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PEER GROUP EFFECTS ON MOSLEM CONSUMER’S 
DECISION TO PURCHASE HALAL-LABELED COSMETICS

Muniaty Aisyah1

Abstract. Peer Group Effects on Moslem Consumer’s Decision To Purchase 
Halal Labeled Cosmetics.  The purposes of this research are to analyze peer group 
effects on Moslem consumers’decision to purchase halal-labeled cosmetics directly 
and indirectly which is mediated by consumers’ religious behavior. This research 
applies Structural Equation Model and convenience random sampling with 215 
samples who have bought halal-labeled cosmeticsand live in Southern Tangerang. 
The findings show that: first,  peer groupdirectly affect consumers’ decisionto 
purchase halal-labeled cosmetics; second, hablumminannas behavior mediates 
peer group and consumers’decision to purchase halal-labeled cosmeticsindirectly, 
third, hablumminallah behavior has the most dominant effect on Moslem 
consumers’ decision to purchase halal-labeled cosmetics. Based on the findings, it 
could be concluded that the reason of consumers’ decision to purchase halal-labeled 
cosmetics is because their religious behavior are high. Therefore, it is suggested that 
government and related institutions need to implement the Security Act of Halal 
Products immediately in order to protect the consumer from consuming non-halal 
products.

Keywords: halal label, purchase decision, consumer behavior, structural equation 
model

Abstrak. Pengaruh Kelompok Terhadap Keputusan Konsumen Untuk 
Membeli Produk Kosmetik Halal. Penelitian ini bertujuan menganalisis 
pengaruh peer group (kelompok teman sebaya) terhadap keputusan pembelian 
konsumen pada produk kosmetik berlabel halal, baik secara langsung maupun 
tidak langsung yang dimediasi oleh perilaku religious konsumen. Penelitian ini 
menggunak ananalisis Structural Equation Model dan teknik convenience random 
sampling dengan 215 responden yang tinggal di wilayah Tangerang Selatan. 
Hasil penelitian menunjukkan: pertama, peer group berpengaruh langsung 
terhadap keputusan konsumen membeli kosmetik berlabel halal; kedua, perilaku 
hablumminannas konsumen memediasi pengaruh peer group terhadap keputusan 
konsumen membeli kosmetik berlabel  halal secara tidak langsung; ketiga, perilaku 
hablumminallah konsumen paling dominan mempengaruhi keputusan konsumen 
membeli kosmetik berlabel halal. Dapat disimpulkan bahwa keputusan konsumen 
membeli kosmetik berlabel halal didasari oleh perilaku religiusnya Karenanya, 
disarankan agar pemerintah dan instansi terkait segera mengimplementasikan 
Undang-Undang Jaminan Produk Halal guna melindungi konsumen dari 
mengkonsumsi produk non-halal.

Kata kunci: label halal, keputusanpembelian, perilakukonsumen, structural 
equation model

First draft: December, 10th 2014, Revision: February, 10th 2015, Accepted: March, 10th  2015 
1 Syarif Hidayatullah State Islamic University Jakarta. Jl. Ir. H. Juanda No. 95, Ciputat, South 

Tangerang, Banten, Indonesia.
Email: munykres@gmail.com



Al-Iqtishad: Vol. VII No. 2, Juli 2015 166

Introduction

Dharmmesta and Handoko (1997) explained, consumer behavior is 
individual’s activity that is directly involved in obtaining and use of goods or services. 
This is based on the concept of consumer behavior and lifestyles that are formed 
from the internal influences (perception, learning, memory, motivation, personality, 
emotions, attitudes) and external influences (demographic, social status, reference 
groups, family, marketing events, and culture). Culture is a complex symbols and 
facts that created by human who handed down from generation to generation as a 
determinant and regulator of human behavior in society. The symbol can be tangible 
like home, equipment, vehicles and artworks; or intangible like attitudes, opinions, 
beliefs, languages and religious values.

Hawkins and David (2010) classify culturalvalues in three general categories:  
first, Other-oriented values, reflect a society’s view of the appropriate relationships 
between individuals and groups within the society. These relationships have a major 
influence on marketing practice. Second, Environment-oriented values, prescribe a 
society relationships to its economic and technical as well as its physical environment. 
Third, Self-oriented values, reflect the objectives and approaches to life that the 
individual members of society find desirable. Such as religious values that is very 
much determined a person behavior in performing his daily life. Furthermore, 
Hawkins and David (2010) explained that religious factor,as one of the forms 
of culture that is based on self-oriented values, can identify consumer behavior 
where the values and religious teaching affiliation will greatly influence consumers’ 
purchase decisions and their daily consumption patterns. Thus, Moslem consumers 
decision to purchase or to use halal-labeled cosmetics allegedly constituted by self-
oriented values in order to practice the Islamic teachings that are derived from the 
holy Quran and hadith. 

There are more than thirty verses of the holy Qur’an that mention about 
Moslem obligation to keep and pay attention on what to consume which also 
supported by hadiths that are explaining many things about halal (lawful) and 
haram (unlawful) products, as related to its substantials, materials, and processing 
procedures (Thobieb, 2002). Such as the following hadith narrated by Moslem ra: 
“The halal (lawful) is obvious and the haram (unlawful) is also obvious; and in 
between there are things that musyta-bihat/syubhat (doubtful, vague, not clearly 
lawful illegitimate), most people do not know the law. Who ever cautious about 
doubtful cases, indeed he had saved his religion and pride”. This hadith explains 
that everything that is syubhat (doubtful) should be abandoned because whoever 
is keeping himself away from these,then his life and religion will survive (Amin, 
2013).



Muniaty Aisyah: Peer Group Effects on Moslem Consumer’s Decision  167

Actually, there are only few things that are forbidden by Allah SWT to be 
consumed or used by human being. Everything on earth is basically permissible to 
consumed or used, except things that are explicitly forbidden according to the Quran 
and hadith. Nevertheless, the increasing of technological developments is allowing 
the use of unlawful substances as raw materials, additivesor auxiliary materials in 
variety of processed products. Consequently, the halalness of the products becomes 
unclear or doubtful. That is why the Indonesian Ulama’ Assembly (Majelis Ulama 
Indonesia/ MUI) Fatwa Commission concluded that all processed products is 
basically doubtful and needs to be studied or explored furthermore before setting the 
status of its halal illegitimate, to provide certainty and reassuring Moslem consumers 
to practice their religious teachings (LPPOM MUI, 2013).

It is government’s obligation to protect and provide independency to each 
resident to worship according to their religious teachings and believes. Especially 
because the circulation of non-halal products have been occurred in Indonesian 
markets repeatedly (Abadi and Team2011). In consequence, since it had been 
proposed in 2008, finally DPR (the House of Representatives) validated the 
Halal Product Guarantee (JPH)  Act on September 25, 2014. Unfortunately, JPH 
Act still only regulates sanctions for halal certificate holders who violating their 
obligation, whereas for those who do not apply halal certification, the regulations 
are still not listed in JPH Act. According to the Ministry of Religion, the details 
of new sanctions will be regulated in a more technical regulations, either through 
government regulations or ministerial regulations that will be implemented in the 
next five years, so the whole community businesses who produce halal products 
essentially require to have halal products certification(Supriyanto, 2014).

In other words, although JPH Act has been validated, the movement of halal 
product certification and labeling will not be implemented completely in Indonesia 
until the next five years because the government is still responsible for issuing eight 
new government regulations and two new ministerial regulations to complement the 
JPHAct (Ichsan, 2014). Therefore, the Moslem community in Indonesia still have 
to be alert and ensure that the product they have been purchased is halal guaranteed 
by checking its halal label or certificate. Based on this background, therefore, this 
research intends to analyze the Moslem consumers’ purchase behavior on halal-
labeled cosmetics.

This research intends to advance the previous research (Aisyah, 2014) about 
the influence of external environments on consumer’s intention to purchase halal-
labeled products by further analyzing the influence of peer group on consumer’s 
actual decision to purchase halal-labeled cosmetics. Kotler and Keller (2012) 
explained, one of the reference group that can directly affect consumer’s attitudes and 



Al-Iqtishad: Vol. VII No. 2, Juli 2015 168

purchasing behavior is peer group. In a phase of ourlives, the agent of socialization 
from childhood to adulthood mainly played by the peer group (Dariyo, 2004). 
Thus, the cumulative impact of individual interaction with peer group is very likely 
affecting  one’s purchasing behavior.

Based on previous research (Aisyah, 2014), there are only few consumers 
(12.8 to 37.7%) are aware of any potential non-halal raw materials in food products, 
beverages, pharmaceuticals and cosmetics. Therefore, the government’s efforts to 
implement JPH Act should begin with educational programs to the community, 
both to consumers and producers, in order to promote halal certification and labeling 
programs through below the line and above the line campaigns. By analyzing whether 
there is peer group direct or indirect effects on consumers’ purchase decision, will be 
known whether peer group as one of external environment can be used as medium 
or a place to conduct below the line activity campaigns about halal-labeled cosmetics 
especially among young consumers who are a long lifetime customers. 

The halal certification and halal labeling products’ movement will be 
implemented by the government in the upcoming October 2019. For Moslem 
consumers  as the majority in Indonesia, the halal-haram issue is a sensitive matter 
because related to their religious believes. Various cases of non-halal products 
circulation have gotten strong reactions from Moslem communities which potentially 
causing social and economic chaos (Kasali, 1998). Therefore, this research aims to 
give a positive contribution in order to motivate government and other related 
institutions to be truly commited to implement the Halal Product Guarantee (JPH) 
Act in order to protect the public from consuming or using non-halal products, 
especially cosmetics, by analyzing the following research questions:

First, does peer group have positive effect on consumers’ hablumminallah 
behavior, hablumminannas behavior, and decision to purchase halal-labeled 
cosmetics? Second, does consumers’ religious behavior mediate peer group with 
consumers’ decision to purchase halal-labeled cosmetics indirectly? Third, which 
factor has the most dominant effect on consumers’ decision to purchase halal-
labeled cosmetics?

Literature Review
Schiffman and Kanuk (2011) explained that referent group’s approval or 

disapproval would constitute consumer’s purchasing behavior. The higher the 
consumer interaction with the peer group, the higher the consumer’s purchase 
decision on the product in question. Mansoer (2008) explained, the level of 
individual interaction with peer group can be measured based on the reasons for 
choosing peers, the intensity of positive activities with peers, and the intensity of 



Muniaty Aisyah: Peer Group Effects on Moslem Consumer’s Decision  169

playing with peers.
According to Josephson et.al. (2003), peer group can influence a person 

attitudes and interests, how to think, how to talk, how to look, how to behave 
and how religious he is. Dariyo (2002) explained, if a person choose to get along 
with peers who has strong personality, spirit of leadership, good social control, 
high appreciation of education, good achievement, religious, and good morals; this 
peer group can constitute its member with an opportunity to exchange thoughts, 
solving problems, and to learn how to interact with others, how to control social 
behavior, how to develop skills and interests. Hence, this peer group became a place 
or medium that constitute useful activities and positive behavior for its member. On 
the contrary, if a person choose to get along with peers who is more concerned with 
social status,  wealth,  physical appearance and popularity only, this peer group can 
constitute its member with materialistic or hedonistic lifestyle and tend to behave 
badly, lazy and like to spend their time with less useful activities. In other words, the 
more positive the reasons for choosing peers, the greater the tendency of peer group 
toits members on performing useful activities and positive behavior. 

The more important the role of peer group for a person, the more frequent 
this person will interact with his peer group. The interaction with peer group can 
influence positively or negatively to one’s behavior depend on the amount of time 
and the type of activities he spent with peers. The more frequent he spend his time 
with peers who like to do positive activities, his behavior will become more positive 
(Dariyo, 2002). Positive activities in peer group that could derived positive behavior 
to its member are learning together, exchanging thoughts, doing exercises, doing 
arts, discussing social or religious issues, and many other useful activities. The higher 
the intensity of this person interacts with peers in positive activities, the better his 
behavior will be (Mansoer, 2008).

The more frequent a person interacts with peers who like to spent more 
time for playing, other less useful activities or even negative actions, it can impact 
negatively on the development of one’s behavior. Playing activities with peers can be 
measured from activities like chatting, went to malls or shopping centers, hanging 
out, watching movies, playing games, etc. (Mansoer, 2008). Thus, the more positive 
one’s considerations or reasons in choosing peers, the higher the intensity of positive 
activities with peers, and the lower the intensity of playing with peers; the better the 
behavior will be, including his religious behavior and his intention or decision to 
purchase halal products.

According to Tawhidy String Relations (TSR) methodology (Choudhury, 
2006), social relationship’s theme in Islam is related to the main message in the holy 
Qur’an that is the oneness of Allah. The knowledge inside Al Qur’an is believed as 
an absolute truth that concludes all human needs as a comprehensive guidelines. 



Al-Iqtishad: Vol. VII No. 2, Juli 2015 170

Al Qur’an is implemented by the Prophet Muhammad in his daily life. In Islam, 
the Prophet Muhammad behavior is recorded in Hadith as the second knowledge 
of Islam. The holy Qur’an and Hadith are continuously generated into world’s 
system which occurs into the life of human being’s through learning process called 
shuratic process. Shuratic process shows an interactive, integrative and evolutionary 
learning process that interrelated with Islamic law in the world system and tends 
to be consultative and dynamic process that will go on until hereafter (Harahap, 
2008). So it is clear that Islam as a way of life always relates world with hereafter 
life. Therefore, religious behavior in this research is divided into hablumminallah 
behavior and hablumminannas behavior.

Hablumminallah behavior is Islamic religious behavior which formed from 
cognition, affection and conation behavior in Faith and Worship aspects of a Moslem 
in his relationship with God, which clearly written in two Islamic foundations, 
those are Pillars of Faith and Pillars of Islam (Husaini, 2013). Thus, in this research, 
consumers’ hablumminallah behavior is measured from three dimensions, those are 
knowledge, attitudes and the implementation or practice of Faith (six Pillars of 
Faith) and Worship (five Pillars of Islam). 

 Attitudes of Faith and Worship will be measured from one’s belief in 
receiving the truth of Islamic teachings as the outcomes of his knowledge of Faith 
and Worship. A Moslemwho has a broad knowledge of Faith and Worship will 
has positive Faith and Worship attitudes who truly beliefs the truth of Islamic 
teachings. In other words, the higher the Faith and Worship attitudes of a Moslem, 
the higher the hablumminallah behavior will be. On the contrary, a Moslem who 
has limited knowledge of Faith and Worship will has limited or even negative Faith 
and Worship attitudes which will causing limited or negative beliefs on Islamic 
teachings. A Moslem who has limited or negative Faith and Worship attitudes will 
has limited or even negative influence on his hablumminallah behavior. Attitudes or 
beliefs of Faith is measured from one’s belief in the truth of the six Pillars of Faith 
which can be define from one’s belief in Allah as the only creator who has 

 Hablumminallah behavior is not only measured from one’s knowledge 
and attitudes aspects of Faith and Worship, but also measured from practicing the 
Faith and Worship in actual actions to follow God’s commands and desist God’s 
prohibition by standing firmly on the Pillars of Faith and the Pillars of Islam. The 
practice or implementation of Faith is measured from how often a Moslem starting 
and finishing jobs by mentioning Allah’s name, how hard one’s effort to maintain 
his/her five senses from doing the bad things, how hard one’s effort to imitate the 
Prophet Muhammad’s behavior, and how much his/her eagerness to do the good 
deeds and avoid him/herself from doing the bad deeds. Meanwhile, practice or 
implementation of Worship is measured from one’s obedience on carrying out the 



Muniaty Aisyah: Peer Group Effects on Moslem Consumer’s Decision  171

five fardhu (obligatory) prayers a day, carrying out congregation prayers, carrying 
out sunnah (as complement to obligatory) prayers, fasting in Ramadhan month, 
sunnah fasting, reading Al Qur’an, reading shalawat to the Prophet Muhammad, 
doing zakah (tithe), helping fellow human being who have difficulties, and one’s 
involvement on religious social activities.

 The higher the knowledge, the higher the attitudes. The higher the attitudes, 
the higher the implementation or his/her practice of Faith and Worship aspects. 
The higher the practice, the higher the hablumminallah behavior. The higher the 
hablumminallah behavior, the higher the hablumminannas behavior, which will also 
alleviate Moslem intention to purchase halal products as his/her actual action offaith 
and worship to Allah.

The concept of hablumminannas is precisely about everything in the world and 
hereafter that is essentiallyabout the fact of nature of human life, human personality, 
habit, event, and ikhwal/ causes (Hidayat, 2009). According to Mansoer (2008), a 
Moslem behavior is internalized with Islamic values in his daily life or habit toward 
himself, fellow human being and natural surroundings (Mansoer, 2008). It has 
been mentioned before that the dimensions of Islamic teaching is about faith and 
worship aspects which will reflect human being praiseworthy behavior (akhlakul 
karimah). A person who is obedient in his worship, will be a praiseworthy person. A 
praiseworthy person will have good relationships with himself, other human being 
and natural surrounding which is called as hablumminannas behavior. Therefore, 
hablumminannas behavior is measured based on three dimensions: Islamic personality 
towards oneself, fellow human beings and natural surroundings (Mansoer, 2008).

Islamic personality toward oneself is measured from one’s honesty, discipline, 
and diligence behavior. Honesty is an important manner because people is usually 
trying to hide their mistakes and incapable of being frankly. Honesty shows from 
one’s courageto admit mistakes. Discipline shows from one’s consistency on doing 
good habits in daily life, e.g. always coming on time to school or workplace, always 
wake up early in the morning, or always utilize his spare time by doing good thing. 
Meanwhile, diligence behavior shows from one’s constant effort to accomplish all 
things that are undertaken, not easily give up when facing difficulties, try to do 
everything in maximum effort, not easily self-satisfied, continue to improve his 
achievement, and working hard. Islamic personality toward fellow human being is 
measured from one’s sharing habit, generosity, and willing to cooperate, tolerant, 
caring, and respecting others. Habit of sharing shows from one’s willingness to help 
people in need. Generosity shows from one’s willingness to help people in need in 
the formof material, e.g. donated funds for the mosque construction, for broken 
bridge or road, for poor people and natural disasters victims.. Tolerant shows from 
one’s willingness to help friends from different ethnics or religion, willing to get 



Al-Iqtishad: Vol. VII No. 2, Juli 2015 172

involve in social activity held by friends from different ethnics or religion, willing 
to attend funeral of neighbor from different ethnics or religion, and respect other 
worshiping activities from different religion. Caring or concern for others shows 
from one’s willingness to looking after those who unable to take care for themselves, 
especially sick and elderly people. Respect others shows from one’s reluctance to 
disturb others, e.g. reluctance to disturb friend who has not finished school tasks in 
the classroom, reluctance to dispose garbage offhand, and willing to clean up the 
jammed ditch in front of his house in order to prevent flooded road.

Islamic personality toward natural surrounding is measured from his concern 
for nature and his effort to preserve nature. Concern for nature shows from one’s 
willingness to treat plants and animals well, e.g. feed a hungry cat, willing to 
watering the plant, and having a view point that a human being does not have 
rights to exploit the nature. Meanwhile effort to preserve nature is measured from 
one’s willingness to save electricity, saving energy by look after his vehicle, willing to 
lessen the pollution by using bicycle or public transportation, willing to save water 
by using enough water as needed, willing to plant tree or look after the plants, and 
also reluctant to destroy or damaging plants and disturbing animals. 

The higher the Islamic personality toward oneself, fellow human beings and 
natural surroundings, the higher the hablumminannas behavior which will also 
elevated Moslem intention or decision to purchase halal products.

From the explanation above, it is concluded that a Moslem’s willingness to 
consume or use halal products is influence by his religious behavior toward oneself, 
fellow human beings and natural surroundings, which come from his/her reflection 
of knowledge, attitudes and implementation of his/her faith and worship to Allah 
in order to have a secure life in the earth and hereafter. Therefore, it is suspected in 
this research that the higher the hablumminallah and hablumminannas behavior, the 
higher the consumer decision to purchased halal-labeled cosmetics. 

Figure 1. Research Framework
  

Peer group 

Hablumminannas 
behavior 

Intensity of positive activities 
Reasons of choose Intensity of playing 

Hablumminallah 
behavior 

Knowledge Oneself 

Fellow 
Human 

Attitudes 

Purchase 
decision 

Practises Natural 
surrounding 

Evaluation of 
alternatives 

Problem 
recognition 

Information 
search 



Muniaty Aisyah: Peer Group Effects on Moslem Consumer’s Decision  173

From the research framework on figure 1, the hypothesis in this research are 
developed as follows: first, peer group directly effects consumers’ hablumminallah 
behavior; Second, peer group directly effects consumers’ hablumminannas behavior; 
Third, peer group directly effects consumers’decision to purchase halal-labeled 
cosmetics; Fourth, hablumminallah behavior mediates peer group and consumers’ 
hablumminannasbehavior indirectly; Fifth, hablumminannas behavior mediates peer 
group and consumers’ decision to purchase halal-labeled cosmetics indirectly.

Methods

This research uses explanatory research to analyze the causal relationship 
betweenpeer group and consumers’ decision to purchase halal-labeled cosmetics, 
directly and indirectly that is mediated by hablumminallah andhablumminannas 
behavior. Considering the object is halal-labeled cosmetics, this research only selects 
female Moslem consumers who have bought halal-labeled cosmetics and live in 
Southern Tangerang as sample, especially those over 20 to 25 years old. At this 
ages, they are indicated as a long lifetime customer that make them as potential 
target market for halal-labeled cosmetics. To be able to measure consumers’purchase 
decision, the respondents must have already bought halal-labeled cosmetics from 
any kind of brand that circulating in Indonesia market such as Wardah, Mazaya, 
Caring colors, La tulipe, Mustika Ratu,Sari Ayu,Viva, Moayu, or Moslemah by 
Sophie Paris.The cosmetic variants are lipstick, face cream, foundation, lip balm, 
body lotion, bathgel, and many others which already put halal-labeled on its 
packaging. 

The sampling technics used in this research is convenience random sampling. 
This research uses primary data and questioners as instrument which distributed to 
250 respondents who live in Southern Tangerang area. Referring to therespondent 
criteria thathave been set, there are 215 data available to be used in this research. 
Thequality of the data is tested using validity and reliability test. Validity test result 
showed that items from all variables are valid with anti-image correlation value> 
0.500. Reliability test result also showed that all variables are reliable with coefficient 
of Cronbach’s Alpha score> 0.60. 

This research uses Structural Equation Model (SEM) by using AMOS (Analysis 
of Moment Structure) application to analyze the hypothesis because  there are latent 
(unobserved) variables which mediate dependent and independent variables that 
suitable to test causal relationship between variables and its dimensions. SEM test 
can also examine the large of contributions of selected variables simultaneously 
toward other variable from the assessment of Squared Multiple Correlationsscore. 



Al-Iqtishad: Vol. VII No. 2, Juli 2015 174

Discussion

 The assessment of normality shows that multivariate (c.r.) score is 2.253 
(in the range of -2.58< c.r.< 2.58), so the data is normal. From construct validity 
test showed that estimate score in standardized regression weights model or its loading 
factor scores are  ≥ 0.5, so it is valid and able to form its construct. From convergent 
validity test, it is showed a critical ratio value which is greater than 2 times of 
standard errorvalues so that all indicators are valid and able to measure what should 
be measured.

Table 1. Standardized Direct Effects

Peer 
Group 

(X)

Hablum-
minallah 
B. (M1)

Hablum-
minannas 
B. (M2)

Purchase 
Decision 

(Y)
Hablumminallah B. (M1) 0.254 0.000 0.000 0.000
Hablumminannas B. (M2) 0.239 0.478 0.000 0.000
Purchase Decision (Y) 0.166 0.391 0.332 0.000

Goodness of fit model test shows that the model has a good fit, based on the 
assessment criteria such as RMR (0.022<  0.10), GFI (0.913> 0.900), AGFI (0.800 
< 0.859 <  0.900),  NFI (0.800 < 0.889< 0.900), RFI (0.800 <0.847< 0.900), IFI 
(0.928 > 0.900), TLI (0.800 < 0.899 < 0.900), CFI (0.926 > 0.900), and PRATIO 
(0 > 0,727 > 1). After all the assumption are fulfilled, then the hypotheses proposed 
in this study should be tested. The result of data analysis from the regression weight 
structural equation model showed that this research has establish three direct causal 
effects.

For hypothesis 1, p-value 0.005< 0.05 and coefficient value is 0.223, thus Peer 
group significantly effects consumer’s hablumminallah behavior. It means that peer 
group is positively conducive as a place or medium that could constitute consumer’s 
hablumminallah behavior.

Table 2. Standardized Indirect Effects

Peer 
Group 

(X)

Hablum-
minallah 
B. (M1)

Hablum-
minannas 
B. (M2)

Purchase 
Decision 

(Y)
Hablumminallah B. (M1) 0.000 0.000 0.000 0.000
Hablumminannas B. (M2) 0.122 0.000 0.000 0.000
Purchase Decision (Y) 0.219 0.159 0.000 0.000

For hypothesis 2, p-value 0.007 < 0.05, and coefficient value is 0.178, thus, 
Peer group significantly effects consumer’s hablumminannas  behavior. It means 



Muniaty Aisyah: Peer Group Effects on Moslem Consumer’s Decision  175

that peer group is positively conducive as a place or medium that could constitute 
consumer’s hablumminannas behavior.

For hypothesis 3, p-value 0.044 < 0.05, and coefficient value is 0.167, 
thus, Peer group significantly effects consumers’ decision to purchase halal-labeled 
cosmetics. It means that peer group is positively conducive as a place or medium 
that could constitute consumer’s decision to purchase halal-labeled cosmetics.

Table 3. Standardized Total Effects
Peer 

Group 
(X)

Hablum-
minallah 
B. (M1)

Hablum-
minannas 
B. (M2)

Purchase 
Decision 

(Y)
Hablumminallah B. (M1) 0.254 0.000 0.000 0.000
Hablumminannas B. (M2) 0.360 0.478 0.000 0.000
Purchase Decision (Y) 0.385 0.550 0.332 0.000

For hypothesis 4, based on Table 1 and 2, the value of standardized direct 
effects of  peer group on consumers’ hablumminannas behavior (X - M2) is 0.239, 
while the value of standardized indirect effects of  peer group on hablumminannas 
behavior through consumers’ hablumminallah behavior (X - M1 - M2)is 0.122. 
Because direct effects’ value is greater than indirect effects, it is concluded that 
hablumminallah  behavior (M1) is not an intervening variable, so hablumminallah 
behavior does not mediates peer group and consumers’ hablumminannas behavior 
indirectly. But, for hypothesis 5, the value of standardized direct effects of peer group 
on consumers’decision to purchase halal-labeled cosmetics (X - Y) is 0.166, while 
the value of standardized indirect effects of  peer group on consumers’ decision to 
purchase halal-labeled cosmetics through hablumminannas behavior (X - M2 - Y) 
is 0.219. Becausedirect effects’ value is lesser than indirect effects, it is concluded 
that hablumminannas  behavior (M2) is an intervening variable, so hablumminannas 
behavior mediates peer group and consumers’ decision to purchase halal-labeled 
cosmetics indirectly. Based on standardized total effects (Table 3) it can be concluded 
that  habulumminallah behavior has the most dominant effect (0.550) on consumers’ 
decision to purchase halal-labeled cosmetics, the second is peer group (0.385) and 
the lowest is hablumminannas behavior (0.332).

From multiple squared correlations result shows that: first, peer group has 
simultaneously role of 6.5% to consumers’ hablumminallah behavior, while the rest 
are explained by other variables; Second, peer group and hablumminallah behavior 
have simultaneously role of 34.4% to consumer’s hablumminannas behavior, while 
the rest are explained by other variables; Third, peer group, hablumminallah and 
hablumminannas behavior have simultaneously role of 50.4% to consumers’ decision 



Al-Iqtishad: Vol. VII No. 2, Juli 2015 176

to purchase halal-labeled cosmetics, while the rest are explained by other variables.
According to Magill (1993), religious behavior is attitudes, intensity and a 

person way to become religious. Social-culture system and religious values which 
develop and grow in a family, schools and societies that gain through a learning process 
and experiences, either deliberately or not, will slowly form one’s religious soul or 
behavior. In other words, religious behavior will show from someone’s personality if 
he grows in environments that cultivating, educating and adapting Islamic teachings 
on their daily lives. Islamasasystemof life can also be interpretedas away of lifethat 
is basedonsharia(law) of Islamwhich is based onthe Qur’anandhadith(Temporal, 
2011). Antonio (2006) explained that Islam as a way of live is a human effort to 
achieve welfare in his life and hereafter. Allah already gave guidance through His 
messengers that include everything humans need in order to obtain their welfare 
in accordance to aqidah (faith), akhlak (manner) and sharia. Aqidah and akhlak are 
constant and not changing from time to time. Meanwhile, sharia is always changing 
accordance with the people needs and civilization which appropriate in every 
different messengers period of time. Sharia in Islamic teaching emphasizes on ibadat 
(worshiping God) and muamalat (human interaction) with a good and proper way 
by understanding its etiquette and implement them in everyday life in order to 
be a good Moslem (Antonio, 2006). Ibadat emphasizes on Islamic provisions and 
procedures of human interaction with God (hablumminallah behavior). Meanwhile, 
muamalat emphasizes on Islamic provisions and procedures of human interaction 
with others (hablumminannas behavior).

Consumers’ purchase decision is the final decisions of individuals or 
households to purchase goods/ services that need to be consumed. Consumer’s 
purchase decision process consists of five stages: problem recognition, information 
search, evaluation of alternatives, purchase decision and post-purchase behavior. 
Purchase decision process begins with problem recognition. The recognition of a 
need is likely to occur when consumer is faced with problem. The need may have 
been triggered by internal stimuli (such as hunger or thirst) or external stimuli 
(such as advertising or word of mouth). Once the need is identified, it’s time for 
the consumer to search information about possible solutions to the problem. 
Consumer will search more or less information depending on the complexity of 
the choices to be made and the level of consumer involvement.Consumers will 
seek informationto guide their choices and decision-making process with internal 
and external information. Internal information is already present in the consumer’s 
memory that comes from previous experiences. External information is a product 
or brand information received from and obtained by friends, family or reviews from 
other consumers, the press or advertising (Kotler and Keller, 2012).



Muniaty Aisyah: Peer Group Effects on Moslem Consumer’s Decision  177

Once the information collected, the consumers will be able to evaluate the 
different alternatives that offer to them, evaluate the most suitable to their needs and 
choose the one they think best for them. Consumers will evaluate different products 
or brands on the basis of alternative product attributes - those which have the ability 
to deliver the benefits that customers are seeking. Two factors that intervene at this 
stage are attitudes of others and anticipated situational factors. The extent to which 
another person’s attitude reduces one’s preferred alternative depends on the intensity 
of the other person's negative attitude toward the consumer's preferred alternative, 
and the consumer's motivation to comply with other person's wishes. The anticipated 
situational factors may erupt to change the purchase intention. A consumer could 
think that some other purchase might become more urgent, or a store salesperson 
may turn the customer off (Kotler and Keller, 2012).

Now that consumers have evaluated the different solutions and products 
available for respond to their needs, they will be able to choose the product or brand 
that seems most appropriate to their needs. Then proceed to the actual purchase 
itself. Once the product is purchased and used, the consumer will evaluate the 
adequacy with his/her original needs (those who caused the buying behavior). And 
whether the consumer has made   the right choice in buying this product or not. 
Consumer will feel either a sense of satisfaction for the product (and the choice). Or, 
on the contrary, a disappointment if the product has fallen far short of expectations. 
This experience will influence consumer future decisions and buying behavior. If the 
product has brought satisfaction to the consumer, he/she will then minimize stages 
of information search and alternative evaluation for the next purchases in order to 
buy the same brand which will produce customer loyalty. On the other hand, if the 
experience with the product was average or disappointing, the consumer will repeat 
the 5 stages of the consumer purchase decision process during the next purchase 
but by excluding the brand from his/herevoked set. Positive or negative, consumer 
will also be able to share his/her opinion on the brand. Whether in their family or 
by word-of-mouth. Or on a much broader scale now with social networks or on 
consumer product review websites. A tendency not to be overlooked because now 
with the Internet, an unhappy customer can have a strong power to harm for a 
brand. Therefore, post-purchase evaluation may have important consequences for a 
brand (Kotler and Keller, 2012).

From the explanation above, it can be concluded that consumer purchase 
decisionprocess is divided into two categories which are Processing (including 
problem recognition, information search and alternative evaluation) and Outcomes 
(including purchase decision and post-purchase behavior). In order to measured 
consumer’s purchase decision, this research uses the Processing category as its 



Al-Iqtishad: Vol. VII No. 2, Juli 2015 178

dimensions.Furthermore, Hawkins and Mothersbaugh (2010), Hawkins, Best and 
Coney (2004), Solomon (2011) in Zickermann (2014) explained that consumers’ 
purchase decision depends on attribute-based and attitude-based choice process. 
Attribute-based choice requires the knowledge of specific attributes at the time the 
choice is made, and it involves attribute-by- attribute comparisons across brands. 
Meanwhile, attitude-based choice involves the use of general attitudes, summary 
impressions, intuitions, or heuristics. There can be also be combinations of these 
forms. 

In this research, halal-labeled is the attribute that is believed and considered 
as an important matter by Moslem consumers. Islamic teachings considers food 
and other products that are consumed or used by humans as a matter of urgency 
in addition to worshiping Allah. Everything that is consumed or used by humans 
will have a major impact on human physical and spiritual development. Physical 
impacts of consuming unlawful goods will be bad for human health, regardless 
of his religion. While spiritual impact of consuming unlawful goods cannot be 
measured from material only because the consequences of violating Islamic law will 
have an impact on having miserable life onearth and punishment in the hereafter. 
Thus, halal-haram issue  is important for Moslem consumers as related to their 
religious beliefs which make halal label as an attribute or element of a product 
which is believed and considered essentially by Moslem consumers to ensure that 
the product they used or consumed is halal guaranteed.

Conclusion

From the findings, it is concludedthat empirically, peer group effects 
consumers’ purchase decision on halal-labeled cosmetics positively, as well as 
consumers’hablumminallah and hablumminannas behavior. Thus, peer group 
environment can be used as a conducive place or medium forabove and below the 
line campaigns of halal-labeled products socialization program, especially among 
young generation. The government and other relevant institutions such as Indonesian 
Ulama’ Assembly (MUI), together with the consumers protection agencies, Islamic 
organizations, and business communities, could promoted the Halal-labeled products 
campaigns through below the line campaigns in the peer group environment such 
as malls,shopping centers, sport stadiums, youth mosque assembly and other youth  
organizations, by involving active participation of Ulamas, community leaders, 
and young public figures, in order to make the Halal-labeled products campaigns 
successfully socialized to various levels of society, including young generations.

It is also can be concluded that consumers’ hablumminallah behavior level is 
high and has the most dominant influence on consumers’ decision to purchase halal-



Muniaty Aisyah: Peer Group Effects on Moslem Consumer’s Decision  179

labeled cosmetics. Therefore, the Halal Product Guarantee (JPH) Act which has been 
approved on 25 September 2014, is a strong legal framework that could mandate 
government to protect and provide independency to every citizen to embrace his 
own religion and its teaching. Halal-labeled products is not only beneficial to protect 
Moslem consumers, but also benefitting for non-Moslem consumers who want to 
ensure that the product has been guaranteed as clean, healthy, high quality and safe 
to use or to consume. Therefore, the halal certification and labeling program, which 
is targeted to be implemented in the upcoming 2019, is absolutely a necessary. By 
completing the implementation of Halal Product Guarantee (JPH) Act immediately, 
various cases of the circulation of non-halal products in Indonesian markets which 
always got strong reactions from the public and often potentially causing social, 
political and economic turmoil, is expected not to be repeated, so that the Moslem 
community can be fully protected from consuming non-halal products in order to 
provide certainty and reassuring Moslem consumers to worship according to their 
religious teachings and believes.

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