Muslim Consumers’ Expectations of an Islamic Base Retail Store and

their Patronage Motivation: A Malaysian Perspective

by
Waida Irani Mohd Fauzi
College of Business
Universiti Utara Malaysia
Sintok kedah, Malaysia

Nazlida Muhamad
College of Business Administration,
Academic College for Girls,
Jazan University, Kingdom of Saudi Arabia

Abstract
A significant emerging trend among retail outlets in Malaysia is the adoption
of an Islamic base positioning. Gayatri (2010) concludes that Muslim
consumers prefer to deal with businesses that show interest in Islamic
religion and activities, and are concerned with finding barakah (i.e. blessing)
in their transactions. The aims of this study are twofold- to explore
Malaysian Muslim consumer’s’ expectations of an Islamic base retail store,
and their motive to patronage an Islamic base retail store. This study is an
exploratory study performed in the Northern region of Malaysia. A number
of seven customers had been interviewed base on a set of open-ended
questions. Respondents expect Islamic retail store to uphold Islamic and
religious values, offer variety of halal products and carry Muslim made
products. The prominent motive is to purchase products that are not only
halal but also toyyiban (wholesome), besides strong indications that they are
after greater confidence on halal status of products offered at the outlet as
well as the feel good factor of knowing that they are patronizing at Muslim-
owned outlets.

1. Introduction
“ Personally, knowing that a store is sensitive towards
Islamic values makes me more confidence to shop at the
store... no doubts on the halalness of products sold there...”
Respondent.

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The excerpt from the transcript above manifests the gist of the motive for
this study. Store image and positioning that focus on Islamic appeals seems
to attract Muslim consumers to patronage a store.
Recently, Islamic base retail store is growth dramatically. Due to paradigm
change in consumer lifestyles towards religion concern, there is a steady
growth of Islamic base retail store in Malaysia. Various literatures had
discussed on the influences of religion on consumer behavior. Nonetheless,
few studies are done to explore what is the customer motives (Muslim) in
patronage Islamic base retail store. There are two objectives of this study; to
identify Muslim customer motives in patronizing Islamic base retail store
and to describe the Islamic base retail store.
2. Literature review
2.1. Retail industry in Malaysia
The retail market trend had rose up to 0.8% for the whole year in year 2009.
It showed a good impact of recovery from the economic downturn. In
addition to that, profit margins in the retail industry were up to 2.4% during
the first quarter, and it stated a positive growth in retail sales (Peterson &
Balasubramanian, 2002). The encouraging growth in retail industry, seem
likes, retail will continue to be prominent economic activity in the country.

In Malaysia retail market is wide ranging from department stores,

supermarkets and mini markets, specialty shops, convenience stores,
provision stores, pharmacies, medical halls, direct sale, wet market stalls to a
pavement shops and petrol kiosk. However, the trend keep on changing with
the growth of small scale retailer that operates based on Islamic concept. The
high demand for the Islamic concept of business not only limited to the
services sector such as banking industry, but it keep on growing in retail
sector such as retail outlet (Utusan Malaysia, 2008). The Islamic concept of
business is refer to the business that conducted according to syariah
principles and have Islamic values. Moreover, most of the products sold in
the outlet is Muslim made products which must be not only halal but halalan
toyyibba and the appearance of the owner also follow Islamic appearance.
Thus, with the increasing number of this type of retail outlet, the present
study is try to investigate the patronage motives of the customers towards
Islamic retail store.

2.2. Patronage Behavior

Patronage behavior is the core objective for the retailer business. It becomes
the key success of a particular retail business. It can be defined as the store
choice of a consumer based on set of evaluative criteria and store loyalty to
2
specific store. Based on the past literature, there are various definition of
patronage behavior.

An early research in this area defined patronage behavior is when customers

repeat purchase, put a commitment and was influence by strong preference
to purchase at a particular store. The behavior will result to loyalty (Spigell
and Sewall, 1987)

The same definition is addressed by (Osman, 1993) ,patronage behavior

refer to repeat purchase for the same product or any other products. A loyal
customer will give priority to the particular store as compare to other store
and it will be on long term basis.

Moreover some study had defined store loyalty or patronage behavior based
on revisit behavior of the customer (Dick & Basu, 1994). The definition is
consistent with (Bloemer & de Ruyter, 1998), which defined store loyalty as
the biased behavioral response expressed over time, by some decision
making unit with respect to one store out of a set stores, which is function of
psychological processes resulting in brand commitment .

There are many factors that influence patronage behavior of the customer.
One of the factors is store image and various researches had investigated the
influences of store image towards patronage behavior of the store.
2.2.1. Store image dimension
Store image research had been studied since 1980’s and several attempts
have been made to examined patronage behavior of the consumers towards a
store (Bellenger & Moschis, 1981; Hansen & Deutscher, 1977; Martineau,
1958; Mazursky & Jacoby, 1986; Monroe & Guiltinan, 1975; Schiffman,
Dash, & Dillon, 1977). Patronage behavior involved decision process that
related to where, how and what people shop (Moye,2000).The process start
with identifying patronage motives, which influenced by retailer’s attributes,
consumer characteristics and choice (Haynes ,1994). Moreover, the decision
process also is derived from customer perceptions and attitudes from
experiences, need and information towards a store (Moye,2000).
A number of store attributes have been identified in the literature as a reason
for store patronage. The classical works is by (Martineau, 1958) which
divided by two categories , functional and psychological. The functional
includes attributes such as location, assortment of product and store layout.
The psychological category is refer to the feeling generated by functional
elements of the store. In other study, (Fisk, 1961), determined six attributes
in store :location accessibility, merchandise suitability, value for price, sales

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efforts and store service. In another study, a twelve factor scheme were
introduced by (Kunkel & Berry, 1968),which includes price of merchandise,
quality, assortment, fashion of merchandise, sales personnel, sales
promotion, advertising, store atmosphere, location accessibility, service, and
reputation factor. The additional attributes was identified in another study
such as quality and variety of merchandise, sales staff and store atmosphere.

The prominent author of the topic of store image was (Lindquist, 1974). By
reviewing 19 articles, he synthesized the framework of the studies and
introduced a set of nine store attributes: merchandise, service, clientele,
physical facilities, promotion, accessibility, and store atmosphere,
institutional and post-transaction satisfaction. Other study by (Doyle &
Fenwick, 1974), proposed a five attributes that include product, price,
assortment, styling and location. Bearden (1977), developed seven attributes
as significantly to store patronage such as: price, quality of merchandise,
assortment, atmosphere, location, parking facility and friendly staff. (Kasulis
& Lusch, 1981), stated that stores projects a personality to consumer through
their design features, employees and merchandising strategy. The personality
of image is conveyed through functional characteristics of the stores such as
location, size, and store hours (objectives attributes) and subjective attributes
include attractiveness of store décor, friendliness of employees and level of
store service.

(Mazursky & Jacoby, 1986) identified store image as a: cognition or affect,

which is /are inferred, either an object or event such as store , a product, a
sale , and which represent what the phenomenon signifies to an individual.
(Bloemer & de Ruyter, 1998), defined store image as the complex
consumer’s perception of a store on different salient attributes. Other study
by (Hopkins & Alford, 2001), identify seven reoccurring dimensions stated
as functional attributes (merchandise, price, service and personnel) and
affective (atmosphere, convenient, self-concept). Recently, (Solgaard &
Hansen, 2003) identify several store attributes that important for the
consumer in evaluating a store. These attributes include merchandise,
assortment, merchandise quality, personnel, store layout, accessibility,
cleanliness and atmosphere.

2.2.2 Factors influences Patronage behavior

Numerous studies have attempted to explain the relationship between store

attributes and patronage behavior of the store. Previous research showed
that, various factors influenced patronage behavior such as factors that relate
to store attributes (merchandise, atmosphere, personal interaction,
4
accessibility) and service quality. Consequently, retailers today must know
how to differentiate themselves by meeting their customers need better than
their competitors. Two important things need to be considered in the retail
store are to be named as in store experiences and experiences related to
merchandise (Westbrook, 1981).They should not only concentrate on
merchandise but must also focus on in store experiences. In store
experiences usually includes interaction with store employees as well as the
ease of walking around the store. While experiences related to merchandise
such as quality and availability of the merchandise in the store.

Merchandise
The dimension of the merchandise consist of considerations relative to
selection, quality, reputation, assortment and availability (Darden Barry &
William, 1994; Hansen & Deutscher, 1977; Kunkel & Berry, 1968).

Merchandise is important attributes to patronize a retail store (Alhemoud,

2008).Merchandise can be discussed based on merchandise attribute and
merchandise assortment .Several studies have identified that merchandise
assortments affect the store choice decisions and it is importance attributes
behind convenient location and low price criterion (Arnold, Handelman, &
Tigert, 1996). A proxy for product selection, the product of the number
categories offered and the numbers of items within each category may
influence customer store selection. The assortment of the product can be
identified based on a number of the brands carried by the store. In a Islamic
retail store , the product assortment is refer to the variety of Muslim made
products and various specifically Islamic base product. In particular, Islamic
retail store will supply most of the Islamic products from Mecca such as
(zam-zam), kurma and other product that relate to religious use.

Rationally, a larger assortment of the products will be better for the retail
store, however, for the grocery stores such as Islamic retail stores, most of
the shoppers prefer smaller or fewer grocery store assortments (Broniarczyk
and Hoyer,2001). The most important considerations is the availability to
offer households’ favorite’s brands because it will affect the store choice
criteria (Briesch, Chintagunta, & Fox, 2009).

Recently the suitable merchandise mix offer in the retail store will create
differentiation and positioning of their store (Semeijn, Van Riel, &
Ambrosini, 2004).Different background of the consumers characteristics will
5
have strong influence on patronage behavior (Pessemier, 1980). In
particular, different evaluation in merchandise selection may vary among
consumer regard to their beliefs of the religious rules and laws. For example,
for Muslim consumer they concern towards Muslim merchandise such as
Islamic branding before they decide to purchase a product. As stated by
(Alserhan, 2010), Islamic branding refer to several criteria such as listed
below:

1. the brand must be shariah compliance,

2. the brand originate from Islamic country and
3. the brand must be targeted to Muslim consumer

Store atmosphere
Conducive atmosphere included store cleanliness, appealing of the store and
comfortable shopping in the store (Lindquist, 1974). This is important as it
will influenced customer emotion and may affect behavioral intention (Kim
& Moon, 2009).Retailer should place emphasis on this construct because it
plays positive outcome and strong customer relationship (Babin, Lee, Kim,
& Griffin, 2005). A convenience store will influence customer to stay longer
and will create an intention to revisit the store in the future. This is supported
by prior studies (Baker, Grewal, & Levy, 1992; Baker, Parasuraman,
Grewal, & Voss, 2002), that stress on the effect of store environment on
patronage behavior of the retail store. Most of the attributes that affect in
store atmosphere include music, scent, color, display, layout of the store and
many others. In particular, customer will choose retail store that have proper
and product display which make them easy to find whatever product they
search in the store without any assistance from the salesperson(Baker et al.,
2002).

Sales personnel service

Another important attributes in evaluating small scale store is the important
of personal interaction which identify as sales personnel services on
patronage behavior (N. Abu & Roslin, 2008; N. K. Abu, 2004; McDaniel &
Burnett, 1990). The previous construct that had widely used to evaluate the
influences of personal interaction is by (Hansen & Deutscher, 1977).

Prior studies had discovered that sales personel services such as helpfulness,
friendliness of the salesperson will influence patronage behavior of the
6
religious people (McDaniel & Burnett, 1990). Moreover, personal
interaction is stated as the main influence to attract customer especially in
the small scale retail store. Customer will keep patronage a store which can
give them personal interaction and customized their need. It is become a
good strategy and a marketing tool to compete in a competitive environment.

Personal interaction can be divided into two sub dimension such as service
employee inspiring confidence and being courteous and helpful between
customer and salesperson (Dabholkar, Thorpe, & Rentz, 1996). The concept
is relate to religious concept of humaneness which identify by (Mort &
Hume, 2010) in evaluating Muslim consumer behavior.

Halal/haram product
Regardless, the several store attribute discuss in the previous literature,
recently, scholar had found that there are other unique dimension that is
related to Malaysia Muslim customer such as halal dimension. Previously
the halal dimension are suggested to measure service retailing such as bank
(Haron, Ahmad, & Planisek, 2005), and insurances company . But, recently,
the halal dimension is dominant to the other retail industry and the study
done by (N. K. Abu, 2004) had proved the importance of the halal dimension
in the retail sector . As for Muslim consumer, the most important things
when selecting the products is halal/haram as compared to the other factors.

Prior studies revealed that halal merchandise is important attributes in

selecting a store (N. K. Abu, 2004). Prior studies found that merchandise
assortment and quality of the merchandise is important criteria in purchasing
the product. However, the studies done based on the Muslim consumer
discover that the most important things in selection of the merchandise is
halal considerations. Indeed, for the devout Muslim they are not only
concern about halal but the product must halalan toyibba. Meaning that,
there go beyond halal concept and feel much more confidence with Muslim
made product.

In Islam halal means permissible (lawful) and haram means prohibited

(forbidden) by shari’ah compliant. By this definition halal means, anything
that is free from any component that Muslim are prohibited from consuming,
and it is not just simply “pork free” but its covers a multitude of forms such
emulsifiers, gelatins, enzymes,lecithin and glycerine and also additives such
as stabilizers, flavouring, colouring and breadcrumbs (Kocturk, 2002).

Based on Malaysia’s department of Islamic development (Jabatan Kemajuan

Islam Malaysia) the halal guidelines are guided by quranic interpretations by
7
Maliki, Hambali, Syafie and Hanafi. The complete guidelines of halal food
are based on certain criteria highlighted by JAKIM are :

1) Does not consist of or contain anything which is considered to be

unlawful according to Islamic law.
2) Has not been prepared,processed,transported or stored using any
appliance or facility that was not free from anything unlawful
according to Islamic law and
3) Has not, in the course of preparation, processing,transportation or
storage been in direct contact with any food that fails to satisfy 1 and
2 above.

Other than that, JAKIM also have listed Islamic criteria regarding to certain
aspects that must be followed such as :

The slaughter: The slaughter of animals must be performed by a Muslim of

sound mind and maturity, who fully understands the fundamentals and
conditions related to this activity. The animal must be alive at the time of the
slaughter and must be among those which Muslims are allowed to eat. The
slaughter must be done with a sharp device – but not something made out of
bones, nails or teeth – and the animals’s respiratory tract, oesophagus and
jugular vein must be severed.

Storage, display and preparation: Processed food is halal if it is not made

up of or does not contain parts or by-products of animals which Muslims are
forbidden to consume. It should not make up of or does not contain parts or
by-products of animals which Muslims are forbidden to consume. It should
not contain what the law terms as filth, and should be prepared, processed
and manufactured using untainted equipment. In preparation, processing and
storage, halal food should not come into contact with or be in close
proximity to that which is not halal.

Hygience and sanitation: The premises for manufacturing, preparing and

selling food and drinks must be clean and free of elements which may cause
infestation or flies, rats, cockroaches, lizards and other such pests. Factory
workers must be healthy, and wear clean, protective clothing to avoid
contamination. Equipment used must be washed frequently to ensure
cleanliness. Washroom facilities must also be clean.

As a Muslim consumer, is a part of their obligation to find halal product and

must be shy away from consumable that are doubted. This matter of fact has
been stressed in Al Quran in surah Al Baqarah verse 2:168) and Al-Baqarah
verse 2:172.

8
 “O ye people! Eat what is on earth, lawful (halal) and good (tayyib)…

(Al-Baqarah, 2:168)

“O you who believe!Eat of the good things that we have provided to you,and
be grateful of god, if it is He ye worship. He hath only forbidden you dead
meat,and blood, and the flesh of swine and that on which any other name
hath been invoked besides that of god.”

(Al-Baqarah,2:172)

By referring to the definition by JAKIM, halal mean not only prohibited to

unlawful food, but the concept of halal is wide. Moreover in Islam, it is not
only concern about halal but must be tayyib. Halal is wide concept that must
be fully understand by Muslim,some people believed that as long as they do
not eat prohibited food in Quran they are truly Muslim. However, the
concept of halal is broad and the product not only must free from prohibited
items but also must be prepared, store and prepare according to syariah
compliance. Furthermore it must be clean and hygiene to determine that the
food or product are really clean and safe to be consume or eat.

With the understanding of the halal concept by Muslim consumers, it will

change their evaluation criteria to patronize a store. Religious people have
different set of criteria to be evaluated when selecting a store to patronize.
As for example religious people (Catholics) concern about sales personnel
friendliness and assistance (McDaniel & Burnett, 1990). Thus, the present
study believed that, it will be different set of attributes for Muslim
consumers in evaluating a store to patronized.

3. Research methodology
In order to investigate the Muslim customer motives in patronage Islamic
base retail store, seven respondents had been interviewed in one of the retail
outlet in northern region, Malaysia. Seven customers had been interviewed
to explore their patronage motives towards this kind of store.
The questions asked are: what are the main motives to visit that store? types
of product they buy, why they feel comfortable, what the other store
attributes that attract them to visit the particular store. The transcripts are
analyzed for key themes.

4. Context

9
The reported growing conservatism among Malaysian Muslims may have
driven retailers in Malaysia-involving large and mostly small and medium
businesses to develop Islamic base retail image outlets. Either settling with
the Islamic theme colors of green and white for store signboard, or adopting
an Arabic-like name or logo for their stores, these retailers seem determined
to lure the predominantly Malaysian-Muslim consumers market through
religious base positioning.
This study has been conducted in Kedah, a state in the northern region of
Malaysia where there is a significant growth in Islamic base retail outlets
and industry. An Islamic party governs the state which may implies that the
people are more religious-conscious. This may well extend to their product
choices and consumption that tends to be motivated by Islamic religion.

5. Finding
The sample described the Islamic base retail store as Muslim owned outlet,
staffs wearing Islamic proposed clothing (e.g. wearing kopiah or skullcap),
carry Muslim-made products and varied products that relate to Islamic
teachings and values. The prominent motive is to purchase products that are
not only halal but also toyyiban (wholesome). There are indications that
they have greater confidence on halal status of products offered at the outlet
as well as the feel good factor of knowing that they are patronizing at
Muslim-owned outlets.

5.1. Consumer motives

1-Product display and attributes/features
Respondents are concerned with product display. Good product display is
important so that they can locate products easily. There are concerns that the
retail outlet did not pay enough attention to product display.
All respondents are concerned with the halal status of the products. They
choose to patronage the store base on their belief that retail store that carry
Islamic image offer products that are truly halal or fit for Muslim
consumptions as compared to others. It appears that many of the
respondents have doubts on the halalness of products that are sold in
ordinary supermarket.
“I have more confidence on products that are made and sold by Muslims
than those in the supermarkets”
“.....I have doubt on the halalness of products sold by ordinary
supermarkets..fish ball, fish cakes by non Muslim products are doubtful..you
10
don’t know what are their ingredients...can’t take them...fear that its
haram..”

2- Supporting Muslim Businesses

Respondents’ patronage of Islamic base retail store is a form of support to
Muslim businesses. Element of consumer boycott associated with the
conflict in the Middle East is also mentioned.
“...Muslim products and we want to help our Muslims business
“ we are now more concern on purchasing halal products..in fact some of us
will not patronage Tesco, because of its connection with Jews, so this type of
store (Islamically positioned store) is good..”
Respondents complaint about the store atmosphere and sales personnel
service but these seems not hinder them to patronage the store.
3-Unique motives-Concept halal toyibban
Respondents mentioned that they are looking for products that are halalan
toyyiban. The concept is an extended version of halal concept that stresses
on the goodness of products.
‘“Actually, I am concern not only on the halal status of aproduct but also on
the goodness of the product that is the halallan toyibban”
5.2. Islamic base retail store
There are two main criteria for Islamic base retail store; staff appearance that
coherent with Islamic values, and wide varieties of Muslim made products.
“...and the appearance of the staffs should comply to Islamic dress
code..such as wearing scull cap.”
“..when you look at the staff of the store imply the quality of products at the
store whether its can be trusted or not in term of complying to Islamic
standards..”
“ ..should have significant selections of Muslim made products”
“..the products should be Muslim made not only Malays (the race that is
predominantly Muslims in Malaysia)...”
6. Discussion
Generally, the sample’s responds are parallel to previous reporting in terms
of the importance of product assortment, store layout and the quality of
services provided at the outlets in choosing a retail outlet. While they praised
the store for the assortment of products offered at the store, unsatisfactory
11
store layout and sales personnel service do not seems to hinder them to
patronage the Islamic base retail store. Apparently, there are stronger
motives than those mentioned in determining respondents’ patronage of the
Islamic base retail store.
Among the factors maybe the wide varieties of guaranteed halal products,
which are mostly made by Muslim owned companies. Respondents may
tend to be keener in consuming products base on Islamic rules and
regulations, tends to be more sensitive about halal status of products. This
may leads them to be more conservative in judging halalness of products and
use other cues such as manufacturer’s or the producer of the products to
determine product’s halal status.
Islamic base retail outlet may be used as a filter to get ‘truly’ halal products.
The possibility is such a store will sells products that are mostly produced by
Muslim owned companies. Marketers need to have knowledge on how
Muslim consumers identify the profile of manufacturers or producers. What
are the indicators Muslim consumers’ used as indicators for manufacturer’s
profile? Is it the company’s name? Or is it any specific symbol on the
packaging? This will assist marketers to design the right strategy and tactics
for their products. This may want to be pursued by future studies.
Economic loyalty to Muslim made products is also another perspective
brought up by respondents as a patronage motive. They tends to feels oblige
to help Muslim entrepreneurs by patronizing Islamic base retail outlet.
However, this is only possible if they get to know the owner of the store.
Future studies may want to research and suggest best possible strategies to
deal with Muslim economic loyalty to Muslim owned businesses.
The sample’s unique perception on the Halalan toyyiban concept is the main
take away from this study. The concept has once been highlighted by
relevant government agencies in providing more stringent certification on in
Malaysia. Nonetheless, previous consumers studies has not researched the
halalan toyibban concept, and no attempt has been made to understand
Muslim cosumers’ understanding of the concept.
Some respondents in this study are conscious about the purity of products
that goes beyond ordinary halal concept/certification. For these consumers,
products made by Muslim are unique and incomparable to other products.
They tend to believe that Muslim made products are blessed and relatively
superior to others. Future studies may want to learn about the concept of
halalan toyyiban from consumers’ point of view and the percentage of
Muslim consumers that are conscious and pursuing this concept in their
product choices.

12
Respondents in this study are together to suggest that Islamic base retail
store should have staffs, or the store image and layout for that matter- that
are compliance to Islamic values. In that case, Islamic base retail store
should prioritize polite staffs in decent clothing, and store ambience that
emphasize Islamic aesthetic values. Respondents also stressed on the
availability of wide assortments of Muslim made products.
As for now, Islamic base retail stores maybe the concern of Malaysian retails
cape but not others. It is also the concern of a market with multi religious
society where Muslim consumers and businesses dwell with followers of
other religions. This study explored possible unique perceptions, motives
and expectations from Malaysian Muslim respondents on Islamic base retails
tore outlets. Apparently, there are interesting perspectives that needs further
investigation to quantify the significant existence of unique Muslim
consumer’s’ expectations and hope in Islamic base retail store outlets.

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