Perceived risk and tourist's trust: the roles of perceived value and religiosity

Purpose This study aims to examine the relationship between perceived risk and tourists' trust. It also investigates the role of perceived value as a mediating variable on the link between perceived risk and trust. Moreover, the moderating role of religiosity on the link between perceived value and trust has also been highlighted. Design/methodology/approach The research population is all tourists who have visited West Sumatra Indonesia in the past two years. This research used a survey method using questionnaires and used purposive sampling as the sampling method. It collected 400 responses and after some preliminary tests, 352 usable responses have been analyzed. The authors used a covariance-based structural equation model using AMOS 24 as the data analysis tool. Findings This quantitative research found that perceived risk dimensions (health, environmental and financial risk) have significant impacts on perceived value. Perceived risk dimensions also have significant effects on trust except for health risk. It also found that perceived value has a significant impact on trust and finally, religiosity which has a significant moderating impact on the relationship between perceived value and trust. Research limitations/implications This study is only one country study; hence, it has limited finding generalization. It needs to be expanded to other countries such as Southeast Asia countries. It only used three antecedents of trust, therefore, for future research; it might be extended to other antecedents such as cultural value, tourist efficacy and also some consequences of trust such as revisit intention and customer involvement. Finally, this is a cross-sectional study; hence, for future research, it might be expanded to a longitudinal study where the results are more generalized. Practical implications Trust will lead to tourist loyalty. Therefore, to establish trust, the managers need to provide the best services with pay attention to the tourist perceived risk. Moreover, it found that perceived risks will lead to tourists' perceived value. Accordingly, to increase the tourist perceived value, the tourist destination managers have to minimize risk or uncertainty in the tourist destination such as environmental and health risk in the tourist destination. Finally, religiosity will strengthen the tourist trust, hence; the managers can attract and serve high religiosity tourists with Halal standard products and services. Originality/value This study has examined the relationship between perceived risk dimensions and perceived value which is not investigated in the previous studies. It also examined the mediating roles of perceived value on the link between perceived risk dimensions and trust. These mediating roles have not been addressed yet previously. Finally, it has also revealed a significant moderating effect of religiosity on the link between perceived value and trust which is neglected previously.