CONSUMERS TRUST AS THE MEDIATING FACTOR FOR INSURANCE BUYING INTENTION IN INDONESIA

Abstract This study aims to identify the effect of Perceived of usefulness and Company reputation, Purchase Intention, mediated by Consumer Trust in an insurance environment. A survey method is used to collect data from consumers who potentially buying an insurance. Path analysis and multiple regression are used to test the causal model. Sample size 100 middleincome residents in the areas of Jakarta. The study demonstrates that company image has no significant effect to the Purchase intention while the perceived of usefulness influences the purchase intention through consumer trust, it has meaning that the intention to buy insurance products is affected by customers` positive perspective factors towards insurance products offered in the market, and this may bring implication towards the company which provides insurance service that to increase customers purchase intention insurance service provider must do campaign and promotion that may grow the understanding about the products offered. The usefulness of insurance program in terms of protection and precautionary motive need to be grown in customers mind through effective promotion strategy, because strong understanding towards the utility of insurance products will trigger the growth of customer trust which in the end of the day will cause purchase intention. Company reputation does not have direct, significant influence towards the intention to purchase insurance products, it gives implication that company strategy to increase the selling should be focused on the improvement of customers trust towards insurance by improving the efforts to increase customers understanding about the usefulness of insurance products.