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Halal Literacy: A Concept Exploration and Measurement Validation

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  • Salehudin, Imam

Abstract

Muslim consumers have strict commandments which guides their consumption behavior. However, Muslim individuals may have different compliance regarding the commandments. This difference in compliance may be explained by difference in halal literacy. Halal literacy is the ability to differentiate permissible (halal) and forbidden (haram) goods and services which came from better understanding of Islamic laws (shariah). Thus, the purpose of this paper is to explore the concept of Halal Literacy as well as to develop and validate an instrument to measure Halal Literacy for Muslim consumers. Halal literacy was measured using two methods. One method using six items of five point Likert self evaluation scale and the other using fifteen true-false test questions with an option to choose doesn’t know. Proportion of correct and incorrect was used as weights in scoring to represent the difficulty of items. Scoring results were then analyzed with Confirmatory Factor Analysis (CFA) using Weighted Least Square method to test construct validity. Scores were then used to classify cases into high, moderate and low Literacy groups. Self evaluation halal literacy and switching Intentions are compared between groups using ANOVA to determine concurrent validity. Only ten out of fifteen items are considered valid using Confirmatory Factor Analysis. ANOVA showed that grouping of high, moderate and low literacy score can distinguish differences in perceived halal literacy and switching intentions between the groups. Post hoc tests and descriptive statistics revealed interesting non linear relationship between the halal literacy scores; self evaluated halal literacy and intentions to switch from products without halal labels.

Suggested Citation

  • Salehudin, Imam, 2009. "Halal Literacy: A Concept Exploration and Measurement Validation," MPRA Paper 54339, University Library of Munich, Germany, revised Apr 2010.
  • Handle: RePEc:pra:mprapa:54339
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    References listed on IDEAS

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    1. Suddin Lada & Geoffrey Harvey Tanakinjal & Hanudin Amin, 2009. "Predicting intention to choosehalal products using theory of reasoned action," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing, vol. 2(1), pages 66-76, April.
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    Cited by:

    1. Purnomo M. Antara & Rosidah Musa & Faridah Hassan, 2015. "Theorising attitude towards Islamic financing adoption in an integrative model of behavioural prediction: A proposed conceptual framework," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 1(1), pages 35-41.
    2. Semra TAŞPUNAR ALTUNTAŞ, 2019. "İslami Finansal Okuryazarlık ve Helal Okuryazarlık İlişkisi," Istanbul Management Journal, Istanbul University Business School, vol. 0(86), pages 57-73, June.

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    More about this item

    Keywords

    Halal Literacy; Halal Labels; Muslim Consumer; Measurement and Validation; Product Switching Intention;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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