MALAYSIAN JOURNAL OF CONSUMER AND FAMILY ECONOMICS 66 Halal Logo and Loyalty of Muslim Consumers: Reflection For Kopitiam Owners Rohani Mohd 1 , Badrul Hisham Kamaruddin 1 , Anizah Zainuddin 1 , Azimah Daud 1 and Rozita Naina Mohamad 1 1 Faculty of Business and Management, Universiti Teknologi MARA Selangor Campus, Selangor Abstract This study proposed to measure the level of loyalty of Muslim consumers in Kopitiam restaurants. As such, 250 questionnaires were administered to 250 of the consumers who visited the restaurant located in Klang Valley. The survey instrument measuring loyalty was adopted and adapted from past studies. The data was analyzed by using Rasch analysis. The findings revealed that generally, the level of loyalty towards Kopitiam was moderately high as indicated by the loyalty ruler whereby the majority of the respondents were at high logit of the ruler. Specifically, those who were found to be very loyal were those who perceived the halal logo as being true or original. The implications of the findings to owners of Kopitiam restaurants were provided. Keywords: Halal certification logo, Kopitiam, restaurant loyalty, Muslim consumers, Absolute consumer experiential value 1.0 Introduction The history of Kopitiam began with the migrants known as Hainan. In the 1850s, the Hainan people migrated to South East Asia. They were the latest migrants compared to the Hokkiens and Teochews. As the Hokkiens and Teochews have stabilized their living in the agriculture, commerce and trade sectors, the Hainanese struggled to find jobs in the less profitable trade (Food Blog Malaysia, 2010). Most of them ended up working in the service sectors as the cook, waiter or servant in local hotels, restaurants, bakeries and bar, and also an operator in military bases as seamen and sailors. Soon the Hainanese progressed to involve themselves in the Kopitiam business as stallholders and assistants (Food Blog Malaysia, 2010). Kopitiam is a very famous brand in the South East Asia countries such as Malaysia, Singapore and Riau Islands (Cheng, 2010). Every Kopitiam restaurant has its uniqueness or niche in terms of taste and personality. However, there are still some similarities that are shared commonly with other Kopitiam owners. The ambience of Kopitiam is very unique to the Malaysian culture due to a combination of different cultures. Despite, there is still similarity among the restaurants in terms of marble table, and chair with woody round back and marble on the seat. As of today, Kopitiam has gained popularity among the Muslims especially with the appearance of the halal logo. According to Robert (as cited in Rajagopal, Ramanan, Visvanathan, and Satapathy (2011)), the Muslim population of today constitutes a quarter of the world population. This trend is expected to increase by 30 per cent in 2025. This means that the number of Muslims around the world is increasing and this also
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MALAYSIAN JOURNAL OF CONSUMER AND FAMILY ECONOMICS
66
Halal Logo and Loyalty of Muslim Consumers: Reflection For Kopitiam Owners
1Faculty of Business and Management, Universiti Teknologi MARA Selangor Campus,
Selangor
Abstract This study proposed to measure the level of loyalty of Muslim consumers in Kopitiam restaurants. As such, 250 questionnaires were administered to 250 of the consumers who visited the restaurant located in Klang Valley. The survey instrument measuring loyalty was adopted and adapted from past studies. The data was analyzed by using Rasch analysis. The findings revealed that generally, the level of loyalty towards Kopitiam was moderately high as indicated by the loyalty ruler whereby the majority of the respondents were at high logit of the ruler. Specifically, those who were found to be very loyal were those who perceived the halal logo as being true or original. The implications of the findings to owners of Kopitiam restaurants were provided.
Keywords: Halal certification logo, Kopitiam, restaurant loyalty, Muslim consumers, Absolute consumer experiential value
1.0 Introduction
The history of Kopitiam began with the migrants known as Hainan. In the
1850s, the Hainan people migrated to South East Asia. They were the latest
migrants compared to the Hokkiens and Teochews. As the Hokkiens and Teochews
have stabilized their living in the agriculture, commerce and trade sectors, the
Hainanese struggled to find jobs in the less profitable trade (Food Blog Malaysia,
2010). Most of them ended up working in the service sectors as the cook, waiter or
servant in local hotels, restaurants, bakeries and bar, and also an operator in military
bases as seamen and sailors. Soon the Hainanese progressed to involve
themselves in the Kopitiam business as stallholders and assistants (Food Blog
Malaysia, 2010).
Kopitiam is a very famous brand in the South East Asia countries such as
Malaysia, Singapore and Riau Islands (Cheng, 2010). Every Kopitiam restaurant has
its uniqueness or niche in terms of taste and personality. However, there are still
some similarities that are shared commonly with other Kopitiam owners. The
ambience of Kopitiam is very unique to the Malaysian culture due to a combination of
different cultures. Despite, there is still similarity among the restaurants in terms of
marble table, and chair with woody round back and marble on the seat. As of today,
Kopitiam has gained popularity among the Muslims especially with the appearance
of the halal logo. According to Robert (as cited in Rajagopal, Ramanan, Visvanathan,
and Satapathy (2011)), the Muslim population of today constitutes a quarter of the
world population. This trend is expected to increase by 30 per cent in 2025. This
means that the number of Muslims around the world is increasing and this also
MALAYSIAN JOURNAL OF CONSUMER AND FAMILY ECONOMICS
67
implies that the level of awareness towards "halal" will increase. Moreover,
according to Chaudry and Riaz (as cited in Blaim and Muatasim, 2012), the critical
concern of Muslim consumption decision is deeply into whether a product is halal
especially in food. Thus, halal regulation and certification are developed to facilitate
the consumers in identifying products that are Syari’ah compliant.
Additionally, according to Blaim and Muastasim (2012), the demand for more
transparency in product ingredients has also increased from Muslim consumers.
Muslim consumers do not simply trust a simple halal mark, especially when the
products are imported from non-Muslim countries. The sense behind halal
certification is in providing a trustworthy signal for Shari'ah compliant products. As of
currently, the mission for transparency in the certification market has not been
entirely fulfilled by traders (Blaim and Muastasim, 2012). When Blaim and
Muastasim (2012) claimed that Muslim consumers do not simply trust the simple
halal logo, would this perception affect their level of loyalty towards a store or
restaurant? Would Kopitiam's ambience having the Chinese image be chosen by
Muslims in Malaysia to dine with confidence? If there were quite a number of Muslim
consumers who chose to dine in Kopitiam, would they be loyal towards the store? If
they did, what were their reasons? As such, this study was conducted to provide
empirical evidence as to the level of loyalty among Muslim consumers based on their
perceptions of the halal certification logo displayed at Kopitiam restaurants.
2.0 Literature review
2.1 Store Loyalty
Many researchers in the area of marketing revealed that consumers are
generally satisfied and become loyal due to the location of the stores (Mafini and
Dhurup, 2015), nature and quality of the assortment of items in trade (Johannes C.
Bauer, Alexander J. Kotouc, Thomas Rudolph, 2012), pricing approach (Han and
Experiential Value), and SL (Store/restaurant Loyalty). Persons and items were
arranged side by side of the ruler so that the ability (loyalty) of a person can be seen
from his or her ability to respond to sets of items. Each set of items (arranged by
column) was measuring each variable in the box. For instance, HCL1-HCL5
measured the Halal certification logo. The arrangement of the item was dependent
on the difficulty of the items.
With reference to Figure 4.2, the consumers were divided by 3 lines (identified
by Rasch Analysis, indicated by person separation of 2.93 (rounded to 3) as shown
in Table 4.2a in the appendix). The lines have divided the groups into 4 (high loyalty,
Loyal, moderate loyalty, non-loyal). Those with high loyalty (55 per cent of them)
responded positively to halal logo items, reflecting their confidence in the halal logo
displayed by the Kopitiam restaurant, which resulted in positive emotions and
feelings (indicated by items ACEs and ACREVs). These caused them to be loyal
(indicated by items SLs). Loyal consumers with above moderate level (or 22 per
cent) responded positively to some items of the halal logo (HCL1, HCL5 and HCL4)
which had caused them to agree only for items ACE4, ACE1, ACE5, ACE3 and
ACE2 of absolute consumer experience, ACREV2, ACREV6, ACREV1, ACREV5,
ACREV4 and ACREV3. This led them to agree with all the items of loyalty (SL1-
MALAYSIAN JOURNAL OF CONSUMER AND FAMILY ECONOMICS
73
SL4). The difference between respondent with high loyalty and above moderate level
loyalty was the agreement for items HCL3 and HCL2, ACE6 and ACE7, which might
result in a higher degree of agreement on all loyalty items. This is because the
higher the location of persons against items, the higher the agreement level for the
items. This explains why the other two groups of consumers were identified as being
less loyal. Noticed that most items of the halal logo (HCLs), Absolute Consumer
experience (ACEs) and Absolute Consumer Experiential Values (ACREVs) were
located above two groups (i.e., moderate loyal & non-loyal consumers).
Figure 1 : Person items map of restaurant loyalty from Rasch Analysis
With reference to Figure 4.2, those who were found to be very loyal are those
who perceived the halal logo as being true or original. This should lead them to
experience more positively in the store which later would lead to valuing what they
experienced in the restaurant. Those with the perception that the logo was not
genuinely halal, would not have a positive experience in the store, thus would fail to
value what the restaurant offers.
Specifically, the ruler indicated the important elements (or items) that have
caused consumers to increase the level of restaurant loyalty. For instance, item
HCL3 (checking for halal logo before entering Kopitiam restaurant) and HCL2 (halal
logo is strong evidence of halal food served in Kopitiam restaurant) are important
items that cause consumers to experience positive feelings with the restaurant’s
cleanliness and the appearance of waiters which are indicated by items ACE6 (feel
good to dine in Kopitiam because of its cleanliness) and ACE7 (enjoyed eating due
to the appearance of the waiters). HCL1 (believing that halal logo displayed at
Kopitiam reflect hygienic procedure) and HCL5 (confidence with halal logo displayed
at Kopitiam) are important items that cause consumers to experience good service
from waiters (ACE4), varieties of food choice (ACE5), enjoying the ambiance to stay
longer (ACREV2), value the moment with family and friends (ACREV6), and
admiring the setting up of the restaurant (ACREV1). This also means that HCL3,
HCL2, HCL1 and HCL5 are important reasons for consumers to be loyal because
they can experience good food and services only after they enter and enjoy the food.
The problem, however, is that they would only enter a restaurant after they check
and are confident with the halal logo displayed at the restaurant. Therefore, owners
of Kopitiam restaurants have to make sure that the halal logo is not fake and is
MALAYSIAN JOURNAL OF CONSUMER AND FAMILY ECONOMICS
74
updated each year.
In general, Muslim consumers have quite a positive perception of the halal
certification logo displayed at Kopitiam. This, in turn, leads to store loyalty due to
their confidence in enjoying the time spent in the restaurant. Their loyalty increases
when their perception of the logo increases. What follows is that their level of
experience with the food and restaurant also increases. This can be seen from the
item measure of each item against the location of each person displayed on the
ruler.
5.0 Discussion and Implications
The findings of this study have major implications on theory development and
practice. There was a lack of past research on store loyalty among Muslim
consumers in the aspect of their level of confidence with the originality of the halal
certification logo. A ruler measuring the loyalty of Muslim consumers that was
produced is new to the field as this highlighted the importance of the halal
certification logo. This is because with the right perception of the halal certification
logo, only then would consumers become loyal to the store as they had enjoyed the
time spent with their friends due to their confidence.
The novelty of this ruler can be seen from the creation of the ruler by using
the logit unit. An increase in a logit unit on the ruler would reflect an increase in
loyalty by one logit. What is interesting is that an increase in a logit unit means an
increase in perception with regards to the originality of the halal logo. When this
happens, this leads to an increase in the level of consumer confidence to experience
more with the food by a logit. This also means an increase in sales because loyalty
can be turned into increment in sales (Kasahun et al., 2012).
From the consumer's perspective, the findings of this study have supported
Abdul et al. (2009), Muatasim and Blaim, (2012), and Ballantine et al. (2011) as they
believe that the halal certification logo is very important to Muslim consumers to dine
or consume with confidence. This study also supported Zainuddin et al. (2015) who
explained that Muslim consumers prefer to visit restaurants with certified logo from
the relevant authorities. Those who perceived the logo as fake would never visit the
store the second time. Unfortunately, previous studies on store loyalty provided only
the mean score of store loyalty; thus there was no clear guideline on which important
aspects of consumer experience and consumer experiential value that have resulted
in the different levels of store loyalty among consumers. With the Rasch Ruler, a
clear gap can be seen between those with a high level of loyalty and those with no
loyalty. Thus, improvement or enhancement can be done if the owner wants
consumers to be loyal to his or her restaurant.
The present study has provided a scale of loyalty for Kopitiam owners to
enable them to identify items (elements) that improve loyalty among consumers.
Thus, Kopitiam owners can benefit from this study. The study has provided insights
to them in terms of crucial factors to increase store loyalty among Muslim
consumers. The owners should intensify their efforts by way of seeking, highlighting
and communicating the originality of their halal logo to their existing and prospective
consumers. These efforts will obviously improve the perception of the consumers on
the originality of the logo. Consequently, consumers can really enjoy the food and
the time they spend in the restaurant as they are confident with the religiosity
MALAYSIAN JOURNAL OF CONSUMER AND FAMILY ECONOMICS
75
element of the restaurant. Eventually, this will lead them to become loyal consumers
of the restaurant. One of the ways that Kopitiam owners can improve the perception
is by disclosing the consistent evaluation of the store with regards to the halal
certification that the owners have intensively worked upon to correct. This can be
done by displaying the compilation of the halal certification logo they receive each
year and possibly frame them accordingly.
6.0 Conclusion
The objective of identifying the level of store loyalty of Muslim consumers
towards Kopitiam restaurants located in Klang Valley has been achieved. 250
questionnaires were administered to Kopitiam consumers who visited the outlets.
The data were analyzed using the Rasch measurement model. A ruler of loyalty in
Rasch logit unit was produced. In general, Muslim consumers have confidence in the
halal certification logo displayed at the Kopitiam restaurant resulting in them
choosing it as a place to dine. Their loyalty for the restaurant was due to their
trustworthiness of the halal certification logo displayed in the restaurant. Their level
of loyalty, in general, was moderately high. The right perception has influenced them
to value their experience in the store resulting in them having quality time in the
restaurant. In other words, they are satisfied and enjoy the food as they are
confident with the food preparation. This will obviously enjoy the ambience of the
restaurant. This means that if a Kopitiam restaurant increases the level of
trustworthiness with reference to the logo, many Muslim consumers would have a
positive experience with the food provided, the waiters, the ambience and the time
spent in the outlet. As such, Kopitiam owners should focus on efforts that can further
convince their consumers with regards to the originality of their halal logo.
Acknowledgements
This research is funded by the Research Management Centre (RMC) of
University Teknologi MARA (UiTM), Selangor. Authors are highly thankful to the
RMC and Faculty of Business and Management of UiTM for the fund provided.
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