The Effect of Halal Label on Brand Image and Its Impact on Consumers' Purchasing Decisions

Abstract

The purpose of this study is to examine the direct effect of halal label on brand image and on consumers' purchasing decisions and the indirect effect of halal label onconsumers' purchasing decisions through brand image. The population is consumers of local Small and Medium Enterprises food product of West Nusa Tenggara in Mataram City, Indonesia. The empirical data were collected from 120 respondents by accidental sampling through survey methodology. Three statistical tools have been used for data analysis; (a) Pearson Correlation, (b) Cronbach's Alpha, and (c) Path Analysis. The findings indicate that; (a) halal labelhas a positive and significant effect on brand image as well as on consumers' purchasing decisions; and (b) brand image has a positive and insignificant effect on consumers' purchasing decisions, c). The indirect effect of halal label on purchasing decisions through brand image found to be insignificant.