To pay or not to pay: Measuring the effect of religiosity in the ABC theory

Abdul Hafaz Ngah,Nurul Haqimin Mohd Salleh,Serge Garbarre,Jagan Jeevan,Rudiah Md Hanafiah

doi:10.5267/j.msl.2020.10.026

Abdul Hafaz Ngah, Nurul Haqimin Mohd Salleh + Show 3 more

Open Access

https://doi.org/10.5267/j.msl.2020.10.026

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Abstract

This study identifies the role of religiosity in the willingness to pay for halal transportation among Muslim consumers in Malaysia by applying the ABC theory. Applying a purposive sampling method, data were gathered from questionnaires distributed to Muslim consumers at malls in Kuala Lumpur and Putrajaya. From 250 Muslims who were approached, 200 respondents agreed to answer the questionnaire. SMART-PLS 3.3.2. was used to analyse the data for this study using a Structural Equation Modelling (SEM) approach. Out of six direct hypotheses tested, five hypotheses were found supported. From four hypotheses on mediation, only one was found as unsupported. Religiosity was found to have a moderation effect between knowledge and the WTP for halal transportation. The findings provide useful information on the WTP for halal transportation. Related parties such as governments, halal transport service providers and customers can use these findings to plan further actions in order to enhance the WTP for halal transportation. The study reveals the capability of the ABC theory to identify the factors of the WTP for halal transportation among Muslim consumers in Malaysia. The findings also show the moderation effects of religiosity on the WTP for halal transportation. The study also incorporates awareness as a mediator and as a sequential mediator within the model. The findings also enrich the literature on the WTP in halal studies.

Highlights

Most people in the world have their own faiths which are known as religions
This study identifies the role of religiosity in the willingness to pay for halal transportation among Muslim consumers in Malaysia by applying the ABC theory
Willingness to pay (WTP) for halal transportation is important to be studied to enhance the number of halal providers and for the sustainability of the current providers

Summary

Introduction

Most people in the world have their own faiths which are known as religions. Each religion has its own practices according to its own scriptures which shape its followers’ behaviour. Islam is a religion; it is a way of life It is a Muslim’s obligation to only consume halal products. Realizing the importance of halal transportation in preserving halal quality for Muslim consumers (Abdul Hafaz Ngah & Thurasamy, 2018), logistics service providers play their roles by offering this service in spite of higher investments (Iranmanesh, Mirzaei, Parvin Hosseini, & Zailani, 2019). By fulfilling Muslim consumers’ needs, providers need to transfer the cost to customers which affects the price of halal products (Zailani et al, 2017; Iranmanesh et al, 2019). This in turn affects their businesses’ sustainability. It is deemed important to understand the consumers’ willingness to pay for halal transportation services

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