Iranian customers’ understanding towards Halal logo and Islamic brands

The purpose of this paper is to introduce halal logo as a new marketing paradigm, which marketers use as a means of distinguishing their products and services in the competitive environment. This research aims to show the importance of education and training in the area of halal and encouraging scientific societies as well as industry players for further research on the subject. We examine whether customers look for the halal logo when purchasing products and services or whether know about the owner of the logo. We also study the dimensions on which these products and services are considered as halal. The study employs applied research and survey technique on a sample of 385 respondents who had the experience of traveling to a foreign country, using random selection and conducting structural equations modeling. The findings show that awareness about halal, level of commitment to religious rituals, marketing concept, halal certification and the true meaning of halal are considerable factors affecting the Iranian customers’ understanding towards halal logo and Islamic brands. Iranian customers are not sufficiently exposed to halal logo and halal brands through marketing communications, while to enhance halal product and services, it is necessary to make increased use of marketing and branding strategies. This research provides a model that marketers need to consider when presenting their products as an Islamic brand, as it shows the dimensions of understanding and awareness of Iranian customers towards halal. Evidently, it requires cooperation among Islamic cooperation organization (an authority in issuing halal logo on brands in Iran), standard organization, and brand owners.