The Effect of Customer Perceived Value Dimensions on Takaful Purchase Intention among Indonesian Muslims

Abstract

The tren in the use of Sharia Insurance (Takaful) has grown rapidly in Indonesia since 2011. This growth is evident in the emergence of various insurance companies offering insurance products based on Islamic principles. Several factors are believed to influence consumers' intention to purchase. including emotional value, functional value, knowledge value, religious value, and social value. This study aims to analyer. The variables analyzed include Emotional Value, Functional Value, Social Value, Religious Value, and Knowledge Value as independent variables, while Purchase Intention serves as the dependent variable. This study employs a quantitative approach using primary data collected from 100 respondents who previously held conventional insurance and have since switched to sharia insurance, utilizing a purposive sampling technique. Data analysis was conducted using Structural Equation Modeling (SEM) with the Partial Least Squares (PLS) approach and the SmartPLS software. The results indicate that religious and emotional values have a positive and significant effect on purchase intention. Conversely, functional, knowledge-based, and social values do not show a significant effect. These findings suggest that religious values and individual perceptions play a more dominant role in shaping purchase intention than the product's functionality, knowledge, or the social values emphasized.