The role of consumer willingness to pay for halal certification in Pakistan

Abstract

PurposeThis paper aims to investigate the factors that motivate consumers to pay for halal logistics certification and consequently demand for its certification in Pakistan.Design/methodology/approachThe study used a sample of 302 respondents from the city of Karachi, Pakistan and used partial least square structural equation model. The study used consumers’ perception, concern and personal societal perspective to determine their willingness to pay and the demand of halal certification.FindingsResults revealed that all of the aforementioned variables are significant and positive except perspective usefulness which has insignificant and negative relationship with consumer willingness.Originality/valuePakistan is an Islamic state and people living there are very cautious about the food items they eat and the procedures they follow. Therefore, this study contributes to evaluate such factors that influence consumer willingness to pay for halal logistics in Pakistan. Furthermore, this study suggests policymakers and 3rd party logistics service providers to educate their potential consumers about halal logistics and halal certification.