Intention to purchase family takaful policy: Evaluation of the mediating effects of perceived trust

Abstract

This study investigates the factors affecting individuals’ intention to purchase family takaful policies in Pakistan. The extended version of the Decomposed Theory of Planned Behaviour (DTPB) with perceived trust was adopted as a theoretical foundation of the current study model. Using a judgmental sampling technique, 449 questionnaires were collected. SmartPLS was used to analyze the data. Several hypotheses were developed, but one was rejected. From the findings, it was reported that attitude and subjective norms have a positive relationship with intention. In addition, perceived religiosity and knowledge were found to correlate positively with attitude. Further, media referent and word of mouth positively correlated with the subjective norm. In contrast, financial self-efficacy and resource facilitating conditions positively correlate with perceived behavioral control. The mediating analysis suggested that trust mediates the relationship between religiosity and attitude. However, perceived behavioral control was found to be an insignificant predictor. This study highlights the applicability of DTPB into Islamic banking and finance research areas and recommends marketing strategies for the sustainability and survival of takaful companies in Pakistan.