DOES FAITH DICTATE THE PURCHASING BEHAVIOR OF MALAYSIAN MUSLIM MILLENNIALS AND GEN Z IN HALAL COSMETICS?

Abstract

The consumption of Halal cosmetics products has experienced significant growth in recent years. The State of the Global Islamic Economy Report (2022) reported that the global market size of Halal cosmetics is estimated to reach US$93 billion in 2025 at a 4-year CAGR of 7.4%. This empirical study attempts to examine the determinant factors of purchasing behavior of Muslim Millennials and Gen Z in Malaysia towards Halal cosmetics behaviors in the expansion of the Halal economy. In addition, it also seeks to unearth whether faith acts as the mediating variable between determinants of purchasing behavior of Halal cosmetics amongst Malaysian Muslims. The determinants of purchasing behavior (product, price, place, promotion, and people) were examined in this study. Data were collected from 303 Malaysians through a questionnaire used to test the proposed model drawn from the Theory of Planned Behaviour (TPB). Structural equation modeling analysis revealed that three marketing stimuli variables of price, product, and promotion affect the faith and purchasing behavior of Halal cosmetic products, that faith mediates the relationship between price, product, and promotion and purchasing behavior of Halal cosmetic consumers. Results indicated that price, product, and promotion are considered as complementary mediation and that price is “direct-only non-mediation” in Gen Z, but “no-effect non-mediation” in Gen X and Millennials. The outcome of this research will not only advance theoretical knowledge but also provide practical implications to industry players involved in Halal cosmetics industry.