Muslim Consumer Behavior Toward Green Financing and Eco-Friendly Products in Islamic Economic Perspective
DOI:
https://doi.org/10.70062/greeneconomics.v1i1.412Keywords:
Eco-Friendly Products, Green Financing, Islamic Economics, Muslim Consumer Behavior, Religious ValuesAbstract
This study explores the impact of religious values on Muslim consumers' behavior toward green financing and eco-friendly products within the framework of Islamic economics. The research utilized a quantitative approach with a descriptive survey method, surveying 250 Muslim consumers from urban areas in Indonesia. A structured questionnaire with a five-point Likert scale was employed to measure religiosity and eco-friendly purchasing behavior. The multiple regression analysis showed that religiosity significantly influences green purchasing behavior, with higher religiosity scores correlating with greater engagement in environmentally conscious purchasing decisions. Additionally, the t-test and ANOVA revealed significant differences between Sharia-compliant and non-Sharia-compliant groups, with the Sharia-compliant group exhibiting stronger eco-friendly purchasing behavior. These findings suggest that Islamic principles related to environmental stewardship, such as Khalifa (guardianship of the earth) and Israf (avoiding wastefulness), play a significant role in shaping consumer attitudes toward sustainability. The study concludes that religious values are a crucial determinant of green purchasing behavior and that incorporating these values into sustainability initiatives can effectively promote eco-friendly behavior, especially in communities where religion plays a central role. Policymakers and educators can leverage religious frameworks to foster sustainability and encourage more responsible consumer behavior in Muslim-majority communities.
References
Alam, A., Ratnasari, R. T., Jannah, I. L., & Ashfahany, A. E. (2023). Development and evaluation of Islamic green financing: A systematic review of green sukuk. Environmental Economics, 14(1), 61–72. https://doi.org/10.21511/ee.14(1).2023.06
Al-Hajla, A. H., Nguyen, B., Melewar, T. C., Jayawardhena, C., Ghazali, E., & Mutum, D. S. (2019). Understanding new religion-compliant product adoption (NRCPA) in Islamic markets. Journal of Global Marketing, 32(4), 288–302. https://doi.org/10.1080/08911762.2018.1559907
Alkhasawneh, A. H. M. (2015). Consumer behavior in Islam. In Islamic perspectives on marketing and consumer behavior: Planning, implementation, and control (pp. 20–39). IGI Global. https://doi.org/10.4018/978-1-4666-8139-2.ch002
Alnabulsi, K., & Jreisat, A. (2024). Green finance on Islamic financial markets: A sustainable approach to growth. In 2024 International Conference on Sustainable Islamic Business and Finance (SIBF 2024). https://doi.org/10.1109/SIBF63788.2024.10883851
Alotaibi, A., & Abbas, A. (2023). Islamic religiosity and green purchase intention: A perspective of food selection in millennials. Journal of Islamic Marketing, 14(9), 2323–2342. https://doi.org/10.1108/JIMA-06-2021-0189
Arli, D., & Tjiptono, F. (2017). God and green: Investigating the impact of religiousness on green marketing. International Journal of Nonprofit and Voluntary Sector Marketing, 22(3), e1578. https://doi.org/10.1002/nvsm.1578
Billah, H. A. N. (2024). Law reform affecting Islamic green finance: How is it structured? In Islamic Green Finance: A Research Companion (pp. 89–98). Routledge. https://doi.org/10.4324/9781032672946-13
Bouteraa, M., Chekima, B., Amin, H., Tamma, E., Lada, S., Ansar, R., & Lim, M. F. (2024). Does consumer religiosity matter for green banking adoption? Evidence from a Muslim-majority market. Journal of Islamic Marketing, 15(7), 1807–1823. https://doi.org/10.1108/JIMA-02-2023-0049
Diwanji, V. S., Baines, A. F., Bauer, F., & Clark, K. (2024). Green consumerism: A cross-cultural linguistic and sentiment analysis of sustainable consumption discourse on Twitter (X). Journal of Current Issues and Research in Advertising, 45(4), 476–505. https://doi.org/10.1080/10641734.2024.2318705
Farooq, M., & Yahya, S. (2022). The impact of green religiosity on the green product switching behavior in Pakistan: The role of green personal values and green altruism. Journal of Religion and Health, 61(6), 4825–4848. https://doi.org/10.1007/s10943-021-01358-8
Fatima, Z., Siddiqui, M. A. M., & Farooqi, R. (2022). Determinants of green consumer behaviour among Indian consumers: An ISM approach. Vision. https://doi.org/10.1177/09722629221131100
Fauzi, W. I. M., Zakaria, N., Mokhtar, S. S. M., Yusoff, R. Z., & Yusr, M. (2018). Evaluating relationship between Islamic store image and Malay Muslim consumer attitudes’ in patronizing a store. International Journal of Supply Chain Management, 7(6), 108–113.
Islam, M. M., Ab Talib, M. S., & Muhamad, N. (2024). Islamic marketing and circular economy to foster sustainability of product life cycle enhancement. In Contributions to Management Science (pp. 125–141). Springer. https://doi.org/10.1007/978-3-031-61778-2_7
Islam, T., & Chandrasekaran, U. (2016). Effect of religiosity on ecologically conscious consumption behaviour. Journal of Islamic Marketing, 7(4), 495–507. https://doi.org/10.1108/JIMA-01-2015-0006
Khan, M. N., & Kirmani, M. D. (2018). Role of religiosity in purchase of green products by Muslim students: Empirical evidences from India. Journal of Islamic Marketing, 9(3), 504–526. https://doi.org/10.1108/JIMA-04-2017-0036
Kusumawati, A., Listyorini, S., Suharyono, & Yulianto, E. (2020). The role of religiosity on fashion store patronage intention of Muslim consumers in Indonesia. SAGE Open, 10(2). https://doi.org/10.1177/2158244020927035
Li, K., Raji, R., & Rasul, A. (2023). Understanding religious influence through elevation on green advertising effectiveness among Muslims: An examination from the UAE and the USA. Asian Journal of Communication, 33(3), 268–288. https://doi.org/10.1080/01292986.2023.2176897
Mohd Suki, N., & Abang Salleh, A. S. (2018). Mediating effect of halal image on Muslim consumers’ intention to patronize retail stores: Some insights from Malaysia. Journal of Islamic Marketing, 9(2), 338–355. https://doi.org/10.1108/JIMA-02-2017-0014
Muhamad, S. F., Zain, F. A. M., Samad, N. S. A., Ab. Rahman, A. H., & Yasoa’, M. R. (2022). Measuring sustainable performance of Islamic banks: Integrating the principles of environmental, social and governance (ESG) and Maqasid Shari’ah. IOP Conference Series: Earth and Environmental Science, 1102(1), 012080. https://doi.org/10.1088/1755-1315/1102/1/012080
Mursid, A. (2024). Investigating LOHAS for Muslim customers segment: Does Islamic religiosity matter? Journal of Islamic Marketing, 15(2), 633–651. https://doi.org/10.1108/JIMA-10-2022-0288
Mustafar, M. Z., & Borhan, J. T. (2013). Muslim consumer behavior: Emphasis on ethics from Islamic perspective. Middle East Journal of Scientific Research, 18(9), 1301–1307. https://doi.org/10.5829/idosi.mejsr.2013.18.9.12113
Muzammil, A., & Vijayaraj, K. (2024). Exploring emerging trends and future prospects in green consumerism: A bibliometric and systematic approach. International Research Journal of Multidisciplinary Scope, 5(4), 1251–1278. https://doi.org/10.47857/irjms.2024.v05i04.01823
Nga, L. P., & Tam, P. T. (2024). Managerial recommendations for enhancing green consumption behavior and sustainable consumption. Emerging Science Journal, 8(6), 2245–2266. https://doi.org/10.28991/ESJ-2024-08-06-07
Nordin, F. N. M., & Radzi, C. W. J. W. M. (2021). Religion and cosmetics: Guidelines for preparing products aimed at the Muslim world based on the interpretation of halal cosmetics in Malaysia. Journal of Cosmetic Science, 72(2), 139–154. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85127444295
Nordin, N., Zaid, A. Z. M., Astutik, A. P., Rashid, N. K. A., Zahari, Z., Ifwat, M. S., Astutik, A. P., & Embong, R. (2024). Integrating Tayyib principles in halal health products and services: A holistic consumerism approach. Global Journal Al-Thaqafah, Special Issue, 228–239. https://doi.org/10.7187/GJATSI122024-15
Pusparini, M. D., Herianingrum, S., Bahari, Z., & Furqani, H. (2024). Scrutinizing a frugal lifestyle in spiritual dimensions: An Islamic ethical consumption framework. International Journal of Ethics and Systems. https://doi.org/10.1108/IJOES-01-2024-0027
Rahim, R., Rathore, H. S., Rabbani, M. R., & Alam, M. N. (2024). Maqasid Al-Shariah and green finance: A theoretical framework on Islamic finance with sustainable development goals for a greener future. In 2024 International Conference on Sustainable Islamic Business and Finance (SIBF 2024) (pp. 255–261). https://doi.org/10.1109/SIBF63788.2024.10883847
Rosman, R., & Marzuki, M. M. (2024). Corporate social responsibility in the Islamic green economy. In Islamic Green Finance: A Research Companion (pp. 101–110). Routledge. https://doi.org/10.4324/9781032672946-15
Sharif, K. (2016). Investigating the key determinants of Muslim ethical consumption behaviour amongst affluent Qataris. Journal of Islamic Marketing, 7(3), 303–330. https://doi.org/10.1108/JIMA-01-2015-0001
Suhartanto, D., Mohd Suki, N., Najib, M., Suhaeni, T., & Kania, R. (2023). Young Muslim consumers’ attitude towards green plastic products: The role of environmental concern, knowledge of the environment and religiosity. Journal of Islamic Marketing, 14(12), 3168–3185. https://doi.org/10.1108/JIMA-08-2021-0277
Suyoto, Y. T., Purwanto, E., Pitaloka, E., Dwianika, A., & Ristanti, V. E. (2024). Exploring green marketing research through bibliometrics. E3S Web of Conferences, 571, Article 02010. https://doi.org/10.1051/e3sconf/202457102010
Syahrivar, J., Hermawan, S. A., Gyulavári, T., & Chairy, C. (2022). Religious compensatory consumption in the Islamic context: The mediating roles of religious social control and religious guilt. Asia Pacific Journal of Marketing and Logistics, 34(4), 739–758. https://doi.org/10.1108/APJML-02-2021-0104
Zuraini, S. Z. N., & Hassan, S. A. (2019). Understanding the consumption of halal goods. International Journal of Innovation, Creativity and Change, 6(10), 71–81. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85074255677
