Understanding the mediating role of perceived risk in the relationship between price, product quality, and copra repurchase intention in North Maluku province

Nugrahini Susantinah Wisnujati (), Suwandi S Sangadji () and Tanti Handriana ()

International Journal of Applied Economics, Finance and Accounting, 2024, vol. 19, issue 1, 97-106

Abstract: This study aims to examine the relationship between perceived risk, price, and product quality as it pertains to the intention to repurchase copra in North Maluku Province. Coconut meat, commonly known as copra, is the raw material for making crude coconut oil. Apart from being a superior commodity and contributing greatly to the Gross Regional Domestic Product (GRDP) of North Maluku Province from the agricultural sector, this product has experienced a decline in purchases since 2022 until now. We used a quantitative method based on SEM analysis, with a sample size of 120 respondents. The primary data collection technique used was a questionnaire. While this study did find a significant relationship between product quality and perceived risk and between perceived risk and repurchase intention, it did not find a significant relationship between price and repurchase intention or product quality and repurchase intention directly. Concurrently, there is full mediation in the indirect influence of product quality on repurchase intention; that is, perceived risk is a key component of the relationship between product quality and repurchase intention. If buyers feel that there is a low risk associated with product quality, they will be more likely to consider repeat purchases. Perceived risk can include financial, operational, and reputational risks associated with poor-quality products.

Keywords: Business to business; Perceived risk; Price; Product quality; Repurchase intention. (search for similar items in EconPapers)
Date: 2024
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