Abstract

As explanatory quantitative research, this study aims to determine the direct and indirect effects of religiosity and product knowledge on customer loyalty moderated by halal perception. The object of this research is a Muslim woman who uses halal-certified cosmetics in Malang City with a total sample of 140 respondents. The data collection technique used a closed questionnaire with the help of a google form. Data analysis techniques used include descriptive statistical analysis and Structural Equation Model (SEM) with Partial Least Square (PLS) approach. The results showed that religiosity and product knowledge had a direct effect on halal perception. Then, religiosity, product knowledge, and halal perception have a direct effect on customer loyalty. Furthermore, halal perception has an indirect effect because it is able to mediate religiosity and product on customer loyalty.

Highlights

  • Human need is a condition that is felt to be a satisfaction based on human scientific nature (Brand-Correa & Steinberger, 2017; Baxter & Pelletier, 2019; Sailer et al, 2017)

  • The sample of this study is Muslim women in Malang City who use halal cosmetic products, which have characteristics that are in accordance what is needed in the study and can be used as respondents

  • Respondents in this study who have a monthly expenditure of Rp. 500,000 - Rp. 999,999 as many as 23 people (16.43%), who have a monthly expenditure of Rp. 1.000.000 - Rp. 1,499,999 as many as 23 people (16.43%), who have a monthly expenditure of Rp. 2,000,000 - Rp. 2,499,999 as many as 27 people (19.29%), who have a monthly expenditure of > Rp. 3,000,000 as many as 48 people (34.29%)

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Summary

Introduction

Human need is a condition that is felt to be a satisfaction based on human scientific nature (Brand-Correa & Steinberger, 2017; Baxter & Pelletier, 2019; Sailer et al, 2017). Satisfying women's needs are usually those who support them to look perfect in public. One of these women's needs, namely cosmetics (Pangaribuan, 2017). Indonesia is one of the potential cosmetic markets so that the business is prospective and promising. This can be seen from the increase in cosmetic sales in the first quarter of 2019 which touched 8.12 percent with a gross domestic product (GDP) of IDR 21.9 trillion. Throughout 2018, the GDP value reached IDR 50 trillion (Ministry of Industry, 2019)

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