Purchase Decision: Dilematically between Trust and Perceived Risk for Consume

Abstract

The study was conducted to determine the relationship of trust and perceived risk in business to business purchasing decisions of farmers. This research focuses on the prediction of the relationship between variables in the structural model so that the analytical tool uses Generalized Structured Component Analysis (GSCA) analysis. The research method uses multistage stratified, non-probabilistic, and convenience sampling methods. The research sample of 261 using a questionnaire was given to farmers in Kediri, Blitar, and Malang Districts. The results of the study, the relationship of COO (Country of Origin) in trust mediation has a significant and positive effect on purchasing decisions, the COO relationship in perceived risk does not have a significant and positive effect on purchasing decisions, the familiarity relationship in trust mediation has a significant and positive effect on purchasing decisions, familiarity in mediation perceived risk no significant and positive effect on purchasing decisions, world mindedness relations in trust mediation have a positive and significant effect on purchasing decisions, world mindedness relationships in mediation perceived risk has no significant and significant effect on purchasing decisions. While trust has a significant effect on purchasing decisions and perceived risk influences decision making.