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Purchase
Factors influencing Muslim intention
Generation Z consumers’
purchase intention of
environmentally friendly halal
cosmetic products Received 27 July 2022
Revised 27 December 2022
29 March 2023
Mohammad Iqbal Irfany and Yusniar Khairunnisa Accepted 2 April 2023
Faculty of Economics and Management, IPB University, Bogor, Indonesia, and
Marco Tieman
ELM Graduate School, HELP University, Kuala Lumpur, Malaysia and
LBB International, Kuala Lumpur, Malaysia

Abstract
Purpose – This study aims to identify the characteristics of Muslim Generation Z and analyze the factors
that influence its purchase intention of environmentally friendly halal cosmetic products.
Design/methodology/approach – This research adopts the quantitative methods of a questionnaire
and sampling technique using purposive sampling. The respondents in this study were 300 Indonesian
Muslims from Generation Z. Descriptive analysis and structural equation modeling–partial least structural
with SmartPLS 3.3.7 software were used to analyze the research data.
Findings – This study found that of the nine hypotheses tested, seven are confirmed, including the effect of
halal labels on halal-green awareness, environmentally friendly labels on halal-green awareness,
environmental knowledge on halal-green awareness and knowledge on attitudes. Meanwhile, religiosity and
halal-green awareness influence attitudes and attitudes that affect the purchase intention of environmentally
friendly halal cosmetics. Two hypotheses that are not accepted are the influence of religiosity on halal-green
awareness and halal-green awareness on attitudes. The findings are expected to increase interest in
buying environmentally friendly halal cosmetics by better understanding consumer behavior, especially
Generation Z.
Practical implications – Cosmetics manufacturers benefit from halal-green branding on their products
to enter new halal markets and increase market share.
Originality/value – This study is more comprehensive than previous studies, combining halal and
environmentally friendly elements with a focus on Generation Z.
Keywords Cosmetics, Environmentally friendly, Generation Z, Halal, Purchase intention,
Sustainable Development Goals
Paper type Research paper

1. Introduction
Indonesia, the country with the world’s largest Muslim population (Pew Research Center,
2020), is currently dominated by Generation Z (Badan Pusat Statistik [BPS], 2020, 2021).
The 2020 Indonesian Population Census (BPS, 2020, 2021) shows that Generation Z (born
1997–2012) accounts for 74.93 million or 27.94% of the total population of Indonesia. Journal of Islamic Marketing
Although not all members of Generation Z have reached working age, in about seven years, © Emerald Publishing Limited
1759-0833
most Generation Z Indonesians will have entered the workforce. DOI 10.1108/JIMA-07-2022-0202
JIMA In addition, as most of the Indonesian population is Muslim, halal products in Indonesia
are a necessity that cannot be separated from daily life. The obligation of Muslims to
consume halal and tayyib products is written in the holy Quran surah Al-Baqarah: 168. This
halal concept is not limited to food and has spread to several other product categories,
including cosmetics (Ngah et al., 2019).
According to Indonesia’s halal regulation, Law No. 33 of 2014, concerning the guarantee
of halal products, cosmetics are covered under halal products. Based on data from BPS
(2020, 2021), the cosmetic industry is experiencing strong growth and is projected to
increase further in the coming years. Therefore, halal cosmetics have become an attractive
market with great business potential (Suryani, 2022). According to the 2022 State of Global
Islamic Economy Report (DinarStandard, 2022), Indonesia ranks second of the top five
countries in the Muslim consumer cosmetic market, confirming the market potential for
cosmetic manufacturers and promising business prospects in Indonesia.
Industrial activities are becoming increasingly vulnerable to complex environmental
challenges. Soaring awareness of the environment and climate change by governments and
lobbyists places high pressure on industries to address the environmental impact of
producers and their supply chains. Consumers and companies are key stakeholders that
play a fundamental role in preserving the environment for the next generations (Santoso and
Fitriani, 2016). Consumers are increasingly aware of their obligation to buy appropriate and
safe products for the environment. In addition, worsening environmental conditions
motivate business sectors to innovate using environmentally friendly materials and
processes. The trend of green initiatives worldwide pushes manufacturers to produce and
market environmentally friendly cosmetic products that attract consumer attention (Chin
et al., 2018). Green cosmetics are made from natural ingredients, and the production and
delivery process should not pollute the environment (Diva, 2020).
Young consumers’ interest in environmentally friendly cosmetic products has grown
significantly over time (Lehri, 2015). Generation Z’s interest in environmentally friendly
products is an opportunity that has created a large market for companies that sell
environmentally friendly products, including cosmetics. As in other countries, Indonesia’s
market share of environmentally friendly cosmetic products has grown. It is believed that
the number of environmentally friendly products available in Indonesia is increasing
(Adhitiya and Astuti, 2019), as many companies are starting to implement sustainability
practices in their production activities (Arafah, 2018). However, Indonesia still has fewer
environmentally friendly cosmetic products than general cosmetic products (Chin et al.,
2018; Kurnia and Mayangsari, 2020). Halal cosmetic products that are environmentally
friendly and have been officially halal and environmentally certified are still limited and
difficult to find.
For Indonesian Muslims, halal and environmentally friendly products may be in high
demand due to Islamic teachings: every Muslim is taught to consume halal and tayyib
products. According to Sutono (2015), any product consumed must be halalan tayyiban,
which encompasses the concept of holistic quality, including cleanliness and sanitation,
safety and health, and contains natural ingredients, including those permitted by Allah
SWT. In the context of halalan tayyiban, environmentally friendly is included in the tayyib
concept. Being environmentally friendly is one of the goals that must be achieved in
maqashid sharia. The concept of maqashid sharia with the environment is closely related.
The degree to which customers are willing and inclined to purchase goods or a service
within a specific time frame is referred to as purchase intention. Intention is one of the
primary motivators of behavior (Ajzen, 1991). Purchase intention is a method of examining
and forecasting consumer behavior regarding their attention to specific brands and
willingness to make purchases (Garg and Joshi, 2018). The purchase intention can be used to Purchase
test the efficacy of a new distribution channel, which can then be used by management to intention
identify which customer categories and geographic areas the channel should target
(Morwitz et al., 2007). Measuring intention is an effective way to predict future purchasing
behavior. The purchase intention variable in this study is defined as the respondent’s
intention to buy; it influences purchasing decisions regarding eco-friendly halal cosmetic
products. Thus, this research is expected to provide a greater understanding of Indonesian
consumers’ intention toward environmentally friendly halal cosmetic products.
This study combines halal with environmentally friendly elements and analyzes the
variables of environmental knowledge and halal-green awareness, which have not been
reviewed in the area of halal cosmetic products. Although it is crucial to merge the concepts
of halal and green, they are frequently used separately. This allows for the creation of a
management model that is holistic and all-encompassing, as well as incorporates both
physical and spiritual values (Hanapi et al., 2017; Razalli et al., 2012). This analysis follows
this assertion. This holistic idea was developed based on the halalan tayyiban concept in the
Qur’an. The halal-green idea emphasizes material aspects without ignoring the intangible
dimension, such as spiritual and emotional facets. The idea also encompasses the three
relationships between people, God and nature. Therefore, incorporating halal and green
principles may help to address management problems in a more all-encompassing and
comprehensive way.
This study is broader than previous studies (Suki et al. (2016), Noor et al. (2017), Rahmi
et al. (2017), Chin et al. (2018), Garg and Joshi (2018), Larasati et al. (2018), Alamsyah et al.
(2021), Handriana et al. (2021) and Arifin (2022))in terms of the topic, namely, cosmetics that
carry the concept of halal and an environmentally friendly dimension. Additionally, this
research focuses on Generation Z, which is different from previous research on the
Millennial Generation.

2. Theoretical background
2.1 Purchase intention
Purchase intention is the primary driver of the theory of planned behavior (TPB).
Customers’ purchase intentions are explained by consumer behavior, allowing marketers to
better target their marketing efforts (Kotler and Keller, 2015). A main driver behavior is
intention (Ajzen, 1991). Purchase intention is a tool for examining and predicting consumer
behavior by consumers’ attention to a particular brand and their willingness to make a
purchase (Garg and Joshi, 2018). Purchase intention considers the scale of a consumer’s
estimate in making a purchase decision (Ali et al., 2020). According to Schiffman and
Wisenblit (2015), measuring intention is the best way to predict future buying behavior.
Thus, this study defines the purchase intention variable as the respondent’s intention to buy
a product. Specifically, it assesses the purchase decisions regarding environmentally
friendly halal cosmetic products.

2.2 Environmentally friendly halal cosmetics

Halal cosmetics do not contain haram ingredients and are produced in compliance with
shariah. According to Indonesia’s halal authority Majelis Ulama Indonesia (MUI), halal
cosmetics must not contain ingredients such as halal animal placenta, hair feathers, horns from
animal carcasses, snails, worms, blood plasma, eaten chicken eggs, silk or gold particles. Halal
cosmetic products are appropriate for Muslim and non-Muslim consumers (Briliana and
Mursito, 2017). Non-Muslim consumers buy halal products based on the perception that they
JIMA are safer to use than non-halal products (Ireland and Abdollah Rajabzadeh, 2011), and possibly
even more environmentally friendly and ethical (Aoun and Tournois, 2015).
Halal cosmetics should be tayyib to pay attention to environmental requirements from
Islam. According to Ali et al. (2016), halal cosmetics must address all aspects of natural and
environmental ethics; they should be natural and environmentally friendly, fulfill religious
requirements and protect the planet (Abdul-Matin, 2010).
Environmentally friendly cosmetics are also known as green cosmetics, which are
natural cosmetics whose main ingredients are plant extracts, fruits and concentrates (Lin
et al., 2018). Furthermore, natural cosmetics must avoid using dangerous and difficult
chemicals to decompose. Green cosmetics also entail green packaging, meaning
environmentally friendly or recycled packaging. Green cosmetics are made from natural
ingredients and the production process has no impact on the environment (Diva, 2020).

2.3 Generation Z consumers

Generation Z refers to those born after 1995; it is also called the iGeneration or internet generation
because of its high understanding of technology (Zis et al., 2021) and is the first generation to
recycle (Firamadhina and Krisnani, 2021). This generation is accustomed to change because the
internet contains information that can be considered a reference for change and a way to follow
social trends and solve problems (Nasution and Kurnia, 2021). Living in an era of fast
technological developments affects Generation Z’s mindset and behavior (ZAP Clinic, 2021).
According to Helaluddin et al. (2019), a characteristic of Generation Z is the frequent interaction
with other people through social media. This generation is more accepting of cultural differences
and cares about the environment. According to Schlossberg (2016), Generation Z seems to
behave differently than the previous generation, including in the domain of consumer behavior.
Members of Generation Z find sustainability and social responsibility important when buying a
product (Wong, 2021).

2.4 Halal-green awareness

Halal awareness is the understanding of Muslims regarding what is permissible and
prohibited under shariah. Such knowledge includes understanding what products are
allowed to be consumed, the ingredients and their production process (Nofianti and Rofiqoh,
2019). Consumer awareness of halal cosmetics has led to a new trend, the halal market and
halal cosmetics among the Indonesian people (Aufi, 2021). In addition, the awareness of
environmental issues has continued to increase in recent decades. This research defines
green awareness as consumer knowledge of environmentally friendly products (Alamsyah
and Hadiyanti, 2017). Environmental awareness is a person’s ability to understand the
relationship between human activities and the surrounding environment and how to create a
safe and healthy environment. Consumer awareness of the importance of healthy and more
environmentally friendly cosmetics has increased the use of environmentally friendly
cosmetics (Rahayu et al., 2017).

2.5 Eco-label
An eco-label is an attribute of environmentally friendly products (Ottman, 2011). Consumer
behavior toward green products is characterized by attention to the attributes of
environmentally friendly products (Atanasoaie, 2013). An eco-label is a sign or logo showing
an organization’s attention to negative environmental effects (Pinem et al., 2018). The attributes
of an eco-label on green products distinguishes environmentally friendly products from
conventional products (Arshad et al., 2014). Products labeled environmentally friendly usually
guarantee no harmful chemicals are used in production (Alamsyah and Hadiyanti, 2017).
Eco-labels are a mechanism used by customers in selecting environmentally friendly products Purchase
(Purwanto, 2021). Eco-labels provide opportunities for companies to enter new markets and intention
gain market share (Muslim and Indriani, 2014). An eco-label indicates a product or service’s
overall environmental preference based on life-cycle considerations. Because eco-labels are
awarded by an impartial third party that is not influenced by the firm seeking certification,
their guarantee of being environmentally friendly is ensured. An eco-label is a tool that enables
consumers to compare a variety of goods and services and identify those that genuinely
perform better environmentally. The prerequisites for reliable ecolabelling schemes are as
follows. First, participation in the ecolabelling program is voluntary (optional). While eco-labels
do not seek to replace the current law, they recognize goods beyond the legal minimum in
terms of environmental protection. Second, the label should make it evident that the certified
product has outperformed the average items in its category regarding environmental
performance (UNOPS, 2009). The Japanese Eco Mark, International Energy Star, United States
Green Seal and United Kingdom BREEAM are all examples of eco-labels (Srinivas, 2022).

2.6 Halal label

The halal label is the primary way for Muslim consumers to ascertain whether a product is
halal (Awan et al., 2015). Halal product certification is the process of auditing and certifying
a halal production (Nofianti and Rofiqoh, 2019). The halal label facilitates Muslim
consumers in making product selection decisions (Briliana and Mursito, 2017). Halal-
certified products have met the requirements of cleanliness, hygiene and quality assurance
(Hanim et al., 2016). Halal-labeled products must meet tayyib requirements for a product to
be labeled halal (Kamal, 2018). Indonesian Government regulations regarding halal
certificates are stated in Law No. 33 of 2014 concerning guaranteed halal products and The
Ministry of Religious Affairs’ Decree 982 of 2019.

2.7 Environmental knowledge

Environmental knowledge is the perception of how much one knows about general
environmental issues. Environmental knowledge is assumed to positively relate to green
purchase intention (Lee, 2017). According to Suki et al. (2016), environmental knowledge
is consumer knowledge about the environment, specifically related to products that must
be consumed. Consumers’ knowledge about the environment can be measured by their
understanding of products with “no animal testing labels,” no additional chemical
elements, environmentally friendly production processes, organic products,
environmentally friendly waste, efficient fuel production and no excessive use of
packaging (Alamsyah et al., 2021).

2.8 Religiosity
Responses, observations, thoughts, feelings and attitudes toward obedience that are
influenced by religious feelings are called religiosity (Ahyadi, 2001). Simanjuntak and
Dewantara (2014) posited that religiosity can be measured by cognitive attitudes following
interests, including halal products such as cosmetics. According to Rahman (2019),
religiosity is ideological, intellectual, ritualistic, experimental and consequential. In this
study, measured religiosity refers to the experimental dimension, namely, the
implementation of religious teachings on individual attitudes toward consuming
environmentally friendly halal cosmetic products.
JIMA 2.9 Attitude
Attitude refers to a person’s feelings and perceptions that influence future behavior (Ajzen,
1991). In general, attitude is defined as a person’s judgment. A consumer’s attitude toward a
brand can be positive or negative (Mitchell and Olson, 1981). Market participants should
consider the role of attitudes in producing consumer purchasing decisions. Consumer
purchases will be influenced by their positive attitudes toward products and services offered
(Haque et al., 2018). This study considers the respondents’ attitudes toward environmentally
friendly halal cosmetic products.

3. Relationship between research variables

3.1 Halal label and halal-green awareness
Based on Razalli et al. (2013), the halal label is related to being environmentally friendly.
Products that meet halal requirements should be more ethical, environmentally friendly,
organic and environmentally friendly, with a nonexploitative and humanitarian approach
(Ali et al., 2016). When consumers are familiar with the halal items they are consuming, they
will only buy halal-certified goods. Several studies show an influence between the halal label
and halal awareness (Aprilia and Saraswati, 2021; Handriana et al., 2021; Shahid et al., 2018),
both of which influence consumer interest and purchase decisions (Setyaningsih and
Marwansyah, 2019). Therefore, the following hypothesis is proposed:

H1. Halal labels influence halal-green awareness.

3.2 Eco-label and halal-green awareness

The eco-label is a determinant of consumers’ feelings, emotions and interest in buying
(Rahman, 2019). Customer behavior toward environmentally friendly products is
known as green awareness (Gao et al., 2016). According to the results of research by
Alamsyah et al. (2021), environmentally friendly products impact consumers’ green
awareness. Another study conducted by Rashid (2009) showed that the awareness of
eco-labels positively affects the relationship between knowledge of eco-labels and
consumer purchase intention. However, research by Alamsyah and Hadiyanti (2017)
found that the value of an eco-label for environmentally friendly products was
considered unimportant by customers and did not affect their green awareness
behavior. Thus, a second hypothesis is proposed:

H2. Eco-labels influence halal-green awareness.

3.3 Environmental knowledge and halal-green awareness

Environmental knowledge refers to consumer understanding and awareness of
environmental problems and their solutions (Safari et al., 2018). When environmental
knowledge increases, there is a corresponding increase in green awareness of the products
consumed (Rashid, 2009). Gao et al. (2016) showed the importance of consumer knowledge
and views of environmentally friendly products in determining green awareness. This
finding was supported by Putri et al. (2021), who emphasized that consumer green
awareness is a behavior that is more influenced by environmental knowledge than
perceived quality. Therefore, the following hypothesis is proposed:

H3. Environmental knowledge influences halal-green awareness.

3.4 Environmental knowledge and attitude Purchase
Environmental knowledge is an essential variable that contributes to pro-environmental intention
behavior. Environmental knowledge has significantly influenced consumer attitudes toward
green products (Putri et al., 2021). Research by Suki et al. (2016) found that knowledge about
environmentally friendly products significantly influenced consumer attitudes. Another
study by Putri et al. (2021) on green cosmetics showed that environmental knowledge
positively and significantly impacts consumer attitudes. However, a study by Bashirun and
Noranee (2020) found no significant relationship between environmental knowledge and
environmental attitudes. Therefore, the following hypothesis is proposed:

H4. Environmental knowledge influences attitudes.

3.5 Religiosity and halal-green awareness

Religion plays an important role in shaping consumer behavior and attitudes in consuming
products, both goods and services. Research conducted by Nurhayati and Hendar (2020)
showed that religiosity positively affects brand awareness. In contrast, Handriana (2021)
found no that religiosity had no effect on awareness of natural halal cosmetic products. In
addition, research conducted by Rahman and Jalil (2021) showed a relationship between
religiosity and environmental awareness. Practicing Muslims have the ability to integrate
knowledge based on the Quran and Hadith in providing awareness about environmental
conservation efforts. Therefore, the following hypothesis is proposed:

H5. Religiosity influences halal-green awareness.

3.6 Religiosity and attitude

Religious commitment and beliefs affect feelings and attitudes toward consumption
(Niswah, 2018); people are categorized as having a high level of faith if they have followed
the teachings of their religion and avoid what is prohibited under shariah. It is assumed that
the more individuals incorporate religion into their identities, the more significant the
impact of religion on their values and behavior. Several studies have been conducted,
including by Handriana et al. (2021), Garg and Joshi (2018) and Larasati et al. (2018), that
showed the influence of religiosity on consumer attitudes toward halal products. Yanuarti
(2018) found that religiosity has a positive effect on clean and healthy attitude and behavior.
This study considered attitudes of consumers toward environmentally friendly halal
cosmetic products; thus, the following hypothesis based on the statement above is proposed:

H6. Religiosity influences attitudes.

3.7 Halal-green awareness and attitude

Awareness is the understanding or knowledge of a particular subject or situation. A Muslim
who consumes a product is obliged to meet the requirements of halal and tayyib. Therefore, a
product that is tayyib should already include pro-environmental aspects. Halal-green
awareness affects attitudes toward environmentally friendly halal products. In this study,
halal and green are related to environmentally friendly halal cosmetic products. Maichum
et al. (2017) found that awareness affects attitudes. Likewise, studies by Handriana et al.
(2021) and Balques et al. (2017) found that awareness affected consumer attitudes toward
cosmetic products. Thus, in this study, the following hypothesis is proposed:
JIMA H7. Halal-green awareness influences attitudes.

3.8 Halal-green awareness and purchase intention

Halal awareness plays an essential role in determining purchase intentions. According to
research by Budiarti et al. (2020), Hamdani et al. (2021) and Hussain (2022), halal awareness
has a positive effect on consumer purchase intention. Consumers who care about and are
aware of environmental issues will generally buy environmentally friendly products (Arifin
and Nasiruddin, 2022). In contrast, Setyaningsih and Marwansyah (2019) show that halal
awareness does not affect consumer purchase intention. Green awareness is defined as
consumer awareness of the environment. Research by Alamsyah and Hadiyanti (2017),
Jaiswal and Kant (2018), and Hernizar et al. (2020) showed that the purchase intention of
environmentally friendly products is influenced by green awareness. The deep consumer
concern for environmental damage and halal products encourages consumers to use
environmentally friendly and halal products (Arifin and Nasiruddin, 2022). However, Joshi
and Rahman (2016) found that actual purchases do not necessarily follow consumer green
awareness. This study combines halal and environmentally friendly elements in one
variable – halal-green awareness. Therefore, the following hypothesis is proposed:

H8. Halal-green awareness influences purchase intention.

3.9 Attitude and purchase intention

Attitudes play a role in decision-making. According to the theory of reason action (TRA)
and TPB (Ajzen, 1991), attitudes direct a person’s decisions and behavior following the
decisions made. Attitude is the most accurate predictor of interest (Sreen et al., 2018).
Empirical research suggests that the relationship between attitude and purchase intention
toward halal brands is significant and positive (Balques et al. (2017; Garg and Joshi, 2018;
Suparno, 2020). In addition, research by Kalafatis et al. (1999) and Suki et al. (2016) found
that attitudes affect consumers’ purchase intention of environmentally friendly products.
Thus, the purchase intention is influenced by consumer attitudes toward the product, which
in this study is an environmentally friendly halal cosmetic product. Therefore, the last
hypothesis is proposed:

H9. Attitude influences purchase intention.

The model of analysis for this study is depicted in Figure 1.

4. Research methods
This study uses a quantitative approach with a purposive sampling data collection method.
The respondents were 8- to 25-year-old consumers of halal and green certified products,
namely, the Garnier and Safi brands. The method used to recruit respondents was to ask
prospective respondents who agreed to fill out the questionnaire the first time whether they
consumed the two brands (screening process). Then, if they used the two brands, they could
continue to fill out the questionnaire. The questionnaire, in a Google form link, was
randomly distributed online through social media from February to April 2022, and the
respondents were 300 Indonesian Muslims from Generation Z.
In Indonesia, many brands are starting to pay attention to sustainability in the
production process and marketing. However, most only make self-claims without official
(green) certification or sustainability reports. Among the halal cosmetic brands that have
 Purchase
intention

Figure 1.
Model of analysis

been officially green certified are Garnier and Safi. Viewing the sustainability report in
publications on each official website, it is noteworthy that Garnier and Safi certify their
products as both halal and environmentally safe. Garnier and Safi cosmetic products have
received a halal label from the MUI to guarantee the quality, safety and halalness of the
products being marketed. Both cosmetic brands are natural, formulated from natural
ingredients and have been clinically tested. They have been officially designated by other
cosmetics brands circulating in Indonesia, although they are not included in the top ten most
popular cosmetic brands among Indonesian consumers.
In this study, four exogenous variables and three endogenous variables were used.
Exogenous variables include halal labels, eco-labels, environmental knowledge and
religiosity. Halal-green awareness variables, attitudes toward products and purchase
intention are the endogenous variables. The indicators were measured using a four-point
Likert scale: 1 strongly disagree, 2 disagree, 3 agree and 4 strongly agree. Four (even) Likert
scales were used in this study to collect extreme feedback without providing a neutral
option.
Descriptive analysis and structural equation modeling–partial least structural (SEM–
PLS) with SmartPLS 3.3.7 software were used to analyze the data. The main stages in this
SEM–PLS analysis are the measurement model test (outer model), structural model test
(inner model) and overall model test.

5. Results and discussion

5.1 Descriptive analysis
Descriptive analysis is used to determine the characteristics of Generation Z consumers
toward environmentally friendly halal cosmetic products (Table 1). Respondents who are
the object of this research are Generation Z Muslims who have purchased environmentally
friendly halal cosmetic products from Garnier, Safi or both, amounting to 300 people. Based
on the gender of the respondents, the majority of Generation Z consumers who buy
environmentally friendly halal cosmetics are women, (262 respondents representing 87.3%)
and the most-represented consumer age group is in the 20- to 24-years old range (234
respondents, representing 78%). The majority of respondents were students (261, or 87%).
JIMA Characteristics Category Amount %

Gender Female 262 87.30

Male 38 12.70
Age <15 2 0.70
15–17 7 2.30
18–19 57 19
20–24 234 78
Employment Civil Servant/BUMN 1 0.30
Private employee 32 10.70
Entrepreneur 3 1
Student 261 87
Housewife 2 0.70
Freelancer 1 0.30
Income <Rp1,000,000 160 53.30
Rp1,000,000–Rp2,500,000 103 34.30
Rp2,500,000–Rp5,000,000 29 9.70
Rp5,000,000–Rp10,000,000 8 2.70
Average spending for cosmetics <Rp100,000 110 36.70
Rp100,001–Rp500,000 178 59.30
Rp500,001–Rp1,000,000 9 3
Table 1. >Rp1,000,000 3 1
Cosmetic brands respondents have purchased Garnier 172 57.30
Demographic Safi 47 15.70
characteristics of Both 81 27
sample (n = 300) in
percentage Source: Own estimation

Because members of Generation Z were born between 1997 and 2012, it is unsurprising that
the majority are college students. It is also interesting to examine them from a consumer
standpoint because they are early-stage consumers who have been raised on the internet and
social media, with some of the oldest graduating from college and entering the workforce by
2020. They purchase cosmetics for themselves rather than for their parents. Finally, the
findings revealed that 160 respondents (53.3%) purchased environmentally friendly halal
cosmetics ranging from Rp 100,001 to Rp 500,000. As many as 172 respondents (57.3%)
purchased Garnier brand cosmetics, with 81 respondents (27%) purchasing both brands and
47 respondents (15.7%) purchasing only the Safi brand.

5.2 Structural equation modeling analysis–partial least structural

5.2.1 Evaluation of measurement model (outer model). The evaluation of the measurement
model is to test the validity and reliability (convergent validity and discriminant validity).
At the same time, the reliability test was carried out in two ways, namely, with Cronbach’s
Alpha and Composite Reliability. The results of the validity test are presented in Table 2.
The validity test results indicate that an indicator must be removed from the model
because a loading factor value is below 0.5. In the latent halal label, the indicator that must
be removed is SH5. After the indicator is removed, retesting is performed to ensure that all
indicators are valid.
An indicator meets convergent validity if it has an average variance extracted (AVE)
value > 0.5 for each latent variable (Ghozali and Latan, 2015). The results of the AVE test
for each construct include halal label = 0.579, environmentally friendly label = 0.531, halal-
green awareness = 0.805, environmental knowledge = 0.527, religiosity = 0.719, attitude =
 Purchase
Standardized
Variable Indicator loading estimate Result
intention
Halal label SH1 – I think the halal label used by manufacturers can 0.698 Valid
convince consumers that the product is halal
SH2 – Halal-certified products are important to me 0.745 Valid
SH3 – I think halal label can improve product capabilities in 0.799 Valid
the market
SH4 – I think halal logo has more appeal when compared to 0.735 Valid
non-logo products
SH5 – I know that some products have halal logos that are not 0.401 Not
original valid
Ecolabel RL1 – I aware of the ecolabel on eco-friendly products 0.722 Valid
RL2 – I use environmentally friendly products 0.79 Valid
RL3 – I often use products with ecolabel 0.746 Valid
RL4 – I know that “an eco-label is a label that identifies the 0.69 Valid
environmental preferences of a product based on its life cycle”
RL5 – I know that the green label is a policy tool that aims to 0.656 Valid
guide consumers toward sustainable consumption
RL6 – I believe in the eco-friendly claims on the ecolabel 0.726 Valid
products
RL7 – I believe ecolabels provide accurate information 0.764 Valid
Environmental PL1 – Eco-friendly products preserve the ecosystem 0.721 Valid
Knowledge PL2 – Environmentally friendly products can be recycled 0.683 Valid
(recyclable)
PL3 – Green products are environmentally friendly products 0.797 Valid
PL4 – Environmentally friendly products made from bio- 0.778 Valid
degradable materials
PL5 – I know that products made from natural ingredients are 0.601 Valid
safe for the environment
PL6 – I am aware that the “No animal testing” sign on 0.758 Valid
cosmetic products is important
Religiosity R1 – I use environmentally friendly halal cosmetic products 0.873 Valid
because of my religious beliefs
R2 – I choose environmentally friendly halal cosmetic 0.861 Valid
products because halal products are good products in my
religion
R3 – I follow religious advice to buy environmentally friendly 0.872 Valid
halal cosmetic products
R4 – I avoid purchasing products that are considered makruh 0.782 Valid
Halal-green AW1 – I am aware and know that this product is an 0.871 Valid
awareness environmentally friendly halal cosmetic
AW2 – I am aware and know that this cosmetic product 0.92 Valid
comes from environmentally friendly halal ingredients
AW3 – I am aware and know that these cosmetic products are 0.9 Valid
processed in a halal and environmentally friendly manner
Attitude S1 – I am choosing environmentally friendly halal cosmetic 0.843 Valid
products
S2 – I look for halal labels and ecolabels when buying 0.793 Valid
cosmetic products
S3 – Environmentally friendly halal cosmetic products are 0.86 Valid
very important to me
S4 – Using environmentally friendly halal cosmetic products 0.811 Valid Table 2.
is my own choice Convergent validity
(continued) test results
JIMA
Standardized
Variable Indicator loading estimate Result

Purchase MB1 – I intend to buy environmentally friendly halal cosmetic 0.861 Valid
intention products in the future
MB2 – I will choose environmentally friendly halal cosmetic 0.812 Valid
products to consume
MB3 – I tend to choose environmentally friendly halal 0.892 Valid
cosmetic products in the future
MB4 – I will fulfill my needs by buying environmentally 0.899 Valid
friendly halal cosmetic products

Table 2. Source: Own estimation

0.684 and buying interest = 0.751. Then, if the value of the latent variable is greater than
that of the indicator of the other latent variable, it means that discriminant validity is
fulfilled from the cross-loading value of each indicator in this study. Thus, it can be
concluded that all indicators meet discriminant validity.
The reliability test is carried out using Cronbach’s alpha and is declared reliable if the
value is greater than 0.6. In this case, the Cronbach alpha value was 0.746, which was >0.6;
thus, the reliability test results of the questionnaire distributed by the researcher were
reliable. The variable criteria are said to be reliable if they have a composite reliability (CR)
value of >0.7 (Ghozali and Latan, 2015). All variables have good reliability because they
have a composite reliability value >0.7, as shown in Table 3. To see the approximate fit of
the research model, the standardized root mean squared residual (SRMR) value with the
criteria of at least less than 0.1 is used. The SRMR value in this research model is 0.065; thus,
this study has a good model.

5.3 Overall model

The goodness of fit (GoF) was used to validate the measurement and overall structural
models. The GoF index value ranges from 0 to 1, with a 0.1 GoF considered small, a 0.25 GoF
considered moderate and a 0.36 GoF considered large. From the results of these calculations,
it can be concluded that the model’s GoF value of 0.329 is in the moderate-to-strong GoF
category, indicating that this research model can explain the research variables and validate
the model as a whole.

Laten variable Composite reliability

Halal label 0.846

Environmentally friendly label 0.888
Halal-green awareness 0.925
Environmental knowledge 0.869
Religiosity 0.911
Attitude 0.896
Table 3. Purchase intention 0.923
Composite reliability
test results Source: Own estimation
5.4 Evaluation of structural model (inner model) Purchase
The inner model test in this study is processed using the R-square value and bootstrapping intention
output in the SmartPLS application. The R-square values of 0.67, 0.33 and 0.19 indicate the
model is strong, moderate and weak, respectively (Ghozali and Latan, 2015). The results of
the R-square values in this study are presented in Table 4, from which it is concluded that all
endogenous variables are in the moderate model, which tended to be strong.
In the next stage, a test was conducted to estimate the path coefficient using the output
value of SmartPLS, namely, the bootstrapping test. Figure 2. shows the output model of the
bootstrapping test.
The hypothesis is accepted if the t-statistic value is >1.96. As for the p-value, the
hypothesis is proven if it is less than 0.05. The output of the bootstrapping test is shown in
Table 5.

6. Discussion
Table 5 shows that seven of the nine hypotheses tested had a t-values > 1.96 and a
p-value < 0.05; thus, the hypotheses were verified, namely, H1, H2, H3, H4, H6, H7 and H9.
In contrast, H5 and H8 are not confirmed because they have t-values < 1.96 and p-values >
0.05.
In this study, H1 is accepted, meaning that halal labels of products can affect consumers’
halal and green awareness. Indonesian Generation Z Muslims aware of the need for halal
cosmetics will demand halal labels for the cosmetic products they purchase. In addition,
cosmetics that have obtained a halal certificate will show a halal sign on the product label.
Generation Z is committed to sustainability and social responsibility; therefore, awareness
about the need to consume environmentally friendly halal products is important. The
findings of this study are in line with the results by Aprilia and Saraswati (2021), Handriana
et al. (2021) and Shahid et al. (2018), which found that there is a relationship between halal
labels and halal awareness. In addition, the results of this study also support the research of
Razalli et al. (2013), who found that the halal label is related to green.
The results of the H2 test show that an eco-label on a product affects halal-green
awareness of Muslim Generation Z consumers. This can be an excellent opportunity for
manufacturers to offer halal products with eco-labels, such as cosmetic products, because
the market is large for Muslim consumers. This study’s findings align with Alamsyah et al.
(2021) and Rashid (2009), which concluded that product attributes in the form of eco-labels
have a positive relationship and an impact on consumers’ green awareness.
According to H3, halal-green awareness is influenced by consumer environmental
knowledge. When environmental knowledge increases, there is a corresponding increase in
halal-green awareness of the products consumed. The findings of this study support the
results of the study by Rashid (2009), Gao et al. (2016) and Putri et al. (2021), which found
that there consumer green awareness influences environmental knowledge.

Variable R-square R-square adjusted Description

Halal-green awareness 0.346 0.337 Moderate

Attitude 0.45 0.444 Moderate
Purchase intention 0.421 0.417 Moderate
Table 4.
Source: Own estimation R-square value
JIMA

Figure 2.
Bootstrapping test
output

H4, which states that environmental knowledge affects consumer attitudes toward
environmentally friendly halal cosmetics, is also verified in this study. This study’s findings
confirm the research findings of Suki et al. (2016) and Putri et al. (2021), that environmental
knowledge has a positive and significant impact on consumer attitudes. The greater the
environmental knowledge, the more positive the consumer attitude is toward environmentally
friendly products. Consumers increasingly tend to choose products that use ingredients and
processing processes with environmentally friendly packaging, including cosmetic products.
Increased awareness of environmental issues increases consumers’ environmental knowledge,
so consumers are more likely to choose environmentally friendly products.
H5 is not accepted, indicating that the halal-green awareness of Muslim Generation Z
consumers is not influenced by religiosity. The findings of this study contradict the research
findings of Nurhayati and Hendar (2020) and Rahman and Jalil (2021) that there is a
relationship between religiosity and halal and consumer green awareness. However, the
study by Handriana et al. (2021) found that religiosity does not significantly affect consumer
awareness of natural halal cosmetic products.
The results of the H6 test in this study verified the hypothesis that religiosity affects the
attitudes of Muslim Generation Z consumers. The higher a person’s level of religiosity, the
more positive consumer attitudes toward consuming environmentally friendly halal
cosmetics. According to Yasid et al. (2016), religious beliefs guide Muslims in their
consumption. Therefore, people’s level of faith directs them to use or not use
environmentally friendly halal cosmetic products. The findings of this study are consistent
with Handriana et al. (2021), Larasati et al. (2018) and Garg and Joshi (2018), which found
 Original Hypothesis
Purchase
sample t statistics (accepted/ intention
Hyphotesis Path coefficients (O) (OjSTDEV) P-values rejected)

H1 Halal label ! Halal-green awareness 0.147 2,345 <0.05 Accepted

H2 Ecolabel ! Halal-green awareness 0.366 5,569 <0.05 Accepted
H3 Environmental knowledge ! Halal-green 0.156 2,181 <0.05 Accepted
awareness
H4 Environmental knowledge ! Attitude 0.134 2,373 <0.05 Accepted
H5 Religiosity ! Halal-green awareness 0.058* 0.859* 0.391* Rejected
H6 Religiosity ! Attitude 0.421 7,577 <0.05 Accepted
H7 Halal-green awareness ! Attitude 0.281 4,810 <0.05 Accepted
H8 Halal-green awareness ! Purchase intention 0.100* 1.948* <0.05 Accepted
H9 Attitude ! Purchase intention 0.593 11,927 <0.05 Accepted
Specific indirect effects
Halal-green awareness ! Attitude ! 0.167 4.344 <0.05 Accepted
Purchase intention
Religiosity ! Attitude ! Purchase intention 0.25 5,931 <0.05 Accepted
Ecolabel ! Halal-green awareness ! 0.061 3,045 <0.05 Accepted
Attitude ! Purchase intention
Environmental knowledge ! Attitude ! 0.08 2,279 <0.05 Accepted
Purchase intention
Environmental knowledge ! Halal-green 0.026 2,041 <0.05 Accepted
awareness ! Attitude ! Purchase intention
Table 5.
Note: *Not significant Bootstrapping output
Source: Own estimation value

that religiosity influenced consumer attitudes toward halal products. In addition, the
findings of this study also support the results of research conducted by Yanuarti (2018),
showing that religiosity has a positive effect on clean and healthy attitudes and behavior.
According to the assessment of H5 and H6, there appears to be a contradiction that an
individual’s religiosity does not influence halal-green awareness but does influence
attitudes. This surprising result is likely due to the study’s focus on Generation Z
consumers, who are pro-environmental, so religiosity is not a factor that significantly
influences their halal-green awareness. In addition, religiosity in this research focuses on
indicators of selection and use of cosmetic products only, not in the context of broader
awareness. The findings of this study are supported by those of Handriana et al. (2021), that
religiosity has no significant effect on consumer awareness of natural halal cosmetic
products. This is also evident from the direct and indirect effects. In this case, religiosity also
has no effect on consumer attitudes and purchase intentions toward halal consumer
products if they are influenced indirectly by intermediary variables/halal-green awareness
interventions. Thus, only religious variables directly affect attitudes, with no intermediary
variables.
H7 was also verified, indicating that halal-green awareness affects the attitudes of
Muslim Generation Z consumers toward environmentally friendly halal cosmetic products.
The increasing awareness of environmental issues affects the consumption behavior of
Generation Z, who are increasingly inclined to choose environmentally friendly products,
including cosmetic products. This is a new opportunity for halal cosmetic manufacturers to
add more environmentally friendly product concepts to attract consumers, particularly
JIMA Generation Z, which dominates the Indonesian population (BPS, 2021). The findings of this
study support the research of Balques et al. (2017), Handriana et al. (2021), Maichum et al.
(2017), who found that awareness affects consumer attitudes.
Testing the effect of halal-green awareness on purchase intention showed insignificant
results. Therefore, H8 was not confirmed, meaning halal-green awareness does not affect the
purchase intention of Muslim Generation Z consumers toward environmentally friendly
halal cosmetic products. The findings of this study contradict those of Alamsyah and
Hadiyanti (2017), Jaiswal and Kant (2018), Budiarti et al. (2020), Hernizar et al. (2020),
Hamdani et al. (2021) and Hussain (2022), which all found that halal-green awareness
influences purchase intention. However, another study by Joshi and Rahman (2016)
concluded that halal-green awareness significantly affects consumers’ purchase intention in
natural halal cosmetic products.
The results of the H9 test showed significant results; that is, consumer attitudes affect
their purchase intention in environmentally friendly halal cosmetics. The direction of the
positive relationship between these two variables indicates that the positive attitude of
Muslim Generation Z consumers toward the product results in a high interest in buying
environmentally friendly halal cosmetics. This finding is in line consistent with Balques
et al. (2017), Garg and Joshi (2018) and Suparno (2020), whose results showed that there is a
positive and significant relationship between attitudes and consumer purchase intention in
halal cosmetics. The results of this study also support the findings of Kalafatis et al. (1999)
and Suki et al. (2016), that attitudes affect consumers’ purchase intention for
environmentally friendly products.
Indirectly, the attitude variable becomes a mediating variable for halal-green awareness
and religiosity in increasing consumer buying interest. This means that if Generation Z
Muslim consumers have high halal-green awareness and are religious, the attitude of these
consumers toward environmentally friendly halal cosmetic products will become more
positive and affect their purchase intention. In addition, the eco-label variable and
environmental knowledge indirectly have a positive and significant effect on buying interest
through two mediating variables: halal-green awareness and attitude.

7. Theoretical implications
It can be concluded that religiosity, eco-labels, environmental knowledge and attitudes
influence Muslim Generation Z consumers’ purchase intentions for environmentally friendly
halal cosmetic products. Thus, internal and external aspects trigger consumers’ purchase
intentions of environmentally friendly halal cosmetic products. Consumer internal aspects
include religiosity, environmental knowledge and attitudes, while external aspects include
eco-labels. Thus, the results of this study support the theory of TRA and TPB (Ajzen and
Fishbein, 1980; Ajzen, 1991) in the context of environmentally friendly halal cosmetic
products.

8. Managerial implications
Producers need to understand the characteristics of Muslim Generation Z consumers to
apply appropriate marketing strategies given the enormous opportunity this consumer
market represents. Cosmetic manufacturers that incorporate the environmentally friendly
halal concept must leverage halal-green branding on their products to be competitive and
attract consumers, especially Generation Z. In addition, manufacturers are expected to be
consistent in maintaining the quality of halal products and choosing materials that are safe
and environmentally friendly to increase customer loyalty.
 Additionally, the government should pay more attention to the certification of products Purchase
in the market and strengthen the Halal Law No. 33 of 2014 Concerning Halal Product intention
Guarantee by requiring cosmetic manufacturers to carry the official certification of product
labels and not just self-proclaim compliance. This would increase the trust and buying
interest of Generation Z Muslim consumers toward environmentally friendly halal cosmetic
products, as product quality assurance is essential.

9. Limitations and future research

One limitation of this study is that it was conducted in Indonesia, with Indonesian
Muslim consumers from Generation Z serving as the research sample. Another limitation
is that this study only includes consumers of Garnier and Safi brands, despite the fact
that, to the authors’ knowledge, these are the only two brands with halal-green
certification. As a result, additional research could be developed by broadening the scope
of research to include characteristics of consumers from generations other than
Generation Z, Muslim consumers from other Muslim (majority) and non-Muslim
countries and non-Muslim consumers as research samples. Furthermore, future research
should include variables not included in this study, such as halal trust and halal
reputation (Tieman, 2021), brand awareness and willingness to pay. It could also use
methods other than SEM–PLS for further analysis.

10. Conclusions and recommendation

Although it is critical to integrate the concepts of halal and green in a study of purchase
intention, they are frequently examined separately. This integration enables the
development of a holistic and all-encompassing management model that incorporates both
physical and spiritual values. This study combines halal and environmentally friendly
elements and analyzes environmental knowledge and halal-green awareness, which have
yet to be reviewed in relation to halal cosmetic products.
This study found that religiosity has no effect on halal-green awareness and that halal
and green awareness have no effect on purchase intention. In increasing consumer
purchasing interest, attitudes act as a moderator for halal and green awareness and
religiosity. Furthermore, environmentally friendly labels and environmental knowledge
influence purchase intention indirectly via two mediating variables: halal and green
awareness and attitude. This suggests that as Generation Z Muslim consumers become
more religious and more aware of halal and the environment, their attitudes toward eco-
friendly halal cosmetic products will become more positive, influencing purchase
intention.
The following recommendations are motivated by the findings of this study. First, in
terms of certification, cosmetic manufacturers must pay more attention to product
certification so that it is not just the company’s self-proclaimed compliance with halal and
meeting environmentally friendly standards. Additionally, the government should be able to
pay more attention to market product certification. These actions can increase the trust and
interest of Generation Z Muslim consumers in eco-friendly halal cosmetic products. Second,
in addition to certification, eco-friendly halal cosmetic manufacturers must improve their
branding by emphasizing their benefits to compete in the market and attract consumers,
particularly Generation Z. Given the enormous market potential of Generation Z Muslim
consumers, producers must understand the characteristics of the purchasers of their
products to apply appropriate marketing strategies.
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Further reading
Ghozali, I. and Hengky, L. (2015), Konsep, Teknik, Aplikasi Menggunakan Smart PLS 3.0 Untuk
Penelitian Empiris. Akuntansi Biaya: Sistem Biaya Historis, BPFE, Yogyakarta.

Corresponding author
Mohammad Iqbal Irfany can be contacted at: [email protected]

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