Willingness to Pay for Halal Transportation Cost: The Moderating Effect of Knowledge on the Theory of Planned Behavior
Hafaz N.A1, Jagan Jeevan2, Nurul Haqimin Mohd Salleh3, Taylor Tae Hwee Lee4, Siti Marsila Mhd Ruslan5
1Hafaz N.A, Maritime Management, School of Business Maritime and Management, Universiti Malaysia Terengganu, Kuala Nerus, Terengganu, Malaysia.
2Jagan Jeevan, Maritime Management, School of Business Maritime and Management, Universiti Malaysia Terengganu, Kuala Nerus, Terengganu, Malaysia.
3Nurul Haqimin Mohd Salleh, Maritime Management, School of Business Maritime and Management, Universiti Malaysia Terengganu, Kuala Nerus, Terengganu, Malaysia.
4Taylor Tae Hwee Lee, Department of Distribution, Gyeongnam National University of Science and Technology, Jinju, South Korea.
5Marsila Mhd Ruslan, Maritime Management, School of Business Maritime and Management, Universiti Malaysia Terengganu, Kuala Nerus, Terengganu, Malaysia.
Manuscript received on 27 September 2019 | Revised Manuscript received on 09 November 2019 | Manuscript Published on 22 November 2019 | PP: 479-488 | Volume-8 Issue-6S3 September 2019 | Retrieval Number: F10890986S319/19©BEIESP | DOI: 10.35940/ijeat.F1089.0986S319
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Halal transportation services is one of the crucial components of producing Halal products. Since Halal is unique and involves elaborate regulations and executions, therefore it requires huge investment. Like any other supply chain, the transportation cost will be transferred to the end users, normally the customers, thus increasing the price of final products. It is notably common to find studies done on Muslim customers and their preference on Halal products, however, studies on Muslims preferences towards Halal transportation could still be considered as novel. By adopting the Theory of Planned Behavior and religiosity; and by taking into account the moderating effect of knowledge, this study aims to identify the factors that lead to the customers’ willingness to pay for the Halal transportation cost. Using a purposive sampling method, the data was collected among Muslim consumers in a prominent shopping complex in Malaysia and was analyzed using Smart Partial Least Squares (PLS). Based on the finding, it is shown that the attitude and perceived behavioral control gave a positive relationship with the willingness to pay for Halal transportation. Meanwhile, subjective norm and religiosity were on the opposite as there were both hold an insignificant effect towards the willingness to pay for the Halal transportation. Knowledge has moderated the relationship between attitude and willingness to pay for Halal transportation, but not for the relationship between subjective norm and perceived behavioral control. It is expected that this study could provide a better understanding of Muslim consumers’ behavior on purchasing for Halal transportation, as well as other Halal supply chain activities.
Keywords: Theory of Planned Behavior, Willingness To Pay, Halal Transportation Cost, Moderating Effect.
Scope of the Article: Transportation Engineering