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Roles of
Perceived risk and tourist’s trust: perceived
the roles of perceived value and value and
religiosity
religiosity
Abror Abror, Dina Patrisia and Yunita Engriani
Faculty of Economics, Universitas Negeri Padang, Padang, Indonesia
Received 27 March 2021
Maznah Wan Omar Revised 10 May 2021
2 June 2021
Faculty of Business and Management, Universiti Teknologi MARA, Accepted 2 June 2021
Shah Alam, Malaysia
Yunia Wardi
Faculty of Economics, Universitas Negeri Padang, Padang, Indonesia
Nazirul Mubin Bin Mohd Noor
Academy of Languages Studies, Universiti Teknologi MARA,
Shah Alam, Malaysia
Sarah Sabir Sabir Ahmad
Faculty of Business and Management, Universiti Teknologi MARA,
Shah Alam, Malaysia, and
Mukhamad Najib
Department of Management, IPB University, Bogor, Indonesia

Abstract
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

Journal of Islamic Marketing

The authors would like to thank Lembaga Penelitian dan Pengabdian Masyarakat Universitas © Emerald Publishing Limited
1759-0833
Negeri Padang for funding this work with a contract number: 1003/UN35.13/LT/2021. DOI 10.1108/JIMA-03-2021-0094
JIMA 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.
Keywords Trust, Perceived risk, Religiosity, Perceived value, Muslim friendly tourism
Paper type Research paper

1. Introduction
Muslim friendly or Halal tourism is an emerging business recently (Battour et al., 2017). The
number of Muslim tourists has been increasing rapidly and approximately 1.82 billion
Muslim population might become a potential market in the tourism sector (Battour et al.,
2017). Moreover, Halal business becomes an interesting topic for academics and
practitioners around the world due to the potential number of Muslim population (Wilson
and Liu, 2011). Many countries are concerned with Halal tourism issues, such as Singapore,
Taiwan, Korea and Japan (WYSETC, 2017). WYSETC (2017) asserted that one of the fastest-
growing businesses right now is the tourism market for the Muslim segment. The total
spending of Muslim travelers is US$220bn annually and it has been predicted to increase by
2026 to US$300bn.
As Muslim travelers worldwide increase in numbers, the Halal industry’s development
has been increasing rapidly to cater to Muslim traveler’s engagement and action that adhere
to Islamic teachings and enhances the practices of the Islamic religion. Intrinsically,
receiving countries and their tourist agencies are obliged to accommodate the Islamic
teaching in their marketing development, by facilitating Islamic teaching and practice to
apply the Halal concept in their tourism packages (Muhamad et al., 2019). Halal might
potentially become a branding strategy for a product or service (Wilson and Liu, 2010;
Wilson, 2014). Muslim travelers will concern about Halal or Muslim friendly products or
services when they are traveling to a tourism destination. Moreover, Indonesia, as the
largest Muslim population country with many attractive tourism destinations, will see this
as an opportunity for businesses (Mukhamad et al., 2020; Ratnasari et al., 2020; Leo et al.,
2021). Sofia and Suharto (2019) asserted that the number of Muslim travelers who visit
Indonesia will increase rapidly in the future. However, in 2020 the number of tourists has
been decreasing due to the COVID-19 pandemic. After the crisis, the tourism sectors, such as
the Halal tourism sector, have to find more innovative ways to attract tourists to visit
tourism destinations or countries (Sigala, 2020).
One of the important factors in tourism marketing development is tourists’ trust (Al-Ansi
et al., 2018). Trust is an individual’s feeling of security and willingness to rely on other
people or things (Hassan and Soliman, 2021). Trust relates to the classic commitment-trust
theory in marketing (Bi, 2019). This theory emphasizes the relational exchange process.
Accordingly, it is also related to social exchange theory (Delpechitre et al., 2018). Trust is an
important factor in managing a business such as in the tourism sector because it will affect
the loyalty of the customers or tourists (Al-Ansi and Han, 2019). When the tourists have Roles of
trusted the tourist destinations, they will revisit the places or they might recommend the perceived
tourism sites to other people. Accordingly, it is important to maintain the tourist’s trust to
build strong destination loyalty. According to Al-Ansi and Han (2019), Muslim tourist trust
value and
is also important in managing Muslim friendly destinations. Previous studies have religiosity
highlighted the role of trust in marketing; however, it is still limited in the context of Islamic
tourism.
Some prior studies have found that trust in the tourism destinations has some influence
factors, such as tourist perceived risks (Al-Ansi et al., 2018; Hansen et al., 2018), perceived
value (Filieri et al., 2015; Al-Ansi and Han, 2019) and religiosity (Iranmanesh et al., 2018). Al-
Ansi et al. (2018) have examined the link between general perceived risks and trust. They
have used seven dimensions of general risks including health, psychological, environmental,
social, quality, financial and time loss risk. However, they only addressed general risks as a
whole and failed to investigate the relationship between each dimension and trust. Sharma
and Klein (2020) have addressed the link between perceived value and trust. They found
that perceived value has a positive and significant impact on trust. Accordingly, when the
tourists have a higher perceived value of the tourism product, presumably, it will increase
their trust toward the tourism destination.
Tzavlopoulos et al. (2019) have examined the link between perceived risks as a whole and
perceived value; however, they also have yet to address the relationship between dimensions
of perceived risk and perceived value. Moreover, Aji et al. (2020) argued that religiosity has
direct impacts on perceived Islamic value. Briliana and Mursito (2017) have asserted that
religiosity has an impact on customer’s attitudes toward Halal products. Trust is closely
related to the customer’s attitude (Al-Ansi and Han, 2019). Accordingly, religiosity might
relate to trust. Besides, Sharma and Klein (2020) have investigated the significant role of
perceived value on trust. Therefore, religiosity might relate to perceived value and trust.
Even though previous studies have not addressed the link between these three variables yet,
we argue that religiosity which is related to the religious belief and practice of the customers
(Zamani-Farahani and Musa, 2012) will strengthen the relationship between perceived value
and trust. Hence, it means that religiosity might have a moderating effect on the relationship
between perceived value and trust.
This study has both theoretical and practical contributions. First, although Al-Ansi et al.
(2018) have addressed the link between general risk and trust, this study expands the
previous research by directly addressing the dimensions of general risk, including health,
environmental and financial risk which have been neglected previously (Al-Ansi et al., 2018).
Second, this study has revealed a significant mediating effect of perceived value on the link
between perceived risk and trust. The perceived risk will have an impact on trust through
the tourists’ perceived value as a mediator. Previous studies have revealed the link between
perceived risk and trust; however, the mediating role of perceived value remains neglected
in previous studies (Al-Ansi et al., 2018). Third, this study has addressed religiosity as a
moderating variable between perceived value and trust which is also still limited in the prior
studies. Although Aji et al. (2020) have examined the direct relationship between religiosity
and perceived value, they have not addressed the moderating effect of religiosity on the
relationship between perceived value and trust yet. Religiosity has a significant moderating
effect in strengthening the link between perceived value and trust. Tourists with high
religiosity will have a stronger relationship between perceived value and trust. Furthermore,
this study also has contributions to practical and managerial implications. Findings will be
useful for the tourism destination managers and also decision-makers such as the
government in managing Halal or Muslim friendly tourism in Indonesia. The managers and
JIMA government must be concerned with the tourists’ perceived risk such as health and
environmental risk when they manage the tourism sector in Indonesia which will lead to
tourists’ trust and also affect their revisit intention or willingness to recommend to other
people.

2. Literature review
2.1 Muslim friendly tourism trust
According to Al-Ansi et al. (2018), trust toward the destination is the tourist’s confidence
toward a product or service which is provided by the tourism sites as an exchange between
two parties. Moreover, Iranmanesh et al. (2018) also asserted that trust is closely related to
the customer’s confidence with the providers’ promises in delivering value to the customers.
Trust has some antecedent factors. For example, Wongkitrungrueng and Assarut (2020)
have argued that customers’ perceived values (i.e. utilitarian, hedonic or symbolic value)
have a significant impact on customers’ trust. Furthermore, Al-Ansi and Han (2019) also
have found that customers’ perceived value has a significant direct impact on trust.
According to Hansen et al. (2018) and Al-Ansi et al. (2018), trust also has been affected by
customers’ perceived risk. Accordingly, when the customers have perceived the value and
the risk of a product or service, it will lead to their trust in the product or service.

2.2 Tourist perceived value

Tourist perceived value relates to the means-end theory (Ahn and Thomas, 2020). Ahn and
Thomas (2020) have asserted that the means-end theory in the tourism sector will relate to
the link between attributes and the consequences such as benefits. According to Ye et al.
(2019), perceived value refers to the customers’ comparison between what they have
received (e.g. quality and convenience) and what they have given. High perceived value will
exist when the benefits that they received are more than the cost that they have paid. In
other words, perceived values are the perceived advantages or disadvantages that are
earned or lost by the customers (Al-Ansi and Han, 2019). Perceived value in the tourism
context can be in general (Iniesta-Bonillo et al., 2016; Al-Ansi and Han, 2019; Battour et al.,
2020) or in specific such as traditional value or Islamic value (Eid and El-Gohary, 2015).

2.3 Perceived risk

In the tourism industry, perceived risk is one of the important aspects for tourists in
choosing tourist destinations (Ritchie and Jiang, 2019). Risk refers to the uncertain condition
which may lead to negative consequences (Olya and Al-Ansi, 2018; Ritchie and Jiang, 2019).
According to Olya and Al-Ansi (2018), perceived risk is a consumer’s perception of the
uncertainty and the consequences of buying products or services. There are several types of
risk in buying products, such as financial risk, psychological risk, social risk, physical risk,
health risk, environmental risk, time-loss risk and opportunity risk (Al-Ansi et al., 2018;
Hansen et al., 2018; Olya and Al-Ansi, 2018; Huifeng et al., 2020; Mortimer et al., 2020).
This study focuses on three perceived risk dimensions, including environmental risk,
financial risk and health risk. Environmental risk refers to the risk of the Halal product
based on environmental factors such as environmental friendly in the production process
(Al-Ansi et al., 2018). Financial risk refers to the risk of extra payment for Halal/Muslim
friendly tourism such as paying extra unexpected expenses when buying Halal tourism
products or services (Olya and Al-Ansi, 2018). Finally, the health risk is about the perceived
health risk when tourists buy products or services in tourist destinations (Al-Ansi et al.,
2018). For example, perceived risk is about the impact of consuming non-Halal products on
tourists’ health conditions.
2.4 Perceived risk and perceived value Roles of
Halal products are often contaminated by haram products, this is often a risk for Muslim perceived
people if they want to consume products that they do not know about (Al-Ansi and Han,
2019). Hansen et al. (2018) stated that risk perception is a consumer’s perception of
value and
uncertainty and bad consequences associated with buying a product (or service). religiosity
Furthermore, Chang and Tseng (2013) stated that “bad purchasing decisions can result in
risks such as financial risk, performance risk, social risk, physical risk, psychological risk,
time-risk of loss and opportunity risk. Al-Ansi et al. (2018) has stated that the risk which is
perceived by consumers will influence their satisfaction and trust. However, they have not
yet addressed the direct relationship between perceived risk and perceived value and used
the perceived risk as a whole. This relationship relates to the theory of reason action which
refers to the customers’ attitude toward a product or service based on how they react and
evaluate the consequences of the product adoption (Huifeng et al., 2020).
On the other hand, in several studies such as Wang and Lin (2012) and Chang and Tseng
(2013) found a different result. They have stated that perceived risk does not affect perceived
value, even Chang and Tseng (2013) argued that perceived risk did not even succeed in
moderating perceived value in creating consumer buying interest. Aji et al. (2020) have
found that perceived risk has a significant impact on perceived value even though they have
only addressed perceived Halal risk in general. Tzavlopoulos et al. (2019) also assert that
perceived risk has a significant impact on the customer’s perceived value. Moreover,
Vishwakarma et al. (2020) have also argued that perceived physical risk has a significant
impact on perceived value. Wang et al. (2019) also found a significant impact of perceived
risk on perceived value-willingness to use relationship. Based on this debate, this study
suspects that perceived risk will have a significant effect on perceived value. When the
customers have perceived the product risk such as health risk, it will affect their perceived
value of the product. Accordingly, we propose the following three hypotheses, including:

H1. Environmental risk has a negative and significant impact on perceived value.
H2. Financial risk has a negative and significant impact on perceived value.
H3. Health has a negative and significant impact on perceived value.

2.5 Perceived risk, perceived value and trust

Some previous studies have examined the direct link between perceived risk and trust (Liu
et al., 2016; Al-Ansi et al., 2018; Hansen et al., 2018; Marriott and Williams, 2018). On one
hand, some studies such as Al-Ansi et al. (2018) asserted that perceived risk has a direct
impact on trust. Huifeng et al. (2020) have asserted the role of trust in moderating the
relationship between perceived risk and revisit intention. Moreover, Ho et al. (2017) have
investigated a significant impact of perceived risk on customer trust. Yang et al. (2015) also
highlighted a significant role of perceived risk on customer trust. When the customers
perceive the product risk, they will have a degree of trust in that product. On the other hand,
Marriott and Williams (2018) have argued that trust will affect the customer’s perceived
risk. Accordingly, there is a debate on this relationship. Both arguments have logical
reasons for that relationship which means that when the customers have perceived the
product risk, they will have a level of trust in that product. On the contrary, when the
customers have trusted the product, it will affect their perceived risk. Therefore, from these
two points of view, we argue that perceived risk is more reasonable as the antecedent of
trust, especially for the early stage of product consumption. Hence, we propose hypotheses
that as follows:
JIMA
H4. Environmental risk has a negative and significant impact on trust.
H5. Financial risk has a negative and significant impact on trust.
H6. Health risk has a negative and significant impact on trust.
The perceived risk might have a significant impact on perceived value (Chang and Tseng,
2013; Wang et al., 2019; Yin et al., 2020) and perceived value also has a significant impact on
trust (Al-Ansi and Han, 2019; Wongkitrungrueng and Assarut, 2020). Tzavlopoulos et al.
(2019) have asserted that perceived risk has a significant impact on perceived value. Aji et al.
(2020) also found that perceived risk is an antecedent of perceived value. While, Al-Ansi and
Han (2019) have highlighted a significant effect of perceived value on trust. Therefore, when
the customers have perceived the product risk, it will have an impact on their perceived
value and then it will influence their trust toward a product. Accordingly, we argue that
perceived value is a mediating variable between perceived risk and trust. Hence, we
hypothesize that as follows:

H7. Environmental risk has a significant impact on trust through perceived value as a
mediator.
H8. Financial risk has a significant impact on trust through perceived value as a
mediator.
H9. Health risk has a significant impact on trust through perceived value as a mediator.

2.6 Perceived value, religiosity and trust

Rahayu et al. (2020) stated that the customer’s perceived value is the result of an assessment
made by consumers of the benefits and sacrifices they make to get a product. Furthermore,
Eid (2015) added that consumer trust is built from creating and delivering value to
consumers which ultimately leads to consumer loyalty. According to Al-Ansi and Han
(2019), perceived value has a direct relationship with trust. They have investigated the link
between tourists’ perceived value on destination trust. Moreover, Wongkitrungrueng and
Assarut (2020) have also examined the positive link between perceived value such as
utilitarian value and fashion customers’ trust. When the customers have perceived good
value of the product, it assumes that the customer will trust the product or service provider.
Hence, this study hypothesizes that as follows:

H10. Perceived value has a positive and significant effect on trust.

Religiosity is an important factor in influencing social behavior (Eid and El-Gohary, 2015;
Abror et al., 2019a; Abror et al., 2019b; Akhtar et al., 2020). Religiosity in this study refers to
Islamic religiosity. Islamic religiosity is the Muslims’ belief about Islamic concepts and laws
and also how they practice their Islamic belief. Accordingly, religiosity will be determined
by two dimensions including Islamic beliefs such as belief in Allah will help and Islamic
practices such as how they perform the daily prayers (Zamani-Farahani and Musa, 2012;
Abror et al., 2020b). Religiosity will affect the social behavior of customers such as their
perceived value and trust toward a product. We assume that religiosity may strengthen the
relationship between perceived value and trust. Even though some previous studies such as
Eid and El-Gohary (2015) and Abror et al. (2020b) have not examined the role of religiosity
on perceived value and trust yet, we argue that customer with high religiosity will see the Roles of
perceived value and trust in a different way. Hence, we propose a hypothesis that as follows: perceived
H11. Religiosity has a positive and significant moderating effect on the link between value and
perceived value and trust. religiosity

3. Method
3.1 Population and sample
The population of this study was all Indonesian Muslim tourists who have visited tourist
destinations in West Sumatra in the past two years. We selected this population because one
of our variables is Islamic religiosity which is related to Muslims. However, the population
size is unknown; hence, this study used purposive sampling for the sampling method. Even
though this sampling method has limitations for finding generalization, it is suitable for the
unknown population size. The criteria of the respondents are Indonesian Muslim tourists,
visited West Sumatra tourist destinations in the past two years. This survey has 30
questionnaire items. According to Hair et al. (2014), the number of samples should be 5–20
times the items. Therefore, this study has collected data from 400 respondents.

3.2 Measurement development and data collection procedures

For measurement development, this study adopted the question items from previous
studies. This study used four variables including perceived risk, perceived value, religiosity
and trust. Perceived risk is the tourist’s perception of uncertainty and consequences of
visiting a tourist destination. This study divided the perceived risk into three dimensions,
namely, perceived environmental risk, financial risk and health risk. Perceived value is the
tourists’ perceived advantages or disadvantages that they earned by visiting a tourist
destination. Religiosity is Muslim tourist Islamic beliefs and practices. Finally, trust is a
tourist individual’s feeling of security and willingness to rely on tourist destination products
and services, We adapted 10 measurement items from Al-Ansi et al. (2018) for financial risk,
environmental risk and health risk. For perceived value measurement, this study used five
measurement items from Al-Ansi et al. (2018). A total of 12 religiosity measurement items
were derived from Eid and El-Gohary (2015) and Zamani-Farahani and Musa (2012). Finally,
we adopted three measurement items of trust from Al-Ansi and Han (2019). This study used
a five-point Likert scale ranging from 1 = strongly disagree to 5 = strongly agree. Based on
Sekaran and Bougie’s (2013) argument, this study also used a back-translation procedure
for the questionnaire development. The questionnaires have been translated into Bahasa
Indonesia and translated back into the English language. This procedure has been checked
by two scholars who have expertise in marketing and have good English ability.
Data collection procedures were conducted in two stages. At the first stage of data
collection, we have done a preliminary test on 30 respondents. This data was analyzed to get
the validity and reliability of the items. The second stage is the primary data collection. We
distributed the questionnaire using the online and drop and collect method. We got 400
responses, however, after the preliminary checks, including missing value and non-response
bias we got 352 usable responses.

3.3 Data analysis

This study used covariance-based structural equation modeling (CB-SEM) by using AMOS
24 (Byrne, 2010). This research used some goodness of fit (GoF) criteria, such as normed chi-
square (CMIN/DF), comparative fit index (CFI), the goodness of fit index (GFI), Tucker-
JIMA Lewis index (TLI), with root mean square error of approximation (RMSEA) (Byrne, 2010).
We used cut-off point < 5 for CMIN/DF,
0.90 for CFI, TLI and GFI and # 0.08 for RMSEA
(Bentler and Bonett, 1980).
In the measurement model, this study will check the construct reliability and validity by
using the loading factor, Cronbach’s alpha, composite reliability and average variance
extracted (AVE). The discriminant validity of this study has been checked using Fornell and
Larcker’s criterion (Hair et al., 2013). The square root of AVE should be greater than the
cross-loading correlation (Hair et al., 2014). Whilst, in the structural model, this study used
bootstrapping with 5,000 re-sample and t-test for the hypothesis testing (Wang et al., 2019).
The normality of the data was checked by using the rule of thumbs 63 standard deviations
and this study found the standard deviation of variables is between 0.47 and 1.28. Hence, the
data is free from the normality problem (Hair et al., 2010). Moreover, a multi-collinearity test
using variance inflation factor (VIF) < 5 and heteroscedasticity test using Glejser test has
been applied in this study (Hair et al., 2010). It found that the VIF of variables is between 1.04
and 2.08. The Glejser test found that the significant value of the relationship between
variables is greater than 0.05. Therefore, it means that the study has passed the preliminary
tests and got good results.

4. Results and discussion

4.1 Results
4.1.1 Descriptive of the respondent. Based on the demographic factors, this study found that
most of the respondents have a monthly expenditure
of 5m rupiah or approximately more
than US$400 (56%). They have traveled around two to five times a year (88.1%). Most of the
respondents are less than 40 years old and based on gender, most of them are women.
Finally, most of them graduated with a bachelor’s degree. Accordingly, the respondents of
this study are tourists who are well educated and they are from the middle-income level.
4.1.2 Measurement model. This study has used two steps approach (Hair et al., 2014).
Therefore, this study has examined both the measurement model and structural model. For
the measurement model, we have tested the validity and reliability of the data by using
loading factor, construct validity and reliability and also discriminant validity. For the
loading factor, construct validity and reliability, this study found that all constructs are
valid and reliable. The construct items have a loading factor > 0.70. Cronbach’s alpha and
composite reliability are greater than 0.70 and AVE > 0.50 (Hair et al., 2014). For the detail,
please see Table 1.
This study used Fornell and Larcker’s criteria for the discriminant validity, where the
square root of AVE in the diagonal should be greater than the correlation in the column
(Hair et al., 2013). This study found that all constructs have good discriminant validity
which is shown in Table 2. Moreover, Table 3 shows the GoF for the measurement and
structural model. It found that both measurement and structural models have high GFIs.
4.1.3 Hypothesis testing. This study examined 11 hypotheses. Tables 4 and 5 show the
hypothesis testing results. We found that environmental risk has a significant impact on
both perceived value and tourist trust (H1; b = 0.299; *** and H4; b = 0.219; ***).
Financial risk also has a significant influence on perceived value and trust (H2; b = 0.133;
*** and H5; b = 0.117; ***). Health risk has a significant impact on perceived value (H3;
b = 0.227; ***). However, this study found that there is no significant direct effect of
health risk on trust (H6; b = 0.008; ns) (H6). Perceived value also has a significant direct
impact on trust (H10; b = 0.412; ***). Besides the direct effect, this study has examined the
indirect impact of perceived risk on trust through perceived value as the mediator. This
study found that environmental risk and financial risk have a significant, indirect effect on
Constructs Items Loading A CR AVE
Roles of
perceived
Health risk 0.87 0.92 0.80 value and
I worry about my health condition if I do not consume Halal 0.90
products in the tourist destination religiosity
I worry about the epidemic disease if do not consume Halal 0.89
products in the tourist destination
I worry about the consumption of non-Halal products which 0.90
are harmful in the tourist destination
Environmental 0.90 0.94 0.84
risk
I am concerned about the environmental conditions of 0.92
producing and processing Halal products in the tourist
destination
I am concerned about hygiene standards of Halal products in 0.91
the tourist destination
I am concerned about the physical conditions of storing and 0.92
selling the Halal products in the tourist destination
Financial risk 0.90 0.95 0.90
I worry that buying Halal tourism services would involve 0.94
unexpected extra expenses
I worry that an additional fee must be paid for getting the 0.96
Halal travel services
Religiosity 0.88 0.91 0.59
In my personal life, religion is very important 0.80
Performing Hajj is one of my main priorities 0.74
I believe that Allah (God) helps me 0.81
I perform all my prayers 0.82
I perform my prayers always on time 0.70
I perform the obligation of Zakat 0.72
I fast the whole month of Ramadan 0.76
Perceived 0.86 0.90 0.70
value
Traveling to West Sumatra is worth the price 0.81
Compare to other destinations, traveling to West Sumatra is a 0.89
good deal
Traveling to West Sumatra offers good value for money 0.79
Traveling to West Sumatra meets my travel needs 0.86
Trust 0.89 0.92 0.75
The provider of Halal trip are trustworthy 0.87
The provider of Halal trip does not make false claims with 0.85
their product
I believe the information that the providers present to the 0.89
customer are accurate Table 1.
I believe that the Halal signage is reliable 0.86 Convergent validity

trust through perceived value as the mediating variable (H7; b = 0.125; *** and H8; b =
0.055; ***). Surprisingly, although health risk has no significant direct impact on trust, it
has a significant indirect impact with perceived value as a mediator (H9; b = 0.104; ***).
Finally, this study also found a significant moderating impact of religiosity on the
relationship between perceived value and trust (H11; b = 0.082; **).
Furthermore, this study is a cross-sectional study and has a self-rated questionnaire.
Hence, this study might have a common method bias problem. To anticipate this problem,
this study has tested the common method bias by using Harman’s single factor method
JIMA (Podsakoff et al., 2003; Abror et al., 2020b). This study used exploratory factor analysis with
a single factor solution and found the total variance explained for a single-factor is 30.1%. It
means that there is no common method bias (cut-off point < 40%) (Wong et al., 2011). The
research model has been shown in Figure 1.

4.2 Discussion
This study has found that perceived risk dimensions, namely, environmental, financial and
health risk have a significant impact on perceived value (H1, H2 and H3). These findings
support Al-Ansi et al. (2018) and Aji et al. (2020), who found that perceived risk is a
significant antecedent of perceived value. When the tourists have perceived the product risk,
it will affect their perceived benefit and cost in visiting the tourist destination. Accordingly,

Construct 1 2 3 4 5 6

Environmental risk 0.915

Financial risk 0.096 0.951
Health risk 0.645 0.048 0.893
Perceived value 0.468 0.172 0.444 0.837
Religiosity 0.584 0.005 0.578 0.332 0.765
Trust 0.503 0.045 0.409 0.554 0.491 0.866
Table 2.
Discriminant validity Notes: Diagonal (in italic) is the square root of AVE; for the discriminant validity, the square root of AVE
assessment should be higher than off-diagonal elements

GFIs
Constructs CMIN/DF CFI TLI GFI AGFI RMSEA

Second-order Perceived risk 2.45 0.99 0.98 0.96 0.93 0.06

Perceived value 1.69 0.99 0.99 0.99 0.98 0.04
Religiosity 2.83 0.99 0.98 0.97 0.93 0.07
Trust 1.46 0.99 0.99 0.99 0.97 0.04
Table 3. All constructs 2.20 0.96 0.95 0.91 0.88 0.06
Measurement and Structural model 1.52 0.99 0.99 0.99 0.97 0.04
structural model GoF Suggested fit indices #5
0.90
0.90
0.90
0.80 #0.08

Hypothesis Path b Sample mean (M) SD t-statistics p-values

H1 ER ! PV 0.299 0.297 0.068 4.369 ***

H2 FR ! PV 0.133 0.133 0.046 2.853 ***
H3 HR ! PV 0.227 0.245 0.067 3.673 ***
H4 ER ! TRUST 0.219 0.217 0.071 3.160 ***
H5 FR ! TRUST 0.117 0.125 0.043 2.890 ***
H6 HR ! TRUST 0.008 0.012 0.079 0.181 ns
H10 PV ! TRUST 0.412 0.422 0.051 8.240 ***
Table 4. H11 PVXREL ! TRUST 0.082 0.082 0.036 2.269 **
Testing of
hypothesis Notes: ***p < 0.01; **p < 0.05; ns, not supported
it will influence the perceived value of the product. Another reason why the importance of Roles of
perceived risk is high in the tourism industry is because of the high-involvement perceived
perspective. This is mainly because travelers highly depend on intangible, heterogeneous
and hard-to-standardized services (Yi et al., 2020). Therefore, when tourists have a better
value and
understanding of the perceived risk, their perceived value will increase. religiosity
Furthermore, this study also found that perceived risk partially has a significant impact
on trust. This study has revealed that environmental and financial risks are the antecedents
of trust (H4, H5). Health risk has no significant direct impact on trust (H6). The findings are
partially in line with some previous studies such as Al-Ansi et al. (2018), Olya and Al-Ansi
(2018) and Hansen et al. (2018), who found that the risk of the product has a significant
relationship with the customer trust. When the customers have perceived the product risk, it
will affect their trust in the product. Accordingly, in this context, the customers will trust the
Halal or Muslim friendly tourist destinations when they have perceived the Halal tourism
risk. The perceived risk will lead to enhanced trust or vice-versa (Ahmad and Omar, 2019).
When the perceived risk is acceptable by the tourists, the higher the possibility of the
tourists to trust and choose the Halal or Muslim friendly tourist destination. Health risk has
no significant direct impact on trust. This finding is not congruent with the previous

Hypothesis b Sample mean (M) SD t-statistics p-values

H7 ER ! PV ! TRUST 0.125 0.125 0.032 3.894 ***

H8 FR ! PV ! TRUST 0.055 0.056 0.020 2.720 ***

H9 HR ! PV ! TRUST 0.104 0.103 0.032 3.262 ***

Table 5.
Note: ***p < 0.01 Mediating effect

Figure 1.
Research model
JIMA findings. A plausible reason for this finding is that the perceived health risk will not directly
affect the customer trust but it will affect trust through perceived value as a mediator. This
study has found that the indirect impact of perceived h risk (i.e. environmental, financial and
health risk) on trust is significantly mediated by customer perceived value (H7, H8 and H9).
Perceived value also has a significant influence on tourist trust (H10). This finding
supports some prior studies such as Al-Ansi and Han (2019) and Wongkitrungrueng and
Assarut (2020), who argued that when the customers have perceived the product value, it
will affect their trust in a product. Therefore, when the customers have perceived the good
value of the Halal tourism destination, it will impact their trust toward the tourist
destination. Finally, we found that the link between perceived value and trust will be
moderated by customer religiosity (H11). Even though some previous studies have yet to
address this moderating link (Eid and El-Gohary, 2015; Abror et al., 2019b), this finding
supports those previous studies in the context of the influence of perceived value on
customer attitudes such as trust or satisfaction. Hence, the religiosity of the customers will
strengthen the link between perceived value and trust. Figure 2 shows the interaction effect
between perceived value, trust and religiosity.

5. Conclusion
5.1 Theoretical contribution
This study revealed three contributions to theoretical development. First, this study has
examined the relationship between perceived risk dimensions and perceived value. Al-Ansi
et al. (2018) have addressed the link between perceived risk as a whole and trust; however,
they have yet to investigate the link between the dimensions of perceived risk and trust.
Moreover, they also have not investigated the link between perceived risk and perceived
value yet. Perceived risk relates to consumer psychology which has a connection with their
perceived value of the product or service (Huifeng et al., 2020). Therefore, this study
provides new insight into how the customers’ perceived risk will lead to their perceived
value of the tourists.
Second, this study has examined the mediating role of perceived value on the link
between perceived risk dimensions and trust. These mediating roles have been neglected
previously (Al-Ansi et al., 2018). Therefore, this study gives a new perspective to increase

4.5

4
Low Religiosity
3.5

3 High Religiosity

2.5

1.5
Figure 2. 1
Interaction effect
Low Perceived Value High Perceived Value
tourist trust, especially in the Muslim friendly tourism context. Finally, this study has also Roles of
revealed a significant moderating effect of religiosity on the link between perceived value perceived
and trust. The direct relationship between religiosity and perceived value has been
examined by the prior study (Aji et al., 2020) and the direct relationship between perceived
value and
value and trust has also been revealed by Al-Ansi and Han (2019). However, to the best of religiosity
the authors’ knowledge, this is the first study that addressed the moderating role of
religiosity on the link between perceived value and trust, especially in the Muslim friendly
tourism context.

5.2 Managerial implication

The findings of this study are expected to have contributions to managerial decision-
making. The trust might become an important factor in tourism business development. The
trust will lead to tourist loyalty such as willingness to recommend and also willingness to
revisit (Hassan and Soliman, 2021). As the tourists deal with the Halal or Muslim friendly
tourist destination service providers, the impact of excellent services will minimize the
tourists’ perceived risk and will enhance their trust. Therefore, to establish trust, the
managers need to provide the best services with pay attention to the tourist perceived risk
as advertised for a lasting added competitive advantage.
Moreover, it found that perceived risks such as environmental, health and financial risk
will lead to tourist perceived value. Accordingly, to increase the tourist perceived value of
the tourist destination, the tourist destination managers have to minimize risk or
uncertainty in the tourist destination such as environmental conditions in the tourist
destination. The managers also need to be concerned about health risks when Muslim
tourists consume the non-Halal product. Hence, Halal standards should be applied in
producing products or services in a tourist destination.
Tourist destination managers have also need to take a look at the religiosity of the
tourists. It will affect their trust and the managers can attract and serve high religiosity
tourists with Halal standard products and services. Hence, it will strengthen the tourists’
trust. Finally, these findings might also be beneficial for the society and government in
providing Halal or Muslim friendly tourism products or services. Society and government
can create a program to reduce tourist perceived risk which will increase the perceived value
and trust of the tourists.

5.3 Limitation and future research

Although this study has some contributions, it also has some limitations. First, it is only one
country study, hence, for the future, this study needs to be expanded to other countries such
as Southeast Asia countries for more generalizable of the model. Second, this study only
used three antecedents of trust, therefore, for future research, it might be extended to other
antecedents such as cultural value, tourist efficacy (Prebensen and Xie, 2017; Abror et al.,
2020a) and also some consequences of trust such as revisit intention (Hassan and Soliman,
2021) and customer involvement (Sharma and Klein, 2020). Finally, this is a cross-sectional
study. Hence, for future research, it might be expanded to a longitudinal study where the
results are more generalizable.

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Corresponding author
Abror Abror can be contacted at: [email protected]

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