Willingness to Pay for Halal Transportation Cost: The Moderating Effect of knowledge on the Theory of Planned Behavior

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 13-22

J. Environ. Treat. Tech. ISSN:

309-1185

Journal weblink: http://www.jett.dormaj.com

Willingness to Pay for Halal Transportation Cost:

The Moderating Effect of knowledge on the

Theory of Planned Behavior

Abdul Hafaz Ngah , Jagan Jeevan , Nurul Haqimin Mohd Salleh , Taylor Tae Hwee Lee ,

Siti Marsila Mhd Ruslan

Maritime Management, School of Business Maritime and Management, Universiti Malaysia Terengganu, Kuala Nerus,

Terengganu, 21030, Malaysia

Department of Distribution, Gyeongnam National University of Science and Technology, Jinju, South Korea Gyeongnam National

Received: 22/07/2019

Accepted: 29/09/2019

Published: 20/02/2020

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

manufacturing practice but also in the whole supply chain to

Introduction

ensure that it completely complies with the whole Halal

requirement. Halal products are guaranteed Halal to be

consumed if they are handled based on Shariah requirements

in the whole chain of practices

Halal is an Arabic word which means “allowed to

consume”. It has slowly become well known due to the

emerging number of Muslim population all around the world.

The uniqueness of Halal products lies under a specific

Islamic guideline which emphasizes the purity and hygiene to

maintain, preserve and sustain the wellbeing of humankind.

Nowadays, Halal is not only restricted to the selection of

food, but also in many other areas such as pharmaceuticals,

cosmetics, banking as well as logistic services, such as

transportation and warehousing activities. A Halal certified

product must not only pass the inspection in the

(1) and Halal transportation is one of the important issues

that need to be addressed in order to achieve a complete Halal

requirement (2). Therefore, by looking at the demand from

the Muslim community, logistic providers are now slowly

begin to offer Halal transportation services as part of the

initiatives in establishing Halal supply chain to the mass

(

Bahrudin, Illyas, & Desa, 2011; Hafaz, Zainuddin, &

Thurasamy, 2017). As an attempt to attract Muslim

consumers, Halal manufacturers have started incorporating

Halal transportation services into their businesses (Ali, Tan,

Makhbul, & Hafaz, 2016; Hafaz, Zainuddin, & Thurasamy,

Corresponding author: Abdul Hafaz Ngah, Maritime

Management, School of Business Maritime and Management,

Universiti Malaysia Terengganu, Kuala Nerus, Terengganu,

014a). This, among others, could be seen as a wise step

1030, Malaysia. E-mail: hafaz.ngah@umt.edu.my.

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 13-22

since the majority of Halal manufacturers are non-Muslims,

therefore incorporating Halal transportation could further

strengthen the customers' trust for a better Halal supply chain

2.1 Halal transportation

Halal transportation is a part of a full service in halal

supply chain activities. Halal transportation is a phase that all

halal products must pass through before getting at the point

of sale. There are two types of cost could be paid by

customers which are primary; inbound to the manufacturers,

and outbound to distribution centers, or point of sale, and

secondary cost such as other operating costs (21).

Incorporating Halal practices in conventional logistics

increases the responsibility of logistic service providers as

products with Halal attributes requires dedicated equipment

(22). Since the transportation providers also require huge

investment before being certified as Halal transporter, hence

the cost of obtaining the Halal certification which include of

new process, tools and human resource; as a service

providers, the cost will be transferred back to the consumers.

Halal transporter will handled Halal products accordingly

to preserve the Halal quality of the merchandise. Halal

products should be segregated at all points of activities with

non-Halal products, or any contaminated products by all

means. Since a clear guidance between Halal and Haram, as

mentioned by Hadiths and Quran, separating these two

categories is required to maintain the Halal quality. Once

Halal products become Haram (illegal to use) due to neglect

in certain activities, using a Halal transportation services will

not turn Haram to be a Halal product (14) .

(Tieman & Ghazali, 2013; Hafaz et al., 2014b),

Previous studies had shown that customers opt for Halal

products at the time of purchase (Bahrudin et al., 2011;

Hafaz, Zainuddin, & Thurasamy, 2015; Hasan Bukhari et al.,

019). Nevertheless, it is uncertain to define whether they are

willing to pay for Halal transportation charges. According to

Kamaruddin, Iberahim, and Shabudin, (2018) consumers are

mostly indecisive to pay for Halal services, however

acknowledging the quality of Halal products that they might

get, it has convinced some of them to pay for Halal

transportation. Transforming from conventional to halal

logistics is costly due to specific quality requirements,

namely MS 2400-1:2010. While the processes in obtaining

the Halal status seem to be tedious, nonetheless it is crucial to

ensure that the industry remains competitive (11). On the

other hand, it is shown in the previous studies that customers

are looking forward to the green practice, however, are

reluctant to pay for the implementation purposes. (Manaktola

Jauhari, 2007; Choi & Parsa, 2007).

As mentioned above, this study intends to fill the gap by

identifying the factors influencing Muslim consumers‟

willingness to pay for Halal transportation cost. Recognizing

the factors that relate to the willingness to pay for Halal

transportation cost is important not only for Halal

transportation providers but also crucial as part of the process

for Halal manufacturing practice. Tieman (2011) and

Syazwan, Talib, Rubin, and Khor (2013) further cemented

this statement by emphasizing the need to provide a clearer

picture of this issue. Many studies have been done on Halal

such as Halal adoption (Hafaz & Thurasamy, 2018; Hafaz,

Zainuddin, & Thurasamy, 2014c) intention to purchase Halal

products (Lada, Harvey Tanakinjal, & Amin, 2009); Halal

logistics (Syazwan et al., 2013; Omar & Jaafar, 2011); as

well as principle in Halal supply chains (19). Nevertheless,

the issue on the willingness to pay for Halal transportation

cost still remains scarce. One study was done by Kamaruddin

et al., (2018) however had raised up the connotation on this

matter, but with a different framework.

Incorporating the Theory of Planned Behavior that

linked with religiosity, this study intends to extract out the

factors that influence the willingness to pay for Halal

transportation cost among Muslims in Malaysia. In order to

augment the findings, knowledge was used as a moderating

factor in the research framework. Finally, it is expected that

the outcome of this study could serve as a yardstick to

redefine the Halal practice performance, particularly to Halal

transportation providers and Halal manufacturers in the future

2.2 Willingness to pay for the Halal transportation cost

Willingness to pay has been defined as the highest

amount than consumer willing to sacrifice in order to get the

services. According to (23), willingness to pay has been

delineated as an economic term, price associated, or the

highest amount of consumer willing to compensate for certain

goods or services. The study defines the willingness to pay as

the maximum amount of monetary value that consumer

willing to be exchanged in order to get the required services

or goods. Customers may look for the desired services, but

not all of them surely willing to pay for the services.

According to (24) noted that behavioral of willingness as

a realization that one would be willing to enlist in the

behavior under circumstances. Kamaruddin et al., advised

that due to preserve the Halal quality, Muslim consumer

apparently willing to compensate for the Halal logistic cost

(34).

From the researchers‟ point of view, Willingness to pay is

believed to be a better predictor than intention to buy since

not all intention will translate into actual purchasing. Even

willingness will not translate to the actual buying, but

willingness will show that, in certain situation, customers are

going to engage in the services even they don‟t have any

intention to pay the price of the goods or services. Contradict

to intention, which the measurements are more business

organization on planning behavior, however, willingness to

work on certain conduct does not involve planning or

consideration of behavior‟s likely consequences. It can

consider that willingness to certain behavior can provide a

better variance compare to intention to involve certain

behavior.

(Hafiz, Jie, & Chan, 2018).

Literature Review

This section will start with the literature on the

willingness to pay for the Halal transportation cost, and

continue with independent variables of the studies with

complete hypothesis, and ended with the development of the

research framework of the study.

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 13-22

.3 Theory of planned behavior

Theory of planned behavior (25) can be considered as the

truth and qualities and submission to a religion‟s scriptures

and teaching. In this study, scripture is referring to the Quran,

and teaching is whatever taught by Prophet Muhammad

SAW. (36) proposed that, religiosity is the degree of a

person obliged and practice the religious value in their daily

lives. Essentially, whole faiths have their messenger and their

holy scriptures. Hence, the study defines religiosity as the

level of ones to adhere what have been taught by their

messenger and what have been stated by its holy scripture.

(37) suggested that religiosity is crucial is shaping

individual behavior and will behave as a guidance on their

future behavior (38). On the other hand, higher submission to

his religion, teaching, internal state of the individual will

form a consciousness of certain behavior, (14) especially

related to the rules stated in his religion. The study on

willingness to donate organ found that religiosity is an

significant factor Religiosity has a positive relationship with

the willingness to open Islamic gold account, (39) and (40)

found that religiosity positively related to the willingness to

pay for Halal products. Hence; hypotheses postulated as

below;

most frequently used theory to explain consumer behavior at

the individual level. Most of the study used this hypothesis to

predict the individual‟s intention on certain behavior such as

intention to adopt a novel technology or intention to buy

merchandise. The versatility of this hard theory which consist

of attitude, subjective norms and perceived behavioral control

make this theory applicable in diverse fields of work. The

attitude has been defined as individual„s overall judgement

and assessment of behavior and Subjective norms as a

societal pressure to perform or not to execute the behavior or

not to execute the object behavior (6, 48). Meanwhile

perceived behavioral control as the belief that an important

person or group of people will approve and defend a peculiar

behavior (6). Even the theory is fixed with those three

variable, Ajzen suggesting that, other variables could be

tallied in the study to increase the explained variance of the

endogenous variable (6).

Thither are many studies have applied the TPB to explain

the willingness to pay or certain behavior in several

disciplines of studies. Firstly, (27) revealed that, in the

biodiversity study, all the variables in this theory have a

positive relationship with the willingness to pay. On the

environmental study, (28) found that the variables in the

theory also have a positive relationship with the willingness

to pay. On the other hand, on a green behavior study, (29)

affirmed that the attitude, subjective norms and perceived

behavioral control to have a positive relationship with the

willingness to pay. The attitude was found to possess a

positive relationship with the willingness to pay (41, (31).

Hence, the study follows the literature to develop the

hypothesis of the study;

H4: Religiosity has a positive relationship with the

willingness to pay for Halal transportation.

2.5 Knowledge as a moderating factor

The moderating variable has become more popular in the

social science and business studies across the globe. It shows,

model complexity and maturity which offer

a better

perspective regarding the criterion variable of the study (41) .

According to (42), the moderator variable could introduce

due to weak or inconsistent in the literature regarding the

relationship between predictor and the criterion variable. The

study also found inconsistency in variables in the theory of

planned behavior with the willingness behavior in a few

different studies.

H1: Attitude has

a positive relationship with the

willingness to pay for the Halal transportation cost.

H2: Subjective norms have a positive relationship with

the willingness to pay for the Halal transportation cost.

The variables representing planned behavior theory are

referred to the cognitive determinants that would involve the

person‟s behavior (53). Since it is linked to cognitive

characteristic, the construct that could be a moderator for the

study also must be linked up to the cognitive component.

Therefore, this field would try to use knowledge as a

moderator for the study since knowledge also part of the

cognitive ingredients. Generally, knowledge refers to the

facts, feelings or experiences known by a person or a group

of people; it can as well be defined as awareness,

consciousness, or familiarity gained by experience or

learning. To be specific, knowledge means the expertise and

skills acquired by a person or a group of people through

theoretical or practical understanding of a subject ((43).

Higher knowledge could provide positive results for the

relationship between attitude, subjective norms and perceived

behavioral control towards willingness to pay for Halal

transportation cost. Hence, hypotheses are formulated as

follows:

H3: Perceived behavioral control has

a positive

relationship with the willingness to pay for the Halal

transportation cost.

.4 Religiosity

The limitation of TPB in explaining the variance which

leads to researchers to add a new dimension with the TPB

itself (32). Furthermore, Ajzen purported to add some other

variable which might provide a fuller explanation of intended

behavior of survey (6). Furthermore, Even (33) confirmed

that religiosity has a strong effect on consumers‟ behavior,

however, due the varies in strength on their religiosity from

one person to another, the absolute role of religiosity on food

choices still unclear (34). Since Halal is part of the Muslims‟

obligation, the study decide to add religiosity as a new

variable to form the research framework.

Islamic values will provide a clear path on what must,

encourage, allow and what their follower can‟t perform on

their daily lives. (35) mentioned that religiosity will affect the

Muslim consumers‟ decision, but unsure how much it will

influence the Muslims. Furthermore, Islam is not only as a

matter of religion, but for the Muslims, Islam is the way of

life. Religiosity is person‟s belief on the absolute inherent

H5: The positive relationship between attitude and

willingness to pay for the halal transportation cost will be

stronger when the knowledge is high.

H6: The positive relationship between subjective norms

and willingness to pay for the halal transportation cost will be

stronger when the knowledge is high.

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 13-22

H7: The positive relationship between perceived

behavioral control and willingness to pay for the halal

transportation cost will be stronger when the knowledge is

high.

sample size is 108. Hence, with 179 respondents of the study,

the number of respondent it is not an issue in the study.

Since the study used Smart Partial least Squares (PLS)

3.2.8, which is using confirmatory factor analysis (CFA), all

the items to measure the constructs were adopted and adapted

from previous studies. Item for attitude, subjective norms,

perceived behavioral control from (46), religiosity and

knowledge (47), and willingness to pay (48).

Results and Findings

Majority of the respondents are female, age between 23-

0 years old, having a diploma as their highest qualification

and range of monthly income between RM 1501-RM 3000.

Since data were collected in the east region (Terengganu,

Kelantan, and Pahang), hence the majority of the respondents

(30%) were from this area. The data of the study are

represented Malaysia since it involved respondents from all

around Malaysia (South, North, East, and Centre). Table 1

illustrates the demographic profile of the respondents

Figure 1: Theoretical Framework

Table 1: Respondent profile

Construct

Gender

Frequency

Methodology/Materials

Male

Female

18-22

0.45

0.55

0.07

0.46

0.26

0.17

0.04

0.14

0.36

0.43

0.07

0.24

0.26

0.3

To test the hypothesis in the research framework, a

quantitative approach using self-administered questionnaire

was adopted. Since the unit of analysis of this study is at the

individual level, which conduce to the unavailability of

sampling frames, non-probability with purposive sampling

method was used. There are two sections in the questionnaire.

Part A, regarding their profile, such as gender, monthly

income, highest qualification and their working status, and

part B consist of exogenous and endogenous variables of the

study. To ensure the data are represented people in Malaysia,

the respondents need to declare the state of origin, which will

be transformed in to the region, in the data analysis section.

There are four regions which are North (Johor, Melaka),

Centre (Negeri Sembilan, Selangor, Kuala Lumpur), East

Age

3-30

1-40

1-50

More than 50

Secondary School

Diploma

Degree

Qualification

(Terengganu, Kelantan and Pahang) and North (Perak,

Penang, Kedah and Perlis). Data were gathered at a major

shopping complex in Terengganu, Kelantan and Pahang.

Respondents of the study are the Muslims who are already

employed to enhance the validation of the decision on the

willingness to pay for the Halal transportation cost. Realizing

the importance of the quality of the data, voluntariness is

crucial for the study. Hence, respondents were asked about

the willingness to participate in the study. The questionnaire

only will be given, if they agree to be the respondents of the

survey.

More than 250 potential respondents were approaching,

only 179 of them were willing to be involved in the study.

Since they are voluntary and willing, in that respect is no

missing values among the data, and all of the data are safe

enough to be analyzed to answer the research questions of the

subject area. As proposed by (44), the sample size should be

determined according to the power of analysis, which based

on number of predictors. (45) developed a table to determine

the minimum sample size based on the power of analysis.

Based on the table, with eight (8) predictors, 80% power,

medium effect size and significant at 5%, the minimum

Post Graduate

South

Region

North

East

Centre

0.2

Income

Total

less than 1500

1501-3000

0.12

0.40

0.28

100

001-4500

179

Smart Partial Least Squares (PLS) is a variance based

software which suitable for the study which focused on the

prediction between variables in the research model. Even

Smart PLS is using a structural equation modeling approach,

it still based on the regression analysis. Hence the normality

test is still required to ensure that the data is highly not

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 13-22

normal. Based on (49), the data assume as normal if the

sickness is ± 1, and Kurtosis is ± 7. Hair et al., (2017)

proposed to assess multivariate skewness and Kurtosis using

the link in the web power which available through online.

Multivariate skewness and kurtosis for the study at the link

https://webpower.psychstat.org/models/kurtosis/results.php?u

rl=64e873d898e8f07287f896983e3d643b shows that the

Mardia‟s multivariate skewness (β = 11.850, p< 0.01) and

Mardia‟s multivariate kurtosis (β = 71.717, p < 0.01). Hence,

the data was slightly not normal and it is appropriate to apply

the Smart PLS software in this study.

Next, is to test the common method variance (CMV),

which claimed that it should be a problematic issue for the

study if the data were collected from the single source (50).

To overcome the CMV, the study applied both methods;

which are the procedural and statistical method. For

procedural, two scales were used to reduce method biases

caused by commonalities in scale endpoints (51). The

exogenous variables were measured by 5 point scale,

meanwhile the endogenous with 7 point scale. For the

statistical method, Harman single factor test (HSFT) was

applied. The CMV is a serious issue for the study is the first

factor explained more 40% of the variance of the study (52).

The un-rotated factor analysis revealed that the first factor

only carried 30.2% of the total variance explained, thus,

confirming that the CMV is not a serious threat to the study.

The study applied Smart Partial Least Squares

stage, the study will report it using the HTMT ratio. If the

HTMT value is greater than 0.85 (19), thus indicating of

serious issue in discriminant validity. Table 3 shows that,

discriminant validity has been established for the study due to

all values for the HTMT were lower than the most

conservative value set by (19).

4.2 Structural model

Before continuing to the hypothesis testing, it is essential

to confirm that there lateral collinearity is not a problematic

issue in the structural model. According to (61), the variance

inflation factor (VIF) which measure the collinearity must be

lower than 3.3. Table 4 indicates that all the VIF values are

lower than the threshold value set by Diamantopoulos and

Siguaw, thus confirming the culinary is not a problem for the

study (17). For the hypothesis testing, using the bootstrapping

technique with a re-sampling of 500 as suggested by (29), the

decisionn to accept the hypothesis is based on t-value, p-

value and also confidence interval bias corrected. From the

analysis, from seven hypotheses developed, only three

hypotheses were supported. The study found that attitude was

positively related to willingness to pay (ß =0.236, t = 2.846:

LL = 0.101, UL = 0.405, P < 0.01) and perceived behavioral

control (ß =0.229, t = 1.895: LL = 0.039, UL = 0.374, P <

0.05). Hence H1 and H3 were supported. Meanwhile the

study found that subjective norm (ß =0.112, t = 1.499: LL = -

0.020, UL = 0.214, P > 0.05) and religiosity (ß =0.089, t =

1.417: LL = -0.024, UL = 0.219, P > 0.05). Hence, H2 and

H4 were unsupported.

(PLS) version 3.2.8 (53) to test the hypothesis of the study.

Smart PLS is a family of structural equation modeling (SEM)

software, which is a variance based analysis that suitable for

predictive purposes (54). Compared with the variance based

software, which is not suited for the study due to the subject

does not have an intention to reproduce the covariance matrix

to achieve a model fit (Hair et al., 2017). There are two steps

of analysis should be run which are the (55)measurement

model, and the structural model.

Table 5 shows the assessment of coefficient of

determination

(R ),

the

effect

size

(f ) as well as the predictive relevance (Q ) of exogenous

variables on endogenous variables of willingness to pay.

Based on the table the R of 0.292 indicated that attitude,

subjective norm and religiosity explain 29.2% of the overall

variance of willingness to pay for the Halal transportation

cost. For the predictive relevance, using the blindfolding

procedure, according to (56), the Q2, which higher than 0,

indicates that the model has a predictive relevance. On the

effect size, according to Cohen, for effect size; 0.35, 015, and

0.02 consider as large, medium and small effect size

respectively. Hence, both variable, attitude and perceived

behavioral control have a small effect size on the willingness

to pay for the Halal transportation cost (15, 16).

.1 Measurement model

Measurement model is to establish the validities of the

relationship between items and the constructs in the research

framework. There are two validities should be met in the

measurement model; convergent validity and discriminant

validity. Convergent validity to ensure that the multiple items

used to measure the construct really measure that construct.

According to Hair et al., convergent validity can be achieved

if the loading is ≥ 0.5, the average variance explained (AVE)

is ≥ 0.5 and the Composite Reliability (CR) is ≥ 0.7. Based

on the table 2, all the values for loading, AVE and CR

surpass the minimum threshold values set by Hair et al. (56).

Loadings are in the range of (0.674-0.949), AVE in the range

of (0.539-0.864) and the CR is in the range of (0.853– 0.950),

thus, it can be confirmed that the convergent validity has

been established for the study.

Once the convergent validity has been established, next is

discriminant validity, which to ensure that the construct truly

distinct from the other construct and also measuring on how

much indicator represent only on a single construct (57).

Accurate assessment on discriminant validity is crucial to

confirm that the constructs is statistically unique and differ

from other constructs (26) As proposed by (59), at this

Table 5 shows the results of the R , Q and the f of the

study. R indicating the variance on endogenous variable

explained by exogenous variables of the study. As general

guidelines provided by (44), R2 value of 0.75,0.5 and 0.25

can be considered as substaintial, moderate and weak, hence

with the R2 of 29.2%, it can considered that exogenous of the

study only capable to explain 29.2% from the overall

variance of willingness to pay for Halal transportation cost.

To analyze the predictive accuracy, to study used the Q2 by

(64). The study found that the Q2 is 0.234 which is higer than

0, as mentioned by Hair et al., thus, the study can claimed

that the model has a predictive accuracy of the structural

model for that construct (24-26). Lastly to ensure which

variable is more important in explaining the endogenous

variable, effect size (f2) analysis was applied (65).

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2020, Volume 8, Issue 1, Pages: 13-22

Table 2: Convergent Validity

Construct

Attitude

Item

0.914

0.890

0.906

0.886

0.828

0.783

0.692

0.674

0.805

0.840

AVE

Paying for the Halal transportation cost is a good idea

0.944

0.808

Paying for the Halal transportation cost is a wise idea

I like the idea of paying for the Halal transportation cost

Paying for the Halal transportation cost is pleasant

Knowledge

I understand Islamic laws of Halal and haram in Transportation

I feel that I have sufficient knowledge of Halal transportation

I have enough knowledge to differentiate between Halal and Haram

I know about current issues regarding Halal transportation

I know the difference between Halal product and Halal transportation service

I have control to pay for the halal transportation cost

0.871

0.576

Perceived

0.899

0.853

0.690

0.539

Behavioral

Control

I have the resources necessary to pay for the halal transportation cost

0.853

0.831

I have the knowledge necessary to pay for the halal transportation cost

Given the resources, opportunities, and knowledge it would be easy for me to pay for

the Halal transportation cost

.796

Religiosity

I am happily and willingly pay my zakat on time

I enjoy spending time with others of my religious affiliation

I often participate in religious talk at mosque

I often read religious books and magazines

0.815

0.732

0.779

0.660

0.674

I often watch religious programs on TV.

Subjective

Norm

People who influence my behavior think that I should pay for the halal transportation

cost

People who are important to me think that I should pay for the halal transportation

cost

.866

.905

0.879

0.950

0.785

0.864

Willingness To

Pay

I„m willing to pay for Halal transportation service even though choices are limited

0.921

I„m willing to pay for Halal transportation because the benefits outweigh the cost

0.949

0.918

Paying for Halal transportation service is the right thing to do even if they cost more

Table 3: Discriminant Validity: HTMT

Construct

Att

Knowledge

Pbc

Religiosity

WTP

Knowledge

Pbc

0.297

0.623

0.434

0.554

0.542

0.234

0.259

0.159

0.353

Religiosity

0.451

0.523

0.534

0.421

0.356

WTP

0.434

Table 4: Structural Model/Hypothesis Testing

H’thesis

R’ship

Att -> WTP

Beta

0.263

0.107

0.195

0.105

T value

3.016

1.554

1.945

1.336

P Values

0.001

Decision

VIF

0.087

0.069

0.100

0.079

0.101;0.405

(-0.020;0.214)

0.039;0.374

(-0.024;0.219)

Supported

Unsupported

Supported

1.707

1.331

1.561

1.276

SN -> WTP

0.060

Pbc ->WTP

0.026

Religiosity -> WTP

0.091

Unsupported

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2020, Volume 8, Issue 1, Pages: 13-22

Set the rule of thumb of 0.02, 0.15 and 0.35 as small,

medium and large effect size. The study found that attitude

and perceived behavioral control have a small effect six in

their relationship with willingness to pay for Halal

transportation cost.

labelled high knowledge has a steeper gradient as compared

to low knowledge. This exemplifies that the relationship

between attitude and willingness to pay for Halal

transportation is stronger when the knowledge is high, H5

was confirmed.

As proposed by (66), proposed to test the predictive

power using (67). The model assumed to have less error in

predicting performance if the RMSE, MAE and MAPE

values in the PLS model has lower values compare to the

Linear model (LM), and the Q2 value for PLS is higher than

LM (67). As shown in the Table 6, all values fulfill the

requirements, hence it indicates that the theoretically

establish a path model improves the predictive performance

of the available indicator data.

Table 7 illustrates the moderating effect of knowledge

towards variables representing the theory of planned

behavior. The result reveals that, knowledge only moderates

the relationship between attitude and willingness to pay for

the Halal transportation cost. Figure 2, is the Dawson‟s plot

elucidates the moderation effect of knowledge on the

supported hypothesis. As pictured in the image, the line

Discussion and Conclusion

The study revealed that, from three hypotheses for the

Theory of Planned behavioral, only two hypotheses were

supported. H1 and H3 which represent the attitude and

perceived behavioral control were found to have a positive

relationship with the willingness to pay for the Halal

transportation cost. The findings were confirming past studies

by Spash et al., Yadak and Pathak (56,66) for perceived

behavioral control. This indicates that, the relevant parties

regarding the willingness to pay for Halal transportation

should focus on these two variables if they would like to

enhance the willingness to pay for the Halal transportation

cost.

Table 5: Coefficient of determination (R ), and effect size (f2)

Construct

WTP

Att

Decision

0.292

0.234

0.071

0.037

Small

Pbc

Table 6: Predictive Accuracy

PLS

RMSE

MAE

MAPE

Q²

RMSE

MAE

MAPE

Q²

wtp1

wtp2

wtp3

1.026

1.046

1.152

0.806

17.914

0.215

1.082

0.843

0.859

0.962

18.252

19.644

21.419

0.128

0.825

0.916

19.408

20.796

0.185

0.150

1.089

1.252

0.116

-0.003

Table 7: Moderating effect of Knowledge

Hypothesis

Relationship

Beta

T value

2.672

P Values

Decision

ATT * Knowledge -> WTP

SN * Knowledge -> WTP

PBC * Knowledge -> WTP

0.205

-0.011

-0.030

0.079

0.090

0.107

0.076;0.322

(-0.153;0.142)

(-0.151;0.220)

0.004

0.450

0.385

Supported

0.126

Unsupported

0.293

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2020, Volume 8, Issue 1, Pages: 13-22

Figure 2: Moderation effect of knowledge

Even literature claimed that religiosity has a positive

relationship with the Halal matters, since it was close tied

with the Islamic values, interestingly, this finding of the study

is contradict to the literature. On top of that, this finding is

aligned with the Bukhari et al. when he mentioned that

religiosity has no relation to the buying behavior especially

on the food products (30).

The study also found that knowledge moderated the

relationship between attitude and willingness to pay. It shows

that, higher the knowledge which leads to better

understanding on their religious obligation to commit to

purely Halal products in whatever cost they should spend. On

top of that, knowledge does not have a moderation effect

between subjective norms and perceived behavioral control

towards willingness to pay for the Halal transportation cost. It

establishes that, knowledge does not have an impact for

subjective norms and perceived behavioral control. It may

due to the believe that, once the products have Halal stamp, it

is already Halal to be consumed. All the transportation cost

has been hidden by the producers, and they did endure the

cost directly when they buy the merchandise.

Muslim consumer who are looking for the pure quality of

Halal products to be consumed. Hopefully this finding will be

helpful for relevant parties to begin coordinating the session

or talks to increase the positive position towards this subject.

On the other hand, it is required that managers could come

away with a fresh scheme to enhance the willingness to pay

for the Halal transportation cost among Muslim consumers

especially, and also for non-Muslim consumers.

5.2 Recommendation for future studies

The study demonstrates the capability of the theory of

planned behavior and religiosity to explain willingness to pay

for the Halal transportation cost for the Muslim consumers in

Malaysia. Since Halal is not exclusively for Muslim

consumers, but commenced to be looked for by the non-

Muslims, future study show looks at the non-Muslims as the

respondents of the survey. It is more meaningful if the survey

is conducted by the non-Muslim lands, but having quite a

number of Muslim population in the rural areas. This sort of

study would reveal bigger impact on the halal studies, since

Halal is not part of their religious duty

.1 Conclusion

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