THE EFFECTS OF COUNTRY OF ORIGIN AND PERCEIVED RISK ON INITIAL TRUST: AN EXPERIMENTAL EVALUATION OF THE PERCEPTION OF INDONESIAN CONSUMERS ON SERVICE INDUSTRY ACROSS HIGH RISK AND LOW RISK SERVICES

Farina, Tara
Feranita, Feranita

Journal of Business Strategy and Execution
Vol 3, No 1 (2010): Published on November 2010

To uncover how COO and perceived risk affect the initial trust in service industry; and to compare these effects across two service industry – high risk versus low risk. A total of 180 respondents were evaluated with different combinations across 2 service industries. The research findings confirmed the effect of country of origin and corporate reputation on initial trust and the relationship between perceived risk and COO. Before engaging to a service, respondents put into considerations for COO and corporate reputation. COO effect may differ across different service industry.