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Archives of Business Research – Vol. 10, No. 7
Publication Date: July 25, 2022
DOI:10.14738/abr.107.12616. Audina, N., Nuryakin, & Handayani, S. D. (2022). How Consumer Trust Moderating Effect on Purchase Intention of Halal Food
Product? Archives of Business Research, 10(7). 161-173.
Services for Science and Education – United Kingdom
How Consumer Trust Moderating Effect on Purchase Intention of
Halal Food Product?
Nadia Audina
Master of Management Program
Universitas Muhammadiyah Yogyakarta, Indonesia
Nuryakin
Master of Management Program
Universitas Muhammadiyah Yogyakarta, Indonesia
Siti Dyah Handayani
Master of Management Program
Universitas Muhammadiyah Yogyakarta, Indonesia
ABSTRACT
The purpose of this research is to analyze the effect of price perception and Halal
label on purchase intention with consumer trust as a moderator on food private
label at Super Indo retail stores. The population on this research are Super Indo’s
consumers who understand about private label products. The data collection used
questionnaire method. There are 223 respondents. The analytical tool used in this
study is SEM (Stuctural Equation Modeling) which is operated with the AMOS ver.22
program. The findings show that: (1) Price perception has positive and significant
effect on food private label purchase intention. (2) Halal label has positive and
significant effect on food private label purchase intention. (3) Consumer trust as a
moderator has a positive and significant effect on the relationship between price
perception and purchase intention. (4) Furthermore, consumer trust as a
moderator also has a positive and significant effect on relationship between Halal
label and purchase intention. In addition, the factors that influence purchase
intentions in the study only consist of price perception and Halal labels.
Keywords: Food Private Label Brand, Price Perception, Halal Label, Consumer Trust,
Purchase Intention
INTRODUCTION
The increasing growth of modern retail causes retail entrepreneurs to find opportunities and
creativity towards their competitive advantage and capture people's intentions to shop at their
retail [1]. This led to the need for retail branding, namely by developing a private label and
changing the store name to the brand name itself [2]. [3] define private label as a brand that is
sold exclusively through certain retailers; thus, private label is a brand that is managed and
owned only by certain retailers [4]. Private labels are also known as store brands, retailer
brands and distributor brands that are owned, developed, and managed by a retailer [5].
The increasing private label consumption options for food and beverage products have also
been detected [6]. This is due to the consumer's point of view that private label provides a
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Archives of Business Research (ABR) Vol. 10, Issue 7, July-2022
Services for Science and Education – United Kingdom
competitive alternative to manufacturing brands based on lower prices, because their costs are
lower [7]. Private labels have become very important in several European countries such as
Switzerland (54%), Germany (40%) and France (32%). One of the creative and innovative
efforts is to sell several numbers of private label products [8]. Currently, private label is present
in almost every product category, especially in the food sector [9]. In fact, in the food industry,
there has been an increase in private label market share and market penetration globally, while
retailers have achieved great success with their private labels [10]. However, there is a lack of
research on consumer behavior related to private labels on food products, even though private
labels in the food sector have quite a lot of enthusiasts in Indonesia and currently many
researchers only research private labels extensively in various types of product lines.
Moreover, there is also a lack of research on Halal labels on food private label. Whereas in
Indonesia the value of the Halal label is the main value that attracts purchases of food products
because Indonesia is a country where the majority of the population is Muslim.
This research is the development from research by [11] which discusses the effect of price,
familiarity, and store image on purchase intention and loyalty with consumer trust as
moderator on food private label. An improvement in this research is the addition of the Halal
Label variable. According to [11], an interesting question that arises is whether consumers
exhibit similarities in their purchase behaviour of food private label brands according to their
trust on these retail brands. That is, it seems plausible that food private label brands’ proneness
may differ between consumers with high trust and consumers with low trust.
The purpose of this study is to examine and provide useful insight into the effect of price
perception and Halal label on purchase intention of food private label and examines the role of
consumer trust on purchase intentions. Moreover, in this research, we focus on food products.
LITERATURE REVIEW
Food Private Label Brand
According to [5] in the Principles of Marketing, private labels are known as store brands,
retailer brands, and distributor brands that are owned, developed, and managed by a retailer.
Meanwhile, [3] define private label as a brand that is sold exclusively through certain retailers.
Since the introduction of private label to the market, there has been a substantial increase in
the availability of some products. Today, most retailers offer private label alternatives to a
different and increasing range of products; and in products such as food, private label has
achieved a large market share [12]. In addition, [6] have also detected an increase in private
label consumption options for food and beverage products. Food private label is food products
that are sold under retailer brands. Food products can be in the form of basic needs such as rice,
oil, and sugar. As well as fresh vegetables and fruits labeled with the retailer's brand.
Price Perception
Price perception is the value contained in a price related to the benefits of a product or service
[5]. According to [13], price perception is a perception or view of the price of how consumers
perceive a certain price (whether high, low, or reasonable) which has a strong influence on
purchase intentions and purchase satisfaction. In previous studies, it was emphasized that price
is one of the main determinants of private label purchases [14]. According to [15], price image
of private label can be defined as the global price given by retailers to their private label
products. Based on previous research, in this study we define price as an overall representation
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Audina, N., Nuryakin, & Handayani, S. D. (2022). How Consumer Trust Moderating Effect on Purchase Intention of Halal Food Product? Archives of
Business Research, 10(7). 161-173.
URL: http://dx.doi.org/10.14738/abr.107.12616
of the relative level of food private label prices for certain retailers, based on the affordable
price dimension [11].
The relatively low price is one of the main characteristics of private label products [15].
Compared to other brands, the price of private label products has advantages that are quite
attractive to consumers. For the public, especially in Indonesia, products that have a lower price
level are easier to attract consumers to buy. Especially, if the products being sold have a better
quality than other brands. Based on the theory above, it is certain that prices on food private
label can be categorized as low or more affordable than the prices of other brands.
Halal Label
According to the Regulation of the Minister of Trade No. 31, of 2011, food labels are descriptions
in the form of pictures, writing or a combination of both and other forms that are inserted or
affixed to the packaging. Meanwhile, Halal labels are information that is allowed on food
product packaging to indicate the Halal status of a product. A lot of Muslims are very concerned
about the Halal food they will consume. Research conducted by [16] highlights those religious
values influence consumers' intentions to consume meat and its derivative products. Currently,
in Indonesia and other countries that have a large Muslim population, there are regulations to
register products, especially food so that they are proven Halal food.
Before the Law no. 33 of 2014 concerning Guaranteed Halal Products, there are institutions that
have an interest in the issue of Halal products, namely MUI, LPPOM, BPOM and the Ministry of
Religion. However, currently the Halal Product Assurance Law specifically mandates the
establishment of the Halal Product Assurance Agency (BPJPH) to deal with the issue of product
Halalness in Indonesia. BPJPH is currently replacing the role of MUI as the holder of the
authority for Halal certification. The role of LPPOM-MUI, which used to oversee inspecting and
testing the Halalness of products, was replaced by the Halal Inspection Agency (LPH). Not only
for national brand products, but food private label products also require clear Halal
certification. This is because in Indonesia the Halal value of a food product is very important.
The Halal label on private label products is an image or text logo that is printed or affixed to the
packaging of food private label products.
Purchase Intention
Intention is an important construct that can lead to a certain action. According to [17], intention
is a true predictor of behavior. According to [18], in the context of buying, intention to buy is a
precedent step in buying behavior. Meanwhile, according to [19], purchase intention is a
planned possibility to buy a product or service in the future. Consumer purchase intention
refers to the efforts made to buy a product or service or consume products available in the retail
stores they visit [15], [1]. [20] asserted that consumers take several steps when they want to
buy goods by seeking information, considering information, and evaluating products to
ultimately choose to buy.
Consumer Trust
According to [21], consumer perceptions of a product represent a situation where consumers
face some degree of uncertainty or ambiguity in consumption satisfaction or expectations.
Consumer trust is a secure feeling held by consumers that the brand will meet consumption
expectations. Consumer trust represents an acknowledgment that product value can be created