THE INFLUENCE OF TRUST TOWARDS PURCHASE INTENTION MEDIATED BY PERCEIVED RISK IN APPAREL INDUSTRY AT GREATER JAKARTA

Abstract

Purpose The purpose of this research is to find out the role of trust on customers’ online purchase intention mediated by perceived risk in apparel industry at Greater Jakarta. Design / Methodology / Approach This research used a quantitative method with 40 item statements in a questionnaire that is distributed to online shopping users at Greater Jakarta who have purchased apparel products for the past 6 months (January to June 2019). The questionnaire asked demographic profiles of the customers regarding gender, marital status, age, source of money, occupation, last education level, and income each month. Finally, the analysis was performed on 290 usable data out of 331 responses. Structural Equation Modeling was applied to test the hypothesis after tested the validity and reliability of the data. Findings This research has found that trust significantly influences purchase intention directly and indirectly through perceived risk. Originality/Value The author believes that this is the first study which applies perceived risk with eight sub dimensions as the mediator between trust and purchase intention relationship.