Abstract:

Indonesia has a large muslim population hence has a huge potential for takaful market. Regrettably, muslims there  prefer to buy conventional insurance than takaful. The lack of awareness, knowledge and exposure to takaful are the reason for this lack of participation in takaful. The increasing use of social media is being used by takaful operators as a way to communicate with their consumers. This study seeks to find out how social media marketing influence purchase intention of takaful. Data analysis using Lisrel-SEM of 156 respondents found that social media marketing and product compliance with sharia rules had a positive effect on purchase intention through an intermediary attitude towards takaful. While social media marketing complience to sharia rules has proven to have a negative effect on attitudes towards takaful.