Determinants of Purchase Decision: The Moderating Role of Halal Brand Awareness

Abstract

This study aims to analyze the influence of product knowledge, product involvement, and product innovation on the purchasing decisions for halal cosmetic products from PT Paragon Technology and Innovation, and to examine the role of halal brand awareness as a moderating variable in these relationships. The study employs a quantitative approach with an explanatory research design. Data were collected via questionnaires distributed to 180 Muslim Generation Z respondents in Indonesia who had used PT Paragon Technology and Innovation products, utilizing a non-probability sampling technique. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS software. The results indicate that product involvement and product innovation have a positive and significant effect on purchasing decisions, whereas product knowledge does not have a significant effect. Moderation analysis reveals that halal brand awareness does not moderate the influence of product knowledge, product involvement, or product innovation on purchasing decisions. These findings suggest that Generation Z's purchasing decisions regarding PT Paragon Technology and Innovation's halal cosmetic products are driven more by consumer involvement with the products and the company's ability to deliver innovations that meet market needs. This study contributes empirically to the literature on consumer behavior in the halal cosmetics industry and offers insights for the company to prioritize product innovation strategies and enhance consumer engagement to drive purchasing decisions.