A Theoretical Framework: The Role of Trust and Perceived Risks in Purchased Decision

Abstract

The aim of this paper is identify and explore the conceptual framework of the relationship among country of origin, familiarity, and world-mindedness toward purchased decision through trust and perceived risk mediating role. The identification result obtains conceptual framework of variable relationship that influences imported product purchased decision. The identification result indicates that when the business consumer perception on the country of origin, familiarity, and world-mindedness is positive, then it will improve consumer belief in making a purchased decision. Trust and perceived risk has reciprocal relationship. Purchased decision, to some extent, is influenced by trust first and then considers the perceived risk possibility. On the other hand, farmers consider purchase risk so that they have to gather product information as many as possible then evaluate the product to build product quality belief during the purchased decision process. Originality delivers integrated conceptual framework to explain the relationship of purchased decision with country of origin, familiarity, and world-mindedness as mediated by the role of trust and perceived risk.