Indonesian Journal of Halal Research, 3, 2 (2021): 34-42 E-ISSN: 2657-0165 P-ISSN: 2656-3754 DOI: 10.15575/ijhar.v3i2.12757 https://journal.uinsgd.ac.id/index.php/ijhar/ Non-Muslim Consumers’ Online Purchase Intention towards Halal Food in Manila Racquel U. Cruz1*, Rico A. Billanes2 1Far Eastern University, Manila, 1015, Philippines 2Academy of St. Andrew, Caloocan, Manila,1422, Philippines e-mail: rcruz@feu.edu.ph*1, rico_billanes2001@yahoo.com2 *Corresponding Author Received: June 05, 2021; Accepted: August 24, 2021 Abstract: Aside from Muslims, who expends halal products due to devout obligations, it is understood that non- Muslims have also started eating halal food. The fact could be explained by the increased number of consumers ready to purchase halal products. This paper aims to determine and investigate the online purchase intention among Filipino non-Muslim consumers toward halal food. Four models were tested using multiple regression analysis, and the quantitative research method was used to investigate perceived risk, trust and confidence, website design quality, and online shopping enjoyment. Perceived risk has been identified to be the most significant in predicting factors in an online purchase intention of halal food. Furthermore, the study found that trust, confidence, and perceived risk strongly influence online purchase intentions. Therefore, future studies should also include variables such as consumer habits and knowledge of halal food. Keywords: halal, halal food, online purchase intention, perceived risk, website design quality 1. Introduction 'Halal' is derived from the word 'Halla,' which means lawful, legal, legitimate, and permitted for Muslims. As explained by Butt et al. (2017), Halal is one of the important traits of spiritual needs for Muslim consumers, which plays a vital role in their life by guiding them to purchase and consume the Halal product. These days, in different parts of the world, shoppers and buyers of goods and products focus more on the 'Halal' idea, which can be an outcome or evidence that religion can influence consumer behavior. Furthermore, according to Lada et al. (2009, as cited in Yener, 2015), this is because the 'halal' concept has been embraced as part of business and trade, and the rise of halal awareness of a product is expected to increase buyer interest. Halal food has been identified as an essential product. Therefore, its consumption has become one of the Muslim consumers' vital concerns (Abu-Hussin et al., 2017). It is also considered a guarantee of the quality of the product, as mentioned by (Haque et al., 2015). Generally, every food is considered halal in Islam unless the Quran or the Hadith prohibits it. By official definition, halal foods are those that are free from any component that Muslims are prohibited from consuming according to Islamic law (Shariah). The food should be processed, made, produced, manufactured, and/or stored using utensils, equipment, and/or machinery that have been cleansed according to Islamic law. Specific examples are fish or seafood that should not include alcohol (for example, batter or wine), meat like Kosher beef, game, lamb, chicken, turkey, duck, and goose. There are also examples of dairy products such as milk, cheese, yogurt (from a certified kosheranimal), and parve fruits, vegetables, eggs, cereal products, nuts, and grains. Generally, there are about 1.8 billion Muslims worldwide, and they are considered one of the biggest populations. The demand for halal food consumption is increasing rapidly in line with the expansion of almost 2.1 billion Muslim populations across the globe. Halal food turns out to be a profitable business, not only in countries with a Muslim majority but also in non-Muslim countries (Anam et al., 2018). The largest part of the Muslim population is in Asian countries. On the other hand, the Philippines, with a total population of 100.98 million, is a primarily Christian country Nevertheless, Islam is its second-largest religion, with 6.06 million followers as of 2015, according to the Philippine Statistics Authority (PSA). Acas (2020) mentioned that the Philippines is a non-Muslim dominant country where the Halal industry is still rising (Acas & Loanzon, 2020). Aside from Muslims, who consumes Halal product due to devout obligations, it is believed that non-Muslims have also started consuming Halal products, especially food items. Moreover, online purchasing goods and services through different modalities and transactions mailto:rcruz@feu.edu.ph mailto:rico_billanes2001@yahoo.com Indonesian Journal of Halal Research, 3, 2 (2021): 34-42 35 of 42 Non-Muslim Consumers Online Purchase Intention towards Halal Food in Manila between a company and its customers are called online selling. Nguyen & Vu (2020) and Mehrolia et al. (2021) claim that by 2022, electronic commerce activities are forecast to account for half of the country's economy. According to Mehrolia et al. (2021) and Nguyen & Vu (2020) the high-level purchase patterns of consumers, high product involvement, and increased usage of e-wallets and digital payments have been observed and noticed. As people have adopted social distancing to slow the spread of the pandemic, they chose to buy items from online stores. Therefore, online shopping increases as people turn to e-commerce to purchase items they might have purchased in person. Online food selling became a channel for food establishments to continue their business and generate income to sustain it. In the United States, there are Food delivery services which are DoorDash, GrubHub, and UberEats are some establishments to deliver the ordered food to the customer. Correspondingly, in the Philippines, there are also food establishments that offer online food delivery or selling. Online food selling is becoming popular nowadays because people during this pandemic have directly or indirectly improved their skills in cooking and have tried their luck in an online food business. Online food sellers are now everywhere on social media, and people tend to buy foods that are trendy today. To show consumer value growth, companies need to understand online consumers' buying behavior and check which factors affect the consumers’ online purchase intention (Javadi et al., 2012; Lim et al., 2016). As Filipinos protect against the virus, food businesses and courier delivery services have also started taking steps to run while taking more measures following health protocols to deliver food to consumers. The main reason why online purchase intention is important for businesses is because it is a tough forecaster of real online purchase (Ariffin et al., 2018). According to Hong & Cha (2013), online selling could increase online purchase intention by striving to improve the consumers’ trust. Crespo et al. (2009, as cited in Hsu et al., 2014) recommend that this can be done by strengthening trust in the transactions. Hong & Cha (2013) further state that online businesses could put efforts to decrease the perceived risk that will lead to a reduction in online purchase intention. According to Pavlou (2003, as cited in Hsu et al., 2014) considering the importance of trust and perceived risk to online purchase intentions, they need to be further studied. Due to the great demand for online food services, sellers have referred to Halal food regarding online purchase intention (Ariffin et al., 2018). Halal is no longer just about beliefs and religion but can also be a determining factor of an international economy. Therefore, products that need to be called halal have attracted the attention of non-Muslim consumers, including the Philippines. Consumers usually buy halal products in places like Manila specifically Quiapo, Makati, Caloocan, and Quezon City. They have a website partnered with Food Panda and Grab Food. This research aims to determine the online purchase intention of Halal food products among Filipino non-Muslim consumers. This study aims to investigate the online purchase intention of Filipino non-Muslim towards Halal food, examine the relationship between trust and confidence and online purchase intention of Halal food, and determine the relationship between perceived risk and online purchase intention of Halal food. Moreover, the paper will also identify the relationship between shopping satisfaction and online purchase intention of Halal food, explaining the relationship between website design quality and online purchase intention. 1.1. Brief Review of Literature This section will provide knowledge and information about the variables applied in the research. The proponent decided to conduct this study to find the online purchase intention of Filipino non- Muslims regarding halal food. Over the last decades, internet access and online shopping or businesses have noticeably increased across all generations. However, according to Zulkarnain et al. (2015), in their study cited by (Liu & Lin, 2020) the majority of online sellers are Millennials and Generation Z. As a result, with the growth of e-commerce around the world, online food services have emerged (Liu & Lin, 2020). It has provided significant implications for e-commerce benefits. The recent advancement of the internet has aided the expansion of online food services by allowing individuals to search for, compare prices, and easily access these services. Online buying is becoming more and more of a necessity in the industry (Gupta, 2019), especially for customers in this pandemic (Gupta, 2019). The theory of reasoned action is an influential explanation of the process that determines peoples' intentional behavior (Boster et al., 2014). It is used to predict a person’s intention to behave in a certain way, done by evaluating a person’s attitude towards a specific behavior as well as the subjective norms of influential people and groups that could affect the person’s attitudes, which influence consumers’ online intention to purchase (Singhal et al., 2019). Dharmesti et al. (2021) supported the latter and stated that consumer attitudes towards online shopping affect if consumers Indonesian Journal of Halal Research, 3, 2 (2021): 34-42 36 of 42 Racquel U. Cruz & Rico A. Billanes want to purchase online. Nosi et al. (2020 concluded that consumers' attitude toward online shopping is a predictor of online shopping. Intentions have been explained as a self-prediction to a specific behavior (Ajzen, 2019, as cited in Sadaf et al., 2016),which employ the motivational factors affecting behaviors and indicate individuals’ effort to put these behaviors into practice. Therefore, the higher the intended behavior of personals, the higher the individuals' plan to act (Liñán & Santos, 2015). Moreover, purchase intention is the plan to buy a specific product or service within a designated time (Lu et al., 2014).Moreover, online purchase intention is affected by the consumers’ determination to purchase from an online business (Salisbury et al., 2001, as cited in Thamizhvanan & Xavier, 2013). When consumers are familiar with online businesses, they are more likely to visit an online site to purchase (Boardman & Mccormick, 2021). Familiarity with online selling and businesses means that the consumers understand what is happening in that context, why, and what will happen next (Gefen, 2000, as cited in Cheng et al., 2019). According to Morgan & Hunt (1994, as cited in Tahir, 2021), trust is the faith that the trustee will perform advantageously and that the trustee will not harm the trustor. Morgan & Hunt (1994, as cited in Kac et al., 2016) further stated that trust is essential for a company’s success. Trust is defined as the consumer’s belief that the online business will not act in an opportunistic (e.g., taking advantage of a situation) way (Hong & Cha, 2013). According to Pui-Mun (2000, as cited in Jimbun et al., 2019), one of the first things a consumer does when visiting a website is to ensure that the website is trustworthy and reliable to build the trust necessary for the consumer to continue the visit to the site. The perceived risk online is explained as consumers’ beliefs about possible doubtful negative consequences from online transactions (Kim, 2012; Soto-Acosta et al., 2014). The perception of an online store directly affects consumers' shopping enjoyment, enhancing consumers' purchase intentions (Kim, 2012).Wang et al. (2013)agree with the latter and stated that perceived enjoyment could influence consumers' online purchase intention. It is also supported by Wang et al. (2013) who stated that enjoyment is an important construct affecting consumers' online purchase intention. Understanding our consumer's needs, tastes, and preferences helps online food businesses- providers to satisfy their customers and use their platforms again (Nardi et al., 2019). The theory of planned behavior (TPB) is the theoretical foundation for understanding intentions. Advanced by Ajzen and Fishbein (Miles, 2012): The main theme in planned behavior theory is that the best way to predict and explain a person’s behaviors is through that person’s behavioral intentions. The theory assumes that (1) people tend to behave rationally and systematically make use of information that is available to them when deciding to act or not to act, (2) people’s actions are guided by conscious motives and not by unconscious motives, and (3) people consider the implications of their actions before they decide to act or not to act. 1.2. Conceptual Framework Theory of Planned Behavior (TPB) Ajzen (1991, as cited in Sadaf et al., 2016) was designed to provide the foundation of the construct of this study. TPB stipulates that a consumer’s intention to purchase any product could be predicted through the four main factors: perceived risk, trust, website design quality, and online shopping enjoyment. Figure 1. Conceptual Framework The relationships between the various variables will be tested as separate hypotheses. The last are categorized based on the research questions they attempt to answer. The variables to be tested are also defined to clarify the various hypotheses. According to (Sang-Hyeop et al., 2016) on the theoretical perspective, attitude towards behavior could be determined by evaluating the positive and Indonesian Journal of Halal Research, 3, 2 (2021): 34-42 37 of 42 Non-Muslim Consumers Online Purchase Intention towards Halal Food in Manila negative evaluation of certain behavior; subjective norm refers to the perceived perception of an individual on the peer or social pressure leading to performing of the behavior: perceived behavioral control means to an individual’s interpretation confidence of ability to perform the behavior. Furthermore, the researcher wanted to examine the relationship between trust and confidence, perceived risk, website design quality, online shopping enjoyment, and purchase intentions. It is interesting to discover whether, in the Philippine context, certain attributes have a significant relationship with online purchase intentions. According to Pei et al. (2014), online businesses should come together with a good reputation because it strengthens trust and confidence. Based on the previous explanation, four hypotheses have been formulated as follows: H1: There is no significant relationship between perceived risk and online purchase intention toward Halal food. H2: There is no significant relationship between trust and confidence and online purchase intention toward Halal food. H3: There is no significant relationship between website design quality and online purchase intention toward Halal food. H4: There is no significant relationship between online shopping enjoyment and online purchase intention toward Halal food. 2. Materials and Methods This study is set in the Philippines, specifically Metro Manila, also known as the National Capital Region of the Philippines, which is the country's seat of government and premier center for finance and commerce. 2.1. Research Design The research design used by the researcher was a survey method presenting and creating questions from different authors. The Likert scales ranged from 1 (strongly disagree) to 5 (strongly agree). Likert Scale method undertakes if the strength/intensity of an approach is straightforward. Ideally, the number of points from the scale chosen would proportionally represent the characteristics of the underlying population that the researchers will utilize to gather data. The group will indicate a certain aspect of the chosen population by the researchers. This paper utilizes quantitative research as a descriptive research method. The method mentioned above was considered the most suitable to be used as the fundamental method for this study to generate results that would be helpful to the researchers and readers. The literature reviewed in this paper, which mostly sought to assess the purchase intentions of their target respondents, also utilized the survey method. This research design is aligned with the problems and objectives of the studying determining the factors of online purchase intentions among Filipino non-Muslim consumers. 2.2. Sampling Size and Type This study utilized the a priori sample size calculator of Soper (2017)based on the methods of (Cohen et al., 2003) to arrive at a minimum sample for regression. The prior parameters are set as follows: anticipated effect size of .15 (characterized as medium effect size), desired statistical power level of at least .80, 4 predictors based on the synthesized conceptual framework, and an alpha level of .05. The result of the calculation is a minimum sample size of 150. This research exceeded the minimum number of respondents by having a total of N = 180. Moreover, this study utilized purposive sampling. This type of sampling allows the researchers in which they will rely on the criteria of judgment in choosing their respondents for the study. The respondents will be selected based on the criteria of the objectives of the study. 2.3. Respondents of the Study In this study, the participants are non-Muslim consumers, specifically who are currently staying, living, or even studying in 16 cities in the National Capital Region, aged 18-60 years old. These consumers often use online food services since they choose to stay at home during this quarantine season or pandemic. They tend to avoid going to public places such as malls and gathering events as much as possible with a high density of people. 2.4. Data Collection Method This study gathered primary data using paper and electronic survey forms (via Google Forms). Questions are being given to gather information about the respondent’s familiarity and relatability of using online food services and to gather information about their experiences and satisfaction. Indonesian Journal of Halal Research, 3, 2 (2021): 34-42 38 of 42 Racquel U. Cruz & Rico A. Billanes 2.5. Research Instrument The questionnaire is placed as an appendix to this paper. Overall, 25 questions were asked from respondents, which covered the topics of perceived risk, trust and confidence, website quality design, and online shopping enjoyment, which are determinants of online purchase intentions. The compiled questionnaire was pre-tested on 30 individuals resembling the characteristics of the target sample. 3. Results and Discussion A total of 180 respondents answered the survey, distributed via Google Forms. The profile of the respondents (Table 1) emerging from the survey is as follows. Most respondents are 22-25 years old, with 46.11%. Concurring to the source, grown-ups are classified as people over the age of 18 years (Sanchez, 2020). Among the survey respondents, just over half (58.33%) were female, and the remaining 41.67% were male. According to the survey, 73. 89% were Roman Catholic and Christians, with 73.89% and 18.33 %. The Philippines is a predominantly Christian country and is perceived as one of the religions in the country; therefore, Christians are suitable for a study exploring what drives non-Muslim’s consumers to purchase online halal food. Moreover, most respondents were familiar with halal food, 51.67%, although most had not yet visited any halal online store, 91.37%. However, many of them agreed that they have the intention to purchase Halal food/ products online, with 81.56%. Table1. Socio-demographic Profile of the Respondents Items Respondents n Percentage Gender Female 105 58.33 Male 75 41.67 Religion Roman Catholic 133 73.89 Christians 33 18.33 Others 14 7.78 Age 21 years old 71 39.44 25 years old 83 46.11 30 years old 15 8.33 46 years old and above 11 6.11 Familiarity with Halal products/food Very familiar 93 51.67 Somewhat familiar 59 32.78 Not familiar 18 10.0 Not at all familiar 10 5.56 Visit Any Halal Online Store 6.11 Yes 10 5.56 No 165 91.67 Maybe 5 2.78 Online Purchase of Halal Food Yes 145 80.56 No 28 15.55 Maybe 7 3.89 Note. N = 180 (n = number of respondents for each profile) A correlation matrix utilizing Spearman’s Rho was used to test the significant relationships among the variables studied, as shown in Table 2. As expected, trust, confidence, and perceived risk are significantly correlate with Online Purchase Intentions toward Halal food. However, the two remaining variables, like online shopping enjoyment and website quality design, were not significantly influenced non-Muslim consumers to purchase halal food online. Table 2. Correlation between Online Purchase Intentions and the Predictor Variables Variable Spearman’s Rho Correlation Co-efficient Significance (2-tailed) Perceived Risk 0.23683** 0.00213 Trust and Confidence 0.29465** 0.00012 Website Quality Design -0.10457 0.53687 Online Shopping Enjoyment 0.17456 0.35644 Indonesian Journal of Halal Research, 3, 2 (2021): 34-42 39 of 42 Non-Muslim Consumers Online Purchase Intention towards Halal Food in Manila Table 3. Regression Results Summary Online Purchase Intentions as the Dependent Variable Indicators Estimate Standard Error 95% CI P-value t stat LL UL Intercept 2.9566 0.7066 1.5619 4.3514 0.0000 4.1838 Perceived Risk 0.281421 0.160795 0.10567 0.7403 0.0003** 3.7209 Trust and Confidence 0.872748 0.512545 1.86130 3.8849 0.0000** 5.6048 Website Quality Design 0.109538 0.140731 -0.1682 0.3872 0.6275 7.3841 Online Shopping Enjoyment -0.39986 0.176638 -0.7484 - 0.0512 0.0725 8.3524 R-squared 0.3596 0.7216 0.1325 0.1266 Adjusted R-squared 0.3054 0.6612 0.0429 0.0612 F-statistics F (1.178) = 6.64 F (1. 178) = 13.85 F (1.178) = 2.23 F (1.178) = 3.38 Model p-value 0.000 0.000 0.628 0.073 No. of observations: 180 Significance codes: 0.05** To determine the relationship between perceived risk and online purchase intention of halal food. In this model, the results of the regression indicated that perceived risk in an online purchase intention towards Halal food explained 72.16% of the variance (R2 = .7216, F (1, 178) =13.85 p = .000). It was found that perceived risk (p=.000) significantly influenced intentions to purchase online Halal food. For every one-unit increase in trust and confidence increases by 0.28 units. This supports the study (Pavlou, 2003), which mentioned that the perception of risk among consumers creates a tremendous barrier to transacting online. Therefore, it rejects the null hypothesis: H1: There is no significant relationship between perceived risk and online purchase intention towards Halal food. To examine the significance and extent of the effect of trust and confidence of the consumers on an online purchase intention towards halal food. In this model 1, the results of the regression indicated that trust and confidence in an online purchase intention towards Halal food explained 35.96% of the variance (R2 = .3596, F (1. 178) =6.64, p = .000). It was found that trust and confidence (p=.000) significantly influenced intentions to purchase online Halal food. For every one-unit increase in trust and confidence increases by 0.87 units. The result supports the study of Pavlou (2003) and Kim (2015), that trust appears to be an influential factor in consumers’ online purchase intentions. Therefore, it rejects the null hypothesis: H2: No significant relationship exists between trust and confidence in online purchase intention towards Halal food. To identify the relationship between shopping satisfaction and online purchase intention of Halal food, and to explain the relationship between website design quality and online purchase intention. Model 3 and 4, as we can see results of the regression states that website design quality towards and online shopping enjoyment Halal food explained 12.66 % and 13.25% respectively of the variances (R2 = .1266, F (1.178) =3.38, p = .073) and (R2 = .1325, F (1.178) =2.23, p = .628). It was found that there is no evidence that website design quality and online shopping enjoyment in the model contribute to significantly influencing the intention to purchase online Halal food; thus, more evidence is needed to validate this contention. According to the study of Cai & Xu (2006), shopping enjoyment is not directly related to consumers’ online buying behavior. This study is also supported by Kincl & Štrach (2012) that content is more influential than creating a high-quality website. Therefore, it accepts null hypotheses: H3 and H4: There is no significant relationship between website design quality and online shopping enjoyment in an online purchase intention towards Halal food. 4. Conclusion Trust and confidence, as well as perceived risk, are important predictors of online purchase intentions. The following research questions and hypotheses tested the significance of online shopping enjoyment and website design quality. It was discovered that they could be significant predictors of online purchase intentions but with limited explanatory power. Regarding the objective of Manila establishing itself as one of the major companies in the Halal market today, the sample size of the present study is still insufficient in terms of national perspective to represent the whole population. Indonesian Journal of Halal Research, 3, 2 (2021): 34-42 40 of 42 Racquel U. Cruz & Rico A. Billanes However, based on previous research, the authors suggest that consumers' shopping enjoyment and the quality of website design warrant further investigation because they can be an important predictor of online purchase intentions. References Abu-Hussin, M. 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