The effect of religiosity and product knowledge on customer loyalty with halal perception as a mediation variable: A study on Muslim women consumers of halal certified cosmetic products in Malang city

Headnote

ABSTRACT

As explanatory quantitative research, this study aims to determine direct and indirect effect 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.

Keywords:

Religiosity, Product Knowledge, Halal Perception, Customer Loyalty

JEL Classification:

O15

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).

The innovation that is currently booming among manufacturers is cosmetics with a halal label (Rohmatun & Dewi, 2017). Of course, the creation of halal cosmetics cannot be separated from the role of the community as product users. The large number of adherents of Islam in Indonesia is one of the many reasons for the formation of halal cosmetic products (Adriyati & Indriani, 2017). This trend is growing because many cosmetic products contain ingredients that are not allowed by Islamic law. Therefore, the Indonesian Ulema Council (MUI), cannot give halal labels to these products. Furthermore, these increasingly intelligent consumers have finally chosen to use cosmetic products with a halal label.

The advantages of halal cosmetics with other products are using natural...