A mediator of consumers' willingness to pay for halal logistics

Abstract

PurposeThe halal industry has been growing in recent years, seeing an increasing demand for halal products from both Muslim and non-Muslim consumers and acknowledging that halal is a universal concept accepted by both Muslim and non-Muslim societies. Service-related providers, such as logistics, could influence the demand for halal products by consumers. This paper aims to investigate the factors that influence consumers' willingness to pay (WTP) for halal logistics among young non-Muslim adults.Design/methodology/approachA set of survey questions were distributed to young non-Muslim adults and 280 questionnaires were analysed.FindingsThe results indicate that three independent variables had a direct relationship and significant influence on the WTP for halal logistics among non-Muslim consumers. These variables are concern on halal, knowledge about halal and perception of halal logistics. Meanwhile, the awareness of halal logistics significantly influenced the consumers' WTP for halal logistics, provided that it was mediated by the perception of halal logistics.Originality/valueGiven the gap in research on halal logistics and WTP, this paper presents a consolidated examination of this subject, particularly the WTP of young non-Muslim adults. Furthermore, by including the perception of halal logistics as a mediator, this study leverages the halal logistics knowledge to a new level, thus deepening the understanding of this topic and contributing additional knowledge. This study also presents some opportunities for future empirical research.