Small Industrial Awareness against Halal Certification and Product

Quality Groceries Gift Shop North Sumatra against the Interest in

Purchasing through Experiental Buying Consumer

Beby Karina Fawzeea, Ilyda Sudardjat and Ami Dilham

Faculty of Economics and Business, Universitas Sumatera Utara, Jl. Prof. T M Hanafiah, Medan City, Indonesia

Keywords: Halal Certification, Quality Groceries, Buying Interest, Experiental Buying.

Abstract: Sales has become the goal of various business activities. Purchasing behaviours are often formed by through

purchase intention. This study aimed to evaluate the factors that influence people’s purchase intention and

actualization on souvenirs in Medan. The concept of Halal was suggested as one of the factors that influence

both of these behaviour. The development of halal awareness in souvenirs business has not been optimally

implemented in the Medan as many of the businesses has not had halal certification yet. In addition to this,

marketing activities through social media and references were also evaluated as factors that shape consumer

behavior in purchase intention and actualization. A number of 100 Islamic students from outside Medan

participated in this study. Data obtained through a self administered questionnaire. Data were analyzed and

evaluated using the partial least square structural equation model (SEM-PLS). The results of this study

indicate that although halal has an important role to stimulate purchase intention from Muslim consumers, in

the case of souvenirs this effect is not significant to influence their purchasing decisions. These decisions are

more influenced by purchase intention, recommendations and marketing exposure through social media.

1 INTRODUCTION

Currently employers faced with the fact that

consumers, especially the middle up segment will be

increasingly savvy, with so many choices and

information received about a product. This applies

also in the consciousness are small in meeting the

needs of customers, especially the awareness against

the use of raw materials to be used in making

products, especially food. Food products are usually

in use as a fruit hand kesuatu while visiting the region.

Indonesia is one of the countries in the world with a

majority muslim population in a survey done by the

Central Bureau of statistics in 2010 a number of

Indonesia's muslim population of 207,176,162 or

87.18% of the population in Indonesia is a muslim.

While the number of muslim communities in North

Sumateran in particular, a number of 8,579,830 this is

one opportunity entrepreneurs gift shop in meeting

the needs of muslim consumers, one of which is to set

out the halal aspect in choosing materials raw

materials to be used.

Consumers who will buy gift shop will usually

know if the product is halal or not from the halal label

in the list at every food packaging in gift shop, the

halal label also has the characteristic if he issued the

official relevant agencies as well as in Indonesia halal

label issued by the Tribunal of scholars Indonesia

coupled with the existence of the certificate and will

usually be on the list by the entrepreneur in his shop

and halal label on the packaging in order to convince

consumers that buying.

This is related to the experiental marketing i.e

how do marketers so that penguasaha can close,

expand and retain loyal consumers against products

that are on offer by increasing consumer confidence

in products that will use halal as well as quality up to

into the hands of consumers.

Based on the research of Hidayat and Siradj

(2015) stated that as a trade commodity, food has a

huge role in increasing national food imagery and

international world along with producer of foreign

exchange. The inception of the Act Guarantees the

products Halal (UUJPH) became the measuring

instrument and tool control so as not to disadvantage

and harm consumers. Research of Chairunnisyah

(2017) Note that labelisasi halal certification and the

new small products such as part of reaching food

Fawzeea, B., Sudardjat, I. and Dilham, A.

Small Industrial Awareness against Halal Certiﬁcation and Product Quality Groceries Gift Shop North Sumatra against the Interest in Purchasing through Experiental Buying Consumer.

DOI: 10.5220/0009197300050008

In Proceedings of the 2nd Economics and Business International Conference (EBIC 2019) - Economics and Business in Industrial Revolution 4.0, pages 5-8

ISBN: 978-989-758-498-5

products, beverages, pharmaceuticals, cosmetics, and

other products that are circulating in the community.

While the results of the research and Prabowo

Abdurrahman (2016) show that commodities halal-

based agriculture has grown rapidly in the world

market, but the role of Indonesia is still very low.

Kosher issues can actually be huge opportunities to

boost the power of the agribusiness economy.

2 LITERATURE REVIEW

2.1 Experiential Marketing

2.1.1 Understanding of Experiential

Marketing

Nowadays the competition of products and services

are increasingly tight. Many companies are moving

on to a new level to create value for customers. The

company creates and manages a customer experience

on a product or company for the purpose of making a

difference from competitors (Kotler and Armstrong,

2012). Schmitt (1999) said that experience is the

experience of personal events that occur in response

to some stimulus.

Understanding of experiential marketing,

according to Schmitt (1999) is a way to create an

experience that will be perceived by customers when

using a product or service through the five senses

(sense), affective (feel) experience, the experience of

thinking creative (think), customer experience

associated with the physical body, with behavior and

lifestyle, as well as with those experiences as a result

of interactions with other people (act), as well as

creating experiences that connect with the social,

lifestyle, and culture that can reflect the brand which

is the development of a sense, feel, think, and act

(relate) (Schmitt 1999).

Experiential marketing is the development of

traditional marketing strategies, the development of

experiential marketing factors influenced by

information and communication technology

(Schmitt, 1999). The difference between traditional

marketing and experiential marketing is described

through the main characteristics of experiential

marketing, adapted from the opinion of Schmitt

(1999) as follows.

2.1.2 Dimensions of Experiential Marketing

a. Sense

Sense of business is the creation of an experience that

is related to the five senses through sight, sound,

touch, taste, and smell. Sense marketing is used to

differentiate the company and products, motivating

customers, as well as providing added value to the

product. The key to success in creating the experience

of the five senses (sense) is to ensure the consistency

and create diversity.

b. Feel

The company uses the strategy to provide the

experience feel the influence of the brand to

customers through communication (advertising), the

ads are feel good used emotional merangsan

customers with a product or service and provide a

stimulus to the customers to react to these messages,

advertisements or products (identity, packaging, and

contents), environment, web- sites, or those that offer

products (Schmitt, 1999). Feel the experience at a

higher level is the affective experience that drives the

stimulus emotion and mood (Schmitt, 1999). The

company uses the strategy to provide the experience

feel the influence of the brand to customers through

communication (advertising), the ads are feel good

used emotional merangsan customers with a product

or service and provide a stimulus to the customers to

react to these messages, advertisements or products

(identity, packaging, and contents), environment,

web- sites, or those that offer products (Schmitt,

1999). Feel the experience at a higher level is the

affective experience that drives the stimulus emotion

and mood (Schmitt, 1999).

c. Think

Think of making customers do interaction in creative

and cognitive. The goal of the strategy is to encourage

customers think so interested and think creatively

(Schmitt, 1999).

d. Act

Act experience designed to create a customer

experience that is associated with the body

physically, behaviour and lifestyle long term and the

experiences that occur as a result of interaction with

others (Schmitt, 1999). Act experience designed to

create a customer experience that is associated with

the body physically, behaviour and lifestyle long term

and the experiences that occur as a result of

interaction with others (Schmitt, 1999).

e. Relate

Relate experience aims to connect customers with the

cultural and social environment (society). Relate is

intended to form a self improvement, socio economic

status, and image (Schmitt, 1999).

EBIC 2019 - Economics and Business International Conference 2019

2.2 The Quality of the Product

2.2.1 Understanding the Quality of Product

According to Kotler and Armstrong (2004:354)

"product quality is the ability of a product in the

exercise of the function and its performance can meet

the needs and desires of customers". Product quality

be important things that should be possessed by a

product, so manufacturers are required to produce a

quality product in order to attract consumer

perhatiaan and win the market.

2.2.2 Dimensions of Product Quality

According to Tjiptono (2008:25), there are eight

dimensions of quality of products developed and can

be used as a framework for strategic planning and

analysis. The dimensions are:

1. Performance

2. Features

3. Reliability

4. Conformance

5. Durability

6. Service

7. Aestheties

8. Perceived Quality

3 RESEARCH METHOD

Type of this research is descriptive research with

quantitative approach. This research was conducted

in 5 counties of cities such as Medan, Perbaungan,

high cliffs, Deli Serdang and Toba Samosir whereby

time researches carried out for seven months.

4 RESULT AND DISCUSSION

Simultaneous Significance Tests (Test-F).

ANOVA

Model

Sum of

Squares

Mean

Square

Regr

essi

203.302

97.767

21.978

.000

Resi

dual

427.058 96 4.449

Tota

720.360 99

a. Dependent Variable: Buy Interest

b. Predictors: (Constant), Moderate, Halal

Certication, The Quality Of Food Products

1. If F-count ≤ F-table, then Ho and Ha accepted

rejected meaning halal certification factor (X 1),

product quality food ingredients (X 2) and

moderate (MRA) simultaneously have no effect

against the interest in buying (Y).

2. If F-count > F-table, then Ho denied and Ha

received halal certification which means the factor

(X 1), product quality food ingredients (X 2), and

moderate (MRA) simultaneously affects the

interest of buying (Y).

Then it can be seen that the value of F-count is

21.978 with a level of significance of 0.000. While

the F-table on a confidence level of 95% (α = 0.05) is

2.70. Therefore F-count (21.978) > F-table (2.70) and

their significance level of 0.000 0.05 indicates that the

variables < non halal certification (X 1) and product

quality food ingredients (X 2) simultaneously is a

positive and significant effect against the interests (Y)

the buy gift shop from North Sumatra through

experiential buying (Z).

Partial Significance test (test-t)

Coeficient

Model

Unstandardized

Coeffcients

Standa

rdized

Coeffc

ients

Sig

Std.

Erro

Beta

(Constant) 6.041 3.246

1.861 .066

Halal

certificati

.063

.107

.070

.588

.558

The Qualit

of Foo

Product

.108

.078

.231

1.374

.173

Moderate 6.336

E-5

.000

.371

2.002 .048

a. Dependent Variable: Buy Interest

1. Variable halal certification (X 1) influential

positive and insignificant partially against the

interest in buying (Y) it is seen from the

significant value (0.558) > 0.05. This means that

if the variable halal certification increased one

unit then purchase interest will be increased by

0.063.

Small Industrial Awareness against Halal Certiﬁcation and Product Quality Groceries Gift Shop North Sumatra against the Interest in

Purchasing through Experiental Buying Consumer

2. Food product quality Variables (X 2) a positive

effect and partially against insignificant interest

buy (Y) it looks significant value (0.173) > 0.05.

This means that if the variable quality of food

products increased one unit then purchase interest

will be increased by 0.108.

3. Moderate Variable (MRA) a positive and

significant effect partially against the interest in

buying (Y) it is seen from the significant value

(0.048) < 0.05. This means that if the variable

moderate increased one unit then purchase interest

will be increased by 6.336.

5 CONCLUSIONS

Based on the discussion, it can be concluded that halal

certification and product quality simultaneously

positive and significant effect against interest buy gift

shop North Sumatra through experiential consumer

buying. While partially, halal certification and

product quality is not significant and positive effect

toward interest buy gift shop North Sumatra.

ACKNOWLEDGEMENTS

The authors gratefully acknowledge that the present

research is supported by Ministry of Research and

Technology and Higher Education Republic of

Indonesia. The support is under the research grant

TALENTA USU of Year 2019.

REFERENCES

Aziz, Abdul Yuhanis, & Nyen Vui Chok. (2012). ‘’The

Role of Halal Awareness, Halal Certification, and

Marketing Components in Determining Halal Purchase

Intention Amon Non-Muslim in Malaysia : A Structural

Equation Modeling Approach’’. Journal of

International Food & Agribusiness Marketing, 25:1-23.

Ambali, R.A & Bakar, N, A (2012). ‘’People’s Awareness

on Halal Foods and Products : Potential Issues for

Policy-Makers’’. International Halal Conference,

PWTC, Kuala Lumpur, Malaysia.

Chairunnisyah, S. (2017). ‘’Peran Majelis Ulama Indonesia

Dalam Menerbitkan Sertifikat Halal Pada Produk

Makanan dan Kosmetika’’. Jurnal EduTech Vol. 3,

No.2.

Hidayat, A, S & Mustolih Siradj. (2015). ‘’Sertifikasi Halal

dan Sertifikasi Non Halal Pada Produk Pangan

Industri’’. Asosiasi Pengacara Syariah Indonesia

(DPNS APSI). Vol. XV, No.2, 199-210.

Nurcahyo, A & Herry Hudrasyah. (2017). ‘’The Infulence

of Halal Awareness, Halal Certification, And Personal

Societal Perception Towards Purchase Intention: A

Study Of Instant Noodle Consumption Of College

Student In Bandung’’. Journal Of Business And

Management, Vol. 6, No. 1, 21-31.

Nursan, M., Gunawan., Mashur Razak., Surdiman Numba.,

Ismail Suardi Wekke. (2018). ’’Halal Awareness on

The Socialization of Halal Certification’’. IOP Conf.

Series: Earth and Environmental Science.

Prabowo, S & Azmawani Abd Rahman. (2016).

‘’Sertifikasi Halal Sektor Industri Pengolahan Hal

Pertanian’’. Forum Penelitian Agro Ekonomi, Vol 34

No. 1, 57-70.

Qubra, Al, Z. (2017). ‘’Persepsi Pemilik Warung Terhadap

Sertifikasi Halal Di Kota ParePare’’. Sekolah Tinggi

Agama Islam Negeri (STAIN), Parepare.

Rajagopal, S., Sitalakshmi Ramanan., Ramanan

Visvanathan & Subhadra Satapathy (2011). ‘’Halal

Certification: Implication for Marketers in UAE’’.

Journal of Islamic Marketing, Vol. 2 No. 2, 2011,

138-153.

Sofan Hasan. 2014. Sertifikasi Halal Dalam Hukum Positif

Regulasi dan Implementasi Di Indonesia. Yogyakarta:

Aswaja Pressindo.

Syahminul Siregar, “Peranan Pemerintah dalam

Melindungi Hak-hak Konsumen Menurut UU Nomor 8

Tahun 1999 tentang Perlindungan Konsumen” dalam

Jurnal Ilmu-Ilmu Sosial Volume 10 Nomor 3 Oktober

2009.

Syuhaiza, A. (2017). ‘’Implementation of Halal

Managemen System in A Semall Food Manufacturing

Enterprise for Halal Certification : A Case Study’’.

International Islamic University Malaysia.

Talib, Ab, M, S., Abu Bakar Abdul Hamid. (2013). ‘’Halal

Logistics in Malaysia : a SWOT analysis’’. Journal of

Islamic Marketing.

Viverita & Ratih Dyah Kusumastuti. (2017). ‘’Awareness

of Halal Certification of Micro and Small Enterprises in

Jakarta’’. International Journal of Economics and

Managerment 11 459-471.

EBIC 2019 - Economics and Business International Conference 2019