Role of the Theory of Planned Behavior in Consumer’s Willingness to Pay for Halal Logistics: Evidence from Pakistan

Abstract

Halal logistics is among the major components for manufacturing halal products. However, Halal is found to be a unique concept and involves sumptuous guidelines and implementations, hence it requires a large sum of investment. Moreover, the logistics cost like in any other supply chain is transferred to the end consumer which in turn increases the price of the product. There are various studies conducted on Muslim consumer’s behavior towards Halal products, however, Muslim consumer’s behavioral intention towards paying the cost for Halal Logistics can still be considered as Novel. Hence, this research made use of the Theory of Planned behavior and considered the three predictors of behavior in the theory i.e. Subjective Norms, Attitude, and Perceived behavioral control along with an additional variable i.e. religiosity to observe the factors that best predict the consumer’s inclination to purchase Halal Logistics in Pakistan. Data was collected from 159 respondents from Karachi, Pakistan. Structure Equation Modeling technique was employed in this research using Smart PLS 3. The outcomes of the research revealed that the attitude of the consumer towards Halal and their level of religiosity best predicted the willingness of the consumer to pay for Halal Logistics. It is anticipated that this research will provide a better comprehension of the consumer’s behavior towards Halal logistics and it will enable the policymakers to enhance Halal supply chain practices.