ONLINE PURCHASE INTENTION: STUDY CASE MOSLEM (ISLAMÄ°C) FASHÄ°ON (HIJUP.COM)

Abstract

The growth of internet users in Indonesia has been truly phenomenal in recent years. The growth has also led Indonesia to the emergence of a very lucrative market for islamic fashion. However, lack of trust has been identified as a major obstacle to the adoption of online shopping. This study examines how perceived risk, perceived benefit, and consumer trust affect the purchase intention of islamic fashion e-commerce. A total of 234 women in Jakarta who have been following the social media of Hijup participated in the paper-based survey and provided usable responses. Structural equation modeling processed with Lisrel program was used to test hypotheses. The result showed that consumer trust has a significantly negative influence toward perceived risk. Perceived benefit has a significantly positive influence toward purchase intention. Perceived risk has a significant and negative impact on intention. Security seals on their website and third-party internet seals have strong effects towards consumer trust. Information risk and product risk have a strong effect towards perceived risk of online shopping. Psychological equanimity has a strong effect towards perceived benefit of online shopping. As consumers consider e-commerce involves risk and uncertainty, online business organizations need to overcome these barriers. A key strategy to increase purchase intention is to apply a set of international security standards created and maintained by the PCI DSS (Payment Card Industry Data Security Standard). Cyberbuzz can be used to reduce the risk product by reviewing and promoting the product of islamic fashion.