Willingness to pay for halal logistics : A study on the non-muslims in Melaka

Lim, Li Shan (2023) Willingness to pay for halal logistics : A study on the non-muslims in Melaka. Project Report. Melaka, Malaysia, Universiti Teknikal Malaysia Melaka. (Submitted)

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Abstract

Halal logistics has recently becoming a blooming trend due to the seeing of increase demand especially from the non-Muslims society. However, many potential logistics providers are still hesitant to adopt this service with doubts on the customers’ willingness to pay for the novelty “halal logistics service”. This study aims to investigate the factors that influence the willingness of non-Muslims in Melaka to pay for halal logistics. With the guide of Theory of Planned Behavior (TPB) as conceptual framework, the relationship of knowledge and awareness towards halal logistics, perceived demand for halal logistics, and perceived cost towards halal logistics on the willingness of non-Muslims to pay for halal logistics in Melaka is being studied. By using quantitative research design along with convenient sampling, 150 data were collected by a survey via online and face-to-face distribution. SmartPLS 3.3.9 software was employed in data analysis. Results show that only perceived demand for halal logistics and perceived cost towards halal logistics have significant influence on the willingness of non-Muslims to pay for halal logistics while the awareness and knowledge towards halal logistics not significantly influence the willingness of non-Muslims to pay for halal logistics. This study contributes to fill the gap of study for non-Muslims society, advance the knowledge on the factors influencing willingness to pay for halal logistics, and beneficial for future potential investment, government, policy makers, and the industry players.

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