The Role of Consumers’ Product Knowledge and Religiosity of Young-Adult Muslims on Purchase Decision in Halal Cosmetics

Abstract

Muslim is currently the fastest growing population in the world. The rapid development of Muslim population is certainly very influential to the industry and economy. With this number, it certainly will make the Halal economy and Halal industry one of the significant contributors to the state revenue. Especially with the support of many Muslim equipment manufacturers. This also applies to the Halal cosmetic industry in Indonesia. The trend of Halal cosmetics in Indonesia is currently victorious among existing industries. Halal makeup industry address a quickly developing industry in accordance with the new vertical pattern of the worldwide Muslim populace. With the high number of Muslim consumers in Indonesia in the Halal Cosmetics Industry, this causes a variety of all generation of Muslim consumers in Indonesia, especially young adult generation. It found that the young adult generation is known for their strong purchasing ability. However, it found that less than half of shoppers pay attention to the Halal character of the cosmetic products they buy. Furthermore, despite the importance of the Halal cosmetics market, there are only a limited number of studies on Halal cosmetics. This paper analysed the hypotheses of the specific factors that influence their purchase decision towards Halal cosmetics products. The total number of the respondents of this paper are 217 respondents. Then, the research is validated through quantitative studies and analysed using PLS-SEM to determine the association between variables. The findings of the analysis show that consumers’ product knowledge, religiosity and Halal perception positively influenced purchase decision of young adult Muslim towards Halal cosmetics product.