Brand Identity Factors: Developing a Successful Islamic Brand : Developing a Successful Islamic Brand [1 ed.] 9783954895236, 9783954890231

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Vedad Alihodzic

Brand Identity Factors

Copyright © 2012. Diplomica Verlag. All rights reserved.

Developing a Successful Islamic Brand

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Alihodzic, Vedad. Brand Identity Factors: Developing a Successful Islamic Brand : Developing a Successful Islamic Brand, Diplomica Verlag, 2012. ProQuest Ebook Central,

Vedad Alihodzic Brand Identity Factors: Developing a Successful Islamic Brand ISBN: 978-3-95489-523-6 Fabrication: Anchor Academic Publishing, an Imprint of Diplomica® Verlag GmbH, Hamburg, 2013

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Dieses Werk ist urheberrechtlich geschützt. Die dadurch begründeten Rechte, insbesondere die der Übersetzung, des Nachdrucks, des Vortrags, der Entnahme von Abbildungen und Tabellen, der Funksendung, der Mikroverfilmung oder der Vervielfältigung auf anderen Wegen und der Speicherung in Datenverarbeitungsanlagen, bleiben, auch bei nur auszugsweiser Verwertung, vorbehalten. Eine Vervielfältigung dieses Werkes oder von Teilen dieses Werkes ist auch im Einzelfall nur in den Grenzen der gesetzlichen Bestimmungen des Urheberrechtsgesetzes der Bundesrepublik Deutschland in der jeweils geltenden Fassung zulässig. Sie ist grundsätzlich vergütungspflichtig. Zuwiderhandlungen unterliegen den Strafbestimmungen des Urheberrechtes. Die Wiedergabe von Gebrauchsnamen, Handelsnamen, Warenbezeichnungen usw. in diesem Werk berechtigt auch ohne besondere Kennzeichnung nicht zu der Annahme, dass solche Namen im Sinne der Warenzeichen- und Markenschutz-Gesetzgebung als frei zu betrachten wären und daher von jedermann benutzt werden dürften. Die Informationen in diesem Werk wurden mit Sorgfalt erarbeitet. Dennoch können Fehler nicht vollständig ausgeschlossen werden und der Verlag, die Autoren oder Übersetzer übernehmen keine juristische Verantwortung oder irgendeine Haftung für evtl. verbliebene fehlerhafte Angaben und deren Folgen. © Diplomica Verlag GmbH http://www.diplomica-verlag.de, Hamburg 2013

Alihodzic, Vedad. Brand Identity Factors: Developing a Successful Islamic Brand : Developing a Successful Islamic Brand, Diplomica Verlag, 2012. ProQuest Ebook Central,

Abstract The market for Islam-compliant products is getting highly important, due to the high impact of religious obligation on Muslim consumer behaviour. No research is conducted on the question on how to create brand identity from a Muslim perspective in order to attract Muslim consumers. Therefore, this research aims to find a set of brand identity factors which can be used to create brands which are perceived as Islamic. Based on relevant literature, eight factors were found to be relevant. This set of brand identity factors is verified through a mixed research approach. Interviews with experts on Islamic branding help to understand these brand identity factors from an expert point of view, whereas a survey verifies brand identity factors from a consumer perspective. Findings show that the tangible factor “Halal certificate” is the most important factor to perceive a brand as Islamic. Additionally, brand logo and brand name influence consumers’ perceptions. Intangible factors, such as brand values, brand origin and brand relationship, are also found to be important. Findings also show that testimonials and brand slogan are not highly important. Based on these findings, the Muslim Brand Identity Model has been developed which can be used to balance brand identity factors in order to create a successful brand. It can be recommended to brand managers, consultancies and advertising agencies to ensure that the brand is strictly following Islamic standards and regula-

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tions in order to be successfully perceived as Islamic.

  Alihodzic, Vedad. Brand Identity Factors: Developing a Successful Islamic Brand : Developing a Successful Islamic Brand, Diplomica Verlag, 2012. ProQuest Ebook Central,

Copyright © 2012. Diplomica Verlag. All rights reserved.

  Alihodzic, Vedad. Brand Identity Factors: Developing a Successful Islamic Brand : Developing a Successful Islamic Brand, Diplomica Verlag, 2012. ProQuest Ebook Central,

Contents Page List of figures ..................................................................................................................... IX Glossary.............................................................................................................................. X Chapter 1 Introduction .................................................................................................... 13 1.1 Importance of the topic............................................................................................. 13 1.2 Aims and Objectives for the study ............................................................................ 14 1.3 Topic Overview ........................................................................................................ 15 1.4 Hypothesis ............................................................................................................... 16 1.5 Summary .................................................................................................................. 17 Chapter 2 Contextual Background................................................................................. 18 2.1 Introduction .............................................................................................................. 18 2.2 The influence of Islam on consumer behaviour ....................................................... 18 2.3 The concept of Halal ................................................................................................ 20 2.4 The consumer perspective ....................................................................................... 21 2.4.1 The “new” Muslim consumer perspective .......................................................... 21 2.4.2 The non-Muslim consumer perspective............................................................. 23 2.5 Principles in Islamic branding and marketing ........................................................... 24 2.6 Conclusion ............................................................................................................... 26 Chapter 3 Literature Review ........................................................................................... 27 3.1 Introduction .............................................................................................................. 27 3.2 Conceptual framework ............................................................................................. 27 3.3 Consumer Behaviour ............................................................................................... 30 3.3.1 Motivation .......................................................................................................... 30 3.3.2 Perception ......................................................................................................... 30 3.3.3 Attitudes............................................................................................................. 31 3.4 Brand Identity ........................................................................................................... 33 3.4.1 Intangible brand identity factors......................................................................... 33 3.4.2 Tangible brand identity factors .......................................................................... 36 Copyright © 2012. Diplomica Verlag. All rights reserved.

3.5 Marketing communication ........................................................................................ 39 3.6 Conclusion ............................................................................................................... 40 Chapter 4 Methodology ................................................................................................... 41 4.1 Introduction .............................................................................................................. 41 4.2 Research Philosophy and Design ............................................................................ 41 4.3 Research Methods ................................................................................................... 42 4.4 Sampling .................................................................................................................. 43

  Alihodzic, Vedad. Brand Identity Factors: Developing a Successful Islamic Brand : Developing a Successful Islamic Brand, Diplomica Verlag, 2012. ProQuest Ebook Central,

4.5 Questionnaire design ............................................................................................... 44 4.6 Piloting ..................................................................................................................... 44 4.7 Data Analysis ........................................................................................................... 45 4.8 Reliability and Validity .............................................................................................. 45 4.9 Ethical Considerations ............................................................................................. 46 4.10 Research Limitations.............................................................................................. 46 4.11 Conclusion ............................................................................................................. 47 Chapter 5 – Findings and Discussion............................................................................ 48 5.1 Introduction .............................................................................................................. 48 5.2 Findings in Consumer Behaviour ............................................................................. 48 5.3 Findings on Brand Identity ....................................................................................... 54 5.3.1 Brand origin ....................................................................................................... 54 5.3.2 Brand values...................................................................................................... 55 5.3.3 Brand personality............................................................................................... 57 5.3.4 Brand relationship.............................................................................................. 59 5.3.5 Brand logo ......................................................................................................... 61 5.3.6 Brand name ....................................................................................................... 64 5.3.7 Brand slogan ..................................................................................................... 67 5.3.8 Testimonial ........................................................................................................ 67 5.4 Conclusion ............................................................................................................... 68 Chapter 6 – Conclusion and recommendations ........................................................... 69 6.1 Conclusion ............................................................................................................... 69 6.2 Contribution to theory ............................................................................................... 69 6.3 Contribution to method ............................................................................................. 74 6.4 Contribution to practice ............................................................................................ 75 References ....................................................................................................................... 76 Appendices ...................................................................................................................... 94 Appendix 1 – PEST analysis Muslim majority countries ................................................ 94 Appendix 2 – The Halal concept .................................................................................... 96 Copyright © 2012. Diplomica Verlag. All rights reserved.

Appendix 3 – Values according to Shariah and Islam .................................................... 97 Appendix 4 – The value chain according to Halal concept ............................................ 98 Appendix 5 – Brand Identity concept ............................................................................. 99 Appendix 6 – Description of Sample ............................................................................ 103

  Alihodzic, Vedad. Brand Identity Factors: Developing a Successful Islamic Brand : Developing a Successful Islamic Brand, Diplomica Verlag, 2012. ProQuest Ebook Central,

List of figures Figure 1: Shariah values- derived from the Qur’an and the Sunnah, influencing consumer behaviour ........................................................................................................................... 19 Figure 2: Characteristics of “new” Muslim consumer segments by Ogilvy Noor and JWT 22 Figure 3: Aspects of Islamic Marketing with a focus on Marketing Mix ............................. 25 Figure 4: Conceptual framework, connecting all chapters and theories ............................ 29 Figure 5: Distribution of responses on Q5 ......................................................................... 49 Figure 6: Distribution of responses on Q8 ......................................................................... 50 Figure 7: Classification of consumers based on survey .................................................... 53 Figure 8: Comparison of responses on personal (Q7) and brand values (Q15) ................ 56 Figure 9: Importance (A+SA) of personal values (Q7) ...................................................... 56 Figure 10: Importance (A+SA) of brand values (Q15) ....................................................... 56 Figure 11: Comparison of responses on personal (Q6) and brand characteristics (Q17) . 58 Figure 12: Frequency (A+SA) of personal characteristics (Q6) ......................................... 59 Figure 13: Frequency (A+SA) of brand characteristics (Q17)............................................ 59 Figure 14: Frequency (A+SA) of importance of brand relationship (Q19) ......................... 60 Figure 15: Frequency of responses on brand names (Q17) .............................................. 64 Figure 16: Frequency of responses – First picture ............................................................ 66 Figure 17: Frequency of responses – Second picture ....................................................... 66 Figure 18: Frequency of responses – Third picture ........................................................... 66 Figure 19: Frequency of responses – Fourth picture ......................................................... 66 Figure 20: Frequency of responses – Fifth picture ............................................................ 66 Figure 21: Frequency of responses – Sixth picture ........................................................... 66 Figure 22: Overview research objectives (RO) .................................................................. 69 Figure 23: The Core layer of Muslim Brand Identity Model ............................................... 70 Figure 24: Key findings on brand values ........................................................................... 70 Figure 25: Key findings on Halal certificate ....................................................................... 71 Figure 26: Key findings on brand logo ............................................................................... 71 Figure 27: Key findings on brand origin ............................................................................. 72

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Figure 28: Key findings on brand name ............................................................................. 72 Figure 29: Key findings on brand relationship ................................................................... 73 Figure 30: Key findings on further factors .......................................................................... 73 Figure 31: Muslim Brand Identity Model ............................................................................ 74

  Alihodzic, Vedad. Brand Identity Factors: Developing a Successful Islamic Brand : Developing a Successful Islamic Brand, Diplomica Verlag, 2012. ProQuest Ebook Central,

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Glossary Attitude Degree of either positive or negative feelings towards an object or towards an intention of performing a particular behavior (Fishbein, Ajzen, 2000). Intention to respond positively or negatively to a certain object or a group of objects over a longer period of time (Banyt et al.; 2007). Brand Distinguishing name and/or symbol intended for identification of specific products, seller or for differentiation to competitors (Aaker, 1991). Distinguishing name and/or symbol (e.g. logo, trademark, or package design) with the purpose to either identify seller’s goods (or services) or/ and to differentiate those from competitors (Ghodeswar, 2008). For more definitions see Wood (2000). Branding Creating distinctive benefits for a product, service, person or landmark beyond price and function (Alserhan, 2010a). Brand Identity Unique set of associations with a brand implying a specific promise to customers which includes core and extended factors. (Ghodeswar, 2008) Controllable elements such as tag line, core essence, positioning, brand name, logo, message, experience (Perry, Wisnom, 2003), values, brand origin and brand personality. Brand Origin Place, region or country which is associated or perceived by target consumer that a brand is coming from (Thakor, Kohli, 1996). Brand Personality Set of human personality traits (such as young, sincere, competent) which are also applicable to brands (Azoulay, Kapferer, 2003).

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Consumer ethnocentrism Consumer beliefs about foreign-made products which results in likelier purchase of homemade products (Shimp, Sharma, 1987). Culture Complex concept which includes acquiring and changing of knowledge, beliefs, arts, morals and law, customs or other habits by a member of that society (Lindridge, Dibb, 2002). Food neophobia Fear or reluctance to try novel foods (Pliner, Salvy, 2006). Halal Lawful and permitted action (or product) according to the Qur’an and the Sunnah (Rezai, 2008).

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Haram Unlawful and prohibited food (or product) (the opposite of halal) (Rezai, 2008). Islam Absolute surrender to Allah (God) (translated from Arabic). Islam is not only a religion but more a lifestyle lived by Muslims who believe (Hanzaee, Ramezani, 2011). Islamic Branding Islamic branding can be defined in three different ways (Alserhan, 2010b), namely Islamic brands by Compliance: Brand follows the Islamic rules and values Origin: Brand comes from a mainly Muslim country Customer: Brand is made for Muslim consumers. Branding that follows shariah values, in order to appeal to Muslim consumers. Can include a range from basic shariah-friendliness to full shariah-compliance in all aspects of a brand’’s identity, brand behaviour and marketing communications (OIBMF, 2010). J. Walther Thomson (JWT) One of the first advertising agencies in world. Logo Graphic representation or image which aims to trigger memory associations of the target brand (Walsh et al., 2010) and which company uses to identify itself (Pittard et al., 2007). Muslim One who submits to will of God in belief and actions (Wilson, 2011), who believes in God, His prophets, His book, the last judgment and who follows the rules of Qur’an and Sunnah. Oxford Islamic Branding and Marketing Forum (OIBMF) First Forum about Islamic Branding and Marketing Religion System of beliefs and practices by which people responds to what they feel is supernatural (Rezai, 2008).

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Waqf Donation of property, dedicated to God for all time, which allows public use of this good and thus benefits the society (Temporal, 2011). Zakat Annual tax which means to support the needy (Rarick et al., 2011).

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XII   Alihodzic, Vedad. Brand Identity Factors: Developing a Successful Islamic Brand : Developing a Successful Islamic Brand, Diplomica Verlag, 2012. ProQuest Ebook Central,

Chapter 1 Introduction 1.1 Importance of the topic The concept of brand identity is highly important (Kapferer, 2008), as it provides brand uniqueness and the main idea of what a brand stands for (Kästner, 2009).The central question within this study concerns the fact that within the global environment Muslims do not know whether a brand is compliant with Islamic standards and can thus be consumed by them, especially in non-Muslim countries (Rezai, 2008). A strong brand provides many benefits for the company, such as differentiation to competition and creating customer confidence (Omar, Ali, 2010). Thus, strong brands are becoming more important when communicating to the consumer (Goodchild, Callow, 2001) in a highly globalised and competitive market (Zakaria, Abdul-Talib, 2010). Islam is not only a religion but a comprising lifestyle which provides rules for every situation (Arham, 2010) and thus determines a consumer’s behaviour and brand choice (Zakaria, Abdul-Talib, 2010). Research has shown that religious values and beliefs have a high impact on the way consumers behave, purchase (Ellison, Cole, 1982; Jamal, 2003; Ahmed, 2008) and make decisions (Zakaria, Abdul-Talib, 2010). Therefore, it is important to address this perspective in brand identity. Moreover, it can be argued that religion is the main aspect of branding products in the Muslim market, because of consumers’ high risk aversion and involvement (Wilson, Liu, 2010). Studies have shown that companies do not take the Islamic market orientation into account when entering Muslim markets (Zakaria, Abdul-Talib, 2010). This is more surprising when considering the high attractiveness of the market: Islam is the

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fastest growing religion (Rarick et al., 2011), with a total of 1.6 billion followers (PEW, 2011). Countries with a Muslim majority, such as Morocco or Pakistan, are some of the youngest (see Appendix 1 for PEST), with more than 750 million people under the age of 25 (OIBMF, 2010) who experience higher incomes and empowerment in choice decisions (Temporal, 2011). Furthermore, the awareness of Muslim brands, and brands which enable an Islamic lifestyle, has risen (Rezai, 2008; Mohd Dali et al., 2008). According to Alserhan (2010b), the market for Mus-

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lim-compliant brands has increased dramatically, with a global worth of $1.5 trillion a year. However, the market for Islam-compliant brands seems to be underdeveloped in Europe compared to the rest of the world. With the highest Muslim population, the Halal (see glossary) food market in France is only worth €3 Billion (Ali, Wanwang, 2002). Due to the expected increase in the Muslim population by 2030 (PEW, 2011), the production of Muslim-compliant products has to increase (Rezai, 2008) as the market is not served enough (Nadeem, 2010).These facts show the necessity to explore this area as it contains high profit opportunities (Al-Harran, Low, 2008), not only for Islamic but also for Western brands (Hanzaee, Chitsaz, 2011), especially when taking Islamic values and lifestyle into account when entering the market (Omar et al., 2008).

1.2 Aims and Objectives for the study The overall central aim of this study is to investigate a set of brand identity factors which are crucial for a consumer in order to identify a brand as Islam compliant. This study will carry out research, with a large sample of Muslim and non-Muslim consumers, to find out how Muslim brand identity factors might influence perception of a brand. This overall aim is divided into the following research objectives: 1) Identify set of relevant brand identity factors 2) Investigate influence of these factors on perception 3) Analyse difference between Muslim and non-Muslim consumers 4) Based on analysis, design a brand identity model 5) Make recommendations for designing brand identity of an Islam-

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compliant brand The objectives for the study are: 1) To outline in Chapter 2 a background concerning Islamic values and the Halal concept 2) To write a critical literature review concerning motivation, perception and attitudes to various brand identity factors in Chapter 3

14   Alihodzic, Vedad. Brand Identity Factors: Developing a Successful Islamic Brand : Developing a Successful Islamic Brand, Diplomica Verlag, 2012. ProQuest Ebook Central,

3) To justify in Chapter 4 the methodological approach taken within the study 4) To present and discuss the findings from the data collection in Chapter 5 5) To discuss the key findings and contributions of the study and form recommendations in Chapter 6

1.3 Topic Overview The image of Islamic companies as non-branders (Alserhan, 2010a) is not surprising considering that Islamic companies are not doing well (Temporal, 2011). Furthermore, Hanzaee and Chitsaz (2011) point out that Muslims actively seek Islamic brands as non-Muslim brands are often not compliant with Islamic values and do not support consumers in their lifestyle. Chapter 2 The second chapter first discusses what Islamic values are and how they influence consumption. Secondly, Muslim consumer characteristics need to be discussed. In order to reach the research aim of investigating factors which are relevant to identify a brand as Islamic, the effect on non-Muslim consumers needs to be evaluated too. Thirdly, this chapter also provides insights into the principles of Islamic branding and marketing as they are important in order to operate target-group orientated (Rice, 1999) and develop a brand identity. Chapter 3 The third chapter provides a literature-based discussion on several intangible and tangible factors, which were extracted from the leading brand identity concepts. The most discussed intangible factors are brand origin and brand values. Muslim

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brands must not necessarily originate in a Muslim country in order to be compliant for Muslim consumers (which can be seen in the Noor Brand Index) (Ogilvy.com, 2012). Furthermore, brand values are an important factor to consider as brands provide different meanings to different consumers (Alserhan, 2010a), and values influence how a brand behaves (Zakaria, Abdul-Talib, 2010). The discussion on tangible factors provides perspectives on brand visual (including logo, testimonial, symbolism, colour) and brand name (including semiotics, slogan, typography).

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Chapter 4 Chapter 4 provides a detailed explanation of the methodology. In order to investigate brand identity factors which influence the perception of both Muslim and nonMuslim consumers, a mixed methods approach is taken. Expert interviews will provide in-depth research on possible influencing brand identity factors. According to Cooper and Schindler (2006), quantitative methods are used in particular to measure attitude and perception. A survey seems to be appropriate in order to get a variety of answers and thus a more objective and more general perspective regarding factor choice. Chapter 5 This chapter provides a detailed analysis of the data using descriptive statistics and discussion on the results. Chapter 6 The sixth chapter provides contributions to the theory and recommendations to marketers, advertising agencies and consultancies; they might benefit through understanding the tool of how to change or develop brand identity in order to increase profits.

1.4 Hypothesis Based on Chapters 2 and 3, the following hypothesis (H) can be derived: H1: Muslim consumer behaviour is influenced by religious obligation H2a: Brand ownership is important to Muslim consumers H2b: Brand values need to reflect personal values Copyright © 2012. Diplomica Verlag. All rights reserved.

H2c: Brand personality needs to reflect personal characteristics H2d: Brand relationship is important to Muslim consumers H3a: Brand logo needs to include Halal certificate H3b: Religious terminology positively influences the choice H3c: Brand testimonials positively influence the choice

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1.5 Summary After showing the importance of the topic and the overview of the study, the next chapter will discuss the contextual background, including insights on Islam and the Halal concept, the nature of Muslim and non-Muslim consumers, and basics on

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Islamic branding and marketing.

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Chapter 2 Contextual Background 2.1 Introduction This chapter will focus on important background information about Islamic values, the Halal concept and Muslim consumers and will provide a discussion on the potential effect of Islamic brands on non-Muslim consumers. The chapter will end with insights and principles regarding Islamic marketing.

2.2 The influence of Islam on consumer behaviour The monotheistic religion Islam (Baligh, 1998) is based on five pillars, which build the fundament of this belief and which every Muslim needs to follow regardless of his origin (Rarick et al., 2011). The most important pillar is the belief in the oneness of God and that Mohammad is his last prophet (Haneef, 1997). This has many implications to the way Muslims behave, as they are required to follow what God said and to follow the practice of the Prophet. All pillars provide a direction and portray some of the most important values, and thus influence the lifestyle of each Muslim. For instance, the third pillar Zakat (i.e. fee on unused possession), which aims to help the needy, implies the values of humanism and the wellbeing of society but also encourages investments (or consumption). The Islamic system of life is called Shariah (Rehman, Shabbir, 2010) and has two sources, namely the Qur’an (the written word of God) and the Sunnah (the practice and approvals of the prophet) (Beekun, Badawi, 2005). From these two sources the Shariah derives all duties, morals and behaviour covering all aspects of life, and determines what Halal is (Luqmani et al., 1987) (Appendix 2 for explanation of the Halal concept). Moreover, Olayan and Karande (2000) point out that

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Shariah is the source of all Muslim values. As can be seen in Figure 1, many values, such as honesty, truthfulness or friendliness, can be extracted from Shariah (Appendix 3 for more values).

18   Alihodzic, Vedad. Brand Identity Factors: Developing a Successful Islamic Brand : Developing a Successful Islamic Brand, Diplomica Verlag, 2012. ProQuest Ebook Central,

Figure 1: Sha ariah valuess- derived from f the Qu ur’an and the e Sunnah, influencing i consu umer behavviour

mporal (201 11) points out that consumptio on in Islam m is govern ned by con nsciousTem nesss of God. Material p possession ns are neccessary (ib bid.), but should not lead to extra avagance (Bendjilali, 1993). H However, a all things are believved to com me from God (Hanzaee e, Rameza ani, 2011) and thus should be e saved, in nvested an nd consumed rationally and with regards to environmental ressources an nd the wellb being of othe ers. Furtherrmore, Ben ndjilali (199 93) points out that po ossessionss are consu umed in orde er to maxim mise the re eward in th he hereafte er. Thus, consumer c b behaviour is influence ed by a ba alanced sa atisfaction of both (R Rice, Al-Mo ossawi, 20 002) the re esourceCopyright © 2012. Diplomica Verlag. All rights reserved.

base ed view off consumerism (Tem mporal, 201 11) and the e spiritual and mora al developm ment. The influence of religious values on o consumer behavio our is a no otion suppo orted by ny studies (Hirschma ann, 1981;; Delener, 1994; Arn nould et al., a 2004; Mokhlis, M man 2006 6), especia ally consid dering food d (Musaige er, 1993; A Abdul et all., 2008) as a many religions have specific d dietary law ws. It can be argued d that relig gion define es rules

  Alihodzic, Vedad. Brand Identity Factors: Developing a Successful Islamic Brand : Developing a Successful Islamic Brand, Diplomica Verlag, 2012. ProQuest Ebook Central,

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which are reflected in certain values. These determine societies’ thinking and thus influence individuals’ attitudes, perceptions and behaviour (Fam et al., 2004). On the other hand, some studies found that consumer behaviour is not affected by religious beliefs (Rosly, Baker, 2003; De Run et al., 2010). This can be explained through the degree of religiosity (Bonne et al., 2007). De Run et al. (2010) argue that consumer behaviour is not influenced as the belief system does not affect the consumer’s attitude. Rarrick et al. (2011) explain this effect through the difference in practicing a religion; this is also supported by Regenstein et al. (2003b), who argue that the effect on consumer behaviour can also be explained through interpretation and individual circumstances. However, it can be concluded that Islam affects every part of Muslim life and thus consumption, and revolves around the concept of Halal, as it determines what is allowed and what is prohibited (Mohd Dali et al., 2008).

2.3 The concept of Halal The Arabic word ‘Halal’ means permissible (Hanzaee, Chitsaz, 2011) and mostly refers to food, especially meat, which is allowed by Islamic law (Omar et al., 2008). Oppositely, ‘Haram’ means prohibited (Riaz, Chaudry, 2004). In general, all food can be seen as Halal except that which is explicitly declared as Haram (Mohd Dali et al., 2008). In order to be accepted as Halal the animal must be from an acceptable species, it must be treated well, it must be slaughtered in a specific way and after slaughtering, the meat must not come into contact with Haram meat (Bruil, 2010). Appendix 2 shows all requirements according to the Halal concept. On one hand, Halal implies values such as cleanliness, safety, healthiness, reliability and quality (Rezai, 2008), which increase consumer trust in a brand and con-

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fidence in consumption. Therefore, it can be assumed that this concept is attractive for non-Muslims too (Temporal, 2011). On the other hand, Halal has implications for companies too. This concept requires the strict adherence to rules during all processes (Field et al., 2009) and not only in branding (Wilson, 2010). As can be seen in Appendix 4, the Halal concept can be applied during all activities in the value chain. Therefore, it can be said that Halal is about processes and standards (Rezai, 2008) and has thus become a symbol for quality assurance (Ali,

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Wanwang, 2002). Hanzaee and Ramezani (2011) compare Halal with organic food, whereas Wilson (2010) differentiates it from concepts like organic food or Fair Trade and compares it more to specialist labels such as “suitable for diabetics” or “suitable for vegetarians”. It can be assumed that his comparison is more appropriate, as Halal food is not only about the origin, but is also processed in a more specific way. Many nonMuslim companies, such as Tesco and ASDA (Fischer, 2010), Carrefour, Casino, Auchan (Ali, Wanwang, 2002) Unilever and Nestlé (Rarick et al., 2011), are introducing new brands which are compliant with the Halal concept. Indeed, Nestlé is the leading brand, with estimated sales of €3 billion annually (ibid.). These companies have recognised the huge market and see especially Malaysia (Rezai, 2008) and Brunei (Temporal, 2011) as the main hubs. However, the concept of Halal refers to more than just food. According to Hanzaee and Chitsaz (2011), the Halal industry includes lifestyle products (such as cosmetics) and services (such as finance). The fashion industry, for instance, becomes Halal through using Halal materials (Miremadi, et al., 2011); the cosmetic industry does so by avoiding the usage of Haram ingredients such as alcohol. Thus, the Halal concept can be expanded to more than just food, as Halal means a safe, clean and healthy production which encompasses everything permitted (Omar et al., 2008). However, the Halal image should not be overused where it does not make any sense (Wilson, 2010) (e.g. Halal pencil), as this can lead to consumer confusion and reactance. This is especially a problem as Halal rulings are interpreted and lived differently across many countries, which might bring problems when entering a market (Rarick et al., 2011). Therefore, it is important to clearly state whether a brand is Halal as, for Muslim consumers, it is difficult nowadays to

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determine whether a product is compliant with Islamic standards due to additives and different ingredients (Omar et al., 2008).

2.4 The consumer perspective 2.4.1 The “new” Muslim consumer perspective The necessity to know the consumer who is served (Böhler, Scigliano, 2005) leads

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to va arious segmentationss of Muslim m consumers. For th his researc ch, the most interestin ng segmen nt is the Ne ew Age Mu uslim (JWT T), which can c be com mpared to the Futurist (Ogilvy Noor). N Figure 2 shows s the chara acteristics of both.

Figure 2: Ch F haracteristic cs of “new” Muslim M consumer segm ments by O Ogilvy Noor and a JWT.

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Both h segments s describe e themselves as Musslims who are loyal to t the core e values and follow the e Islamic requiremen r nts strictly. Howeverr, they als so follow Western W onsume Western W bra ands (ibid..). Thus, th his segme ent balances both values and co spectives without w see eing a confflict betwee en them (V Vohra et all., 2009). The T balpers ance e between both lifesstyles is also depend dent on the religiositty of a con nsumer. Depending on the degre ee, the influence on attitude an nd thus on n the beha aviour is m et al., 20 011; Rehman, Shabb bir, 2010; Hanzaee H , Ramezan ni, 2011; different (Alam

22   Alihodzic, Vedad. Brand Identity Factors: Developing a Successful Islamic Brand : Developing a Successful Islamic Brand, Diplomica Verlag, 2012. ProQuest Ebook Central,

Fam et al., 2004; Michell, Al-Mossawi, 1995). However, Gentry et al. (1995) argue that more collectivist cultures (such as most Islamic cultures) can handle a discrepancy between attitude and behaviour better than more individualistic cultures. According to Hanzaee and Ramezani (2011), 70% of all Muslims strictly follow Halal standards and thus might choose a brand only because it is Halal (Awan, Bukhari, 2011). However, it can be argued that this is not enough anymore, although the “new” consumer has a strong Muslim identity (Hussain et al., 2011). As can be seen in Figure 2, they are better educated (ibid.), globally orientated, connected through the internet (Ali, Wisniesk, 2010) and more critical (Temporal, 2011). Consumers can choose between a wide variety of brands and thus they decide on a brand which fits their identity (Pink, 2009) and supports their lifestyle. Beurger King Muslim (“Beur” means Arab) is a good example of a brand which targets this segment successfully, as they offer hamburgers (Western lifestyle food) which are Halal (Islamic lifestyle values) (Abdul et al., 2008). Therefore, Upshaw (1995) recommends focusing on the identity of consumers when creating brand identity.

2.4.2 The non-Muslim consumer perspective

The Halal concept is not only limited to Muslims, but could also benefit nonMuslims through strict quality standards (Ali, Wanwang, 2002). Many people fear the unknown (Johns et al., 2011); this might have a negative impact on the purchase. This consumer ethnocentrism (glossary) (Shimp, Scharma, 1987), or food neophobia (glossary) (Pliner, Salvy, 2006), can be viewed, for instance, within German food retailers who fear providing Halal food to the large Muslim population because of the unknown effect on non-Muslims (Rarick et al., 2011; TNS Emnid, Copyright © 2012. Diplomica Verlag. All rights reserved.

2010). Thus, it has to be analysed whether the stereotypes held by many nonMuslims consumers (Abdullah, 2008) negatively influence the perception of a brand. This perception could be a threat to Muslim brands. However, studies have shown that both Muslims and non-Muslims purchase the same Islamic products: for example, in banking (i.e. products without interest rate) in countries where Muslims are a minority (Knight, 2006) as well as a majority (Haron et al., 1994).

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This shows that Islamic brands are not only attractive to Muslims but also to nonMuslims. However, many perceive Halal brands from a religious perspective and not as a quality assurance (Rezai, 2008). According to Alsem and Kostelijk (2008), one goal of branding is to teach consumers. Halal values, such as healthy and safe quality food which takes care of animal rights and environment, are shared by both Muslims and non-Muslims. Therefore, Rezai (2008) points out that it is important to increase awareness of these benefits. However, it is questionable if there is a need to point out the ‘Halalness’ of a brand or if it might be better to use the values behind (Haron et al., 1994) when creating brand identity so that a brand is not just perceived as compliant to Muslim consumers.

2.5 Principles in Islamic branding and marketing Islamic branding and marketing is a new area of academic research which focuses on how to market Islam-compliant products to Muslim consumers (Alserhan, 2010c). As can be seen in Figure 3, Islamic marketing consists of 17 aspects which need to be covered in order to be successful (Sula, Kartajaya, 2006). Generally, Islamic marketing is guided by four principles: namely, ethics, humanism, spiritualism and realism (ibid.), which influence the marketing mix throughout. Furthermore, it can be said that Islamic marketing is led by the value-maximisation approach (Hassan et al., 2008). However, as ethical behaviour is crucial (Yusuf, 2010), value maximisation is interpreted not only from a company and profit perspective (Alserhan, 2010b). In Islam, trading is highly recommended, and through it the acquiring of wealth, but only if the society as a whole can benefit (Arham, 2010). Thus, a comCopyright © 2012. Diplomica Verlag. All rights reserved.

pany has to provide value to the customer (Abdullah, Ahmad, 2010, Damirchi, 2011) throughout the marketing mix. Furthermore, a company should invest a part of its profit in the wellbeing of the society (Hassan et al., 2008) and thus increase value for the society.

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F Figure 3: Aspects of Isla amic Marke eting with a focus on Marketing Mix

In orrder to market and brand produ ucts to Musslim consu umers, Tem mporal (2011) and Alse erhan (2010b) require e the focu us on Islam mic values throughou ut the who ole marketin ng mix. This is even more important whe en creating g brand ide entity (Sriv vastava, 2011 1; Nandan, 2005), as s brands need n to basse themse elves on Isllamic princciples in orde er to attract Muslim consume ers (Alserh han, 2010b). Accord ding to Ab buznaid Copyright © 2012. Diplomica Verlag. All rights reserved.

(200 09), some of these principles p a truthfu are ulness, hon nesty, kind dness, justtice and fairn ness. As can c be see en in Figurre 3, the marketing m m mix has ma any implica ations from m an Islamic perspecttive for cre eating bran nd values and comm municating these to the consumer.

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2.6 Conclusion This chapter has focused on values from an Islamic and consumer point of view. Additionally, the values and principles from the Halal concept and the Islamic marketing mix can be used for creating brand identity in order to attract Muslim con-

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sumers.

26   Alihodzic, Vedad. Brand Identity Factors: Developing a Successful Islamic Brand : Developing a Successful Islamic Brand, Diplomica Verlag, 2012. ProQuest Ebook Central,

Chapter 3 Literature Review 3.1 Introduction In this chapter, the conceptual framework will be presented, which is based on an analysis of the three main brand identity concepts (Kapferer, 1992; Aaker, 1996; Meffert et al., 2005). Furthermore, insights into the most important internal factors which influence consumer behaviour will be discussed. The main focus is on the literature review concerning the intangible and tangible factors of brand identity, which were derived based on an analysis of the three main concepts.

3.2 Conceptual framework When creating brand identity, Boatwright et al. (2009) recommend a process consisting of four steps; this is also supported by Ghodeswar (2008). The first step, analysis, builds a fundament of the process, as the second (synthesis) and third (translation) steps are influenced based on this internal and external analysis. In these steps the brand identity is created (synthesis) and converted in an understandable message (translation) for the target group. The final step (implementation) is then the execution of the specific identity concept. Therefore, this process is the fundament of the conceptual framework. As explained in Appendix 5, each company determines what their brand identity is (Nandan, 2005). Therefore, it can be said that this is a resource-based view as, based on the origin, values and competences, the company will develop the identity (Balmer, Thompson, 2009). However, in order to be valuable for the consumer, brand identity must reflect their needs, values and beliefs (Kotler, Armstrong, 2010). Thus, it can be said that the brand identity concept is based on both the resources and the market (Alsem, Kostelijk, 2008; Boatwright et al., 2009). ThereCopyright © 2012. Diplomica Verlag. All rights reserved.

fore, it was important to point out the consumer values and beliefs in Chapter 2. Chapter 3 will focus on the resource-based view of the conceptual framework. Derived from the consensus on factors from the three main concepts (Appendix 5), it can be said that brand identity consists of intangible factors (origin, values, personality and relationships) which are communicated through the tangible ones (Kapferer, 1992; Aaker, 1996). Brand values are influenced by brand origin, the

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fundamental intangible factor (Meffert et al., 2005), as values are formulated based on the roots and country of origin. Brand values, in turn, influence the personality, and this has an effect on the relationships of the brand. Often, intangible factors are abstract and not perceived directly. Therefore, tangible factors are important to communicate intangible factors correctly. The brand logo (Pittard et al., 2007) and the name (Upshaw, 1995) are the most important and influential factors. Additionally, slogans (Dahlén, Rosengren, 2005) and testimonials (Azoulay, Kapferer, 2003) can be used to transfer intangible factors. The created brand identity needs to be communicated accordingly (Ghodeswar, 2008). Therefore, marketing communication needs to be looked at too. Brand image is the consequence of several external factors influencing consumer perception (Jobber, 2009) and how the brand identity is perceived by the consumer (Boisvert, Burton, 2011). In order to avoid a gap between how a company wants to be perceived (brand identity) (Aaker, Joachimsthaler, 2000) and the actual sum of all perceived impressions (brand image) (Srivastava, 2011), consistency in creating and communicating the brand identity is crucial (Nandan, 2005). This is more important when loyalty is aimed at being increased (ibid.), as this is dependent on the satisfaction of consumer expectations (Hassan et al., 2008). Moreover, Duncan and Ramaprasad (1995) recommend a high level of standardisation throughout the communication to minimise this gap. However, it is questionable as to which parts of the brand identity can be standardised (Szymanski et al., 1993). The logo and values, for example, are often standardised across cultures (e.g. VW’s logo, slogan and values), whereas the language used is adapted.

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As can be seen in Figure 4, the conceptual framework connects all these aspects.

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29

 

Figure 4: Concceptual framewo ork, connecting all chapters and theories

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3.3 Consumer Behaviour 3.3.1 Motivation In Muslim consumer behaviour, it can be assumed that motivation is a crucial model, as it forces a consumer to take a particular action (Evans et al., 2006). Motivation is aroused to satisfy a specific need (Statt, 1997) which results in a goal (Solomon, 1999). Considering Halal brands, they can be seen as secondary needs, as these are needs which were learnt through culture and values (Schiffman, Kanuk, 2000). Many theories such as Maslow’s (1943) exist which explain the hierarchy of needs. However, Schiffman and Kanuk (2000) argue that consumers fulfil more than one need at one time. Thus, it can be argued that Halal brands fulfil several needs, such as security, social needs and self-fulfilment, at one time and not in a chronological order. The mean-end theory might be more appropriate in this case. According to Thompson and Chen (1998) and Wagner (2007), attributes are linked to individual ends which are derived from values. A good example of an Islamic-compliant advert is provided by KitKat, through using a testimonial (dressed according to Islamic values) in a working environment, enhancing the “peace of mind” and displaying the Halal logo. This shows that the consumption of this particular confectionery can lead to peace of mind due to conformity with Halal standards. Considering values, the underlying motivation is crucial in segmentation as it can be said that this has a higher impact on consumer behaviour than culture (Cannon, Yaprak, 2011). Although Muslim countries cannot be treated as one market (Hanzaee, Chitsaz, 2011), it can be argued that the motivation for Halal products is the same (Wilson, 2006) due to common faith, needs and values (Baligh, 1998; OIBMF, 2010). Thus, Temporal (2011) argues that the underlying motivation has

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to be investigated. Furthermore, it can be argued that both Muslim and nonMuslim consumers can have the same motivation due to similar goals (such as peace of mind or, in the case of non-Muslims, quality assurance).

3.3.2 Perception The way a consumer “selects, organizes and interprets stimuli into a meaningful and coherent picture of the world” (Schiffman, Kanuk, 2000: 122) is highly individ-

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ual and thus might result in different images of a brand. Therefore, a consumer’s perception needs to be influenced (Alsem, Kostelijk, 2008) in order for them to perceive brand identity correctly. Additionally, Meffert et al. (2005) argue through the stimulus-organism-response model that, depending on the perception (i.e. organism) of stimuli, consumers will respond differently (i.e. purchase or not). According to Wright (2006), perception influences attitude directly. This correlation is highly important as consumers do not always choose brands based on objective criteria but on the perception of a brand (Puth et al., 1999). However, the way a consumer perceives stimuli is dependent on their experience, knowledge, values and involvement (Kroeber-Riel, 1984). Thus, a Muslim consumer might look for factors which portray Islamic values, whereas a non-Muslim consumer might look for other criteria such as price, design or quality. The brand OnePure, for example, could be perceived as Islamic due to its compliance with Halal (onepurehalalbeauty.com, 2012). However, a non-Muslim could perceive it as a high quality cosmetics brand which does not use chemicals and avoids animal testing. Furthermore, Temporal (2011) argues that a brand which appeals to more generic values such as honesty and sustainability, which apply to both Muslims and nonMuslims, might be perceived by Muslims from an Islamic perspective, whereas non-Muslims might perceive it as a highly ethical company, for example. This can often be observed within Islamic banks, such as the Dubai Islamic Bank or the Bank Islam in Malaysia. In order to attract both consumer segments, they create a brand identity based on an Islamic fundament which is perceived as ethical and moral by non-Muslims (ibid.). The Virgin brand is also a good example, as the logo is used and recognised universally. In Jeddah (Saudi-Arabia), it is written in Arabic

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on the Virgin Mall (Wilson, 2011). However, it is not perceived as another brand since the recognition of the brand is strong, so consumers can perceive it as Virgin although they may not be able to read Arabic letters. 3.3.3 Attitudes Attitudes, which can be defined as the learned predisposition (Omar et al., 2008) or degree which influences feelings towards an object either positively or negatively (Fishbein, Ajzen, 2000), consist of three components. In addition, Banyt et al.

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(2007) argue that attitude is an affinity to react to stimuli. Thus, it can be argued that brand identity factors (stimuli) influence consumers’ attitudes and therefore have to be created cautiously (Rosley, 2006). The so-called ABC model (Affect-Behaviour-Cognition) (Solomon, 1999), or tricomponent attitude model, argues that consumer behaviour is influenced through an interaction of cognitive, affective and connotative components (Schiffman, Kanuk, 2000; Melewar, Walker, 2003). The first component describes the knowledge a consumer has acquired of a brand, while the second component constitutes emotions towards a brand (Schiffman, Kanuk, 2000). Especially in branding, emotions are a key component as they lead to differentiation (Ruth, 2001). The last component, connotation, is concerned with the likelihood of behaving in a certain way (Schiffmann, Kanuk, 2000). According to Statt (1997), attitudes are a good predictor of consumer behaviour. To contrast this point, it can be argued that attitudes are dependent on individual consumer situations (Schiffman, Kanuk, 2000). Thus, a consumer can have many reasons for behaving in a certain way. In addition to this, Gayatri et al. (2005) argue that a Muslim consumer’s attitude is highly influenced by religious values, especially in brand evaluation (Hewstone et al., 2010). Many models portray consumers’ attitudes, such as the attitude-toward-behaviour or the theory-reasonedaction (ibid.). However, the most appropriate model is the multiattribute model, “attitude towards object”. This model describes the attitude through the presence or absence of specific brand attributes or factors (Fishbein, 1963). For a Muslim consumer, this means that if a brand portrays important factors, such as Islamic values, the attitude towards this brand might be positive and thus the consumer might purchase it. This was observed in a sales increase when Taco Bell changed

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partially to Halal food (Temporal, 2011). It can be concluded at this point that motivation, perception and attitude are important concepts. Especially for Islam-compliant branding, it can be argued that Muslims are motivated to maintain their religious values when purchasing a brand. Furthermore, they perceive a brand differently as, through the motivation, they are seeking signs which determine that a brand is compliant with their religion. Finally, their attitude towards a brand is formulated through the presence of such signs.

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3.4 Brand Identity 3.4.1 Intangible brand identity factors Brand origin The country of origin effect and the cultural roots have been examined in a number of studies (Darrat, 2011). On one hand, Liefeld (2004) found that 88.8 % of respondents did not have an interest in finding out where a brand’s origin was. This negative effect is supported, among others, by Samiee (2010). Therefore, Magnusson et al. (2011) conclude that consumers are often unfamiliar with the true origin and so it cannot be an important factor. On the other hand, research has found a significant influence on attitude (Häubl, 1996) and on consumer behaviour (Demirbag et al., 2010; Sharma, 2011) saying that, depending on the perception of the country’s image, this might have an influence. Furthermore, it can be argued that, in the case of Halal products, consumers are interested in the origin of the resources purchased by a company (Thakor, Lavack, 2003). Temporal (2011) points out that, due to the high risk aversion, consumers are well informed and thus it is important to consider the image of the producing country and its strengths and weaknesses in producing a particular product (Ali, Wanwang, 2002). Boycotts of Danish milk-based products (e.g. Arla Foods) (Euronews.net, 2006) and US products (e.g. Coca Cola) (Spiegel.de, 2003) are examples where awareness of religious and political issues of the producing countries have affected behaviour. Therefore, it is highly important to consider the country of origin’s image (Alserhan, 2010b). Some Muslims believe that, due to the sensibility of Halal production, only Muslims should produce such products (Fischer, 2010). Wilson (2010) adds that mistrust remains, especially when the item is produced by large companies. Therefore, Copyright © 2012. Diplomica Verlag. All rights reserved.

brand ownership (Thakor, Lavack, 2003) needs to be considered. In contrast, the Noor brand index (ogilvy.com, 2012) shows that non-Muslim brands such as Nestlé are leading in Halal production. However, it can be said that staff needs to comply with rules and values (Zakaria, Abdul-Talib, 2010) and should behave accordingly (Hassan et al., 2008). Many cues such as stereotypes can be used to determine (Ranchhod et al., 2011)

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and communicate brand origin (Phau, Chao, 2008). Furthermore, tangible cues, such as copy, brand name (Thakor, Kohli, 1996), the “Made in” label (Häubl, 1996) or visuals, can be used to determine brand origin. The brand “Al Awani Dates”, for example, uses a palm and the brand name to show that it is an Arabic brand. Brand values In order to be valuable for the consumer, a brand must reflect consumer values (Temporal, 2011). This is supported by Riquelme (2001), who found that consumers ignore brands that do not support their values. Additionally, Alam et al. (2011) found that Islamic values influenced Muslim consumers’ choice of restaurant brands. According to Hollensen (2008), consumers evaluate brands according to the satisfaction of cultural values. On the other hand, Lindridge and Dibb (2002) found that culture is not as valid a concept to attract consumers as is the value system. This can be supported by Haron et al. (1994), who found that consumers from different cultures purchased the same brands because of their values. Therefore, it can be argued that the value system is more important than the particular culture and thus brand values are seen as crucial. This approach is taken by the brand Brunei Halal, which takes globally-accepted values such as quality, safety and sustainability as their brand values (brunei-halal.com, 2012). Brand values should be derived from core competences, otherwise they could negatively influence identity and thus be perceived as dishonest (Alsem, Kostelijk, 2008). Therefore, it can be argued that brand values present what the brand stands for; they link corporate and consumer values and are thus a core of brand identity (Urde, 2009). Therefore, Alserhan (2010b) and Dusuki (2008) recommend the transferral of both extended and core values in an Islamic context. Brunei Halal, for example, translated the core value “collective responsibility” in their brand Copyright © 2012. Diplomica Verlag. All rights reserved.

by applying the strictest accreditation process for Halal products globally (bruneihalal.com, 2012). As can be seen in Appendix 3, such Islamic values can be derived from Shariah. The most important value is the belief in one God (Temporal, 2011). Furthermore, values such as innovativeness (Boisvert, Burton, 2011), purity, sustainability (Temporal, 2011), loyalty, truthfulness (Abdullah, Ahmad, 2010), good relation-

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ships and morality (Abuznaid, 2009) are some of the core values which should be considered in brand identity. A good example which applies Islamic values is the Al-Rajhi Bank in Malaysia; their brand identity is based on the values of truth, respect and honour. These values are communicated consistently and have resulted in increasing sales (Temporal, 2011). Aaker (1996) points out that brand identity includes vision (direction of the strategic decisions for the future) and mission (reason for existence). Supported by Urde (2003) and Upshaw (1995), it can be said that both are used to convey brand values and thus make the brand unique (Ingenhoff, Fuhrer, 2010). The telecommunications company Zain applied values such as brotherhood, societal welfare and sustainability through a strong commitment to environmental care in their brand vision (Temporal, 2011). Another example is the Johor Corporation, who supports societal wellbeing by waqf (glossary) (ibid.).

Brand personality This concept is referred to as the key for differentiation (Maehle, Shneor, 2010), as a personality is individual (Meffert et al., 2005). Aaker (1997) offers the most popular personality scale, consisting of five dimensions – namely sincerity, excitement, competence, sophistication and ruggedness – which can be used to portray human-like traits (Wilson, 2011). According to Aaker (1996), brand personality can be created through values and socio-economic and demographic traits. Furthermore, personality can be portrayed through the brand name, product attributes, symbols (Aaker, 1997) or testimonials (Azoulay, Kapferer, 2003). According to Azoulay and Kapferer (2003), consumers choose brands like their friends and thus behave as though brands have human-like characteristics. This is Copyright © 2012. Diplomica Verlag. All rights reserved.

supported by the theory of animism, which argues that humans imagine items to have human-like characteristics (Gilmore, 1919). Therefore, Alserhan (2010b) points out that Islamic values need to be considered, as consumers prefer brands which support their lifestyle. This is supported by Maehle and Shneor (2010), who argue that a brand personality has to reflect the personality of a typical consumer.

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The brand personality of Fulla (dolls for children), for example, can be described as a well-educated young girl who lives after the principles of God and respects her parents and members of the community in which she lives (Temporal, 2011). Brand relationships The concepts of brand personality and brand relationships are strongly intertwined, as consumers feel attracted by a brand which portrays their personality, which results in a relationship between both (Temporal, 2011). Moreover, consumers find it natural to build a relationship with a brand (Dolich, 1969; Maehle, Shneor, 2010). Therefore, it can be assumed that brand relationship is a differentiation criterion and thus can increase loyalty (Aaker, 1996). Additionally, Power (2009) argues that Muslim consumers want brands that communicate to them and with whom they can communicate. Alsem and Kostelijk (2008) conclude that the fundament for a good relationship is the similarity of a consumer’s and a brand’s identity. An example is provided by Olpers, a milk brand which builds a relationship through showing how they enrich the life of the whole community and thus provide a feeling of belonging (Temporal, 2011).

3.4.2 Tangible brand identity factors Brand logo Studies have shown that logo characteristics affect consumer behaviour (van den Bosch et al., 2005; van Riel et al., 2001) by acting as a cue for quality (Ahmed, 2008). Moreover, it is argued that a logo enhances recognition (Pittard et al., 2007), expresses brand values and adds value to the consumer (van Riel et al., 2001). Furthermore, it can be argued that language barriers can be transcended

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as humans think visually (Kroeber-Riel et al., 2008; Walsh et al., 2010). According to Rezai (2008), 77.4% of consumers look for a Halal logo when purchasing. Thus, for Muslim consumers, a certificate which ensures the Halal compliance of a brand is needed (Omar et al., 2008). Furthermore, Mousavi et al., (2002) support this by arguing that Muslim consumers are more attracted when traceability of a brand is assured. On the other hand, Omar et al. (2008) found that consumers do not trust Halal logos because of the huge number of certification

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authorities. Therefore, ingredient lists (ibid.) also influence consumer behaviour. However, the example of McDonalds and Burger King in Singapore, who have been certified as Halal, shows that the Halal logo is useful: their sales increased by 20% (Sabry, 2006). Colour is referred to as increasing recognition (Hynes, 2008), holding meanings (Vartorella, 1990), provoking emotions (Bloch, 1995) and carrying a symbolic value (van Riel, Balmer, 1997). In an Islamic context, the colour green could be affective, as it is assumed to be the colour of the Prophet and is perceived as the colour of harmony (Seilnacht.com, 2012). Furthermore, gold is believed to be the colour of paradise (Colourlovers.com, 2012) and evokes the feeling of luxury and trustworthiness (Schmitt, Simonson, 1997). The shape of a brand’s logo also has an important effect on perception (Aronoff et al., 1992). Pittard et al. (2007) argue that angular shapes should be avoided when values such as harmony and softness are to be communicated. Furthermore, symmetry is more valued by collectivists (Henderson et al., 2003), as most Muslim countries are (Hofstede, 2012). However, Gestalt psychology suggests harmony among all elements (Koffka, 1955).

Brand name For knowledgeable consumers (Jiang, 2004), a brand name could be a cue for quality (Bristow et al., 2002). However, for inexperienced consumers the brand name enhances awareness (Chan, Huang, 1997) and influences the perception of a brand (Upshaw, 1995). It could be assumed that the cosmetics brand name ‘OnePure’, for example, suggests oneness and purity as values (Temporal, 2011). Another example is Mecca Cola, which uses the name of the holy city Mecca as

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an association implying Muslim-compliance. According to Omar et al. (2008), a brand name suggests specific product attributes, evokes emotions (Shimp, 1993) and meanings (Dong, 2001) and can have a symbolic value (Thakor, Kohli, 1996). However, Ang (1997) points out that a brand name has to be simple, understandable and unique. In order to attract Muslim consumers, Haque et al. (2010) argue that religious ter-

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minology, such as Bismillah (in the name of God) (Rezai, 2008), can be used. This .

is supported by Temporal (2011), who points out that Shiddiq (honest), Amanah (trusted) and Fathanah (intelligent) are especially useful in a brand being perceived as Islamic. An example could be the brand Al-Tauhid wa al-Nur (the oneness and light of God) (OIBMF, 2010). Thus, a consumer might perceive the brand as foreign (Thakor, Lavack, 2003), trustful and Islamic.

Brand slogan Slogans influence the perception of a brand and are needed to maintain brand identity (Dahlén, Rosengren, 2005). However, when communicating to consumers (Pryor, Brodie, 1998), the brand name, logo and slogan need to be consistent (Freeman, 2005). Using foreign language (Ahn, La Ferle, 2008) such as Arabic or using Islamic terminology can enhance the feeling of an Islamic brand. Furthermore, a slogan has to incorporate the uniqueness and values of a brand (Seyfarth, 1995). Halalibo applies this by connecting brand name (Halalibo) and slogan (“Halal ist besser oder?” means “Halal is better, or not?”), whereas the ending – ibo – represents the first letter of each word in the (German) slogan (Halalibo.de, 2012).

Testimonial Showing a typical user, or a user testimonial (Runia et al., 2005), can help to communicate the personality and brand values and thus help a consumer to identify with the brand (Azoulay, Kapferer, 2003). According to Erdogan (1999), a testimonial is also used to enhance brand awareness. Moreover, Tom et al. (1992) argue that a consumer can be conditioned, as they transfer positive emotions

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evoked by the testimonial to a brand. However, the extent to which testimonials can be used is questionable as Islamic principles prohibit lying to and manipulating consumers (Hassan et al., 2008). It can be argued that showing a celebrity who pretends to use a brand or an alleged expert is more arguable, than just showing satisfied customers (ibid.) or a typical user who helps consumers to identify with him. Furthermore, it is questionable as to whether testimonials of cosmetic brands, for example, are appealing to Muslim consumers as they portray sexual motives

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and messages in their communications.

3.5 Marketing communication Communication messages are also decoded, among other factors, by religion (Michell, Al-Mossawi, 1995). Therefore, Rice and Al-Mossawi (2002) suggest a detailed examination of religion when communicating with consumers. Additionally, Luqmani et al. (1987) and Michell and Al-Mossawi (1999) show that Islam especially has a great influence on communication with consumers. However, some elements, such as the core of a brand (Ingenhoff, Fuhrer, 2010), need to be standardised (Meckl, 2006) in order to close the gap between brand identity and image (Duncan, Ramaprasad, 1995). This is supported by Nandan (2005) and Ghodeswar (2008), who sees repetition as key for establishing identity. Advertisements could be offensive to Muslim consumers, either through the nature of a product (e.g. alcohol, pork) or the type of communication (e.g. sexual appeal) (De Run et al., 2010). Therefore, in communications with Muslim consumers, overpromising (Arham, 2010), misleading messages or any other manipulation is strictly prohibited, as free, independent and rational judgement is emphasised in Islam (Hassan et al., 2008). Kavoossi and Frank (1990) support this by observing less use of metaphors and hyperbole in Islamic advertising: such devices are seen as exaggeration and thus as a lie (Haque et al., 2010). Although brand promotion is not prohibited it has to remain within ethical (Yusuf, 2010) and moral (Abdullah, Ahmad, 2010) boundaries. It is, for example, strictly prohibited to propagate wasteful spending (wasting of Gods resources) or extravagance in any form (ibid.). Furthermore, stereotypical use of women and sexual appeal is prohibited (Hassan et al., 2008). Therefore, it can be said that most adCopyright © 2012. Diplomica Verlag. All rights reserved.

vertisements for Western cosmetic brands, such as Calvin Klein or Dior, would be inappropriate. Luqmani et al. (1987) often observed the use of cartoons, as they are seen as less offensive. Furthermore, messages are centred on tradition, quality and long-lastingness (Haque et al., 2010), and are more indirect and ambiguous (Albinana et al., 2009). McDonalds also uses Islamic symbolism to be perceived as Islamic: the displayed chips can be associated with fingers and thus are a signifier for a typical gesture when praying to God.

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Burger King, on the other hand, uses the crescent as symbol, associated by a nearly-eaten burger. Many examples show ineffective communication, such as a drug and detergent company. Not considering the way of reading Arabic right to left, an advert with three pictures showing someone ill using the remedy and being healed was understood as a healthy person taking the remedy and becoming ill (Alserhan, 2010a). An advert using sexual appeal to promote a shopping mall can also be seen as ineffective. Furthermore, an advert using contests to attract consumers can be seen as ineffective in the Muslim market as gambling is strictly prohibited in Islam.

3.6 Conclusion The extensive literature review discussed the most important issues in consumer behaviour and brand identity. Furthermore, intangible and tangible factors which were derived from the three main brand identity concepts were discussed. This chapter concluded with a discussion on effective Islamic marketing communica-

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tion.

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Chapter 4 Methodology 4.1 Introduction The following chapter will firstly discuss and justify the philosophy of the research, while explaining and justifying the chosen methods. Furthermore, it will describe how data were collected and will comment on the reliability and validity, as well as the limitations, of the research.

4.2 Research Philosophy and Design In order to justify the research design, the epistemological, ontological and methodological positions need to be clarified first (Creswell, 2007). This is important as the philosophy will guide the research (Saunders et al., 2009; Guba, 1990). Epistemological considerations refer to the decision as to whether approaches of natural science are used in social science (Bryman, Bell, 2011). Furthermore, Eriksson and Kovalainen (2008) argue that epistemology defines the way of knowledge acquisition. Hatch and Cunliff (2006) add that epistemology is the way of how to describe reality. On one hand, positivism is based on facts which are gathered by valid measures using mainly quantitative methods (Easterby-Smith et al., 2008). On the other hand, interpretivism is an in-depth understanding of the topic which is gained through more qualitative methods (ibid.). Although interpretivism is frequently used as an approach for analysing consumer behaviour (Saunders et al., 2009), it seems appropriate to apply a positivist approach too as the aim of the research is to find a set of factors which influence consumers. As Jehle (2011) points out, quantitative methods are most appropriate when finding influencing factors as they allow a scientific justification of a huge variety of re-

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spondents. Due to the usage of a combination of both qualitative and quantitative methods, a clear epistemological position cannot be taken. Moreover, it is believed that the data gained through quantitative methods can be supported by an indepth understanding gained through qualitative methods. Thus, it can be said that a realist approach is taken; this approach argues that structures exist without human consciousness but knowledge is gained socially. Saunders et al. (2009) argue that the knowledge of reality is formed by social conditioning.

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In ontology, objectivism follows the idea that reality is objective and is independent from social factors, whilst subjectivism argues that reality is created by perception and thus is constantly modified by actors (ibid.). Following Einstein (n/a), who said “Reality is merely an illusion, albeit a very persistent one”, a subjectivist approach is taken.

4.3 Research Methods Research methods can be extrapolated from the epistemological approach. According to Guba (1985) (cf. Bryman, Bell, 2011), positivism and interpretivism are clearly separated and thus a combination of both qualitative and quantitative methods is impossible. To contrast this point, Bryman and Bell (2011) argue that epistemology is just a tendency of a research and thus a combination of research methods seems not to be impossible. This is supported by the research of Bryman (2009), who found that a mixed approach is popular in marketing. Moreover, Denscombe (2007) argues that the accuracy of findings can be improved and a more complete picture can be gained by combining both methods. Furthermore, Denzin (2009) recommends a mixture as this is the only way to avoid the weaknesses of both methods. In this study a mixed research approach is taken. Firstly, expert interviews are conducted in order to discuss brand identity factors from a professional perspective. Interviews are carried out with two academics who are experts from a theoretical point of view, and two practitioners who have much experience in creating and managing Muslim brands in both a non-Muslim and Muslim environment. Semistructured interviews are conducted via email and telephone and are chosen in order to achieve comparability, but new ideas and aspects can still be gained

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(Denscombe, 2007). Qualitative interviewing aims to explore the interviewee’s subjective point of view (Bryman, Bell, 2011). Therefore, experts were chosen as they have a huge expertise and thus privileged information which can be examined via a qualitative method such as interviewing (Denscombe, 2007). Secondly, a questionnaire is launched online and sent out to both Muslim and nonMuslim consumers. Questionnaires are used when a huge range of factual information or opinions, attitudes and beliefs need to be collected (ibid.). Although no

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in-depth questions can be asked and there is in general no possibility for the respondent to explain how something is meant (Bryman, Bell, 2011), it can be argued that it is about how consumers perceive several factors: it is not primarily the aim to understand why they perceive something, but to find out firstly which factors influence their perception at all. Due to the standardised character of a questionnaire, collected data can be compared easily (ibid.). As the aim of the research is to find factors which help in identifying a brand as Islamic, a questionnaire is appropriate as factors can be verified by a huge range of respondents. Furthermore, through questionnaires objectivity can be increased (Adams et al., 2007) so no subjective bias can occur. Lastly, research on influencing factors of attitude and perception has shown the efficiency of questionnaires (Jamal, 2003; Fam et al., 2004; Banyt et al., 2007; Omar et al., 2008).

4.4 Sampling Interviewees were selected based on non-probability sampling. This is used when the researcher has a certain purpose in mind which reflects the qualities of the interviewees (Denscombe, 2007). Interviewees were selected according to their expertise in the area of Islamic marketing and branding. Following Ghauri and Gronhaug (2002), who said that small samples are appropriate in qualitative research, a total of 4 experts are interviewed (Appendix 6-1 shows their expertise). Following Bryman and Bell (2011), the absolute sample size is more important than the relative and thus, in order to be representative, they recommend a large sample size (see Appendix 6-2 for a description of the sample). However, time and cost limit the acquisition. According to Temporal (2011), the most available segment is the second and third generation Muslims. As stated before, the group of

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interest for this research is the so-called New Age Muslim or Futirst. To access this group, as well as non-Muslims, snowball sampling was applied. With this technique, a small group is contacted which then establishes contact with others (Bryman, Bell, 2011). According to Liamputtong and Ezzy (2005), non-probability sampling such as snowball sampling is widely applied in marketing research and within student papers. This is supported by Denscombe (2007), who argues that, in the end, convenience is always a factor within research. Personal contacts were

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used, as well as social networks such as Facebook and various internet forums. Moreover, Islamic organisations such as mosques, Muslim youth organisations, consumer advice centres and Muslim councils in Great Britain and Germany were contacted with the request to send out the link with the questionnaire via mailing lists to their members. This lead to a total of 519 responses.

4.5 Questionnaire design A self-completion questionnaire must be designed in a comprehensive and attractive way in order to get a response (Bryman, Bell, 2011). In general, closed questions are used to examine respondents’ opinions or perceptions. However, open questions can be advantageous in the sense that respondents have the opportunity to answer in their own words and are not guided by the researcher’s choice of possible answers (ibid.). On the other hand, with closed questions the comparability of answers is ensured and the likelihood of responding is higher (Denscombe, 2007). For the purpose of analysing and comparing data, only six out of thirty questions were open and asked either for further clarification of a given response or for additional information and opinion. Other questions were closed, using mainly a five-point Likert scale. The questionnaire had four parts: namely personal questions (Q1-4), values (Q6-8), consumer behaviour (Q5, 9-10) and brand identity factors (Q11-30), whereas at least one question per factor was asked. Due to the researcher’s international background, the questionnaire was launched online in English, German and Bosnian. This ensured a broad and global acquisition of responses and avoided misunderstandings, as respondents had the opportunity to choose the language with which they felt most comfortable.

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4.6 Piloting According to Cooper & Schindler (2006), pre-testing of questionnaires can help to avoid mistakes and misleadingly-formulated questions. Due to the self-completing character of questionnaires, it is crucial to formulate questions reasonably, as respondents cannot ask for clarification (Bryman, Bell, 2011). All three questionnaires were pilot tested with three Muslims and non-Muslims. Spelling mistakes and further explanation of the Halal concept were adapted in the introduction.

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4.7 Data Analysis Qualitative data of the expert interviews were gathered by taking notes and recording what the respondents were saying. As interview questions were also sent out by email and the interviewees were asked to answer in complete sentences, the meaning of the response was clear. If clarification was needed, further questions were asked by email again. Applying content analysis (Tesch, 1990; Liamputtong, Ezzy, 2005), answers were first grouped by questions and then categorised by meaning. Rereading several times meant that a holistic analysis (Spiggle, 1994) and possible linkages back to theory were easier. Quantitative data were gathered and stored online on SurveyGizmo. After closing the survey, all 519 responses were exported and analysed in PASW Statistics 18. Data were analysed using descriptive statistics such as mode, median and frequency. Chi-square works best with nominal and ordinal data and is used to prove correlation and significance of data (Denscombe, 2007). Chi-square and cross tabulation were used to analyse how – and how many – Muslim and non-Muslim consumers answered on certain questions. Furthermore, Cramer’s V was used to show the strength of the correlation.

4.8 Reliability and Validity When conducting research, both reliability and validity need to be ensured (Cooper, Schindler, 2006). Reliability is a key concept and indicator for validity (ibid.). According to Litz (2003), reliability is ensured through a large number of responses and different questions which measure the same construct. Furthermore, reliability is ensured

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by pre-testing, which enhances understanding of questions. However, it can be assumed that the total of 519 responses and a quite even distribution in age and religion is an indicator for reliability as well as the pre-test which led to corrections. Additionally, all factors were tested with multiple questions and refer to reliable literature. On the other hand, in the qualitative part of the research, reliability is debatable (Golafshani, 2003). Interviewees answered on a subjective basis according to their own experience, which may or may not be reliable. However, the

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reliability of their answers is partly proved through quantitative research. This mixed-method approach is also an indicator for reliability as the weaknesses can be balanced (Denzin, 2009). Validity proves the closeness of reality and the gathered data (David, Sutton, 2004). Although respondents have the opportunity to be dishonest when answering, it can be assumed that measurement validity is high as the questionnaire was anonymous, thereby allowing them to be honest with their answers. Furthermore, proven concepts were used, which can be assumed to be another indicator for validity. It can be assumed that internal validity is high, as responses did not vary, for example, for the question on whether religious obligation plays a pivotal role in their purchase decision.

4.9 Ethical Considerations In order to be ethically correct, the questionnaire was completely anonymous and did not force any respondent to answer the questions. Furthermore, the questions did not lead the respondents’ answers. The Napier University Code of Practice on Research Ethics and Governance (CPREG, 2007) was followed throughout the research. The purpose of the study and all explanation needed were clearly stated. No vulnerable groups were asked to answer the questionnaire. Data were gathered in a proper and accurate way and kept confidential. The interviewees were asked for permission to use the data.

4.10 Research Limitations Although reliable literature and concepts were used and the study was conducted

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to the best knowledge of the researcher, there are limitations. Firstly, generalisability, or external validity (Bryman, Bell, 2011), is questionable as snowball sampling was applied. Due to the aim of finding a set of factors and to get an idea of their influence on perception, it can be argued that the findings can be generalised as the data represent how both Muslims and non-Muslims perceive them. This is also supported by the consistency of the data and high significance proven through the chi-square test. However, there was no control over who an-

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swered the questionnaire. Furthermore, it can be argued that, due to cultural or personal background, it is questionable whether data can be generalised to the wider population. Secondly, the representation of nations could bias results. Mainly respondents from Bosnia, Germany, UK and UAE answered the questionnaire, which could be an indicator for biased answers. Thirdly, the age and, more importantly, the gender distribution could bias the results, as more women than men participated. Finally, the broad spectrum of the topic could lead to superficial analysis. Due to the huge range of factors which were analysed, it could be argued that the study does not go into depth. However, due to the aim of the research this can be neglected.

4.11 Conclusion This chapter looked at the methodological specifications of the conducted research. The chosen mixed-method approach was explained and the main issues,

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such as philosophy, sample, reliability, validity and limitations, were discussed.

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Chapter 5 – Findings and Discussion 5.1 Introduction The aim of the research is to investigate a set of brand identity factors which are crucial for a consumer in order to identify a brand as Islam-compliant and to assess the differences in perception between Muslim and non-Muslim consumers. In order to understand possible differences, effects of religion on consumer behaviour first need to be identified. In the second part, each brand identity factor will be analyzed and discussed in order to find the set of brand identity factors. Chapter 5.2 represents the consumer perspective of the conceptual framework, whereas Chapter 5.3 represents the brand perspective. The following coding is used: Q…= question… SD+D= strongly disagree and disagree A+SA= agree and strongly agree R…= respondent… Median and mode are always on a 1(SD) - 5(SA) scale

5.2 Findings in Consumer Behaviour As derived from the contextual background and the literature review, there are two opinions regarding the influence of religion on consumer behaviour, one opinion saying that there is no influence on purchase behaviour (Rosly, Baker, 2003; De

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Run et al., 2010) while the other found an effect (Hirschmann, 1981; Delener, 1994; Arnould et al., 2004; Mokhlis, 2006). Results from the survey portray a clear picture on this debate. By religious affiliation a clear separation can be observed: 74.1% of non-Muslims strongly disagreed, whereas 59.2% of Muslims strongly agreed on the question as to whether religious obligation is a major concern in purchase (Q5). Combining those who answered either positively or negatively, the picture is even clearer: 89.3% of non-

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Muslims answered negatively (SD+D), whereas 85.1% of Muslims stated that religious obligation is a major concern (A+SA). As all questions in the questionnaire are more than a 2x2 matrix, it is appropriate to use Cramer’s V (Hafner, 2000). Cramer’s V, of .833 which is a very strong correlation (Zöfel, 2002), shows that there is a strong connection between religious affiliation and influence on consumer behaviour. The chi-square test shows a strong significance, as the p-value (.000) is smaller than 0.05 (or 5%) and even satisfies the significance level of 0.01 (or 1%). Following Güttler (2000), this is a sign to accept the hypothesis. Thus, H1 can be accepted. Furthermore, Figure 5 shows that more non-Muslims strongly disagreed than Muslims strongly agreed. Thus, it can be assumed that non-Muslims are stronger in rejecting religious obligation in consumption. This could be a possible explanation as to why no influence on behaviour in previous studies was observed (e.g. Rosly, Baker, 2003).

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Figure 5: Distribution of responses on Q5

Although a correlation does not mean this is a cause (Hartung, 2005), it can be concluded so far that religion is a motivational factor for Muslims, strongly influencing their behaviour, whereas non-Muslim behaviour is not influenced. As can be seen in Figure 6, although non-Muslims strongly disagreed with Q5 they were more neutral (50.7%) in the decision to purchase a brand which is compliant

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with Islamic standards (Q8). This is supported by a median and mode of 3. In contrast, Muslim consumers strongly agreed by 71%. Surprisingly, this is even more than the 59.2% who strongly agreed with Q5, which means that Muslim consumers would buy a brand which is compliant with Islamic standards even if religious obligation is not a major concern in purchase. Cramer’s V of .562 shows there is a strong correlation. Again, the chi-square test shows a very strong significance of p=.000 (