The role of perceived risk as a moderating variable: Customer data, IndiHome Telkom Surabaya city

Abstract

This study aims to find out how perceived risk acts as a moderating variable, and how the quality of information systems, service quality, and perceived trust affect customer satisfaction of IndiHome Telkom users in the city of Surabaya. This study employs a structural equation model data collected from 385 respondents who were selected using a purposive sampling method. The respondents were drawn from the population of IndiHome Telkom users residing in the city of Surabaya. The sample criteria are customers who have used IndiHome for at least 3 months, and are at least 17 years old. The findings indicate that the perceived risk is with a positive moderator. Perceived trust serves as a constructive mediating factor in the association between information system quality and service quality which ultimately influence customer satisfaction. Research also proves that information system quality, service quality and perceived trust make a positive contribution to customer satisfaction. This study concludes that perceived risk with a transactional process does not harm consumers rather it strengthens consumer’s satisfaction. These findings can be used to attract more Indihome Telkom customers in Surabaya, by increasing perceived trust and reducing perceived risk. It is recommended that Telkom improves network quality and computer hardware quality. This will have a positive impact on the satisfaction of IndiHome Telkom users.