Analysis of Factors Affecting Millennial consumers’ Demand for halal Bread Products

Ludiah Oktavia,Anna Yulianita,Taufiq Marwa

doi:10.18184/2079-4665.2019.10.3.395-407

Ludiah Oktavia, Anna Yulianita + Show 1 more

Open Access

https://doi.org/10.18184/2079-4665.2019.10.3.395-407

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Abstract

Purpose: this study aimed to examine the factors affecting millennial consumers’ demand for halal labeled bakery products (sweet bread).Methods: this research used a quantitative approach to estimate the dominant factors affecting Muslims’ demand, based on multiple regression analysis using the Ordinary Least Square (OLS) method.Results: (1) The prices and income had a positive and significant effect on millennial consumers’ for halal-labeled bakery products. (2) The halal issue had a positive but insignificant effect on millennial consumers’ demand for halal-labeled bakery products. (3) millennial consumers’ demand for halal-labeled bakery products did not vary depending on taste and method of payment.Conclusions and Relevance: the price was a determinant factor in the demand for halal bakery products. So we recommend that millennial consumers should consider both bread price and quality and whether it is halal or not. The halal concern had actually a positive but insignificant effect, because millennial generation students are expected to pay more attention to the halal issue by considering halal labeling and composition of bakery products (sweet bread) and by having knowledge of halal products.

Highlights

Indonesia is one of the countries with a predominantly Muslim population of 265 million people (BPS, 2018)
Conclusions and Relevance: the price was a determinant factor in the demand for halal bakery products
The estimated results of the multiple regression model of demand for halal labeled bakery products are shown in Table 6: it can be arranged in the following equation: Based on the regression results of equation above, we can conclude that the influence of each independent variable, including income, price, method of payment and halal concern, positively influence demand for halal bread, Whereas the taste variable has a negative affects to demand for halal bread

Summary

Introduction

Indonesia is one of the countries with a predominantly Muslim population of 265 million people (BPS, 2018). Bashori (2018) states that in Islamic economies people learn about finance and banking, and about halal food, cosmetics and fashion industries, which augurs well for a future Shari’a economy. With the existence of the Shari’ah, Muslim consumers, especially Indonesian consumers, will be on the safe side if they consume certified halal issued by the Indonesian Ulama Council (MUI). This certification authorizes a company to print the halal logo on product packaging or to display it on the company's premises (MUI, 2018)

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