The influences of Islamic retail mix approach on purchase decisions

Abstract

PurposeThis study aims to investigate the influence of the Islamic retail mix of product, price, promotion and store atmosphere on consumers' purchase decisions.Design/methodology/approachThe research method is a survey with a purposive sampling technique, involving 100 respondents. The data was analyzed using the SEM PLS analysis tool.FindingsProducts and promotions are partially insignificant to purchasing decisions in Islamic retail. This is because consumers are convinced of all the products offered by the sharia retail mix, so they are less concerned with products and promotions. However, this study reinforces that price and store atmosphere has a significant impact on purchasing decisions in Islamic retail.Research limitations/implicationsThis study focuses on product, price, promotion and store as its variable dependent, with two of the variables are less significant compared to the rest. In addition, the samples are relatively small, leading to concerns about its ability to generalize the results of the study. The instruments that are used are also relatively limited. Additionally, the relevant characteristics of respondents are not evenly distributed. Thus, further study investigating similar topics might need to increase the number of samples, expand the characteristics of the sample, and including such variables as process, location, brand equity and customer’s trust level.Practical implicationsTo encourage consumers to make purchases on Islamic retail, companies should emphasize price and store atmosphere, which are the main considerations for consumers in making purchases at Islamic retail. Product and promotion are less prominent in Islamic retail because they are similar to those carried out by conventional retail.Originality/valueThis paper is significant in investigating the effect of sharia retail product mix, price, promotion and store atmosphere on consumer purchasing decisions at Sehati Muslim Mart Daarut Tauhid (SMM-DT), which is located in a famous boarding school in Indonesia. This study has succeeded in revealing the strengths and weaknesses of the variables that influence consumer purchasing decisions in Islamic retail.