Study On Mechanism Of Halal Food Brand Premium

Halal food is a special kind of food with the religious related "taboo" provisions of the producing method and ingredients. On the contrary, Islam has not placed restrictions on consumers of this particular food. Therefore, besides Muslim consumers who influenced by religion, consumers of Hui nationality who influenced by customs of the ethnic minorities and other non-muslims consumers can also purchase Halal food. Thus, Halal food also has the characteristics of "universality".Natural qualities of credence in Halal food lead to the problem of asymmetric information in the Halal food markets. Halal food producers are the information superiority side, for they completed information of mastering the Halal food. Halal food consumers belong to information underdog, because they are not very clear for Halal food composition and production flow process. With the improvement of modern socialization production, food industrialization, trans-regional trade prosperity and the extension of Halal food production line, this problem is particularly prominent. For garnering consumers and expanding the markets, food producers will take signal transmission way to show the quality of the product quality. And consumers will determine whether to buy through information screening. Among them, the certification and brand reputation of Halal food manufacturers, became the important means to solve the asymmetric information problemsWith the evolution of Halal food certification system, the third party certification was born. Halal certification is a third party authorized independent authority (not the supplier, or the buyer, not producers, nor consumers), which supervise the manufacturer of the product or production system and supervision by regulations of Quran and the Sunnah. Then they determine whether the approval certificate are issued. The incentive effect of certification signals are the key to the Halal certification system exert its functions, and solve the market information asymmetry. To ensure the reliable of authentication information is very importantThe enterprise do not have Halal food production requirements is unable to enter the market through certification. Enterprise is profited; as a result of Halal food market itself has growth potential. So higher illegal cost should be paid by fraud vendors. This can be achieved by various regulatory and and increase the penalties.Because of Halal food production enterprises entering Halal market through certification, the Halal food consumers in the purchase decision also is different from the general products. Specific performance was in:Firstly, there are two types of Halal food consumers, Muslim and non-muslim consume. Secondly, all consumers are faced with the choice of Halal food certification and Halal food brand. Thirdly, different consumers has different rule when choosing Halal food-two types consumers chose choose a different second stage order when purchasing Halal food, On the premise of excluding other factors interference, the Muslim consumers first-consideration factor is whether the Halal, whether Halal certification. On the premise of Halal food certification (assuming the Halal certification is unified and effective) they sorting and selecting food brands in the second stage. Non-muslims consumers in the process of purchasing Halal food, firstly choice is the food brands (according to the preference, brand recognition, that is, the brand credibility to make evaluation), choose the food brands and then pay attention to whether the brand is Halal products. From the two-phase model of Muslim consumers we can inferred that, Halal certification is the passport of food when entering Muslim consumer market, Halal certification could reduces the Muslim consumer's information costs---transaction costs. Manufacturers (reliability and professional degrees), the brand credit degree could reduce the choice cost of consumers. Non-muslim consumers consciously choosing Halal food, they still take the brand as a starting point. At the same time, step into the second choice through the Halal food flavor, a higher degree of safety considerations. The selection rules were to follow the lexicographical preferences.It can be indicated from consumer choice model of two phases, Halal food certification itself has become a external quality signal of Halal food. It becomes the important factors which affecting the consumer choice together with food brands. For different types of consumers, he impact of Halal certification and food brands are different. To Muslim consumers, Halal food certification is the first factor of the purchase decision, and brand choice is decision factors influencing their decisions. For non Muslim consumers, Halal food itself is not the necessities of life, but when the customer approval of Halal food certification, concerned about food safety, health or taste flavor will increase the risk of buying Halal food.In the market of information asymmetry, Halal certification represents a "signal" of quality, could reduce the risk of consumer perception and saving the cost of information search, so consumers willing to pay for Halal certification in terms of food safety. But according to Bertrand and Hotelling model analysis, it is not hard to see, with the ascension of profit in Halal food market, a large number of new entrants to enter the market and its competition by means of Halal certification, eventually this may cause a decline in profits of Halal food market and finally it could tends to zero. As a result, only perceived brand equity which food brand provided to consumers is the sources of Halal food premium. At the same time, brand credibility can further provides product premium from two aspects, reduce risk and saving the cost of choice.This study investigated Halal food consumer by the limited sample survey, including Muslim consumers and also non-Muslims. This study focused on consumer's attitude to food safety, risk perception, the cognition of halal food and halal certification, food purchase consideration as well as to the certified halal food and halal food brand premium payment will through questionnaire survey. At the same time, We use the "Logit" analysis,"principal component factor analysis" and SEM analysis for data processing. Research results show that this and the previous theoretical assumptions and the model is consistent. The results effectively support the study of regulation of halal food premium.From a practical perspective, China has an important significance for the development of Halal food industry. On the one hand, China's Muslim population of nearly21million, the domestic market itself has the demand for Halal food, on the other hand, as the international Halal food growing prosperity, Halal food can certainly become a new growth point of China's foreign trade. Halal food industry in China, however, there are a lot of shortcomings. On the one hand, small enterprise scale, management means and way behind, lack of brand consciousness, cannot meet the needs of domestic consumers is increasingly Halal food. At the same time, compared to the traditional Halal food exporters such as Brazil, New Zealand, Canada, the United States, China's Halal food are not dominant in its products from the scale to the prices. Therefore, the development of Halal food industry in China should set out from the actual situation, take the consumer demand as the core, to build China's Halal food brand, improve ability of China's Halal food premium.Firstly, national policy must be strengthen as well as related legislation and regulation of Halal food, break the domestic Halal food trade barriers through the formulation standard local laws and regulations, make the Chinese Halal food in line with international standards and recognized with other countries by achieve inter-accreditation of Halal food certification between countries. At the same time to form the informational interaction of government, enterprises, the third party certification bodies, consumers. Secondly, the third party certification, clear true "endorsement" for food with its own credit, also should be the brand itself. International Halal food market competition is not only is the competition of product but also the competition of standard and certification. Halal food brands and Halal certification are equally important in the process of consumers purchasing Halal food. So mining different interests that "halal" bring to consumers, increasing the halal certification (see article), is the way to develop halal food certification in China. For halal food production enterprises, the core content of implementing premium is to reduce the choice cost of different target customers through the brand information; increased consumer perception of emotional interests, on the premise of halal food certification.