Abstract:

In the rapid growth of the global halal food industry, the halal fast-food sector is still dominated by the usual big players from the US. Albeit the many boycott attempt by the Indonesian consumer due to US foreign policy in the Middle East, sales on US-based fast food are high. This paper attempts to analyze factors affecting Indonesian consumer's decision to purchase food and beverages from US fast-food restaurants (mostly halal certified), taking into account the perception of Indonesian consumer toward US products. This study utilizes variables such as religiosity, animosity toward US-based product, and ethnocentrism to determine the purchase behaviour from US fast-food restaurants among Indonesian Muslim consumers. Variable Product Judgment moderates the effect of animosity and ethnocentrism. An online survey was conducted with a structured questionnaire to elicit responses from a total of 314 respondents and tested the framework using Structural Equation Modelling (SEM). The result shows that the animosity and religiosity have a direct significant negative effect on the purchase of US fast-food restaurants' products. This study also shows that ethnocentrism, as well as religiosity, has a significant positive effect on animosity, and religiosity also has a significant positive effect on ethnocentrism. Lastly, the results of this research also show that product judgment has a significant positive effect on US fast food restaurants’ products purchase. This paper adds a significant contribution to the knowledge of consumer behaviour, especially the roles of factors affecting consumer purchase of foreign product from countries with unfavourable disposition.