See

discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/267637234

Australian Multicultural Consumer Diversity: A

Study on Muslim Consumers' Perception
towards Halal Labeling
Conference Paper December 2014
DOI: 10.13140/2.1.3098.7208

CITATIONS

READS

957

1 author:
M Yunus Ali
Monash University (Malaysia)
56 PUBLICATIONS 313 CITATIONS
SEE PROFILE

All in-text references underlined in blue are linked to publications on ResearchGate,

letting you access and read them immediately.

Available from: M Yunus Ali

Retrieved on: 13 October 2016

Australian Multicultural Consumer Diversity: A Study on Muslim

Consumers Perception towards Halal Labelling
M Yunus Ali1
Associate Professor, Department of Marketing, School of Business, Monash University Malaysia
Campus, Jalan Lagoon Selatan, 46150 Bandar Sunway, Selangor, Malaysia.
Email: Yunus.ali@monash,edu
Abstract
This paper reports empirical findings of an exploratory research on Australian Muslim consumers
perception towards Halal labelled products and consumption decision making behaviour on other
alternatives. Participants of four Focus Group studies in two Australian cities revealed that while
Halal certification is important in consumption decision making, Halal label alone has limited
universal appeal as a cue in their purchase decision. Country of origin effect and ethnocentrism are
found playing an important role. Products from certain countries can be doubtful despite Halal
labelling, whilst products from other countries can be trusted even not certified. Muslim consumers
also accept general alternatives from trustworthy companies that do not contain any non-halal
ingredients. This research contributes to the understanding of Muslim consumer behaviour for
Australian marketers to design appropriate value proposition to exploit fast growing domestic and
global Muslim markets. It concludes with implications, limitation and future research needs.
Key words: Halal brands, Muslim consumer behaviour, Halal consumption, country of origin
Introduction
Culture plays an important role in the way people behave. Since religion as part of culture influences
consumption related values and behaviour an understanding of the underlying behavioural patterns
through a religious lens can provides a distinctive opportunity for marketers. In a seminal article
published in Journal of Business Research El-Bassiouny (2014) highlights the opportunity costs
involved with marginalizing the one billion plus Muslim consumer segment and presents a
conceptualization of Islamic religiosity and its marketing implications (p.42). The fastest growing
Muslim market around the world is fundamentally different in terms of motivation and behaviour
where Islamic dietary and prescribed consumption rules influence Muslim consumers decisionmaking process (Alserhan, 2010a; El-Bassiouny, 2014; Razzaque & Chaudhry, 2013). Like Koser
for Jews, Islam prescribe Halal (an Arabic term for permitted) consumption for its followers that
contributes to the growth of Halal labelling of products and services to satisfy Muslim market
demands (El-Bassiouny, 2014). In 2007, A.T. Kearney (Walker, Buchta, Reuter, and Gott, 2007)
estimated market for Halal goods and services worth US$2 trillion annually and currently it is
estimated to worth over 3 trillion US dollars (World Halal Forum, 2014). However, acceptance of
such labelling is rather a complex issue because faith based markets are sensitive towards
contradictions within the essence of a corporation and what they sell (Wilson and Liu, 2010). Thus,
the perceived essence of a corporation is capable of influencing the Muslim consumers. Similar to
the US and most Western European countries multicultural and ethic consumer diversity in Australia
is a challenge and an opportunity for Australian businesses. As change agents marketing managers
should take the challenge and look for way forward with clear understanding the market. However,
scientific research on Australian Muslim consumers perception toward Halal labelling and the
1 Corresponding Author

Citation details: Ali, M. Y. (2014), Australian Multicultural Consumer Diversity: A Study on Muslim
Consumers Perception towards Halal Labelling, Proceedings of the Australia New Zealand Marketing Academy
Conference 2014 (ANZMAC 2014), Griffith University, Brisbane, Australia 1- 3 December, 2014

consumption behaviour is scarce (Razzaque & Chaudhry, 2013). This research aimed at studying
their awareness and perception towards Halal consumption. This paper reports the findings of the
study and briefly highlights implications, limitations and suggestions for future research.
Literature Background:
The concept of Halal Branding or Halal Labelling is relatively new to position products to
Muslim consumers as compliant to Islamic principles (Young, 2007). Alserhan (2010b) defines
Islamic branding as a brand that is based on ethics and values of Islam. The concept of Halal is the
core of this labelling that means lawful or permissible in Islamic jurisprudence (called Sharia) and it
applies to all areas of Islamic life including food, drinks, dress, pharmaceutical, personal care
products and many services. As part of the belief system and moral code of conduct in Islam its
followers would search for Halal way of life for rewards and abstain from haram (non-permissible
or prohibited) to avoid committing sin and punishment (Alserhan, 2010a; Wilson and Liu, 2010).
Halal labelling can position a product distinctively from its non-halal alternatives and help Muslim
consumers choice of products and services from among the alternatives. However, all consumer
products with such labelling are still not readily available to all Muslims and not all Muslim
consumers always accept every product with halal labelling. In other words, consumption decision
making of Muslim consumers is diverse and complex; and it is even more so in non-Muslim country
markets where availability of halal alternatives are scarce. Some scholars used Theory of Planned
Behaviour (TPB) to investigate Muslim consumers adoption of Halal labelled products in Muslim
minority country (Bonne, Vermeir, Florence and Verbeke, 2007; Bonne, Vermeir and Verbeke,
2009) and Muslim majority country contexts (Mukhtar and Butt, 2012) and found conflicting results.
While Bonne and colleagues report that self-identity and dietary requirements (as prescribed in
Islam) are important determinants of halal meat consumption among Muslim consumers in Belgium
and France, studies in Muslim majority countries revealed subjective norms and religiosity as highly
significant determinants of halal consumption in general. Razzaque and Chowdhury (2013) found
that high religiosity influence Australian Muslim consumers high involvement in information search
and purchase of Halal products and services. El-Bassiouny (2014) also conceptualised similar
consumption behaviour of Muslim consumers in a global context.
Some researchers investigate Muslim consumers acceptance of different categories of Halal labelled
products and their general alternatives in the market (Ali, 2012; Zyl, Mokonenyane, Kebatile, and
Ali, 2013). Alserhan (2010b) conceptualised three conditions of Islamic brands as by compliance,
by origin and by customer [market target] (p.39). Initially he argued that a brand is Islamic (Halal)
if it meets one or more of these three conditions (Alserhan, 2010a) but later he elaborated the concept
further (Alserhan, 2010b). He explained that while Shariah-compliance (certification by an Islamic
authority) and targeting Muslim markets are two core requirements of a Halal brand but the country
of origin of such a brand is also an important condition (Alserhan, 2010b). From this perspective a
Shariah-compliant product originated from a Muslim majority country and targeted to Muslim
markets is categorised as true halal brand but such a product originated from a Muslim minority
country is categorised as inbound halal brand. Alserhan (2010b) also categorised a non-Shariah
compliant product as halal if it is originated from a Muslim majority country and targeted to Muslim
markets (he used the term assumed halal) (Alserhan, 2010b). However, research reveal that some
Muslim consumers express doubt on trustworthiness and authenticity of the Halal certification from
different Muslim majority and Muslim minority countries and acceptability of the concept of
assumed halal (Ali 2012; Zyl et al, 2013). Consumers country of origin was found to moderate
their perception towards Halal products country of origin. Thus, it is likely that other available
information on the label can be used for Muslim consumers purchase decisions, including but not
limited to the country-of-origin. Some limited research (Vohra, Bhalla and Chowdury, 2009) report
that Muslim consumers in different countries differ in degrees of conservativeness. Hence, the

country context could be an important moderator in Muslim consumers perception towards the
Halal products that they purchase.
Besides these halal alternatives, Muslim consumers regularly consume other products either by
choice or due to non-availability of Halal alternatives but how such purchase decisions are made are
not clearly known. Jamal and Sharifuddin (2012) reported that Muslim shoppers in UK use Halal
labelling and ingredients lists as information cues to make their purchase decision. Despite the
seemingly practical expectations about Muslim consumers behaviour, no a priori hypotheses can be
developed for theory testing in this research due to the lack of sufficient empirical evidences.
However, this will help conceptualisation of Muslim consumers product and service choice
dynamics for future research.
Methodology
This exploratory study collected data from focus group studies to investigate Muslim consumers
awareness and perception towards Halal products and their alternatives in the market. Focus group
interviews allow for broader and deeper insights into the topics compared to structured quantitative
research methods. This method allowed for interactive research with a small group that can provide
the researcher information through their discussion and observing their emotional states and
responses. As per university Ethics Committee requirements, volunteer participants for four Focus
Groups in two major cities were recruited through poster in four Mosques. Prior to the interview,
participants were given an explanatory statement describing the nature and objectives of the study,
voluntary nature of participation and the anonymous reporting of findings. The researcher moderated
the focus group interviews to initiate discussion on all important and relevant issues, probing,
balancing participation among participants and encouraging participants to discuss any issue they
find relevant. A semi-structured interview schedule was used and interviews lasted around 90
minutes each; and all interviews were audio recorded with permission to facilitate verbatim
transcription of the collected information. Participants were in their early 30s to 65 years of age and
represented different professions including business, education, engineers, doctors and general
working people.

Findings
Halal Awareness, Identification and Trust on Halal Labelling: To understand participants
awareness of the nature of halal consumption alternatives, participants were asked about the
categories of products and services they may consider Halal. While they mostly indicated food
products first, some respondents mentioned clothing, personal care, hospitality and financial
services. However, one participant noted that most of the focus of the Muslim community is around
consumables, as in the things that we eat and drink (BB2). This clearly focuses primarily on foodrelated products.
Another participant provided an interesting insight about halal certified products when he said:
Were thinking it is [Halal product] normally from Malaysia or Muslim country. We think it is edible [i.e.,
halal/acceptable] (BB1)

This suggests that Halal certification is associated with a Muslim country that has significant Halal
support system and therefore perceived as a reliable source for acceptable products.
When asked about the identification of a Halal product, most participants shared that they usually
check for Halal logos before they buy products but it became clear that checking ingredients was also
commonly used. Participant BA4 explained this way:
I do not look at only even halal symbol, depends where it is coming from, who is making the product. I
agree with the other brother [about checking the ingredients even when there is a logo] you have to look
at the sources, where it comes from [...]. I need to check who is this guy who is selling me the meat, which
farm it is coming from? Is he a Muslim or not?

Thus, the halal symbol, certifying authority, the producer, the country-of-origin of the product,
and/or its ingredients somehow considered in purchase decision-making process. However, these
factors are not necessarily distinct from each other.
Credibility of a halal symbol is certainly associated with its recognition as trustworthy. To
understand participants level of recognition of halal symbols, a sheet containing halal symbols of
Australian and foreign Halal certifying authorities was shown and asked to tick symbol they can
recognize. While most participants were able to identify Halal logos of the Australian Federation of
Islamic Council (AFIC) and Halal Certification Authority, Australia, they were unaware of more
than 10 other certifying bodies in Australia. Most participants also identified Halal logo of some
Halal certifying authorities in other countries, where the Halal logo of Malaysian JAKIM was most
recognized. The study found mixed response when participants were asked about their intention to
purchase imported products that was certified by those foreign authorities. While most participants
showed interest, some had reservation. People in favour said:
I will buy it because its coming from Muslim country and certified. (BB2)
If it is coming from Muslim country and it's organized by the central body, I will definitely buy it. (BB1)

Those who disagreed explained this way:

Because some Muslim countries are by name they are Muslim country but their culture and everything is
not like a Muslim country.

A participant in Melbourne (D4) supported the sentiment of BA1 by associating a countrys

westernisation.
Even though its Muslim country, it is too westernised with too many organisations, too much of business
there.

This clearly indicates distrust on the certifying authorities to fulfil the Halal requirements for
certification. The reason for participants apprehension and doubt towards certification may be based
on lack of involvement and control of the proper Islamic bodies in the process. This finding clearly
refutes Alserhans (2010b) definition of true halal branding and supports the country-of-origin
effect on Halal labelling of products.
Acceptance of Assumed Halal Labelling and Inbound Halal Labelling: The research then
moved on to the second phase, where the respondents were asked if they would be willing to accept
products from an Islamic country that is not certified halal. Again the research reveals mixed finding.
Some were willing to accept as explained below:
If you are in a Muslim country, then it is generally considered that the products are halal. You dont
necessarily have to check it. (BB3)
I will definitely go for it, even theres no halal certificate. (BA1)

However, for some other participants an Islamic country-of-origin was not sufficient to be halal
without a certificate. They expressed their feeling as follows:
If theres no halal certificate, even its from Muslim country; I really cannot have my trust on it so I try to
avoid it. (BA5)
I wouldnt care less where it comes from even from Medina or Mecca [...] even if it comes from Saudi
Arabia, from Pakistan, India, whatever, it should have the halal sign. If it doesnt have a halal sign, then
Ill question. (D3)

Thus, an Islamic country-of-origin is not considered an assurance for some of the respondents. This
was reflected in the short experiment conducted by the facilitator during this point to stimulate
discussions. A packet of instant noodles manufactured in a Muslim country but without a Halal logo
(deliberately hided country-of-origin for the experiment) was passed around and the participants
were asked about their willingness-to-buy. Most participants indicated their unwillingness to buy
despite repeated reminder that it was manufactured in one of the Muslim countries either in South
Asia or Middle-East. However, a substantial number of them changed their mind when it was

revealed that the product was manufactured in Saudi Arabia and another intact packet was passed
around for their verification. The justifications for change of mind were expressed as follows:
There is no chance to produce any non-halal products or food in Saudi Arabia. So thats why I will buy it
definitely even I will not check the logo. (D5)
I think I will more probably buy the product because they are Muslim too. I think they will have the fear
of Allah and they will think before doing anything haram. (BA1)

This again reconfirms the influence of country-of-origin that can be surprisingly based on Muslim
consumers perception of Islamic-ness of some Muslim countries only but it clearly refutes the
concept of assumed Halal labelling in general. In other words, Islamic country-of-origin is not the
only source of reassurance, it is seen that Halal certification still carries importance for most.
At the third phase of the focus group deliberation, participants were asked if they were willing to
purchase a Halal certified product originated from a Muslim minority country such as India,
Philippines, Singapore, South Africa, and Thailand. A mixed perception was found and various
factors were found to be relevant when participants considered products from such countries. For
example, when one participant from Brisbane (BB2) voiced concern about Halal certified products
from a country with vast majority atheist population like China and Russia but he changed his
mind when a fellow participant (BB4) reminded him about over 100 million Muslims there.
Moreover, Halal certifying authoritys adherence to Sharia compliance and trustworthiness was
highlighted by participants. Some participants were worried about corrupt practices of the certifier as
highlighted by one participant in Melbourne:
We dont know whether this company paid a certifier X amount of dollars [] for the certificate without
proper verification. This is the thing where I am a bit sceptical when it comes from [name of countries
withheld]. (D3)

This type of comments may not necessarily be true rather than what people perceive, but perceptions
do offer insight into consumer behaviour. However, non-Muslim countries as sources of Halal
certified products are not necessarily unwelcomed by participants as long as corrupt image is
avoided. For example, one participant strongly believed that a non-Muslim country would have a
superior certified product:
Definitely without any question Ill eat, because to have a product certification in a non-Muslim country
is not the easy thing to do and people will investigate. There's a lot of Muslim around who does it before.
So I will be more confident eating a certified halal product from a non-Muslim country because they
follow 100% procedure. (BB1)

Similar sentiments were expressed by majority and they intended to accept halal-certified products
from non-Muslim countries with positive image (Singapore and Thailand were named). Thus, it
could be posited that the image of a countrys trustworthiness is an important consideration,
especially when it is a non-Muslim country. This point was also echoed in an earlier personal
interview with an Islamic religious leader and academic in Australia. While this addresses the notion
of authenticity for the country-of-origin in terms of its Islamic-ness, the importance was also placed
on the certification authority for their trustworthiness.
An interesting observation was surfaced where the country context was not limited to the country-oforigin of the product but also the country where it is consumed and its legal system. Australian
strong consumer laws was sighted as premise for trustworthiness of the supplier that guarantees a
sense of security for some respondents as highlighted by BB4:
Here in Australia, there are strong consumer laws, especially on misrepresentation or false advertising
[]. So if somebody is [selling something] non-halal as halal, or advertising it as halal, they can be
prosecuted. (BB4)

In addition, some participants indicated their security from a religious authority as opposed to a
secular one. Four of them indicated to check with the Ulama (religious leader) about the products

country-of-origin adopting the product. The following comment by BA1 was supported by BA2,
BA3 and BA5:
Before buying any [new] halal certified product from non-Muslim countries I will check with the
local Ulama to know his feelings.
However, this is not without a problem as noted by two participants (BB1 from Brisbane and D3
from Melbourne) on the variation in interpretation of some Sharia principles by Islamic religious
leaders from different mazhabs (Islamic School of Thought) practiced in different countries.
A liberal attitude toward Halal labelled products from non-Muslim countries where responsibility on
authenticity of halal certification is passed on to certification authority as expressed in following
quotations:
We go by the letter halal, in English and in Arabic especially and I dont bother about any organisation.
(BB1)
As long as it says halalwe can take them. Allah will judge you only by what you know [...]. If you go too
deep, you need very long way to eat. (D1)
If somebody misuses that logo, basically the liability of the sin committed goes into the shoulder of the
man who is doing it. So in that respect, we can partially close our eyes and go and eat [these Halal
labelled product). (MB)

It is interesting to note that these responses indicate that a halal label can be sufficient, not even halal
certification, yet the general theme of the discussions is for removing doubt and investigating further.
Consumption of non-Halal Alternatives: Finally, participants were asked if they would purchase a
products originated from non-Muslim countries that are not certified Halal but the ingredient list
shows no trace of any Haram ingredients. Participants expressed mixed responses a liberal attitude
from buying to selective buying based on country of origin. The liberal participants would buy such
halal alternative when plant-based ingredients are conveniently indicated in the lengthy ingredients
lists. A participant said. if all ingredients are okay, I will go with it, [] even its coming from
Israel. I have no problem (BA3). Some participants across the focus groups gave instances where
they would purchase vegetarian alternatives and avoid meat-related products in a doubtful purchase
situation. However, one respondent expressed a unique opinion that directly opposed a few others:
D1: Why do you need the halal logo when the ingredient just says flour, vegetable oil, potassium
carbonate, sodium []. Sometimes I think maybe some brothers overdo it.
However, a small minority imposed country limit to make sure that ingredient lists in product label
are genuine in a strict consumer right environment. One participant for instance perceived that
ingredient list is more reliable in England and Australia, and he would rely on it. Hence, reliable
ingredient list and improved transparency are additional factor in purchase decision-making.
Conclusion and Limitations
This exploratory study on Australian Muslim consumer sample reveals some interesting findings that
have clear implication for marketers. First, Muslim consumers awareness to Halal consumption is
high indicating their high level of involvement in consumption decision making (Razzaque and
Chowdhury, 2013). Second, though recognition of Halal logo was found high, the logo itself is not
enough to win heart of the consumers unless reliability of the country of origin and trustworthiness
of the certifying organisation and marketer is assured. High involvement in the information search
and purchase decision making process closely monitor country environment as well as certifying
authority and company credibility through different channels. The study also revealed that consumer
transgression among Muslim consumers against the violation of code of conduct relating to halal
labelling is critically high. Therefore, all parties involved in this market segment should handle this
very seriously to create and maintain competitive advantage in domestic and global Muslim market

segment. Third, Australian Muslim consumers are open to adopt general alternatives of Halal
labelled products as long as prohibited ingredients are not used and the ingredient list is clear and
trustworthy. Finally, mainstream marketer cannot ignore this fast growing market segment
worldwide (El-Bassiouny, 2014) and national competitive advantage can only be achieved through
effectively targeting domestic Muslim market to exploit that credibility in the global market (Porter,
1990). Findings challenge the theoretical development on Islamic Branding (Alserhan, 2010a & 2010b)
and open the research directions for further qualitative and quantitative verifications in different market
context for theory development and testing in this fast growing Muslim market. There are apparent
limitations of this exploratory study. Small and only male sample is the principal limitation.
Therefore, future research should include female and widen its scope to include other major cities to
find any variations across cities and gender. Quantitative research could also contribute to theory
development and testing.
References
Ali, M. Y. (2012). Halal Branding: A study of Muslim consumers Perspective, Proceedings of the 2nd
Global Islamic Marketing Conference, Abu Dhabi, 17-18 January 2012, pp. 1 - 6.
Alserhan, B A (2010a), On Islamic Branding: brands a good deeds, Journal of Islamic Marketing, 1(2), 101
105.
Alserhan, B A (2010b), Islamic Branding: A conceptualization of selected terms, Journal of Brand
Management, 18(1), 34-49
Bonne, K., Vermeir, I., Florence, B. & Verbeke, W., 2007, Determinants Of halal meat consumption in
France, British Food Journal, 109(5), 367- 386
Bonne, K., Vermeir, I. & Verbeke, W. 2009, Impact of religion on halal meat consumption decision making
in Belgium, Journal of International Food and Agribusiness Marketing, 21(1), 5-26
El-Bassiouny, N. (2014), The one-billion-plus marginalization: Toward a scholarly understanding of Islamic
consumers, Journal of Business Research, 67: 42-49
Jamal, A. and Sharifuddin, J. (2012), Perceived Value and Usefulness of Halal Labelling: The Case of British
Muslim Consumers, Proceedings of the 2nd Global Islamic Marketing Conference, Abu Dhabi, 17-18 January
2012, pp. 31-37.
Mukhtar, A. & Butt, M. M. 2012, Intention to choose Halal products: The role of Religiosity, Journal of
Islamic Marketing, 3(2), 108-120
Porter, M.E. (1990), Competitive Advantage of Nations, New York: Free Press
Razzaque, M. A. & Chaudhry, S. N. (2013), Religiosity and Muslim consumers decision-making process in a
non-Muslim society, Journal of Islamic Marketing 4(2), 198-216
Rehman, A. & Shabbir, M., (2010), The Relationship between Religiosity and New Product Adoption.
Journal of Islamic Marketing, 1(1), 63 69.
Vohra, M., Bhalla, G. & Chowdhury, A. (2009), Understanding the Islamic Consumer. Research and Society,
40-44.
Walker, M., Buchta, D., Reuter, T. and Gott, J. (2007), Addressing The Muslim Market: Can You Afford No
To?, Chicago, Ill.: A.T. Kearney, Inc.
Wilson, J.A.J. & Liu, J. (2010), Shaping the Halal into a Brand?. Journal of Islamic Marketing, 1(2), 107-23
Young, M. (2007), More to Islamic branding than meets the eye? Campaign (UK), Issue 23, 08 June 2007.
Retrieved from http://www.brandrepublic.com/analysis/663467/
Zyl, C. V., Mokonenyane, Q.G.B, Kebatile, L.D. and Ali, M.Y. (2013), Muslim Consumers Consumption
Decision on Halal Products and Services, Proceedings of the 4th Global Islamic Marketing Conference,
Istanbul (Turkey), 29-30 May 2013, pp. 258 - 264