The impact of trust-distrust toward quality of life : the case of poor and non-poor household in Indonesia

Abstract

The quality of life is strongly related to consumer trust in market related institution. The higher trust in market related institution, the higher quality of life received. The research serves two purposes. First, examine the relationships between consumer trust in market related institutions (CTMRI), distrust for individuals (DFI) and Quality of Life (QoL). Second, compare those relationships between two social-economic groups (poor household and non-poor household). The research employed the model developed by Ekici and Peterson (2009). The study found that poor people shows a low quality of life and tend to have a low level of trust towards market related institutions while people above the poverty line tend to show high level of trust towards market related institutions and tend to show a higher quality of life.For both group, the trust in Manufacturer and Business has contribute the strongest relationship toward trust in market related institutions. Surprisingly, the research found that there is no relationship between trust of government regulation and trust in market related institution for poor people group. This lack of trust raises a speculative issue for poor government intervention policy. Finally, the research also found the greater trust in market related institutions will reduce the distrust in individuals thus enhance quality of life.