The Effect of Halal Brand Positioning on Sales Performance: The Mediating Roles of Consumer Trust and Willingness to Pay In Indonesian Food and Beverage SMEs

Abstract

Purpose: This study aims to examine the transformation of halal certification orientation from regulatory compliance to halal brand positioning and its impact on consumer trust, willingness to pay a premium, and sales performance of Indonesian food and beverage SMEs, with trust and willingness to pay serving as mediating variables.

Design/methodology/approach:  A quantitative explanatory design was employed using a cross-sectional survey. Data were collected from 50 halal-certified SMEs and 250 matched consumers in Java, Indonesia. SMEs reported on halal brand positioning and sales performance, while consumers assessed trust and willingness to pay. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM)

Findings: The results indicate that halal brand positioning significantly and positively influences consumer and willingness to pay Furthermore, consumer trust and willingness to pay fully mediate the relationship between halal brand positioning and sales performance indirect effect through trust 0.197, p < 0.001 indirect effect through willingness to pay 0.085 with p = 0.020. Trust emerged as the stronger mediating mechanism, demonstrating that branding efforts translate into sales growth primarily through psychological and economic consumer responses.

Practical implications: SME owners are advised to leverage halal certification as a strategic brand asset through storytelling, digital marketing content, and transparent communication. Government agencies such as BPJPH should design post-certification assistance programs focusing on digital branding capabilities to help SMEs convert a regulatory burden into competitive advantage

Originality/value: This study introduces a dual mediation model that simultaneously examines trust and willingness to pay as pathways linking halal brand positioning to actual sales performance, addressing a gap where prior research predominantly focused on purchase intention rather than tangible business outcomes. The findings also extend signaling theory and customer-based brand equity theory to the halal SME context within the momentum of Indonesia's 2026 mandatory halal deadline.

Paper type: empirical