THE EFFECT OF CONSUMER PSYCHOLOGY, HALAL KNOWLEDGE AND RELIGIOSITY ON HALAL PURCHASE DECISIONS IN INDONESIA

Abstract

The Halal Industry is now worldwide. Not only in the financial and food sector this also
concerns beauty products. The amount of public awareness of the importance of halal products is
increasing, halal products not only provide comfort, but provide a sense of security for its users.
The purpose of this study is to predict the influence formed by consumer psychology, halal
knowledge and one's level of religiosity on the decision to purchase the halal product. Data
obtained from distributing questionnaires online, this is because the preparation of this research
took place during the Covid-19 alert. Respondents in this study live throughout Indonesia (West
Java, Central Java, Ambon, Bali, Kalimantan, Aceh, Bandung, Bogor and Jakarta). The number
of respondents is limited to only 100 people, who are consumers of cosmetics products that are
Halal certified. Data is processed using Partial Least Square, with Smart PLS 3.0 software. The
results show that Consumer Psychology, Halal Knowledge, and Religiosity have a significant
influence on halal purchase decision perfectly mediated by halal purchase intention. The results
can be used for halal cosmetics businesses and manufacturers to design marketing strategies that
are in line with current market conditions, and there are opportunities to expand the market, by
exporting domestic products to countries with other high Muslim populations.