Key findings:

Key findings include: halal certification has a negative and significant effect on consumer decisions; price has a positive and significant effect; product quality has a positive and significant effect; and all independent variables (halal certification, price, and product quality) have an influence on consumer decisions in buying cosmetics.

What is known and what is new?

What is known is the importance of halal certification, price, and product quality in influencing consumer decisions. What is new is the specific study on the impact of these factors on the decision-making of Islamic Economics students at Tanjungpura University, providing insights into the unique preferences and considerations of this demographic.

What is the implication, and what should change now?

The implication is that halal certification, price, and product quality significantly influence consumer decisions in buying cosmetics. Changes needed include manufacturers prioritizing halal certification, offering competitive pricing, and ensuring high product quality to cater to the growing demand from Muslim consumers.

The government is trying to encourage economic growth from various sectors, one of which is the cosmetics sector. Maximizing halal certification for each product is one way the government can help improve this economic sector. This will encourage consumers, especially Muslims, to use halal-certified cosmetics. The cosmetics sector will advance and contribute to economic development if this policy is effectively implemented. Of course, the government, producers, and consumers must work together. 

Cosmetics continue to progress from time to time. Both men and women increasingly need cosmetics because of their benefits in maintaining skin growth. Due to high consumer demand, Indonesia's cosmetics market is growing rapidly, resulting in a variety of brands and types of cosmetics on offer [1]. Based on Fakhreza & Siregar (2023) [2] there were 1,024 cosmetics-related industries by June 2023, an increase of 12.6% from the previous year. The main market segments are skin care US$ 3.18 billion, skin care worth US$ 2.05 billion, cosmetics worth US$ 1.61 billion, and fragrances worth US$ 39 million. 

Halal cosmetics are mandatory for Muslims. On the other hand, more and more cosmetics are now halal-certified. According to Imam Al-Ghazali, halal Thayyiban is something that is ethically obtained, does not harm or intoxicate, and is done in a way that is by sharia. Based on research by Machbub et al., (2023) [3] Halal cosmetics are skin care products designed to cleanse, repair, and care for the skin without using harmful substances. Komite Nasional Keuangan Syariah (2018) [4] mentioned that Indonesia ranks fourth globally in the halal cosmetics business and is the second largest consumer of cosmetics in the world, after India. Based on statistical data, by 2024 the Indonesian cosmetics market is estimated to generate revenues of US$1.94 billion, experiencing annual growth of 5.35%.

Chart 1. Cosmetics Market Revenue

Source: Statista (Processed, 2024) [5] 

Graph 1 shows the growth of cosmetics revenue every year which can boost the economy. The Indonesian Ministry of Health has classified cosmetics into the following categories: hygiene supplies, oral hygiene, hair care, nail care, skin care, shaving supplies, suntan and sunscreen supplies, baby care, toiletries, make-up supplies, and fragrance supplies.

The price or cost associated with purchasing a cosmetic product is one of the factors that consumers most often consider. In the study by Anam et al., (2020) [6], that consumers will be affected by products with high or low prices, consumers will buy products at the lowest possible cost. The decision to buy something will also be influenced by product quality. Products that comply with Islamic sharia must use halal ingredients, safe and clean equipment, and processes that comply with sharia. Based on research by Ayuniah (2017) [7] product quality will affect consumer choices in buying products. 

The high sales volume and variety of cosmetic brands reflect consumer interest in utilizing cosmetic goods. The research subjects were 253 students of the Islamic Economics Study Program, Faculty of Economics and Business, Tanjungpura University Pontianak in the 2020-2023 academic year. Therefore, this study aims to determine whether variables such as halal certification, price, and product quality affect student judgment when buying cosmetics.

Safira & Prabowo (2020) [8] analyzed the effect of product quality and promotion on consumer decisions to buy MakeOver, Wardah, and Emina cosmetics. This study uses quantitative techniques and associative primary data. Data comes from filling out questionnaires totaling 100 Muslim female respondents. This study also applies Partial Least Square (PLS) analysis. The results explained that product quality and promotion have a positive and significant influence on consumer decisions. When the product's raw materials, manufacturing methods, and final form all provide value to the final product and meet product requirements, then the product is considered to have good quality.

A study conducted by Rakhi (2019) [9] investigated how consumers in Pontianak choose cosmetics based on halal labeling. The initial data of the study came from questionnaires and interviews with 60 respondents aged between 15 to 65 years. Based on the results of regression analysis, 21.93% of respondents are influenced by other criteria in choosing cosmetics, while 78.07 percent of respondents are influenced by the halal label. Halal labeling on products is very important because consumers are very concerned about the halalness and forbiddenness of products when buying cosmetics.

Research objectives R. Amalia et al., (2022) [10] which is to analyze the effect of halal product certification and advertising on consumer decisions when buying wardah products. Primary data for this quantitative research was collected by conducting interviews with 100 respondents. Descriptive statistical analysis was used to analyze the data. The results of this study found that halal certification helps people make decisions to buy goods. So according to this study, buying halal cosmetics is driven by the main factor, namely halal certification. The halalness given by MUI in halal certification affects consumer confidence.

Research Khulwani et al., (2023) [11] has the aim of knowing the influence of influencers and product quality on consumer decisions when buying cosmetics on TikTok. This study applies quantitative methods and Partial Least Square-Structural Equal Model (PLS-SEM) techniques. One hundred out of 128 Generation Z women who use Something beauty products and follow Janes Christina on TikTok became the research sample. Questionnaires were used to obtain research data. The results showed that the variables of product quality and influencers have a positive and significant influence on consumer decisions in purchasing a cosmetic product. Consumers are more likely to buy products that they believe are of higher quality and gain more exposure through influencer marketing.

Research objectives Nova & Nurdin (2020) [12] is to find out how Syiah Kuala University students decide to buy halal-labeled products "Wardah" based on factors such as product quality, celebrity endorsers, and television advertisements. This study uses a quantitative method where the data collection is in the form of a questionnaire with 100 respondents. This study obtained results showing that simultaneously television advertising, product quality, and celebrity endorsers have a significant impact on consumer decisions. Partially product quality and celebrity endorsers have an influence on consumer decisions to buy halal products "Wardah" but not the advertising variable. The quality of a product affects consumer decisions because consumers will certainly choose products that will make them satisfied.

A. Amalia & Markonah, 2022 [13] conducted a study that aims to examine how halal certification, price, and brand ambassadors influence Jakarta consumers' decisions to buy Wardah skin care products. By accidental sampling, the sample in the study consisted of 100 respondents. Regression parameters were tested in this study through data analysis using multiple linear regression. Based on the results of the study, it is shown that halal certification has no influence on consumer decisions in buying Wardah skin care products, but price and brand ambassadors have an effect. This is due to public trust in Wardah as a manufacturer of products that are safe to use.

Research Venisa Ayu Syavira, Nur Diana (2016) [14] investigates how Muslim millennials buy MS Glow beauty products due to the influence of halal knowledge and halal certification. Multiple linear regression analysis was used on 102 respondents from the Muslim millennial population of Malang City. The study shows that knowledge of halal and halal certification affects the desire to buy products. It is very important to know about halal because this is an awareness that must be owned by consumers in buying cosmetic products.

Anam et al., (2020) [6]conducted a study to see how product quality, price, and brand image affect consumer decisions in consuming Citra hand and body lotion. A total of 96 IAIN Salatiga students used the product. The data was analyzed using multiple linear regression. The results explain that consumer decisions in using Citra hand and body lotion are positively and significantly influenced by brand image, price, and product quality partially and simultaneously. Product prices that are comparable to quality will increase consumer confidence.

The purpose of the research conducted by Ayuniah (2017) [7] is to determine the partial and simultaneous effects of brand image, product quality, advertising, and price on customer decisions to buy Wardah lipstick. The target population of the study was students majoring in management at the Faculty of Economics, Gunadarma University, Depok from 2011 to 2014. The results of this study state that each independent variable simultaneously affects the dependent variable. While partially that price, product quality, and brand image all have an influence, but not advertising.

Study Budiman (2020) [15] investigated how halal certification impacts people in Boyolali Regency, Central Java. This study applied a quantitative explanatory method. Purposive sampling was used to select 96 HPAI customers in Boyolali Regency for the survey, and descriptive analysis and simple linear regression were used to analyze the data. The results of this study show that halal certification has no real influence on purchasing decisions; the calculated t value of 1.715 is smaller than the t table value of 2.2791.

Studies conducted by Diba (2020) [16] observed how brand image, halal label certification, and celebrity endorsers influence consumer decisions to buy Wardah cosmetics. Causal associative quantitative methodology was used in this study and used data sources in the form of primary and secondary data. Using a purposive sample approach, this study involved 97 female respondents who live in RW. 001 Jatinegara Kaum Village, Pulo Gadung District and use Wardah cosmetic products. According to the study, consumer decisions are significantly influenced by brand image, celebrity endorsers, and halal label certification. 

Research Lestari et al., (2023) [17] examine the effect of halal certification and BPOM distribution permits on the tendency of consumer purchasing decisions. In this study, 336 female students of the State Islamic University of Alauddin, Faculty of Economics, and Islamic Business Makassar participated in quantitative descriptive analysis. Based on the results of this study, it was found that the BPOM distribution permit and halal certification have a significant effect on students' desire to buy cosmetics.

Research objectives Biati et al., (2022) [18] are to determine how partially and simultaneously halal product quality and religiosity affect consumer desires in purchasing Wardah cosmetics at IAI Darussalam. This research uses quantitative methods. This study uses non-probability sampling and purposive sampling techniques, meaning that sampling is based on special considerations and data comes from questionnaires. Based on the results of the study, consumer decisions in buying Wardah cosmetics are influenced by halal product quality, but not by religiosity.

Research by Machbub et al., (2023) [3] aims to determine the impact of halal certification on cosmetic purchases made by Sharia Economics students at Siliwangi University. This study uses qualitative methods and data sources in the form of primary data. Questionnaires were used to collect data and conduct inductive analysis. The results of this study indicate that halal certification significantly affects consumer choice in purchasing cosmetic products. Most respondents (90.9%) said they pay attention to halal certification when buying cosmetics, 93.9% buy halal-certified products, and 97% dare to spend more money on halal products.

The purpose of Ulin Nukha et al., (2021) [19] research is to analyze factors such as product quality, price, and halal certification in influencing the level of consumer satisfaction when they make purchasing decisions. The type of research is quantitative and to collect data a questionnaire is used. Applying the path analysis method and the sample size of 100 respondents. Based on the research results simultaneously all independent variables affect the dependent variable. While partially the price variable has no effect, the product quality and halal certification variables have an effect.

Research results Anam et al., 2020, Diba (2020), Lestari et al., (2023), Safira & Prabowo (2020) [6, 8, 16, 17] and Venisa Ayu Syavira, Nur Diana (2016) showed that halal certification, price and product quality have a significant influence on consumer decisions when buying cosmetic products. However, research by A. Amalia & Markonah (2022) and Budiman (2020) [13, 15]explain that halal certification does not have a significant influence on consumer decisions in purchasing cosmetic products.

Based on the problem of student purchasing decisions for halal cosmetic products, this study analyzes the effect of halal certification, price, and product quality on consumer decisions to buy cosmetic products and to find out how students consume products so that they can use products that are safe and do not violate sharia. It is hoped that this research will help and provide an overview of the practice of consuming products that have integrated halalness and can maximize the benefits of the cosmetics used.

Halal Certification

According to a simple definition, halal certification is an activity that shows that a product is halal from raw materials to processing, packaging, and distribution, including the company's internal system that ensures that the product is halal. The Qur'an and hadith are the main guidelines in determining halalness and are then organized by scholars in the form of fatwas. The explanation of halal and haram products has been regulated by Allah SWT in QS. Al-Baqarah: 3. Based on the study Rakhi (2019) [9] stated that halal certification is a series of testing activities to systematically test the halalness of products. In this case, halal certification is a written decree from MUI that determines the halalness of the product based on tests that have been carried out according to Islamic law thoroughly by experienced testers and also by LPPOM MUI. In addition, halal certification can be used as a way to recognize product quality and provide legal protection for the business and its customers. In this case, manufacturers must provide halal labels for their products. Based on research by Masruroh and Rafikasari (2022) [20] BPJPH's approval of product halalness is based on a written halal determination originating from MUI which is regulated in Law No. 33 Article 4 Halal Product Guarantee, 2014. Shaari and Arifin, divide the indicators of halal certification as follows:

1. The importance of halal logos in purchasing products.
2. Product selection is based on the presence of the halal logo. 
3. Products with halal labels have been thoroughly tested.
4. Recognize the difference between real and fake halal logos.

Price

Manufacturers can set product prices as a competitive strategy. This strategy should match the way the manufacturer positions itself in the competition. How much competition there is in the market will determine how prices vary. No change should be below the manufacturer's predetermined price or beyond the maximum price limit [21]. The Islamic view of price is in line with Maqasid Al-syariah by emphasizing the maximization of profits and minimizing losses to others.  An important principle of Islamic philosophy is that pricing is based on the state of supply and demand in the market by economic justice, taking into account the interests of all parties [22]. In research by Nugroho and Yuniarinto (2021) there are price indicators according to Tjiptono, among others:

1. Price affordability 
2. Price match with quality 
3. Price compatibility with benefits 
4. Price compatibility with the ability or purchasing power. 

Product Quality 

Product quality is a criterion of the product that contributes to completing consumer demand [1].  The manufacture of products by producers is based on considering the needs or desires of consumers which will then be offered to consumers with the ultimate aim of gaining attention, expertise, utility, or consumption. According to Islamic consumption theory, Muslims are prohibited from consuming products that contain haram goods, this has been regulated in QS. Al-Baqarah: 173. According to Anam et al. (2020) [6], Tjiptono divides product quality indicators into 6 parts, namely as follows: 

1. Performance (relating to the basic operating characteristics of the product) 
2. Durability (duration or life of the product) 
3. Features (product characteristics designed to improve product functionality) 
4. Reliability (the likelihood that the product will function as intended within a certain time limit) 
5. Aesthetics (product appearance) 
6. Quality impression (the result of using the product). 

Consumer Decision 

Consumers always consider many things when they decide to buy a product, and their behavior in making these decisions is greatly influenced by these factors. In Islam, consumption is determined by needs so it is not excessive consumption, this has been explained by Allah SWT in QS. Al-Qur'an: 67. In addition to the influence from within, human actions will be greatly influenced by their environment. Manufacturers must pay attention to this, especially when talking about consumer behavior [23]. According to Tjiptono, the indicators contained in consumer decisions are: 

1. Product choice (buyers have the choice to use their money for other goods or products) 
2. Brand choice (buyers choose brands according to their wishes) 
3. Choice of dealer (buyers can choose their dealer) 
4. Purchase time (buyers can choose when to purchase the product) 
5. Purchase quantity (buyers choose the number of products as needed) 

2.1. Source and Type of Data 

In this study, the main data were obtained from questionnaires and research instrument scores expressed on a Likert scale. Price, product quality, and halal certification are the independent variables in this descriptive quantitative research, while cosmetic purchase decision is the dependent variable. The following table 1 lists the factors that need to be tested: 

Table 1. Research Variables 

The reason for using the above variables in the form of halal certification, price, product quality, and consumer decisions is that these variables are considered capable of accurately describing the relationship between the four variables. The use of Halal certification variables, price, product quality, and consumer decisions are used by researchers to compare the results of their research with previous research whether there are similarities or differences so that they can generate new hypotheses.

2.2 Analysis 

This study applies analytical techniques in the form of multiple linear regression analysis processed with SPSS 27 software. The purpose of using this analysis is to determine how the assessment of cosmetic purchases is influenced by halal certification, price, and product quality. The regression model is:

Y=α+ 1 X1 + 2X2 + 3X3 +e

Description : 

Y  = Consumer Decision 

X1  = Halal Certification 

X2  = Price

X3  = Product Quality

α  = Constant 

β = Regression Coefficient

ε = Error Term

The population in this study is 253 Muslim students enrolled in the Tanjungpura University Islamic Economics Study Program in the 2020-2023 academic year. This study applies the Simple Random Sampling technique, which is a sample taken by random means without regard to the strata of population members. Simple random sampling is a student population first grouped by strata or certain characteristics, for example, based on study program, class, or gender. Then, samples are taken randomly from each stratum with the appropriate proportion. So, the Slovin formula is used to help eliminate the withdrawal of the number of samples for this study, as the formula used in the form of:

n =N1+ Ne2  

Description : 

N = Total population

n  = Number of samples

e  = Error tolerance

By using the formula above, the number of samples to be used in the study is obtained: 

n =2531+ 2530,052 =154,97 dibulatkan 155

Statistical analysis applied to knowing the data obtained is in the form of instrument tests, classical assumption tests, hypothesis tests, and linear regression tests. The t-test (partial) analyzes the magnitude of the influence of an independent variable on the variation of the dependent variable, and the F-test (Simultaneous) shows the magnitude of the influence of the independent variable on the dependent variable in regression analysis. Regression analysis will be applied to determine the correlation between the independent and dependent variables.

The data from the questionnaire will be analyzed using SPSS 27 statistical software. After the data is analyzed, the results of the analysis will be interpreted, and conclusions drawn that are relevant to the research objectives. There is a hypothesis proposed by the researcher, namely:

H1 : Halal certification, price, and product quality partially affect consumer decisions. 

H2 : Halal certification, price and product quality simultaneously affect consumer decisions. 

3.1 Results 

Assessment of consumer decisions in purchasing cosmetic products is carried out through analysis of the results of questionnaire answers and scores from research instruments, which are measured on a Likert scale. This study uses a descriptive quantitative approach where the independent variables are halal certification, price, and product quality while the dependent variable is cosmetic purchasing decisions.

Descriptive Statistics Test 

Table 2. Descriptive Statistical Test Results  

Source: SPSS 27 Results (Processed, 2024) 

Based on Table 2, the minimum, maximum, mean, and Std. Deviation of each variable is as follows:

1. In the Halal Certification variable, the lowest number is 4 and the highest number is 9 with an average of 5.59 and a standard deviation of 1.458 with 155 respondents. 
2. In the Price variable, there is the lowest number of 4 and the highest number is 9 with an average value of 5.90 and a standard deviation of 1.467 with 155 respondents.
3. In the Product Quality variable, the lowest number is 6 and the highest number is 14 with an average value of 9.09 and a standard deviation of 2.249 with 155 respondents.
4. In the Consumer Decision variable, there is the lowest number of 5 and the highest number is 11 with an average value of 7.33 and a standard deviation of 1.873 with 155 respondents.

Validity Test 

Table 3. Validity Test Results 

Source: SPSS 27 Results (Processed, 2024) 

Based on Table 3, the calculated R-value of each component question on the halal certification variable, price, product quality, and consumer decisions has a value of R count> R table, namely 0.1577. It can be concluded that this questionnaire is a valid tool for measuring consumer decisions.

Reliability Test 

Table 4. Reliability Test Results  

Source: SPSS 27 Results (Processed, 2024) 

In Table 4, the Cronbach's Alpha value of the halal certification variable (0.679), price (0.672), product quality (0.806), and consumer decisions (0.760) has a value that is > the limit value of 0.60. Thus, it can be concluded that all variables are reliable. 

Classical Assumption Test 

1. Normality Test 

Table 5. Normality Test Results 

Source: SPSS 27 Results (Processed, 2024) 

Based on Table 5, the significance value in the Kolmogorov-Smirnov test is 0.078> 0.05. Therefore, it can be concluded that the residual value is normally distributed. 

1. Multicollinearity Test 

Table 6. Multicollinearity Test Results  

Source: SPSS 27 Results (Processed, 2024) 

In Table 6, the tolerance value of the halal certification variable (0.747), price (0.608), and product quality (0.536) > 0.10, and the VIF value of the halal certification variable (1.339), price (1.645), and product quality (1.865) < 10. Therefore, it is concluded that there is no multicollinearity. 

1. Heteroscedasticity Test 

Table 7. Heteroscedasticity Test Results 

Source: SPSS 27 Results (Processed, 2024) 

In Table 7, it is obtained that the Significant value of the Halal Certification variable (0.063), Price (0.163), and Product Quality (0.227) has a Sig. > 0.05. Therefore, it is concluded that there is no heteroscedasticity. 

3.2 Discussion 

The calculation of the effect of the independent variable on the dependent variable can be explained as follows: 

Multiple Linear Regression Test 

Table 8. Multiple Linear Regression Test Results  

Source: SPSS 27 Results (Processed, 2024) 

In Table 8, the regression equation is obtained as follows: 

Y=α+ 1 X1 + 2X2 + 3X3 +e

Y=1,524 -0,321 Sertifikasi Halal+ 0,311 Harga+ 0, 634 Kualitas Produk

Based on the regression equation above, it is explained as follows: 

1. The constant value (α) is positive at 1.524 which indicates a unidirectional influence between the independent variable and the dependent variable. This explains that if each independent variable, namely Halal Certification, Price, and Product Quality, is zero (0) percent or has not changed, then the value of consumer decisions is 1.524. 
2. The regression coefficient value of the Halal Certification variable (X1) is negative - 0.321. This value explains the negative effect (opposite direction) between the halal certification variable and consumer decisions. This means that if the price variable increases by 1%, the consumer decision variable will decrease by 0.321. Assuming that other variables remain consistent. 
3. The regression coefficient value of the Price variable (X2) is positive at 0.311. The positive sign explains the unidirectional influence between the independent variable and the dependent variable. This means that if the price variable increases by 1%, the consumer decision variable will increase by 0.311, assuming that the other independent variables are considered constant. 
4. The regression coefficient value of the Product Quality variable (X3) is positive at 0.634. The positive sign explains the unidirectional influence between the independent variable and the dependent variable. This means that if the product quality variable increases by 1%, the consumer decision variable will increase by 0.634, assuming that the other independent variables are considered constant. 

The results showed the coefficient value of halal certification (-0.320), price (0.311), and product quality (0.634) ; because 0.634 >  0.311 and - 0.320, product quality is the variable that has the greatest influence on consumer decisions. 

Hypothesis Test 

1. T Test (Partial)

Table 9. T Test Results (Partial) 

Source: SPSS 27 Results (Processed, 2024) 

Table 9 shows the results of the partial effect of the independent variable on the dependent variable, namely: 

H1 : Halal certification has a negative and significant effect on consumer decisions

The t-test results explain that the t value is - 4.813 and the sig value is < 0.001. Based on the results obtained, the sig value of the halal certification variable < 0.05 and is positive. So it can be concluded that the halal certification variable partially has a positive and significant influence on consumer decisions so H1 is accepted.

H2 : Price has a positive and significant effect on consumer decisions 

The t-test results explain that the t value is 4.240 and the sig value is < 0.001. Based on the results obtained, the sig value of the price variable < 0.05 and is positive. It can be concluded that the price variable partially has a positive and significant influence on consumer decisions so H1 is accepted. 

H3 : Product quality has a positive and significant effect on consumer decisions 

The t-test results explain that the t value is 12.424 and the sig value is < 0.001. Based on the results obtained, the sig value of the product quality variable is < 0.05 and has a positive value. It can be concluded that the product quality variable partially has a positive and significant influence on consumer decisions so H1 is accepted. 

1. F Test (Simultaneous)

Table 10. F Test Results (Simultaneous) 

Source: SPSS 27 Results (Processed, 2024) 

Table 10 shows the results of the F test obtained sig value < 0.05 then H1 is accepted so that the regression model is right (fit) in predicting the effect of halal certification, price, and product quality on consumer decisions or simultaneously halal certification variables, price and product quality have a significant influence on consumer decisions. 

Test Coefficient of Determination (R2)

Table 11. Test Results of the Coefficient of Determination 

Source: SPSS 27 Results (Processed, 2024) 

Based on Table 11, the adjusted R square value is 0.691. This shows that the effect of halal certification, price, and product quality as independent variables on consumer decisions is 69.1%, and the remaining 30.9% is influenced by variables not included in the research model. 

Halal certification on a product has a major role in influencing consumer decisions, especially among Muslim consumers. Because people want a balance between price and product quality, consumers also tend to pay attention and look for price matches with the products they want to buy. Product quality is certainly no less important because consumers want products that have safety, durability and can provide satisfaction to consumers. 

Based on the results of data analysis and discussion of how students of the Tanjungpura University Islamic Economics Study Program make decisions to buy cosmetics based on several variables including halal certification, price, and product quality. This study shows how the independent variables, namely halal certification, price, and product quality, have a significant effect on the dependent variable, namely consumer decisions. The three variables work well together and can be taken into account when consumers make decisions. Manufacturers can increase consumer satisfaction by offering halal certification, affordable prices, and high-quality products. This can improve the company's reputation and boost sales.

Funding: No funding sources.

Conflict of interest: None declared.

Ethical approval: The study was approved by the Institutional Ethics Committee of Tanjungpura University.

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