Antecedents of Halal food marketing in a Muslim country: Consumer insights from Pakistan

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1 Antecedents of Halal food marketing in a Muslim country: Consumer insights from Pakistan Mrs. Faryal Salman Doctoral Candidate Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST) 90 and 100 Clifton, Karachi 75600, Pakistan Phone : (92-21) Fax : (92-21) Dr Kamran Siddiqui Assistant Professor Institute of Business Administration City Campus, Garden Road, Karachi-75270, PAKISTAN KSiddiqui@iba.edu.pk Tel: Ext 2602 Fax: P a g e

2 Abstract Purpose: The purpose of this study is to explore the antecedents of Muslim consumers in Pakistan regarding Halal food and is an attempt to understand how Halal conscious consumers behave towards marketing dimension of Halal food brand. Such as; Halal logo, celebrity endorsement, additives used in production process etc. Design/methodology: The study is exploratory in nature and cross sectional data has been obtained from 473 respondents belonging to two major clusters, 1) Corporate world, 2) University students. Empirical data was collected through survey methodology. Data has been analyzed through frequency distribution. Findings: The findings of the study suggest that Halal food is the fastest growing concern in contemporary marketing literature. It is the need of the hour among Muslim consumers either living in Muslim country or elsewhere. Halal logo plays a pivotal role in Muslim consumers buying decision and post purchase satisfaction. Although Pakistan is predominantly a Muslim country but there is very little awareness about emulsifiers and non- Halal additives. The study also identifies the impact of celebrity endorsement on the marketing of Halal food. Finally and probably most importantly, consumers generally perceive two things to be haram (forbidden); (a) pork and related products ;(b) alcohol and alcoholic beverages. Relatively pork has an edge on unaided recall over alcohol being the forbidden food item in Islam. Managerial Implications: The study holds special significance for companies who wish to enter into Halal food business. Recently in Pakistan Sind investment Board hosted two Halal conferences one earlier this year and second was in September The conferences had international delegates from Malaysia and Thailand, who showed keen interest in having collaboration with our local companies who are into Halal food business. This provides ample opportunities for indigenous businesses and through this academic paper they can have consumer s insight. Limitations: The data for the study has been collected through two major clusters only. However for the purpose of generalization insights from other significant clusters should be collected. The study should be replicated in other cities of the country to have more indiscriminate findings. Originality: So far there is very thin literature in Pakistan that reflects on Muslim consumer s behavior towards Halal food. The study is first academic level work in this direction. It will provide a starting point for the further collection of empirical data to add knowledge into the subject area. 2 P a g e

3 Introduction Religion plays an integral part in functioning of every society (Khraim, 2010; Lindridge, 2005; Mokhlis, 2009; Assadi, 2003). It affects the way in which people behave, either directly through the rules and taboos it inspires or indirectly through the classification of all phenomenon, development of code of conduct and establishment of priorities among these codes (Khraim, 2010). Religion also influences the culture which surrounds an individual and culture then impacts the behavior of the consumers (Ahmed, 2008). Furthermore literature suggests that religion dictates consumers alternative choices on food, grocery products and other products. Therefore, religious belief becomes a significant factor that influences consumption behavior (Essoo & Dibb, 2004). One of the major religions being followed in the world today is Islam with one-fourth of the total world population comprising of Muslims (CIA-The World FactBook, 2011). There are around 1600 million Muslims around the world out of which Pakistan alone has 174 million Muslims (CIA-The World FactBook, 2011). The Muslim creed has five core elements: Shahadat (the declaration of faith in Allah and Mohammad), Salat (the prayer five times a day), Saum (fasting during the month of Ramadan), Zakat (alms-giving) and Hajj (the pilgrimage to Makkah) (Malik, 2003). Through the Holy Quran (the holy book) and hadith (sayings of the Holy Prophet (PBUH), Islam has provided the believers with a flawless code of conduct that the Muslims must abide by in their daily lives. 3 P a g e

4 It is a religious compulsion for all Muslims to consume food that is permitted by Allah and falls under the jurisdiction of Islamic law and is considered Halal. In Islam Halal generally refers to all such deeds and acts that are in accordance with the sayings of Almighty Allah and Prophet Mohammad (may peace be upon him). Islamic law (Sharia) designates the term Halal specifically to the food items and products that are permissible, lawful and are unobjectionable to consume. Conventional research reflects on the global concerns about Halal food amongst the Muslim consumers; however there is a dearth of data that is specifically targeted towards measuring the consumer behavior towards consuming Halal food. Some of the aspects of these researches are; (a) Most of the studies conducted globally are confined to the concept of Halal food with respect to the usage of meat products only; (b) Much of the available studies are confined to general Islamic marketing practices; (c) One commonality between most of the researches is need and importance of Halal labeling. Most importantly, major work has been done in non-muslim countries and was then assumed to be universal. At present, there is a little meaningful research in Pakistan that empirically measures the consumer perceptions and behaviors towards Halal food and its ingredients. A major motivation is the curiosity about how Pakistani consumers perceive the element of Halal-ness in the food they purchase. A minor but related motivation is to measure the importance of presence of Halal logo on the food products sold locally. A study has been conducted that collects empirical evidence for Muslim consumer s perceptions and awareness towards: halal food and its ingredients, halal logo, halal brands, local and international religious celebrity and forbidden food items in Pakistan. 4 P a g e

5 Methodology A sample size of 473 respondents was chosen from two major clusters; (a) corporate world associates: they are a suitable candidate for the research because of their credence and as opinion leaders of the society their insights can be generalized; (b) university students; evidence from past researches shows that university students have been used for data collection in many psychological and social researches. Undergraduate, Graduate and post graduate students were considered for this study. The premise for selecting students as sample is that University students are a valuable source for measuring consumer s perceptions and awareness because of their education, updated knowledge and a deeper insight into multifaceted issues on Halal food and its ingredients. Discussion Respondent were asked about what comes to their mind when they hear the phrase halal food (Figure 1) % considered Sharia compliant slaughtered food as halal. This is Zabeeha in Muslim terminology where by animal is sacrificed in the name of Allah. The phrase was also synonymous to Halal food and ingredients by % which indicates to a certain extent the level of trust amongst the Muslim consumers. Quite a few respondents such as 7.82% had miscellaneous responses as to what was halal food to them. Nonetheless, 5.71% participants of the survey comprehended that halal food is insignia of Islam and religious values. Halal food was also considered as free from prohibited and haram ingredients by 4.65% Muslim consumers. 5 P a g e

6 Most widely filed responses of about 43.07% were related to the fact that halal food means the food is safe and fit for consumption by Muslims. Food items specifically recommended for Muslim consumers have Halal logo on it. Respondents of this study were asked as to what comes into their mind when they see halal logo printed on the food product being purchased % respondents consider the food and its ingredients to be halal. Interestingly, 15.86% participants gave positive comments like the food is acceptable, allowed, certified and trusted % people had differing comments that were accumulated in others category. However despite the presence of halal logo only 6.34% people considered the food to be sharia compliant slaughtered food. As low as 4.86% and 2.96% respondents deemed halal logo as an emblem of religion and free from haram ingredients. A great majority of respondent s i.e 40.80% consider food with halal logo fit for consumption. 6 P a g e

Emulsifiers are food additives that are most commonly used in food products. They are assigned special codes with E-numbers according to the origin of production.

7 Emulsifiers are food additives that are most commonly used in food products. They are assigned special codes with E-numbers according to the origin of production. Many fatty acids are used for the production of these additives and it is a matter of concern for Muslim consumers as to which animal fat is being used. Some additives with E numbers of E120, E441, and containing animal fats (such as that of pork) are considered forbidden for Muslims (Figure 3). During the study the participants were asked to identify what Emulsifier is. Overwhelming majority of 60.47% respondent s did not know what emulsifier is % gave wrong answers. Only 8.25 % participants thought it to be some doubtful food item. Cumulatively 14% respondents considered it to be fats or animal fats, solvents, additives and chemicals. Negative comments about emulsifiers were only 2.75%. A very negligible number of respondents considered emulsifiers to be artificial ingredients and preservatives. 7 P a g e

Many of the food products sold locally have ingredients written in Arabic language. 36.

8 Many of the food products sold locally have ingredients written in Arabic language % people thought all such products to be belonging to Middle East or Arab country and considered such food to be halal (Figure 4) However.15.22% replied nothing. On the other hand ingredients in Arabic language were deemed to be halal by 24% % of total sample size could not understand the language. Some 3.59 % respondents considered such food items to be imported with good quality. Other responses were 2.75 %. Nonetheless some 1.69% participants thought that writing ingredients in Arabic language was a marketing gimmick. Pakistan is one of the most populous Muslim country, largely representing the Muslim Ummah in many aspects. Through this study it was imperative to find any local celebrity synonymous to 8 P a g e

9 halal food in Pakistan. The data presented below points out to the fact that only Junaid Jamshed (who is a religious scholar) is endorsed as brand ambassador for halal food by 56% respondents (Figure 5). The reason may be that he was once a very popular and famous singer who had already earned the fame. An important aspect of this study is to probe into the three most forbidden food items for Muslim consumers (Figure 6). Pork is considered as the first preference in listing of most forbidden food item by 265 participants. 108 participants rank it in second order whereby only 18 respondents consider it as third preference. Interestingly, although equally prohibited according to Islamic Laws, only 115 participants consider alcohol as the first preference in list of forbidden items. 191 respondents consider it to be second in order of preference and only 23 deem it in third preference. Others category was differing responses along with 158 respondents who did not answer the question. Important point to contemplate is that it can be inferred that pork is considered largely as forbidden as compared to Alcohol in a majority Muslim state like Pakistan. 9 P a g e

10 Conclusions Several important yet interesting findings can be concluded from this study. Firstly, Halal food the fastest growing concern in contemporary marketing literature is the need of the hour among Muslim consumers either living in Muslim country or elsewhere. Secondly, they consider it fit of their consumption and in accordance with their religious obligations. Thirdly, Halal logo plays a pivotal role in their buying decision and ultimately post purchase satisfaction. Fourth, awareness about emulsifiers and other non-halal food additives is at the lowest level as they may consider any food item available in Muslim country must be halal. Fifth, celebrities having physical appearance more closely to Islamic values and local culture have significant recall for halal food endorsement. Finally and probably most importantly, consumers generally perceive two things to be haram (forbidden); (a) pork and related products ;(b) alcohol and alcoholic beverages. 10 P a g e

11 Relatively pork has an edge on unaided recall over alcohol being the forbidden food item in Islam. References: 11 P a g e

12 Ahmed, A., (2008). Marketing of halal meat in the United Kingdom: Supermarkets versus local shops, British Food Journal, 110 (7), Assadi, D, (2003). Do Religions Influence Customer Behavior? Confronting religious rules and marketing concepts. Cahiers du CEREN 5, CIA-The World FactBook, (2011). Pakistan. [Online] Available at: 4-Apr-11]. Esso, N, Dibb, S, (2004). Religious influences on shopping behavior: An exploratory study. Journal of Marketing Management, 20 (7 8), Khraim, H, (2010). Measuring Religiosity in Consumer Research from Islamic Perspective. International Review of Business Research Papers, 6. (4), Lindridge, A.M, (2005). Religiosity and the construction of a cultural-consumption identity. Journal of Consumer Marketing, 22 (3), Mokhlis, S, (2009). Relevancy and Measurement of Religiosity in Consumer Behavior Research. International Business Research 2 (3), Mokhlis, S, (2009). Religious Differences in Some Selected Aspects of Consumer Behavior: A Malaysian Study. The Journal of International Management Studies, 4(1), P a g e

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