International Marketing Review

Halal endorsements: stirring controversy or gaining new customers?

Bodo B. Schlegelmilch Mubbsher Munawar Khan Joe F. Hair

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Bodo B. Schlegelmilch Mubbsher Munawar Khan Joe F. Hair , (2016),"Halal endorsements: stirring
controversy or gaining new customers?", International Marketing Review, Vol. 33 Iss 1 pp. 156 - 174
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IMR
33,1

Halal endorsements: stirring

controversy or gaining
new customers?

156

Bodo B. Schlegelmilch
Institute for International Marketing Management,
Wirtschaftsuniversitt Wien, Vienna, Austria

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Received 31 July 2014

Revised 21 October 2014
4 January 2015
Accepted 20 January 2015

Mubbsher Munawar Khan

Hailey College of Banking and Finance,
University of the Punjab,
Lahore, Pakistan, and

Joe F. Hair
Coles College of Business,
Kennesaw State University,
Kennesaw, Georgia, USA
Abstract

International Marketing Review

Vol. 33 No. 1, 2016
pp. 156-174
Emerald Group Publishing Limited
0265-1335
DOI 10.1108/IMR-07-2014-0253

Purpose Halal food endorsements perceived positively by the focal target group may lead to a
negative reaction of consumers that harbor animosity against this target group. For such potentially
controversial endorsements, in-group animosity against out-group associated product endorsements
could lead to a rejection and even an outspoken disapproval of these food products. The purpose of this
paper is to explain what drives in-group reactions to Halal endorsements.
Design/methodology/approach The authors use Social Identity Theory and the Social
Dominance Theory in explaining animosity toward out-groups and willingness to buy products with
Halal endorsements. Specifically, the authors analyze the reaction of more than 800 in-group majority
Christians toward out-group minority Muslim directed Halal endorsements. Following the
development of hypotheses and a conceptual model, structural equation modeling is used to
measure the relationships between the constructs.
Findings Constructs based on Social Dominance Theory and Social Identity Theory predict
animosity toward out-group endorsements, but the relationship between Social Dominance Theory and
animosity is much stronger. Animosity is a mediator between these two constructs and willingness to
purchase products with out-group focussed endorsements (Halal).
Research limitations/implications The research has been conducted in one particular country
(Austria) and focusses on a specific type of controversial endorsement, namely a religious (Halal)
endorsement. Other research contexts (i.e. other countries and/or different types of controversial
endorsements) should be used to widen the empirical base and validate the findings.
Practical implications Marketers should be aware of a possible negative impact of out-group
focussed endorsements. In particular, they should be cognizant that racism and ethnocentrism
prevailing in a society could reduce the purchase intent of in-groups.
Social implications Efforts are required to combat the drivers of animosity between in-groups and
out-groups. This paper provides insights on how this may be achieved.
Originality/value This study focusses on a hitherto neglected phenomenon, i.e. controversial
endorsements. It uses two alternative theories and advances the understanding of the role of animosity
in a domestic consumer setting; an issue that has nearly exclusively been discussed with regard to
cross-border purchasing.
Keywords Religion, Labelling, Marketing communications, Cross-cultural advertising,
Culture sociology
Paper type Research paper

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Introduction
This research identifies reasons why consumers may reject products that carry
religious endorsements. Specifically, we analyze the reactions of Christian consumers
toward Muslim directed Halal endorsements. Our research is anchored in two of the
most established theories in social psychology, namely Social Identity Theory (Tajfel
and Turner, 1979), which explains peoples predisposition to form situation contingent
in-group/out-group distinctions and to discriminate on the basis of these boundaries;
and Social Dominance Theory (Sidanius and Pratto, 1999), which describes human
society as consisting of oppressive group-based hierarchical structures. Adopting the
terminology of these theories, we focus on the key drivers of in-group (in this research
context the Christian majority) animosity against out-groups (in this research context
the Muslim minority), and explain the impact of potential animosity on the purchase
intent of products carrying Halal endorsements.
Although the merits of third party endorsements (TPE) are well documented in the
marketing literature (Appiah, 2007; Silvera and Austad, 2004; Till and Busler, 2000;
Wang, 2005), religious endorsements used to strengthen an existing brand in the eyes
of a specific religious community have received only scant attention. This is surprising
for a number of reasons. First, religious endorsements aiming to increase the
attractiveness of a brand for a particular religious denomination are relatively common.
For example, targeting Jewish consumers, Ben and Jerrys endorses their ice cream as
Kosher. Similarly, Haribo aims to leverage its brand franchise by adding a Halal
endorsement on their gummy-bears to appeal to Muslim consumers (Rauschnabel et al.,
2014). Second, the impact of religious endorsements on brand perceptions and purchase
behavior is unclear. When KFC introduced Halal endorsed products in France, protests
of non-Muslim consumers ensued (Gruber, 2012). Simonin and Ruth (1998) also note
that religious endorsements may provoke negative reactions and lead to a decrease in
purchases when consumers hold unfavorable attitudes or prejudices against a religion.
In contrast, consumers may also view products with religious endorsements as exotic
and interesting (Alserhan, 2010; Havinga, 2010) or as more pure, hygienic and of higher
quality (Mathew et al., 2014; Riefler et al., 2012), even if they do not belong to the focal
religion. Rauschnabel et al. (2014) note that religious endorsements are important in
targeting religious consumers, but the effect of such endorsements on consumers with
no religious convictions or other denominations remains unclear[1]. Third, multi-ethnic
and multi-cultural societies are becoming the norm in many countries, with the
proliferation of Halal meat[2] remaining the most visible sign of the growth of Halal
consumption in predominately non-Muslim markets. McDonalds has recently initiated
Halal trials in the UK, and one in five Nandos outlets (the Portuguese-based chicken
restaurant chain) offer Halal menus (Hassan and Bojei, 2012). Many large European
supermarkets, such as Asda, Auchan, Albert Heijn, Carrefour, Tesco and Morrisons,
stock Halal meat. Asda (a Walmart subsidiary) even hosts the National Halal
Association of UK and frequently acts as the main butchery (Political Scrap Book, 2013;
The Economic Voice, 2009).
In light of the arguments developed above, our research contributes to the literature
in three ways. First, we shed light on the role of religious endorsements, an area that
has been neglected in empirical research to date. Second, we empirically test the utility
of constructs based on two established theoretical approaches as predictors of
animosity. Third, we extend our understanding of the role of animosity in a domestic
consumer setting, a construct that has nearly exclusively been discussed in the context
of cross-border purchasing.

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The paper is structured as follows: we initially review the endorsement literature in

order to highlight the types, importance and impact of endorsements. While doing so,
we uncover a lack of research on potentially controversial endorsements and
demonstrate their considerable relevance. Next, we identify our constructs, develop our
hypotheses and capture our arguments in a conceptual model. Following this
theoretical discussion, we describe our methodology. Here, we also provide a rationale
for using Christian dominated Austria and the Muslim specific Halal endorsement as
empirical setting. Subsequently, we use structural equation modeling to test our
theoretical framework empirically. Finally, we discuss the theoretical and practical
implications of our findings and point to avenues for future research.

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The role of endorsements in consumer decision making

Endorsements come in various shapes and forms, ranging from statements by
celebrities to quality seals issued by third parties. Friedman and Friedman (1979)
suggest categorizing the different types of endorsements into three groups, namely
celebrity endorsements (CE), typical consumer endorsements and TPE. A similar
distinction is proposed by Daneshvary and Schwer (2000), who coined the term
sponsorship advertising to denote endorsements and differentiate between identifiable
people (celebrities), unidentifiable people (typical consumers), corporation or
organization and inanimate figures (cartoon characters). Focussing specifically on
TPE, Laric and Sarel (1981) further distinguish between warranties, factualendorsements and evaluative-certifications. Factual-endorsements, which are central
to the arguments we develop below, can also take different forms. A religious
endorsement, for example, is a special factual-endorsement relating to ingredients and
manufacturing processes, such as Kosher or Halal. Kosher means fit, and Kosher
labeled food reflects that it is processed in accordance with Jewish dietary laws
(Kashruth) created more than 5,000 years ago (Kamins and Marks, 1991). Halal
endorsements, the focus of this research, similarly denote a product or process that is in
accordance with the Sharia (Islamic Law). For meat, this means being slaughtered in
the prescribed way. Figure 1 provides a classification of endorsements.
Regardless of the type of endorsement, they can help to create brand equity by
increasing the distinctiveness of advertisements and/or labels (Cason and
Types of
endorsements

Celebrity
endorsement

Typical
consumer
endorsement

Warranty
Certification

Geographic
origin

Third party /
expert
endorsement

Evaluation
Certification

Quality of
process

Factual
Certification

Social
labels

Material
certifications

Ingredients /
Manufacturing
Process

Religious
endorsement

Figure 1.
Classification of
endorsements

Kosher

Halal

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Gangadharan, 2002) without changing the physical characteristics of the brand

(Narayana and Marking, 1975). Endorsements provide quality cues for specific target
markets (Dean and Biswas, 2001), build confidence and signal credibility (Cason and
Gangadharan, 2002), since consumers perceive more accuracy in those claims which
are endorsed by a third party (DSouza et al., 2007). Narayana and Marking (1975) found
that endorsements can work as catalysts for either bringing a brand into the evoked set
or to shift it from evoked set to the inert set of the consumers mind. And as buying
decisions usually contain some perceived risks, endorsements also help consumers to
reduce such risks (Biswas et al., 2006).
Given the pivotal role of endorsements in marketing communication, there is a rich
literature on different types of endorsements and on the mechanisms by which these
endorsements work. Examples include Dean (1999), Elberse and Verleun (2012),
Lafferty et al. (2002), Dimra and Skuras (2003), Choi et al. (2005), Woo et al. (2006), Seno
and Lukas, (2007), and Till et al. (2008). There is also a noteworthy stream of research
that looks at the impact of scandals on CE. The findings show that a company whose
brand is endorsed by a celebrity connected to a scandal can suffer to a substantial drop
in the stock market value (Carrillat et al., 2013), but that there are circumstances where
the brand would lose more by breaking off the endorsement deal than by maintaining it
(Knittel and Stango, 2014). While these contributions alert to the fact that CE can turn
sour, such endorsement are not identical to controversial endorsements. We define
endorsements as potentially controversial when they are characterized by trade-off
situations with unclear outcomes. Thus, in a potentially controversial endorsement, the
trade-off between two target markets already exists a priori. In contrast, when an
endorsement goes bad, a possible trade-off decision (e.g. keep the endorsement or drop
the endorsement) is only forced upon the company a posteriori. Potentially
controversial endorsements can lead to the rejection of a product that without
such endorsement would have been purchased by a particular target group.
Despite the plethora of contributions focussing on endorsements in general,
controversial endorsements involving a priory trade-off situations have scarcely
attracted attention in the pertinent literature. This is particularly regrettable, since
potentially controversial religious endorsements, such as Kosher or Halal, are rapidly
growing in importance.
To date, religious endorsements have only been investigated from the point of view
of the same religious community. Three contributions look at the impact of Halal on
Muslims (Bonne et al., 2007, 2009; Shafie and Othman, 2006) and one looks at the impact
of Kosher on Jews (Kamins and Marks, 1991). The findings of all four studies show, not
too surprisingly, a positive attitude toward, and a positive influence of, these religious
endorsements in the respective religious communities. However, no studies were
found that explicitly examined the impact of religious endorsement on a different
religious community.
In the following section, we describe the theoretical foundation of our work.
Specifically, we explain the key constructs that could influence the reactions of
consumers from different religious denomination toward products carrying a religious
endorsement, develop our hypotheses, and depict our conceptual model.
Key constructs and conceptual model
We propose that consumers may reject products with religious endorsements which
target consumers of different religious believes, and suggest that a central reason
for such rejection is animosity against the focal group addressed by the endorsement.

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We rest this proposition in two theories that could offer explanations on the roots of
such animosity, namely the Social Identity Theory (Tajfel and Turner, 1979), and the
Social Dominance Theory (Sidanius and Pratto, 1999). A brief discussion of these
theories and the associated hypotheses are as follows.
Social Identity Theory describes how people construct their social identities to suit
their needs. It is one of the best-known theories in social psychology and has been used
to explain a number of phenomena. Ashforth and Mael (1989) introduced the theory to
organizational psychology, where it has been widely used to research diverse topics
such as organizational images (Dutton et al., 1994) or leadership issues (Hogg, 2001;
Hogg and Terry, 2000). In marketing, the theory has been used to research such diverse
issues as social identification with celebrities ( Jin and Phua, 2014), attitudes toward
sustainability brands (Bartels and Hoogendam, 2011) and the role of online
communities in raising brand commitment (Kim et al., 2008). In our context, we use
the theory to explain the psychological basis of inter-group discrimination, i.e. in-group
favoritism and out-group prejudice. The theory claims that a person does not have one,
personal self, but rather several selves that correspond to widening circles of group
membership. Different social contexts may trigger an individual to think, feel and act
on the basis of his personal, family, or national level of self.
The evaluation of ones own group is determined with reference to specific other
groups through social comparison in terms of value-laden attributes and characteristics
(Tajfel and Turner, 1979). Social Identity Theory explains peoples predisposition to
form situation contingent[3] in-group/out-group distinctions, and how they
discriminate on the basis of these boundaries. The theory posits that inter-group
discrimination is motivated by the desire to achieve positive group distinctiveness for
the purpose of enhancing individual self-esteem. The identification with a group has
a cognitive, an evaluative, and an emotional component (Tajfel, 1982). Cognitively,
social identity is most profound in the categorization process where an awareness of
group membership and similarities with other member are recognized. The emotional,
or affective, component of social identity involves the development of loyalty and
promotes citizenship behaviors in-groups. The evaluative component involves the
individuals awareness that group membership will lead to valuable benefits, including
self-esteem or self-worth.
Self-esteem or self-worth can also be enhanced by negatively evaluating groups to
which one does not belong. For example, a person may selectively search for inter-group
differences that support his group and dismiss information that favors the out-group
(Mikulincer and Shaver, 2001). Thus, identification with a group is positively related to the
tendency to favor that group over other groups. People with high and low psychological
commitment to their group (high and low identifiers) can be expected to differ in their
reactions and evaluations (Brown, 2000). Our focal group formation, out-group (Muslim
minority) and in-group (non-Muslim majority), is reflected in this theory. In the following
hypotheses, we attempt to capture the cohesion of the in-group by a general measure of
group distinctiveness. H1 primarily reflects the cognitive component of social identity.
H2 refers to a more specific measure of the strength of religious feelings and primarily
captures the emotional or affective component of social identity:
H1. Higher levels of perceived in-group distinctiveness are associated with higher
animosity towards out-groups (here religious minorities).
H2. Strong religious feelings among the in-group are associated with higher
animosity towards out-groups (here religious minorities).

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Social Dominance Theory offers a different perspective on the possible antecedents of

animosity. This allows us to compare the utility of constructs based on the two
established theories in shaping the potential animosity against out-groups. The Social
Dominance Theory is based on work by Sidanius and Pratto (1999) and describes
human society as consisting of oppressive group-based hierarchical structures. It
emphasizes that the means of achieving legitimacy, prestige, and a sense of belonging
differ for members of dominant and subordinate groups because they are not equally
legitimized by cultural ideologies and because they hold different amounts of power.
Focussing on both individual and structural factors that contribute to various forms of
group-based oppression, the theory views all familiar forms of group-based oppression
(e.g. group-based discrimination, racism, ethnocentrism, classism, sexism) as special
cases of a more general tendency for humans to form and maintain group-based
hierarchy (Sidanius et al., 2004; Pratto et al., 1994). This theory helps us explain
in-group (majority) animosity toward out-group (minority) oriented product
endorsements. Specifically, for our purposes we focus on racism and ethnocentrism
and propose the following relationships:
H3. Higher levels of racism among the in-group are associated with higher
animosity towards out-groups (here religious minorities).
H4. Higher levels of ethnocentrism among the in-group are associated with higher
animosity towards out-groups (here religious minorities).
Animosity
Above, we have argued that Social Identity Theory and Social Dominance Theory
drive animosity. Now, we take a closer look at animosity and argue why we view
animosity as a key construct in our model: animosity is defined as a powerful and
active dislike or hostility (Collins English Dictionary, 2000). Focussing specifically on
consumers, Klein et al. (1998, p. 90) define consumer animosity as the remnants of
antipathy related to previous or ongoing military, political or economic events. Closely
related to consumer animosity is the consumer racism. Ouellet (2007, p. 115) defines
consumer racism as the antipathy towards a given ethnic groups products or services
as a symbolic way of discriminating against that group. Klein et al. (1998) point out
that animosity is associated with a decreased willingness to buy products from the
focal ethnic group but has no effect on product judgments. In contrast, consumer
racism results in decreased judgments and a decreased willingness to buy products
from the focal ethnic minority.
Based on these insights and definitions, animosity rather than consumer racism
appears to be the relevant construct: first, there is a long and unfortunate history of
conflict between Muslims and Christians. An example pertaining to Austria reaches
back to 1683 the Turkish invasion of Vienna during the extension campaign of the
Ottoman Empire. In the modern day era, crimes committed in the name of ethnic
cleansing in Bosnia and Kosovo, as well as ongoing violent conflicts in Africa,
The Middle East and Asia evidence the tensions that still exist between Islam and
Christianity in many parts of the world (Goddard, 2001; Kepel, 1994). Second, it appears
unlikely that potentially controversial endorsements impact on the product evaluation
(e.g. on the evaluation of the gummy-bears that carry a Halal endorsement).
Nevertheless, these endorsements are potentially reducing some consumers
willingness to buy the products. Consequently, we are using animosity as the central
construct in the development of our propositions.

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Animosity (Klein et al., 1998) and a number of related constructs such as patriotism
(Bilkey and Nes, 1982), ethnocentrism (Shimp and Sharma, 1987), and country-of-origin
effects (Papadopoulos and Heslop, 1993; Diamantopoulos et al., 2011) have all been
intensely studied in the international marketing literature, with results consistently
showing that these constructs impact on consumers attitudes and purchase behavior
of products originating from foreign countries.
However, within-country boundaries, animosity of ethnic subgroups toward each
other and the possible impact on their attitudes and consumer behavior have hardly
been researched. Given that many countries pride themselves of cultural diversity
(Aggestam and Hill, 2008; Chavan, 2005; Leibold and Hugo-Burrows, 1997; Roberts and
Hart, 1997) and taking account of the increase in ethno marketing (Pires et al., 2003),
this represents a substantial gap in the marketing literature. To the best of our
knowledge, the only notable exceptions are a few studies that investigated cross-ethnic
product purchases: Ouellet (2007) developed the consumer racism construct in an
attempt to explain attitudes of a countrys majority toward minority-owned businesses;
and Klein et al. (1998) introduced an animosity construct in the context of Chinese
consumers attitudes toward Japanese products. Shimp et al. (2004) adapted and
expanded the concept of animosity to regional animosity between northern and
southern regions of the USA and related it to preferences for their own (in-group)
geographic region compared to people from an out-group region.
Although the developed measures of consumer racism and animosity are tailored
toward minority business ownership and regional animosity respectively, they still
provide important insights into the relationship between different subgroups within
one country. More specifically, their work demonstrates that constructs commonly
associated with cross-country attitudes and purchase behavior, such as consumer
racism and animosity, are equally relevant in within-country settings.
Animosity and purchase intent
We also hypothesize a link between animosity and willingness to buy. Attitude-behavior
links are well established in the marketing literature and can be traced back to the
principle of cognitive consistency that suggests consumers value harmony among their
thoughts, feelings, and actions, and strive to reduce dissonance when such harmony does
not exist (Festinger, 1957). More contemporary arguments points to Ajzen (1991), who
verified that attitude determines behavioral responses. In this way, animosity toward outgroups (e.g. a religious minority) could be translated into unwillingness to buy products
related to that particular out-group. Looking specifically at animosity, its influence on
purchase intent is well documented in a number of empirical studies. Klein et al. (1998),
for example, have focussed on Chinese animosity toward Japan due to war, and on
American consumer animosity toward Japan because of economic reasons. Shin (2001)
has studied Korean consumers animosity toward Japan on the basis of war and economic
reasons, and Nijssen and Douglas (2004) have studied the animosity of Dutch customers
toward Germany based on war, occupation, and economic reasons. Similar studies have
been conducted by Kesic et al. (2005) and Jung et al. (2002).
Shimp et al. (2004) have extended the construct to a within-country perspective and
studied animosity between northern and southern USA. Hinck (2004) has coined the term
domestic-animosity and has studied animosity prevalent in East Germany toward West
Germany on economic grounds. Similarly, Cicic et al. (2005) have studied inter-ethnic
animosities in Bosnia-Herzegovina. All these studies have consistently found animosity
of in-groups to be negatively linked toward purchase intent of products associated

with out-groups. Consequently, we propose a negative link between animosity toward

out-groups and willingness to buy products with out-group focussed endorsements:

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H5. Animosity against out-groups (e.g. religious minorities) is negatively related to

the willingness to buy products with out-group focused endorsements (e.g.
products carrying religious endorsements).
Conceptual model and constructs
We are now describing our conceptual model (Figure 2) and the measures used to
capture the constructs in our model.
The key constructs in our model are all captured with existing measures[4].
Specifically, we used a five-item scale developed by Appiah (2007) to capture perceived
in-group distinctiveness, and a five-item scale by Zwingmann and Moosbrugger (2004) to
measure religiosity. The measure of in-group racism was based on a nine-item scale
created by Ouellet (2007), and ethnocentrism on a six-item scale used by Klein et al. (1998),
which is one component of the original CETSCALE developed by Shimp and Sharma
(1987). The wording of the latter two scales was slightly adapted to fit our research
setting. To measure animosity toward out-groups, a scale developed by Shimp et al.
(2004) was used. It includes eight items and has been adapted to the research context at
hand. Finally, to capture willingness to buy products with out-group focussed
endorsements, we adapted a six-item scale by Klein et al. (1998) for our research context.
Taken collectively, the developed hypotheses seek to understand whether negative
attitudes toward out-groups (minorities) impact the purchase intent of products carrying
out-group focussed endorsements. Specifically, our conceptual model centers on the
relationship between animosities toward religious minorities (ATM) and the willingness
to buy products with minority-related religious endorsements (PRE). Moreover, we
propose that two sets of theory-based antecedents influence animosity toward minorities
(ATM): distinctiveness and religiosity reflect Social Identity Theory, while racism and
ethnocentrism reflect Social Dominance Theory. Finally, we expect ATM to influence
customers willingness to buy products with a religious endorsement (PRE).

(Social Identity
Theory)

163

H1

Distinctiveness
of In-Group
H2
Religiosity

(Social Dominance
Theory)

H3

Animosity
towards
Out-Group
(Religious
Minorities)

H5

Willingness to
Buy Products
with Out-Group
Focussed
Endorsements

Racism of
In-Group
H4
Ethnocentrism
of In-Group

Figure 2.
Conceptual model

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Methodology
To empirically test the hypotheses captured in our conceptual model, we conducted a
large-scale survey in Austria, a predominantly Christian country. Following a pre-test,
questionnaires were distributed to via electronic means and also handed out in person
by one of the researchers. Respondents age ranges from 17 to 76 years: 49.8 percent are
under 25 years of age; 44.0 percent are between 25 and 40; while 6.3 percent are older
than 40 years. The sample is nearly evenly split between non-students (50.2 percent)
and students (49.8 percent).
The focus of our study was the reaction of majority (in-group) Christians toward
products that carry minority (out-group) related endorsements. Therefore, the target
population for the survey was Austrian Christians. Individuals who had nationalities
other than Austrian were not included in this study. Similarly, people indicating
other or no religion affiliations also were excluded from the study. According to the
2010 census, nearly 84.54 percent of the population is Christian. Non-Christian religions
(including Judaism, Islam, and Buddhism) represent only about 4.6 percent of
the Austrian population. The country therefore provides a suitable ground to study
in-group response to perceived out-group focussed endorsements.
The responses for straight-lining and missing data were examined based on
guidelines from Hair et al. (2010) and Baumgartner and Steenkamp (2001). The initial
screening removed outliers and straight-liner respondents. Examination of the missing
responses indicated they were distributed randomly with no systematic missing data
patterns evident so it was decided to utilize an imputation approach to deal with the
missing data (Hair et al., 2010). For each missing data point, two criteria were used for
imputation. First, the demographic profile of the respondent was identified. Next, we
determined the response of individuals with similar demographic characteristics.
Third, we identified and compared the actual responses to the other items making up
the construct in which there was a missing response to an item. Finally, a number was
imputed by comparing the responses of the individuals with similar demographic
characteristics to the responses on the other items belonging to the same construct. The
result was a sample of 699 usable respondents.
Hair et al. (2010) recommend randomly dividing your sample and initially examining
an analysis sample and then validating the findings with a holdout sample. To execute
this process, the sample was randomly divided into two samples. The result was a
usable analysis sample with 349 respondents and a holdout sample of 350 respondents.
Structural equation modeling provides results for the antecedent factors effects on
willingness to buy halal products (Hair et al., 2010). Either covariance-based methods
(Jreskog, 1977) or variance-based partial least squares (PLS) path modeling approach
(Wold, 1974) can be applied to estimate structural equation models. Model estimation
using CB-SEM requires a large set of assumptions to be fulfilled (i.e. multivariate
normality of the data, large sample size, well developed theory, and others), limiting the
approachs applicability in many research situations. In contrast, researchers the PLS
path modeling method is particularly appropriate in the early stages of theory
development (Hulland, 1999; Hair, et al. 2011), as is the case in this study.
PLS-SEM using SmartPLS 2.0 (Ringle et al., 2010) was applied to examine the
structural relationships. Guidelines for model assessment were applied according to Hair
et al. (2011) and Hair et al. (2012). The structural model and results are shown in Figure 3.
We first examined the measurement model. Composite reliability ranged from
0.82 to 0.93 for the six constructs, exceeding the minimum requirement of 0.70.
All indicator loadings were above 0.708 (except 2 out of 34, which were W 0.60),

R5

R4

R3

R2

R1

0.858

0.866
0.755
0.853

0.723

D1

Ra6

Ra4

Ra2

Ra1

Religion

0.851

D3

0.800

0.569

0.823

Distin

0.000

0.690

0.912

0.000

0.730

D2

Et1

0.883

Racism

0.000

0.889

D4

0.097

Et2

0.420

Et3

0.793

Et4

0.840

0.000

Ethno

0.279

An4
0.825
0.777

Et5

0.779 0.632

Animosity

0.382

0.614

An3

0.798 0.594

An2

0.722 0.788

0.105

An1

D5

0.575

Et6

0.624

An5

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Willing to Buy

0.331

An6

0.899
0.756

0.828

0.771

0.839

0.775

0.706

0.717

Wh9

Wh7

Wh6

Wh4

Wh3

Wh2

Wh10

Wh1

Halal
endorsements

165

Figure 3.
PLS-SEM model
with indicator
loadings and
structural
coefficients

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166

confirming individual indicator reliability. The average variance extracted (AVE)

exceeded 0.50 for all constructs thus indicating convergent validity. The Fornell and
Larcker (1981) criterion demonstrated that all AVEs were higher than the squared
interconstruct coefficients, indicating discriminant validity. Similarly, all indicator
loadings were higher than their respective cross-loadings, providing further evidence of
discriminant validity (Hair et al., 2014). Table I shows the AVEs on the diagonal and the
squared interconstruct correlations off the diagonal.
After the constructs have been confirmed as reliable and valid, the next step is to
assess the structural model results. Before assessing the structural model, we examined
the model for collinearity, an important first step since the estimation of the path
coefficients is based on OLS regressions and they may be biased if multicollinearity is
present (Hair et al., 2014). Minimum multicollinearity was found so we then examined
the models structural relationships. The key criteria are the size and significance of the
path coefficients, the level of the R2 values, and the predictive relevance as measured by
Q2 (Hair et al., 2014).
We first examined the sizes and significance of the path coefficients that represent
the hypothesized relationships. To obtain the significance levels the bootstrapping
option was run using 5,000 subsamples (Hair et al., 2014). Table II shows the
coefficients, t-statistics, and a summary of the results of the hypotheses tests.
An analysis of path coefficients and levels of significance shows that four of the five
hypotheses were accepted. H1 proposes a positive relationship between distinctiveness
and animosity, and it was accepted at p 0.05. The relationship between religiosity and
animosity (H2) was rejected ( p 0.05), however, as a positive relationship was
proposed and the relationship was negative. H3, which proposes a positive relationship
between racism and animosity is accepted at p 0.01. The positive relationship between
ethnocentrism and animosity (H4) was accepted at p 0.01. Finally, the proposed
negative relationship between animosity and willing to buy (H5) was accepted (p 0.01).
Animosity Distinctiveness Ethnocentrism Racism Religiosity Willing to buy

Animosity
Distinctiveness
Ethnocentrism
Table I.
AVEs and FornellRacism
Larcker test of
Religiosity
discriminant validity Willing to buy

0.51
0.070
0.202
0.267
0.015
0.331

Structural relationships
tested

Table II.
Structural model
results and
hypotheses tests

0.73
0.069
0.022
0.059
0.100

Structural
coefficients

0.58
0.098
0.013
0.117

t-statistics

Distinctivenessanimosity
0.11
Religiosityanimosity
0.10
Racismanimosity
0.42
Ethnocentrismanimosity
0.28
Animositywilling to buy
0.58
Notes: Critical t-values for a two-tailed test are
(***significance level at 1 percent)

0.53
0.005
0.189

0.66
0.043

Accept/reject and
significance

0.62

Hypothesis
number

2.38
Accept**
H1
2.02
Reject
H2
9.44
Accept***
H3
5.81
Accept***
H4
14.15
Accept***
H5
1.96 (**significance level at 5 percent) and 2.58

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The sizes of the structural coefficients for the accepted hypotheses were all considered
meaningful for interpretation purposes (Hair et al., 2014).
We next examined the R2 values for the two endogenous constructs animosity and
willing to buy. Prediction of willing to buy, the primary outcome measure of the model,
was 0.33, while prediction of animosity was 0.38. Blindfolding was then executed to
evaluate the predictive relevance of the endogenous latent construct indicators. The
blindfolding procedure produces the Q2, which applies a sample re-use technique that
omits part of the data matrix and uses the model estimates to predict the omitted part.
For PLS-SEM models, a Q2-value larger than zero in the cross-validated redundancy
report indicates predictive relevance. As a relative measure of predictive relevance,
values of 0.02, 0.15, and 0.35 indicate that the exogenous constructs have a small,
medium or large predictive relevance for a selected endogenous construct (Hair et al.,
2014). For our path model the predictive relevance Q2 of Willing to Buy has a value of
0.2023, and the Q2 of animosity was 0.1877. The Q2 exceeded zero for both endogenous
constructs, indicating predictive relevance of the construct indicators. Moreover, the
predictive relevance for both endogenous constructs was medium.
The relationships between the distinctiveness and religiosity constructs are
associated with Social Identity Theory (H1 and H2). Both of these relationships were
statistically significant, but only one was in the proposed direction. Moreover, both of
the structural coefficients were quite small. Therefore, we conclude that Social Identity
Theory is at best a very weak predictor of animosity toward out-group endorsements,
and animosity is not a mediator between the Social Identity Theory constructs and
willingness to purchase out-group (Halal) products.
The relationships between the racism and ethnocentrism constructs are associated with
Social Dominance Theory (H3 and H4). Both of these relationships were highly significant,
meaningful and positive. Therefore, Social Dominance Theory does predict animosity toward
out-group endorsements. The strength of the relationship between racism and animosity is
0.42 and between ethnocentrism and animosity is 0.28. The positive relationships indicate
that higher levels of racism and ethnocentrism lead to higher animosity.
The relationship between animosity and willingness to buy is statistically
significant, meaningful and negative (0.58), as proposed. Thus, animosity is a
mediator between the two Social Dominance Theory constructs and willingness to
purchase out-group (Halal) products. Moreover, the negative relationship indicates that
higher levels of animosity among Christians lower the willingness to buy products with
Halal endorsements.
As noted earlier, to validate the findings the sample was divided into analysis and
holdout samples. The SEM model tested with the analysis sample was then run with
the holdout sample. The results for the holdout sample were comparable to those with
the analysis sample, which provided additional support for the validity of the findings.
Discussion
This research investigates how in-groups respond to out-group focussed endorsements.
Specifically, we base our work on Social Identity Theory (Tajfel and Turner, 1979) and
Social Dominance Theory (Sidanius and Pratto, 1999) and analyze how Austrian
Christians, the large majority in the country (in-group), react to products that carry
minority Muslim-related Halal endorsements (out-group). This addresses an interesting
research gap: While some studies investigated the impact of religious endorsements on
the same religious community, no study has examined the response of one community
toward religious endorsement of another community.

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168

Our central proposition is that animosity toward out-groups translates into

unwillingness to buy products related to that particular out-group. Both Social Identity
Theory and the Social Dominance Theory offer explanations for potential causes of
such animosity. A conceptual framework links the key constructs to each other and
provides a base for developing empirically testable hypotheses.
Our paper extends prior research in several ways. The central contribution to theory
development is the link between the social psychology literature on in-group/out-group
relationships, consumer animosity, controversial endorsements, and purchase intent.
More specifically, our research contributes new knowledge in three areas. First, we
advance the extant literature on animosity in that we offer theory-based arguments to a
field dominated by empiricism. While most animosity studies look at willingness to buy
products of a country toward which consumers harbor antipathy, we have extended
the animosity debate to within-country minorities. To this end, we have addressed a
call for more research on the impact of multi-ethnicity on consumer behavior (Laroche
et al., 2003). Second, focussing on the antecedents of animosity toward out-groups, our
research provides new insights into the utility of Social Identity Theory and Social
Dominance Theory. Our distinctiveness and religiosity constructs are associated with
Social Identity Theory. However, neither predicted animosity toward out-group
endorsements. Therefore, we conclude that the two constructs supported by Social
Identity Theory do not predict animosity toward out-group endorsements. Our racism
and ethnocentrism constructs are associated with Social Dominance Theory. In
contrast, both predict animosity toward out-group endorsements. Thus, we conclude
that the two constructs linked to Social Dominance Theory do predict animosity
toward out-group endorsements. Finally, our research also advances the understanding
of the relationship between animosity and willingness to buy. Specifically, we identified
animosity as a mediator between the two Social Dominance Theory constructs and
willingness to purchase products that carry out-group focussed endorsements (Halal).
The negative relationship indicates that higher levels of animosity among Christians
lower the willingness to buy products with Halal endorsements.
Our research is also of acute practical relevance, as the use of Halal endorsement is
rapidly increasing in predominantly non-Muslim societies to tap into Muslim
customers. In fact, the Halal food market has exploded in the past decade and
worldwide is worth an estimated 632 billion dollars annually (Power and Abdullah,
2009). The Halal food sector alone shows a growth rate of 15 percent annually and has
become one of the fastest growing markets in the world (Alserhan, 2010). Nestl has
become the biggest food manufacturer in the Halal sector, with more than $3 billion in
annual sales and with 75 of its 481 factories worldwide producing Halal food (Carla and
Ioannis, 2007).
Despite this apparent advancement of Halal, our findings point to the potential
drawback of using a Halal endorsement in a predominantly Christian environment.
Animosity toward the Islamic minority negatively impacts the purchase intent for Halal
endorsed products. Regrettably, marketers need be aware of the possible negative impact
of using endorsements like Halal. In particular, they should be cognizant of racism and
ethnocentrism, which could negatively impact purchase intent. Where such sentiments
are strong, the word Halal could be displayed in a manner that it addresses nearly
exclusively the targeted community. For example, it could be written in Arabic letters,
which every Muslim can read. To improve universal acceptability for products with
minority-related endorsements, quality and positive ethnic image of such products
should also be promoted. From a managerial point of view, a better understanding of

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roots and causes of inter-ethnic animosity will help to prevent and/or to react to
unintended fallouts from inter-group conflicts (Shoham et al., 2006).
Our study is subject to a number of limitations and raises interesting questions for
future research. Given that the composition of the population in Europe is increasingly
becoming multi-cultural and the proportion of Muslim consumers is increasing, for the
research question at hand, the empirical setting appears to be timely and appropriate.
However, while we developed our arguments in the context of animosities against
Muslim minorities, a wide variety of different intra-group animosities could still be
researched, both religious and non-religious in nature. Thus, follow up studies may
wish to focus on different contexts to demonstrate the robustness of our findings.
Moreover, only one of many possible reactions to a potentially controversial
endorsement, namely purchase intent, has been captured. Other outcome variables
could also be researched, for example quality perception, price elasticity, word-ofmouth, or volume of purchase. Consequently, analyzing the role of other marketing
constructs could also meaningfully extend our research. At present, we focus on
connecting well-established constructs such as consumer racism (Ouellet, 2004),
ethnocentrism (Shimp and Sharma, 1987), and consumer animosity (Klein et al., 1998) to
understand the reaction to Halal endorsements. In future research, other marketing
constructs like consumer alienation (Allison, 1978) could also be included in the model
to observe more closely the reasons behind negative purchase intent.
Moreover, efforts are also required to combat the drivers of animosity between ingroups and out-groups. This can help marketers to redress the issues and turn
potentially controversial endorsements into acceptable ancillary information that does
not trigger trade-offs. Finally, there is also an ethical dimension to our research findings
in that it may be questioned whether companies can and should act as change agents in
order to break down existing prejudices (Schlegelmilch and berseder, 2010) or should
base their decision to use a certain endorsement exclusively on revenue potential.
Notes
1. While religious endorsements can be potentially controversial, controversy can also arise in
other contexts. Take, for example, a hotel that is endorsed as gay and lesbian friendly. Gays
and lesbians are likely to react positively, while other potential customers are likely to react
either indifferently, positively (as they like the hotels initiative) or negatively (and may even
opt for a different hotel).
2. The concept of Halal goes beyond food and can also relate to products like toothpaste,
shampoo and banking services.
3. The situation contingent aspect of the theory provides interesting parallels to the literature
on brand communities (McAlexander et al., 2002) and raises the question of what may trigger
a shift in the perspectives of out-groups. While this points to an interesting research
direction, we do not pursue this avenue with our cross-sectional data.
4. The full set of measures are available from the authors on request.
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Corresponding author
Bodo B. Schlegelmilch can be contacted at: bodo.schlegelmilch@wu.ac.at
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