the dataset. In conclusion, all three types of good-


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fit indices, which the study discussed previously, managed to prove that the study had successfully

developed and identified a better fit and parsimonious model of Muslims awareness of food labeling in

Malaysia.

Having assessed the overall model and aspects of the measurement model, the next step was to examine the

estimated coefficients for both practical and theoretical implications (Hair et al., 2006). The re-specification

of the measurement model (as depicted in Figure 3) yielded two latent variables (Muslims awareness and

PurchaseB) measured by five and four indicators respectively. Muslims awareness or Awareness was

measured by HALAL4 (0.59), INGREDIENT1 (0.60) INGREDIENT4 (0.74), INGREDIENT5 (0.68) and

INGREDIENT6 (0.79), while purchasing behavior or PURCHASEB were measured by PB2 (0.60), PB3

(0.51), PB4 (0.40) and PB5 (0.36).

In summary, the study had determined and confirmed the presence of five indicators of Awareness and four

for purchasing behavior among Muslims in Malaysia. During the process of exploratory factor analysis and

model modification and re-specification in SEM, the study excluded three indicators, which are product

brand, nutrient and expiry date for Muslims awareness. The correlation between these two latent variables

(AWARENESS & PURCHASEB) is considered moderately high (0.42).

1.5.3 Testing of the hypotheses

SEM is a statistical methodology used for hypothesis and model testing (i.e. confirmatory) of the

multivariate analysis (Byrne, 1994; Tabachnick and Fidell, 2001). The study used the results as exhibited in

Table 1 and the generated revised model, as in Figure 2, to examine if the revised model supported the

research hypotheses of the study at 0.05 significance level. As exhibited in Table 2, the result confirmed

that, there is a strong relationship between the two latent variables (Muslims awareness of food labeling and

their Buying behaviors).

1.6 Discussion and Implications

The main objective of this study is to investigate the effect of knowledge about food labels on Muslims

consumer purchasing behavior. Theory of Planned Behavior was used in this study to investigate the

Muslims awareness of food labels and purchasing behavior food consumption in Malaysia. The results show

that knowledge on food labels could explain 42 percent of the variance in the purchasing behaviors of food


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products among Muslims in Malaysia. The model was statistically significant and this study a result

demonstrates, once again, the dynamic usage of the Theory in explains purchase behavior among Muslims

consumers in Malaysia. This is supported by other literatures like (Bredahl et al., 1998). Thus, the study

showed that Muslims awareness of attributes (like Halal logo, ingredient and nutrient) of food labeling made

them to be cautious and selective in purchasing of food items. The study also revealed that awareness of

consumers does not solely depend on advertisement, but also circumvent by the twin-factors religion and

health awareness. It is important for the food industries to know the factors that shaped Muslims’ intention

to purchase foods so that they can produce food products or products which can satisfy their needs and

wants. The influence of Muslims awareness shaped by the twin-folds of subjective norms (food ingredient,

expiry date nutrient and brand) and the perceived behavioral control (halal logo) over the purchase of both

merchandise and consumable goods contribute to making them more aware and conscious about foods in

Malaysia.

Therefore, understanding Muslims awareness and their buying behavior is very important for any food

industry or food marketers. Food manufacturers or marketers should be critical of food safety,

environmental friendly and religion compliance in accordance to the regulation of religion ministry like

JAKIM in Malaysia.

1.7Conclusion

Generally, the study provides us with some insights on Muslims awareness of food labels in Malaysia and

their attitude toward buying. The study also confirms that there is a relationship between Muslims awareness

of labels on consumable goods and purchasing behaviors Malaysian. And that Awareness construct

possesses five out of thirteen dominant awareness variables. For a wider perspective of research findings, it

is suggested that a full-scale study using larger samples that will include other regions and other religion

consumers be conducted in future so that the findings will eventually be more applicable to the Malaysian

consumers in general. It is also suggested that future research should take into account of the Malaysian

consumers purchasing behavior and its effect on socio-demographic characteristics of the consumers.

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Figure1 Relationship between Muslims awareness, subjective norm and perceived control with purchasing

behavior

The factors of Muslim awareness and attitude, subjective norm and perceived control effect the decision in

the purchasing behavior.

Purchasing Behavior Subjective norm (friends,

family, media)

Perceived Control: Healthier life,

safe and quality, nutrious diet

Muslim Awareness and Attitude:

external factor, halal, brand


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Figure2. Muslim's Awareness of Food Labeling and Their Purchase Behavior: The hypothesized model

(Ing1-Pb17) observed variables; el-e17 represents error variances; double headed arrows depict

correlations among factors; single headed arrows from factors depict factor loadings

Revised evaluation model of Muslims awareness towards food labeling in Malaysian, the

awareness and purchase decision comes from factors of purchasing behavior, Halal, Nutrition and

Ingredient.


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Table 1: Revised evaluation model of Muslims awareness towards food labeling in Malaysian

Measures Fit indices of the models

Hypothesized Revised

Threshold values

CMIN 187. 363 1737.22 The lesser the better

Comparative Fit Index (CFI) 0.787 0.932 0.90 and above

Root Mean Square Error of Estimation

(RMSEA)

0.106 0.071 0.08 and less

The level of discrepancy between the observed data and the revised model Chi-square yielded better fit at

CMIN=187.363, compared to 17137.22 for the hypothesized model. As for the comparative fit index

CFI=0.932 for the revised model. The RMSEA 0:071 that is well below the threshold value of 0.08.

Figure3 Muslim's Awareness of Food Labeling and Their Purchase Behavior: The Revised model (Ing1-

PB9) observed variables; el-e9 represents error variances; double headed arrows depict

correlations among factors; single headed arrows from factors depict factor loadings

All measured variables for awareness and purchasing behavior are heavily loaded into their respective latent

variables and hence fulfill the construct validity


384 ISSN 1661-464X

Table 2: Two latent variables Muslims awareness of food labeling and their Buying behaviors

Hypothesis Muslims Awareness of food labeling Identification Supported/

unsupported

HI there is significant relationship between

Muslims Awareness and Purchasing behaviors

Awareness PurchaseB Supported

The result confirmed that, there is a strong relationship between the two latent variables (Muslims awareness

of food labeling and their Buying behaviors).

Date post:	30-Jan-2023
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Muslim Awarensss of Food Labelling in Malaysia

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