Competitive Advantage Through Halal Products and Brand Image

Abstract

Currently, Small, Micro and Medium Enterprises (MSMEs) are experiencing weaknesses, this makes business actors unable to survive more than 5 years, this is due to minimal support from the government, lack of access to capital and technology, and challenges to the global economy that continue to increase. This study aims to find out what causes MSME actors to fail to compete with other MSME actors, besides that this research also discusses the strategies used in an effort to overcome the weaknesses of MSMEs in Indonesia. This study also aims to study the effect of halal products on brand image, perceived quality, and product purchase intention. The importance of Brand Image lies in its ability to influence consumer preferences, purchase decisions, and brand loyalty. Consumers who have a positive perception of a brand tend to be more inclined to choose it and maintain loyalty to the brand. Brand image aims to create better relationships with consumers and achieve competitive advantage in the market. Brand Image is a concept that involves perceptions, associations, and images formed in the minds of consumers regarding a brand or brands. This is the mental picture that consumers have about the brand, including the attributes, characteristics. Data was collected from 41 respondents using an online survey. The results of the study show that halal certification has a significant positive effect on brand image. In addition, consumer trust was also found as a mediator between halal products and other response variables. This research shows that halal products can increase consumer trust and product brand image, so that manufacturers can use halal products as a tool to differentiate their products from competitors and gain competitive advantage in an increasingly competitive market.