Drivers of consumers’ willingness to pay for halal logistics

Abstract

Purpose

The purpose of this paper is to investigate the factors that motivate the consumers in Malaysia to pay for halal logistics and its consequences on their demand for halal logistics certification.

Design/methodology/approach

Data were collected through a survey responded 313 randomly selected consumers. Partial least squares technique was employed in the analysis.

Findings

Results showed that consumers’ perception on halal logistics, their concern about halal, and media coverage have positive and significant effects on consumers’ willingness to pay for halal logistics. Furthermore, positive relationship exists between willingness to pay and the extent of demand for the halal logistics certification.

Practical implications

The findings of the study will be useful for the policy makers and managers of halal food companies because they can guide them in increasing the demand for the halal logistics.

Originality/value

Although halal logistics play a key role in supporting the halal status of any given halal foods, the demand for this service is low. Thus, this study contributes to the advancement of knowledge on the drivers of consumers’ willingness to pay for halal logistics.

Citation

Fathi, E., Zailani, S., Iranmanesh, M. and Kanapathy, K. (2016), "Drivers of consumers’ willingness to pay for halal logistics", British Food Journal, Vol. 118 No. 2, pp. 464-479. https://doi.org/10.1108/BFJ-06-2015-0212