LINKING CONSUMER BEHAVIOR AND DEMAND FOR HALAL LOGISTICS — EVIDENCE FROM BRUNEI DARUSSALAM

Abstract

This study aims to investigate elements associated with consumer behavior towards the demand for halal logistics, namely concern about halal (COHA), knowledge of halal (KNHA), awareness of halal logistics (AWHL), and perceptions of halal logistics (PEHL). This research applied a quantitative methodology that gathered primary data from Muslim consumers residing in Brunei Darussalam. Data were collected using an online self-administrated survey questionnaire, and regression and correlation analyses were tested to investigate the proposed hypotheses. The result demonstrates that COHA, KNHA, AWHL, and PEHL constructs significantly influence demand for halal logistics (DEHL). All four elements show a medium to strong positive correlation with the dependent variable, inferring that the independent variables and the DEHL construct are closely related or associated — suggesting that an increase in the independent variables will increase DEHL and vice versa. This research does not fully represent the general consumers in Brunei markets as this research solely focuses on Muslims. Future research on non-Muslim consumers might be an option to give a bigger picture of the need for halal logistics in Brunei Darussalam. This study is beneficial to relevant stakeholders such as halal businesses, logistics service providers (LSP), policymakers, and consumers to reconsider the extent of halal logistics in not only safeguarding halal integrity across the logistics chain but also its significance in shaping continuous and viable demands in the pursuit of competitive advantage. This paper is among the first attempts to investigate Muslim consumer demand for halal logistics in Brunei, considering that past research focused heavily on Malaysian and Indonesian markets. This paper could contribute to future theoretical and empirical studies and suggest practical initiatives towards relevant stakeholders.