Abstract:

The current trend shows that increasing middle-income society in Indonesia is changing its behavior to be more ethical in food and personal hygiene consumption. Green Personal Care and Beauty Industry have exhibited continuous growth, as consumer's preferences shift towards more natural ingredients, organic product and product that are more environmentally friendly. Concurrently, the main consumer of green beauty and personal care product in Indonesia is mostly, a practicing Muslim woman, which also a dominant representation of cultural identity in the country. This research is aimed at investigating the critical factors affecting the ethical consumption behavior on Indonesian Muslim woman towards organic personal care and beauty product. Several independent variables such as Fair Trade Attitude, Materialism, Environmentalism and Religiosity is utilized to predict the intention of purchasing an ethical beauty and personal care product. A comprehensive religiosity measure is used in this paper to gain more profound knowledge of the relationship between faith to ethical consumption. This research uses a survey via an online questionnaire and utilizes Structural Equation Modeling (SEM) for the output analysis. The result shows that from 234 samples of questionnaires taken, Fair Trade Attitude has a significant effect on Muslim woman Ethical Consumption Behavior. However, the variable of Materialism, Environmentalism, Intrinsic Religiosity, Extrinsic Religiosity Personal, and Extrinsic Religiosity Social do not have a substantial impact on Muslim woman's ethical consumption behavior.