Vol. 4, No. 03, March 2023

E-ISSN: 2723-6692

P-ISSN: 2723-6595

http://jiss.publikasiindonesia.id/

Journal of Indonesian Social Science, Vol. 4, No. 03, March 2023 229

The Influence of Perceived Risk and Consumer Knowledge on

Behavior Intention with Consumer Trust As an Intervening

Variable in Life Insurance Products in Balikpapan and Makassar

Ani Sri Winarti

, Herning Indriastuti

, Imron Sohsan

1,2,

Faculty of Economics and Business, Universitas Mulawarman, Indonesia

Faculty of Humanities and Social Science, University of Khon Kaen, Thailand

E-mail: [email protected], [email protected], [email protected].

ARTICLE INFO

ABSTRACT

Submitted

:02-03-2023

Received

:05-03-2023

Approved

:15-03-2023

Life insurance is a financial product that protects individuals from

the risk of unfortunate events such as death and disability.

Although the life insurance market is showing increased

penetration, many still do not have life insurances. This research

aimed to analyze the influence of consumer trust in the

relationship between the relationship of perceived risk and

consumer knowledge with behavior intention.

Design/methodology/approach: This research used a quantitative

approach. The research was conducted on 210 respondents in

Makassar and Balikpapan. Data were collected through an online

questionnaire. The data collected were analyzed using the

Structural Equation Modelling (SEM) with the AMOS application.

Perceived Risk: financial risk, performance risk, physical risk, social

risk and overall risk have negative influences and not significant to

behavior intention. Consumer knowledge have a positive influence

and significant to behavior intention. Consumer trust was a

variable that mediated the influence of perceived risk and

consumer knowledge on behavior intention.

Keywords: Life Insurance,

Perceived Risk, Consumer

Knowledge, Consumer Trust,

Behavior Intention.

Attribution-ShareAlike 4.0 International (CC BY-SA 4.0)

1. Introduction

Most people are in need of wealth management. They have various financial

and personal goals they want to attain for themselves, their families, and perhaps for

charitable entities and others. To help getting their goals, there are several options of

investment products, financing plans, insurance coverages, taxsaving ideas, retirement

plans, trusts, charitable giving arrangements, and other products and ideas. This

objective involves planning for the many risks that may cause personal losses, such as

medical expenses, disability of income earners, custodial care (long-term care)

expenses, death, and property and liability losses (Hallman & Rosenbloom, 2014).

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Everyone in life faces risk. Since risk is almost always inherent in human life, it

must be managed properly (Bong, 2019). One way to reduce this risk is to buy an

insurance policy from an insurance company (Abdelfattah et al., 2015). Life insurance is

a financial product that protects individuals from the risk of unfortunate events such as

death and disability. For this purpose, most people with an earned income and family or

personal responsibilities need life insurance protection (Hallman & Rosenbloom, 2014).

Although the life insurance market is showing increased penetration, many still

do not have life insurances. Based on data from the Financial Services Authority (OJK),

insurance penetration in Indonesia in 2021 has only reached 3.18%, including life

insurance penetration of 1.19%, general insurance of 0.47%, social insurance of 1.45%,

and compulsory insurance of 0.08%. Meanwhile, the new density figure is around Rp

1.82 million. Whereas to become a developed country, insurance contributions must

reach at least 20% of GDP (Ardianto, 2022). Compared to the five countries in ASEAN,

Indonesia's penetration is in the lowest position. Meanwhile, in terms of density,

Indonesia's position is better, but it still occupies the bottom position, which is ranked

9th out of 10 countries. Indonesia's density is only around 54 USD in 2020 (Ardianto,

2022) (Investor Daily, 2022).

Insurance penetration in Indonesia is assumed to be in the territory of

Indonesia that has large population, which is the western part of Indonesia. Meanwhile

in The Central and Eastern Indonesia, the majority of the population is in the urban part.

Balikpapan and Makassar as the cities in central Indonesia have a fairly large

population, those are 710,293 and 1,427,619 with a proportion of productive age (aged

20 – 54 years) about 53% in 2021 (BPS, access on October 2022). The per capita income

of residents in the two cities is quite high, which is among the top 5 compared to other

cities in central and eastern Indonesia, therefore it is expected that insurance users can

be increasing in both cities. However, it is necessary to look again at the factors that will

influence people to buy insurance products.

Insurance products purchase decisions are usually made based on extensive

information search that builds the consumers’ knowledge on the product category and

perceived risk of the consumer to the products. Kinds of knowledge exerts varying

levels of influence on the purchase decision-making process (Ateke & James, 2018).

While numerous studies have been conducted to examine the role of perceived risk as a

barrier to product purchases. Consumer knowledge and perceived risk will affect the

consumer trust. Studies involving consumer trust have shown that system trust (seals,

guarantees, and ratings) influences consumer perceived trust in an online vendor,

which in turn increases the consumers’ intention to purchase from such an online

vendor (Badrinarayanan et al., 2014). It can be concluded that perceived risk and

consumer knowledge will affect to consumer trust, while consumer trust will affect

positively to behavior intention.

The inability of some insurance companies to pay and deliver the benefits as it’s

obligation to participants, especially from an insurance company that is a state-owned

enterprise, gives negative perceived risk about insurance. Instead of getting protection

from losses, people think they will lose their money because of insurance company

failure. Therefore, today’s consumers feel unsafe about buying insurance products. The

concerns that consumers have over buying insurance products are collectively termed

as consumers’ perceived risk. High perceived risk will reduce the repurchase online

(Lobb et al., 2007).

Besides that, financial literacy and inclusion in Indonesia is still low. Based on

the 2019 National Survey on Financial Literacy and Inclusion, the insurance literacy and

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insurance inclusion indices reached 19.4% and 13.2%, respectively, an increase

compared to 2016 (15.8% and 12.1%) (Ulya, 2022). The insurance literacy that is low

shows that knowledge and understanding of the people in Indonesia is still low.

People’s knowledge about risk and insurance is still low, therefore they do not think

that it will be important to have protection against the risk of losses that may occur in

the future.

Based on these assumptions, this study was conducted to observe how people's

perceived risks to use insurance products, their knowledge of insurance that will affect

perceptions of insurance products and companies, and mediated by the level of

consumer trust in insurance products and the insurance industry.

The aim of this study is to investigate the relationship between perceived risk,

consumer trust, consumer knowledge, and behavior intention in life insurance products

in Balikpapan and Makassar. Specifically, this study seeks to achieve the following

objectives:

1. To determine whether perceived risk has a significant influence on behavior

intention in life insurance products in Balikpapan and Makassar.

2. To examine whether perceived risk has a significant influence on consumer trust in

life insurance products in Balikpapan and Makassar.

3. To investigate whether consumer knowledge has a significant influence on consumer

trust in life insurance products in Balikpapan and Makassar.

4. To explore whether consumer trust has a significant influence on behavior intention

in life insurance products in Balikpapan and Makassar.

5. To examine whether perceived risk has an indirect effect on behavior intention in life

insurance products in Balikpapan and Makassar through consumer trust.

6. To investigate whether consumer knowledge has an indirect effect on behavior

intention in life insurance products in Balikpapan and Makassar through consumer

trust.

2. Materials and Methods

The research method used in this study is an explanatory research design with

a quantitative approach. Data were collected through primary data obtained from

respondents’ answers to the research questionnaire using a 7-point Likert scale. The

data were collected from individuals in the range of age between 20 years old until 59

years old in Balikpapan and Makassar City, using purposive random sampling as the

sampling technique. The number of samples was determined based on the results of the

minimum sample calculation using the Hair method, with a maximum sample of 210

respondents. The collected data were analyzed and interpreted through several

statistical tests, such as regression analysis using SPSS and Structural Equation

Modeling (SEM) using the AMOS program. The data sources needed in this study were

internal data obtained from the respondents and questionnaire scores, as well as

external data obtained through various external reports of the organization. The study

population was adults who work with the range of age between 20 years old until 59

years old in the city of Balikpapan and Makassar, based on the assumption that

individuals in this range of age already have an income and are able to support family or

others financially.

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3. Results and Discussions

A. Descriptive Statistics Data

a) Variable Behavior Intention

Descriptive statistical testing on questions in the variable Behavior Intention

can be seen in the table 4.12.

Table 4.12 Descriptive Variable Behavior Intention

Indicator

Mean

Description

BI1

5.8372

Highest

BI2

5.7481

BI3

5.7442

Lowest

BI5

5.8333

BI6

5.7442

Lowest

The BI1 indicator, which is the question "I will provide funds to buy insurance

products" has the highest average value of 5.8372. This suggests that respondents tend

to have a tendency to agree with the question. This implies that respondents provided

funds to purchase insurance products.

The BI3 and BI6 indicators are for is the question "I will try to find information

to buy insurance product" and “I am very serious about having an insurance product”

have the lowest average value of 5.7442. This indicate that respondents agreed that

they knew what kind of insurance product they needed.

b) Variable Perceived Risk

Descriptive statistical testing on questions in the Perceived Risk variable can be

seen in the table 4.13.

Table 4.13 Descriptive Variable Perceived Risk

Indicators

Mean

Description

PR1

3.4186

PR2

3.3411

PR3

3.0775

Lowest

PR4

3.3488

PR5

3.5039

Highest

PR6

3.4651

The PR6 indicator, which is the question "How it is likely that insurance

products will affect other people's views of you" has the highest average value of

3.5039. This suggests that respondents tend to have that others are neutral towards

insurance products.

Indicator PR3, for the question "What is the probability that insurance products

are not safe, (for example: unable to provide the promised benefits)" has the lowest

average value of 3,075. This suggests that respondents felt that it was likely that the

insurance product was safe enough.

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c) Variable Consumer Knowledge

Descriptive statistical testing on questions in Consumer Knowledge variables

can be seen in the table 4.14.

Table 4.14 Descriptive Variables Consumer Knowledge

Indicators

Mean

Description

PK1

5.8488

PK2

5.6977

PK3

5.6783

PK4

5.6202

Lowest

PK5

5.7558

PK6

5.7791

Highest

Indicator PK6, for the question "I think insurance products guarantee

protection against the risk of loss in the future" has the highest average value of 5,779.

This shows that respondents quite agree that the Insurance product gives protection

against the risk of loss in the future.

Indicator PK4 for the question "I understand about the types of insurance" has

the lowest average value of 5.6202. This suggests that respondents agree that they

understand the types of insurance.

d) Variable Consumer Trust

Descriptive statistical testing on questions in Consumer Trust variables can be

seen in the table 4.15.

Table 4.15 Deskriptif Variable Consumer Trust

Indicators

Mean

Description

CT1

5.8488

Highest

CT2

5.6977

CT3

5.6783

CT4

5.6202

Lowest

The CT1 indicator, which is the question "I believe in the benefits and

protections of insurance products" has the highest average value of 5.8488. This shows

that respondents agreed to believe in the benefits and protection of the insurance

product.

The CT4 indicator, which is the question "I believe the insurance product I have

will provide protection as expected" has the lowest average value of 5.6202. This shows

that respondents agreed to believe their insurance products would provide protection

as expected.

B. CFA Indicator Testing (Loading Factor)

CFA testing is carried out to determine the value of the standardized factor

loading of each indicator towards the variable. The indicator is valid if it has a

standardized loading factor value greater than 0.5.

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a. Variable Behaviour Intention

CFA Indicators (Factor Loading) test on questions in the variable Behaviour

Intention has a value greater than 0.5. It shows that this indicator is able to measure

variables well. It can also be said that all indicators on the Behaviour Intention variable

are valid. The results of the CFA Indicator (Factor Loading) test on questions in the

variable Behaviour Intention (Figure 4.1 and Table 4.16).

Figure 4.1 CFA Analysis of Behaviour Intention Variable

Table 4.16 Factor Loading Variable Behaviour Intention

Indikator

Standarized Factor Loading

Comparator

Description

BI1

0,81

0,5

Valid

BI2

0,76

0,5

Valid

BI3

0,81

0,5

Valid

BI5

0,64

0,5

Valid

BI6

0,84

0,5

Valid

b. Variable Perceived Risk

CFA Indicators (Factor Loading) test on questions in the Perceived Risk variable

has a value greater than 0.5. This shows that the indicator is able to measure variables

well. It also can be said that all indicators on the Perceived Risk variable are valid. The

results of the CFA Indicator (Factor Loading) test on the questions in the Perceived Risk

variable can be seen in (Figure 4.2 and Table 4.17).

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Figure 4.2 CFA Analysis of Perceived Risk Variable

Table 4.17 Factor Loading Variabel Perceived Risk

Indikator

Standarized Factor Loading

Comparator

Description

PR1

0,69

0,5

Valid

PR2

0,77

0,5

Valid

PR3

0,74

0,5

Valid

PR4

0,71

0,5

Valid

PR5

0,66

0,5

Valid

PR6

0,63

0,5

Valid

c. Variable Consumer Knowledge

CFA Indicator (Factor Loading) test on questions in the Consumer Knowledge

variable has a value greater than 0.5. This shows that the indicator able to measure

variables well. It also can be said that all indicators on the Consumer Knowledge

variable are valid. The results of the CFA Indicator (Factor Loading) test on questions in

the Consumer Knowledge variable can be seen in (Figure 4.3 and Table 4.18).

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Figure 4.3 CFA Analysis of Consumer Knowledge Variable

Table 4.18 Factor Loading Variable Consumer Knowledge

Indikator

Standarized Factor Loading

Comparator

Description

PK1

0,74

0,5

Valid

PK2

0,74

0,5

Valid

PK3

0,76

0,5

Valid

PK4

0,76

0,5

Valid

PK5

0,74

0,5

Valid

PK6

0.71

0,5

Valid

d. Variable Consumer Trust

Testing CFA Indicators (Factor Loading) on questions in the Consumer Trust

variable has a value greater than 0.5. This shows that the indicator is able to measure

variables well. It can also be said that all indicators on the Consumer Trust variable are

valid. The results of the CFA Indicator (Factor Loading) test on questions in the

Consumer Trust variable can be seen in (Figure 4.4 and Table 4.19).

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Figure 4.4 CFA Analysis of Consumer Trust Variable

Table 4.19 Factor Loading Variabel Consumer Trust

Indicators

Standarized Factor Loading

Comparator

Description

CT1

0,73

0,5

Valid

CT2

0,80

0,5

Valid

CT3

0,82

0,5

Valid

CT4

0,85

0,5

Valid

C. Hypothesis Test

Hypothesis test uses the results of direct influence test for hypothesis 1 to

hypothesis 5. The magnitude of the influence is directly obtained from regression

weight. As for hypothesis 6 and hypothesis 7, it uses the results of indirect influence

tests. Because there is a direct and also indirect influence for variable Consumer

Knowledge and Perceived Risk, the calculation of the influence of total variables is also

carried out.

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Figure 4.5. SEM Analysis Results

a. Direct Influence

The results of direct influence testing or regression weight can be seen in the

table 4.20.

Table 4.20 Variable Direct Influence

Unstandarized

Estimate

S.E.

C.R.

Standardized

Estimate

Description

<---

.010

.038

.282

.778

.012

Not

Significant

<---

.857

.076

11.301

***

.924

Significant

<---

.695

.180

3.858

***

.532

Significant

<---

-.128

.040

-3.222

.001

-.122

Significant

<---

.391

.163

2.392

.017

.397

Significant

Based on table 4.20, information is obtained that:

 Perceived Risk has an estimate value of 0.012 on Consumer Trust. This

shows that the influence of perceived risk on consumer trust is positive.

 Consumer Knowledge has an estimate value of 0.924 on the Consumer Trust.

This shows that the influence of consumer knowledge on consumer trust is

positive.

 The consumer trust has an estimate value of 0.532 on the Behavior Intention.

This shows that consumer trust has a positive influence on consumer

behavior interests.

 Perceived risk has an estimate value of -0.122 against Behavior Intention.

This shows that risk negatively influences the interest in consumer behavior.

 Consumer Knowledge has an estimate value of 0.397 against Behavior

intention. This shows that consumer knowledge positively affects the

interest in consumer behavior.

b. Indirect Influences

The results of indirect influence testing can be seen in the table 4.21.

Table 4.21 Variable Indirect Influence

.000

.006

.491

.000

Based on table 4.21, information is obtained that:

 Perceived risk has an estimate value of 0.006 on Behavior Intention. This

shows that risk positively affects the interest in consumer behavior through

consumer trust as a mediating variable.

 Consumer Knowledge has an estimate value of 0.491 on Behavior Intention.

This shows that consumer knowledge positively affects the interest in

consumer behavior through consumer trust as a mediating variable.

c. Total Influence

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The results of the total influence test can be seen in the table 4.22.

Table 4.22 Variable Total Influence

.012

.924

.000

-.116

.889

.532

.000

Based on table 4.22, information was obtained that the total influence of:

 Perceived risk on Behavior intention was -0.116.

 Consumer Knowledge of intention of 0.889 towards Behavior intention.

 The perceived risk to consumer trust is 0.012.

 Consumer Knowledge of consumer trust of 0.924 against Behavior intention.

d. Good Fit Model

Test results for fit moedel can be seen in the table 4.23.

Table 4.23 Fit models Test Result

Fit Model

Result

Description

(X2) Chi-Square

385.309

Poor

Significance Prob

0,000

Poor

CMIN/DF

1,898

Fit

RMSEA

0,059

Fit

TLI

0,930

Fit

CFI

0,944

Fit

Based on table 4.23, information was obtained that:

 Chi-Square indicator fit model (X2) has a value of 385.309. Relatively this

shows that the model formed is poor.

 Significance Prob has a value of 0.000. This value is less than 0.000. This

shows that the model formed is poor.

 CMIN/DF has a value of 1,898. This value is less than 2,000. This shows that

the model formed is fit.

 RMESEA has a value of 0.059. This value is less than 0.08. This shows that the

model formed is fit.

 TLI has a value of 0.930. This value is greater than 0.90. This shows that the

model formed is fit.

 The CFI has a value of 0.930. This value is greater than 0.90. This shows that

the model formed is fit.

D. Discussion

a. Hypothesis 1 : There is an influence of Perceived Risk on Behavior

Intention

Based on table 4.20, information was obtained that Perceived risk has an

estimate value of -0.122 toward Behavior intention. This shows that perceived risk

negatively affects the consumer behavior intention. This means that if the risk to be

faced by consumers is low, then consumers will tend to have an intention in buying or

participating in insurance programs. On the other hand, if consumers think that the risk

to be obtained is high, then respondents will tend to decrease their intention to use

insurance or a tendency to abandon insurance that has been used.

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The magnitude of the p value is 0.001. This value shows that the influence of

perceived risk on Behavior Intention is significant. So that the conclusion is reached that

the influence of Perceived Risk on Behavior Intention is negative.

Perceived risk is the uncertainty a consumer has when buying items, mostly

those that are particularly expensive (Sandy and Firdausy, 2021).

This is in line with research conducted by Putra et al., (2016), that the

perceived risk has a negative and significant effect on buying intentions. In online

transactions consumers will be willing to make transactions if they have a low risk. The

higher the perceived risk, the lower the consumer's intention to make online

transactions.

This result is in line with the results of Nugroho's research (2009). The study

shown that the four variables namely Perceived Ease in Use, Perceived Usefulness,

Perceived in Risk, and Trust have significant effect on consumer interest in transacting

over the internet. Also Perceive in Risk is a variable that has the most dominant

influence on consumer intentions to transact over the Internet.

These results are also in line with the results of the study from Rewah &

Mangantar, (2022). Based on hypothesis test 3, the results of t-count are greater than t-

table. It is concluded that hypothesis 3 is accepted, which means that the Perceived Risk

variable has an effect on Behavior Intention.

b. Hypothesis 2 : There is an influence of Perceived Risk on Consumer Trust

Based on table 4.20, information is obtained that Perceived Risk has an

estimate value of 0.012 on Consumer Trust. This shows that the influence of Perceived

Risk on consumer trust is positive. This means that when the perception of consumers

or respondents to the risks faced is low, consumer trust will also be low. Conversely

when the perceived risk is high, consumer trust will increase.

The p value is 0.778. This value is greater than 0.05. So it can be concluded that

the influence of perceived risk on consumer trust is not significant.

The results of the study contradict the results of previous studies. This could

happen because respondents' responses to questions on variable perceived risk tend to

be low. This can be seen from table 4.13 which shows that in all indicators on the

variable perceived risk, the average respondent gave a fairly disapproving answer. This

shows that respondents tend to have a low perceived risk.

In addition, by looking at the demographics of respondents, out of 259

respondents, only 10 respondents did not have insurance. This shows that most of the

respondents already understand the benefits of insurance itself. So that respondents

tend to give a good response to the perceived risk or it can be said that respondents

already understand that the risk of using insurance is small and tends to be safe.

c. Hypothesis 3 : There is an influence of Consumer Knowledge on Consumer

Trust

Based on table 4.20, information was obtained that Consumer Knowledge has

an estimate value of 0.924 towards Consumer Trust. This shows that the effect of

Consumer Knowledge on Consumer Trust is positive.

These results show that if consumers know extensive knowledge related to a

product, consumers trust in the product will tend to increase. On the other hand, if the

consumer's knowledge related to the product tends to be narrow, it will reduce

consumer trust in the product.

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The p value of *** indicates that the p value is below 0.001. This means that the

influence of Consumer Knowledge on Consumer Trust is significant. So that it can be

implied that Consumer Knowledge has a positive effect on Consumer Trust.

This result is in line with the opinion According to Sumarwan (2011), consumer

trust is consumer knowledge regarding the trust of a product having various attributes,

and the benefits of these various attributes.

This result is also supported by the opinion of Mowen and Minor (2012) who

define consumer trust as all the knowledge possessed by the consumer and all the

conclusions that the consumer makes about its objects, attributes and benefits. Objects

can be products, people, companies and everything to which a person has beliefs and

attitudes.

This result is also supported by the results of research from Fernanta,

Anastasius Hendy (2020) which obtained the results of the influence of knowledge

about e-commerce, perception of reputation, perceived risk, perceive ease of use on

trust.

d. Hypothesis 4 : There is an influence of Consumer Trust on Behavior

Intention

Based on table 4.20, information was obtained that the Consumer Trust has an

estimate value of 0.532 towards Behavior Intention. This shows that consumer trust has

a positive effect on consumer behavior intention. This means that if consumer trust in a

product is high, consumers will tend to have an increased intention in buying the

product. Conversely, if consumers trust in the product is low, the intention in buying the

product will decrease.

The p value of *** indicates that the p value is below 0.001. This means that the

influence of Consumer Trust on Behavior Intention is significant. So it can be implied

that Consumer Trust has a positive effect on Behavior intention.

The results of this study are in line with the results of Fadilah's research,

Muinah (2020), that Perceived benefit and Product, consumers trust positively

influence purchase intention.

Mahliza (2020) in her research also shown that consumer trust has a significant

positive effect on online purchase decision.

e. Hypothesis 5: There is an influence of Perceived Risk on Behavior Intention

mediated by Consumer Trust

Based on table 4.21, information was obtained that the indirect influence of

Perceived Risk has an estimate value of 0.006 towards Behavior intention, mediated by

Consumer Trust. This shows that the perceived risk has a positive indirect influence on

the consumer Behavior Intention through Consumer Trust as a mediating variable.

Based on table 4.20, information was obtained that Perceived Risk has an

estimate value of -0.122 towards Behavioral Intention. On the direct influence of

Perceived Risk on Behavior Intention is positive.

Meanwhile, when through Consumer Trust, it has an indirect influence of 0.006,

or a positive influence. There is a change in sign or influence, which at the beginning is

negative when passed the mediation variable becomes positive. This shows that there is

a mediating effect of the variables passed. So it can be concluded that consumer trust is

able to mediate the relationship between Perceived risk and Behavior Intention.

The results of this study are in line with the results of the research of Putri,

C.I.D. & Ida Bagus Sudiksa (2018) who got the result that perceived risk has a significant

negative effect on trust. Perceived risk also has a significant negative influence on online

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buying intentions on the Lazada site. Trust has a significant positive effect on online

purchase intent on the Lazada site and trust is significantly able to mediate the

relationship between perceived risk and online purchase intention on the Lazada site.

Trust has a mediating effect between each of the risk dimensions and buying

intentions of Yaping and Jin, (2010), Murwatiningsih and Apriliani (2013).

f. Hypothesis 6: There is an influence of Consumer Knowledge on Behavior

Intention mediated by Consumer Trust

Based on table 4.21, information was obtained that: Consumer Knowledge has

an estimate value of 0.491 on Behavior Intention. This shows that Consumer Knowledge

positively affects the consumer Behavior Intention through Consumer Trust as a

mediating variable.

Based on table 4.20 Consumer Knowledge has an estimate value of 0.397 on

Behavior Intention. This shows that consumer knowledge positively affects the

consumer Behavior Intention.

The direct influence of Consumer Knowledge towards Behavior Intention is

0.397. Meanwhile, indirect influence through Consumer Trust is 0.491. It appears that

there is an increase in influence, from direct influence to indirect influence. This shows

that there is a mediating effect of the variables passed. So it can be concluded that

Consumer Trust is able to mediate the relationship between Consumer Knowledge and

Behavior Intention.

The results of this study are in line with the results of Fadilah's research,

Muinah (2020). The results shown that perceived benefit and product consumers trust

positively influence purchase intention.

Mahliza, Febrina (2020) in her research also shown that Consumer Trust has a

significant positive effect on online purchase decision. In the study, there was a direct

influence and an indirect influence because of the existence of variable mediation. So

there is also a total influence. The total influence is the summation between direct and

indirect influences.

Based on table 4.22, information was obtained that the total effect of: Perceived

Risk on Behavior Intention was -0.116. The result is the summation of the direct

influence of Perceived Risk on Behavior Intention and the influence of Perceived Risk on

Behavior Intention through consumer trust as a mediation variable.

Consumer Knowledge has an influence of 0.889 on Behavior Intention. This

result is a summation of the direct influence of Consumer Knowledge on Behavior

Intention and the influence of Consumer Knowledge on Behavior Intention through

consumer trust as a mediating variable.

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Journal of Indonesian Social Science, Vol. 4, No. 03, March 2023 243

4. Conclussion

Based on the results and discussion of the research, several conclusions can be

drawn. Firstly, perceived risk has a negative and significant effect on consumer behavior

intention. Secondly, the influence of perceived risk on consumer trust is positive but not

significant. Thirdly, consumer knowledge has a positive and significant effect on

consumer trust. Fourthly, consumer trust has a positive and significant effect on

consumer behavior intention. Fifthly, consumer trust is able to mediate the relationship

between perceived risk and behavior intention. Finally, consumer trust is also able to

mediate the relationship between consumer knowledge and behavior intention. Overall,

the study concludes that consumer behavior intention is not only driven by the level of

consumer knowledge directly but also depends on consumer trust.

The limitations of the study include a biased sample, respondents having similar

perceived variables, and limited generalizations due to the data being collected in only

two cities in Indonesia. As a result, the findings may not be representative of the whole

population. Suggestions for insurance companies and policymakers include creating

accurate and easy-to-understand educational content and regulations to increase

consumer trust and minimize perceived risk. Further research is recommended with a

larger sample size, exploring factors such as geography, culture, religion, and education.

Additionally, research should analyze intrinsic motivation to understand factors that

drive consumer behavior intention.

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