Malaysian Attitudes Towards Counterfeits Of Luxury Brands Marketing Essay

Chapter 1

Introduction

The first forging emerged in more than forty old ages ago, and it was merely happened on extremely priced and esteemed merchandises like fabrics, jewellery and accoutrements ( Eisend M. & A ; Schuchert-Guler, P. , 2006 ) . This phenomenon considered undistinguished and less attending has been paid to extinguish it.

Nowadays, this phenomenon has widespread globally and has become a important economic issue. Harmonizing to Eisend M. and Schuchert-Guler, P. ( 2006 ) European Union has reported a 1000 % lifting of forging within six old ages, lifting from 10million in twelvemonth 1998 to 103million in twelvemonth 2004. Meanwhile, United stated has reported that ictuss of forgeries have doubled since 2001.

Many merchandises have been counterfeited, runing from Cadmiums, VCDs, package, shirts, interior decorator places, billfolds, bags, pocketbooks, tickers, jewellery, aroma, Sun spectacless, accoutrements, dress, books, hurting stand-ins, car parts, cameras, Television, toys, nutrient and drinks, baccy and personal attention merchandises besides being counterfeit. Most all these merchandises could be categorized under luxury goods which most consumers perceived as symbol of position.

Among the forgery goods, luxury interior decorator trade names have become marks of forgery manufacturers. Therefore, forgery of luxury goods is increasing in a dramatic growing rate. For forgery makers, this market is really moneymaking as it is low cost merchandises that are easy to fabricate position symbol and easy to sell with no marketing attempt required ( Gentry et al. , 2006 ) .

Counterfeiting has caused negative effects to the economic system. As estimated by The International Anti Counterfeiting has caused at least $ 200 billion per annum in lost occupation, revenue enhancements and gross revenues. This is besides an obstruction to the development of rational belongingss. Therefore, there is a demand to look into the issue from different positions to forestall it from acquiring worse.

1.1 Problem Statement

Counterfeit market is in turning rate although many states have implemented anti forging schemes to control and extinguish this illegal industry. However, surveies were chiefly focused on supply side, including detering forgery through hallmark enrollment, regulative action and protection schemes to cut down the handiness of forgeries ( Wee et al, 1995 ) .

Unfortunately, all the attempts exerted seem uneffective as it failed to discourage the consumers from buying imitative goods. By mentioning to old surveies, people from different state or cultural background seem to hold different attitudes towards purchase purpose of forgeries. Therefore, to eliminate the job, the factors that drive consumers in a specific state favorable to forge luxury merchandises must be identified ( Organization for Economic Cooperation and Development, 2007 ) . Therefore, we must happen out ‘why consumer purchase forgery? ” but non “ where they purchase ” ( Wee et al, 1995 ) .

By far, there is limited research on consumers ‘ attitudes toward forgeries goods in Malaysia has been published. In fact, Malaysia has been listed on the IIPA ‘s Priority Watch List from twelvemonth 2003 to 2006. In twelvemonth 2010, IPPA has suggested to stay Malaysia in the “ watch List ” as the forgeries issues acquiring worse. In order to recover a good repute to pull more international investors from luxury goods industry, authorities are urged to control the forgeries job in Malaysia.

Therefore, there is necessary to derive an penetration into the chief causes of the phenomenon of forgeries in Malaysia. Particularly, we must understand Malaysian attitudes towards purchase of forgeries. Undoubtable, forgeries priced at much cheaper than echt, as lower production cost and lower quality. Consumers who unwillingly to pay high monetary value for echt merchandises are enticed to buy forgeries. Therefore fiscal motivations will be neglected in the probe. Other antecedent motivations of consumer ‘s attitudes should be examined as the analysis informations may ease the selling activities of echt luxury trade names in finding their effectual countermeasures against forging. Meanwhile, there is critical to place the underlying mechanism of purpose to buy luxury forgeries.

1.2 Aims of the Study

This survey aims to analyze the motivations influence consumer ‘s attitudes towards purchase of luxury forgeries. Theory of planned behaviour was used as footing for theoretical model development. Therefore relationship between three chief factors: attitudes, subjective norms and sensed behavioural control towards purchase purpose of forgery will be investigated every bit good.

Seven motives that influence consumer ‘s attitudes towards purchase of luxury trade names counterfeit have been identified through reappraisal on old surveies. Motivation selected including position ingestion, unity, value consciousness, personal satisfaction, freshness seeking, philistinism, trade name witting and merchandise visual aspect. All these motives will be investigated to place the relationship between each of the motive with the consumer ‘s attitudes towards forgeries of luxury trade names and the purpose to buy forgeries of luxury trade names.

1.3 Significance of the Study

A reappraisal of old research has indicated a demand for farther probe on the determiners of forgeries purchase purpose. As harmonizing to Eisend M. and Schuchert-Guler, P. ( 2006 ) , old surveies have failed so far to incorporate their consequences systematically into a more general model because of deficiency of profound theory. The survey besides stated that civilization has been seen significantly act upon the purchase purpose and behaviour. Malaya that consists of three chief cultural groups is expected to give a different consequence.

1.4 Scope of the Study

In this survey, definition of counterfeiting is adopted from Eisend M. and Schuchert-Guler, P. ( 2006 ) :

“ Counterfeiting is average that an original merchandise with a singular trade name value deserving copying already exists on the market. Its features are copied into another merchandise, which is identical from the original, and is sold at a lower monetary value as if it were the original. Nevertheless consumers are good cognizant of the difference between the two merchandises. ”

Meanwhile, luxury goods defined as merchandises from four chief classs: manner, aromas and cosmetics, vinos and liquors, tickers and jewelry ( Jackson, 2000 ) .

Chapter 2

Counterfeit Market

Counterfeits were foremost found in luxury trade names because of the high net income border that provide attractive inducement to the fabrication of imitative luxury trade names. Harmonizing to OECD ( 2008 ) , a noticeable displacement from luxury goods to common consumer goods was reported. Everything could be counterfeited, including family merchandises, nutrient and drinks, electronic devices, baccy, books, playthings, car parts, pesticides, cosmetics, tools, apparels and pocketbooks to package and prescription drugs.

Despite that other merchandise classs are on the rise, the OECD ( 2008 ) has reported that luxury manner points like accoutrements, vesture, jewelry and footwear still account for the largest portion of forgery trade, which is up to 66,2 % of all intercessions by European Customs.

2.1 Luxury Goods Market

As stated by Preiholt, H. & A ; HaA?gg, C. ( 2006 ) development of luxury goods market was believed contributed by three chief factors: globalization that helps more international interior decorators to construct up their world-wide repute ; the addition figure of luxury pudding stones that are endeavoring towards jewelry, accoutrements, vino, aromas and cosmetics as complements to vesture. Last is the relational exchange was believed based on assurance and trust.

Luxury goods market is in a dramatic growing rate. Luxury Institute had reported that luxury goods market has grown at a compounded two-digit rate in its 2008 luxury market study in past decennary. Harmonizing to the study, the phenomenon was attributed to three possibilities: wealthy are buying more luxuries, there are greater figure of affluent people and the center and lower categories are buying luxury trade names. Koehn ( 2002 ) stated more people draw a bead oning to ain luxuries will buy luxuries more on a regular basis than those economically low-cost. This is due to consumers ‘ perceptual experiences that luxury goods are symbol of position regardless of their economic state of affairs ( Vickers & A ; Renand, 2003 ) . Some purchasers are seems to be willing to pay a high monetary value for a high-profile trade name.

2.2 Counterfeit luxury trade names

Counterfeits are goods that similar or indistinguishable to genuine trade names which like reproduction of trademarked trade names ( Cordell et al, 1996 ) but without the governments of echt trade names proprietor. Staake et Al ( 2009 ) defined imitative trade as trade in goods that, be it due to their design, hallmark, logo, or company name, bear without mandate a mention to a trade name, a maker, or any organisation that warrants for the quality or standard conformance of the goods in such a manner that the forgery ware could, potentially, be confused with goods that truly use this mention.

Staake et Al ( 2009 ) besides proposed to do a differentiation with respect to consumer ‘s perceptual experience on forgeries luxury trade names. Research has identified two types of ingestion of forgeries. The first type is consumer that acquired without aware of the rational belongings violation ( delusory counterfeiting ) or unwittingly and accidentally purchases the forgery that closely imitated the echt trade names ( Staake et al 2009 ; Tom et Al, 1998 ) .

Meanwhile another type is non-deceptive forgery, where consumer volitionally to buy the forgeries ( Prendergast et al, 2002 ; Staake et Al 2009 ) . It can besides been defined as consumers recognises that the merchandise is non reliable harmonizing to specific information cues such as monetary value, purchase location or stuff used ( Gentry et al, 2006 ) . Consumer ‘s behavior is different in these different instances.

2.3 Counterfeit in Malaysia

In Malaysia, counterfeits market is active since decennary ago. As reported by IIPA in 2006, forging of manner, pharmaceuticals, batteries, computing machine accoutrements, baccy, nomadic phone batteries, nutrient, electronics, crude oil merchandises and plaything was debatable in Malaysia. Among all merchandises, amusement package has constituted to 91 % of the forgery trade in twelvemonth 2004, ensuing in a loss of US $ 74 million for local records and music industry ( IIPA, 2005 ) . The research has even reported that Malaysia was appeared as the most ill-famed optical phonograph record amusement package producer/ exporter in the universe.

Therefore Malaysia has remained on the Priority Watch List from twelvemonth 2003 to 2006. In twelvemonth 2008 and 2009, Malaysia has been removed from Watch-List but was suggested remain on Watch List in twelvemonth 2010 as the issue remained debatable.

Enforcement action was in worsening since the remotion of Malaya from Watch-List. As a effect, buccaneering goods like Cadmium and DVD was re-emerged. Again, forgeries were openly available in dark markets that runing in different locations every dark. Besides, forgeries besides available in fixed premises locations in Klang Valley, peculiarly in Bangsar, Sg Wang, Petaling Jaya, and Shah Alam ; Perangin Mall in Penang ; and Holiday Plaza in Johor Bahru ( IIPA, 2010 ) .

Malayan Government has collaborated with original seller and local media in organizing consciousness run in effort to do public aware of the badness of buying forgeries. Unfortunately, all these attempts seem uneffective in deter consumers from purchase of forgeries. Therefore, in order to develop an effectual policy, there is a must to look into the job from different position, particularly demand side of forgery.

Chapter 3

LITERATURE REVIEW

Numbers of survey has been conducted to analyze the outgrowth of forgery trade, from both supply and demand side. However focal point was on the supply dimension ; in order to develop appropriate policy to keep this illegal activity the factors that drive consumer demand for forgeries should be identified ( Kim, H & A ; Karpova, E. , 2010 ) .

3.1 Counterfeits Demand

The dramatic addition of forging trade is driven by the high demand from consumers. Many consumers wittingly purchase forgeries. OECD ( 2007 ) has grouped the factors that drive consumers towards wittingly demand for forgery and pirated goods into three chief classs: foremost, is the feature of merchandise ; 2nd the single consumer, and in conclusion the institutional environment in which the single consumer operates. All these factors as listed in Table 1 act uponing consumer ‘s behavior towards forgery.

Among these three classs, consumer features, including consumer fiscal position and attitudes towards forgeries, will be the chief concern in this survey.

Table: Drivers of demand for non-deceptive violations

Driving factor

Condition prefering counterfeiting and buccaneering

Class

Merchandise features:

Monetary value

Quality and nature of merchandise

Ability to hide position

Low monetary value ; large difference in monetary value to genuine point

High quality, little difference in quality to genuine point

Easy to hide infringing nature of the merchandise

Merchandise

Consumer features

Health concerns

Safety concerns

Personal income

Personal Value

No or low wellness impact

No or low possible safety impact

High budget concerns by consumers

Low respect for IPR and related Torahs

Consumer

Institutional features:

Hazard of find

Hazard of prosecution

Punishments

Availability and easiness of acquisition

Social0economis factors

Low hazard of find

Low hazard of prosecution

Weak countenances

Easy entree and handiness of merchandises

Lack of concern about IPR, etc

Institutions

Beginning: Adopted from OEDC ( 2007 )

Besides, many surveies have been carry oning to measure consumers ‘ purpose and willingness to buy forgery merchandises. Numbers of variables and determiners have been identified in old research but consequences were differing for assorted merchandises and trade names, and besides in different state, as per listed in Table 2 which adopted and adapted from Eisend M. and Schuchert-Guler, P. ( 2006 ) ; Stake, T. et Al. ( 2009 ) .

Table: Counterfeit Purchases Investigation

Study ( Year )

Description

Albers-Miller 1999

Survey among 92 US pupils: merchandising monetary value enhances willingness to purchase a forgery above all for those who prefer forgeries over stolen merchandises ; presence of friends who besides buy an illicit good enhance willingness to purchase, purchasing alone decreases the willingness to purchase ; perceived condemnable hazard has higher influence on purchasing stolen vs. forgery or echt merchandises.

Ang et Al. 2001

Survey on 3251 Singaporean consumers: positive correlativity between attitude/ purchase purpose ; negative influence of normative susceptibleness, unity and personal income on attitude towards buccaneering ; positive influence of value consciousness on attitude towards buccaneering.

Bian and Veloutson 2007

Comparison of British and Chinese consumers who admit to hold wittingly purchased forgery merchandises. Demographic variables have non been found to significantly act upon imitative demand. In both states, consumers show a really low sentiment on forgery merchandises in general, but perceived their mean quality as similar compared to non-logo merchandises

Bloch et Al. 1993

A study on 200 US grownups at promenade and flea market: demographic variables did non separate between the pick groups ; less trust on lastingness and trade name image has a positive influence on the declared pick to buy a forgery compared to buying a interior decorator label or no logo ; apart organize good value, all rating points scored higher for the interior decorator label compared to the forgery ; self-image is partly important, bespeaking that forgery consumers are less confident, successful, of lower position and less wealthy.

Yangtze 1998

Comparison of the cogency of the theory of reasoned action ( TRA ) and the theory of planned behaviour ( TPB ) as applied to illegal copying of package. The consequences suggest that sensed behavioural control is a better forecaster of behavioural purpose than attitude

Cheung and Prendergast 2006

Survey on 1152 grownup consumers in Hong Kong, Shanghai & A ; Wuhan: center and high income households, males, white collar workers, people with third instruction, younger consumers and singles are more likely to be heavy purchasers of pirated vesture and accoutrements.

Cordell Wongtada and Kieschnick 1996

An experiment survey on 221 concern pupils in an Eastern metropolitan country: attitude towards lawfulness negatively related to willingness to buy a known forgery merely for knit shirts ; expected public presentation positive related to willingness to buy known forgery for knit shirts and 35-mm camera ; stigmatization and monetary value grant positive related to willingness to buy a known forgery for low investment-at-risk ( knit shirts ) ; retail merchant prestigiousness positive related to willingness to buy a known forgery for high investment-at-risk ( camera ) .

Gentry et Al. 2001

Qualitative survey on 102 international pupils, preponderantly Chinese subculture from Singapore, Malaysia and Indonesia: forgeries are purchase because of the trade names ; a a low-grade version with the purpose to buy the reliable merchandise if test is successful ; forgeries are an acceptable via media and offer lesser value for lesser cost ; forgeries are purchased because they represent a trade name ( trade name determination ) , non as a merchandise determination ; forgeries provide freshness and typify one ‘s travel experiences for tourer consumers.

Hoe et Al. 2003

Qualitative survey on 20 UK consumes aged under 30: consumers use forgeries as replacement for desired high value interior decorator trade names that help them to make their individualities, to reassign the associated cultural significance, and impress others but merely every bit long as they can lead on the looker-on

Jenner and Artun 2005

A study on 202 German consumers in Turkey: the sensed quality difference between forgeries and echt trade name reduces purchase purpose for all merchandise classs ( fabrics, leather accoutrements, Cadmiums, sofrware, tickers, aroma )

Kwong et Al. 2003

A study on 306 consumers from Hong Kong: attitude towards buccaneering influence purchase purposes ; female have lower purchase purposes, age is negatively related and past experience is positively related to purposes to purchase pirated Cadmiums.

Parthasarathy and Mittelstaedt 1995

Survey among 205 US pupils: The willingness to prosecute in buccaneering to be strongly affected by the attitudes towards buccaneering, subjective norms, perceived public-service corporation of the package, and the willingness to seek aid from others to cut down non-monetary cost. The sentiment that the high monetary values of package are non justified did non look to impact buccaneering behaviour.

Peace et al. 2003

Extension of the theory of reasoned action by a factor of sensed behavioural control as posited by the theory of sound action, and penalty certainty/severity. In a study among 203 pupils, the theoretical account was able to explicate 65 % of discrepancy in package buccaneering purpose.

Penz and Stottinger 2005

A study on 1040 Austrian consumers: attitude towards forging and self-identity have a positive consequence on purchase purposes, peculiarly at low monetary value degrees ; normative force per unit area and sensed behavioural control have a positive impact on purchase purposes at low and high monetary value degrees ; personality traits influence attitude towards forging and subjective norm monetary value consciousness has no impact, entree to forgeries has a positive impact on purchase purposes ; purchase purposes predict purchase behaviour

Phau et Al. 2001

Survey among 100 consumers in Hong Kong. Those who less frequently purchase forgery vesture are younger, have a lower disposable income, and are less good educated

Prendergast et Al. 2002

A study on 200 consumers from Hong Kong: quality and big supply enhances purchase purposes for high Spenders compared to low Spenders in instance of VCDs ; quality, stuff and friend’s/ household sentiment enhance purchase purposes for low Spenders compared to high Spenders in instance of jerseies ; for jerseies, quality, popularity, ethical and legal issues are more of import than for VCDs ; overall the importance of standards do non differ for low and high Spenders with monetary value being the most of import standards.

Swee et Al. 2001

Survey among 3600 Asiatic consumers who buy imitative goods. Counterfeit consumers regard the purchase of shams as less hazardous and less unethical, are more value witting, and have a lower mean income compared to those who do non buy forgery articles.

Tom et Al. 1998

A study on 435 US consumers: importance of manner has a negative influence, importance of monetary value a positive influence on the penchant for the imitative version of package ; importance of trade name, map, lastingness has a negative influence, importance of monetary value a positive influence on the penchant for the imitative version of jersey ; importance of lastingness has a negative influence on the penchant forgery bags ; age and income is negatively related, as is instruction with the penchant for imitative versions of a merchandise penchant for imitative merchandise leads to more positive attitudes towards counterfeiting and greater satisfaction with the monetary value, but less satisfaction with lastingness and quality.

Wang 2005

A study on 456 pupils from Taiwan: cost benefit heighten the purpose to buy a pirated DVD/VCD while public presentation hazard, ethical concerns, and societal norms decrease it.

Wang et Al. 2005

A study on 314 Chinese pupils: positive influences of attitude towards buccaneering on purchase purpose ; negative influence of normative susceptibleness, positive influence of value consciousness, freshness seeking and Bolshevism on attitude towards buccaneering ; purchasers have more positive attitudes towards buccaneering than non-buyers.

Wee at Al. 1995

A study on 949 pupils and working grownups in South-East Asia: attitude towards buccaneering is related to buy purpose for all forgery merchandises ; trade name position, philistinism, freshness seeking, and risk-taking have no influence ; purpose is related to buy purposes for imitative literature and package ; quality is related to buy purpose for all forgery merchandises ; perceived manner content is related to buy purpose for forgery tickers ; physical visual aspect is related to buy purpose for leather wallets/ bags and tickers ; image and lastingness have no influence ; instruction is negatively related to buy purpose for all forgery merchandises ; household income is negatively related to buy purpose for forgery leather wallets/ bags.

Woolley and Veloutsou 2006

Analysis of buying frequences and underlying ancestors of package buccaneering among US pupils. Result indicate that pupils ‘ apprehension and cognition of right of first publication Torahs have increased since 1991, but this cognition has non influenced package buccaneering rates

Beginning: Adopted and adapted from Eisend M. and Schuchert-Guler, P. ( 2006 ) ; Stake, T. et Al. ( 2009 )

3.2 Theory of Planned behavior

Harmonizing to the Theory of planned behavior ( Azjen, 1985 ) , an single behavior is guided by three sorts of considerations: attitudes toward behavior, subjective norm and perceive behavioral control. In combination, these three considerations lead to the formation of a behavioral purpose. Generally, a individual who favorable towards the attitude and subjective norm, and with high degree of perceived control, the stronger of his/her purpose towards the behavior. When chance arises, people are expected to transport out their purpose, therefore purpose is assumes as the immediate ancestor of behavior.

3.2.1 Attitude toward purchase purpose of Counterfeits

As per explained in Theory of Planned Behavior, consumer ‘s attitudes will direct act upon their purchase purpose and eventually drive them toward purchase behaviour. Past research has examined assorted motives that influence the consumer purchase purpose of forgery, including economic, quality, personality, societal and ethical factors ( Amatulli, C. & A ; Guido, G. , 2011 ; Kim, H. & A ; Karpova, E. , 2011 ; Kim, J. E. et al. , 2009 ; Norum, P. S. & A ; Cuno, A. , 2010 ; Perez, M. E. et. Al, 2010 ; Phau, I et al. , 2010 ; Phau, I. & A ; Teah, M. , 2009 ) .

a. Status ingestion

Consumers perceived luxury trade names as symbol of position, where they purchase, usage and consumed a goods which will expose their typical position ( Eastman et al. , 1997 ) . Status ingestion has been investigated in many surveies in different states but demoing different consequence ( Amatulli, C. & A ; Guido, G. , 2011 ; Kim, H. & A ; Karpova, E. , 2009 ; Phau, I et al. , 2010 ; Wee C. H. et. al. , 1995 ) .

Status seeking consumers those with low affordability tend to buy forgeries of luxury trade names to fulfill their position seeking demands ( Phau, I. & A ; Teah, M. , 2009 ; Kim, H. & A ; Karpova, E. , 2009 ; OECD, 2007 ) . Luxury trade names are used to project socioeconomic position, even though it is a forgery, consumer are trusting to convey their high society position that associated with echt trade name. Therefore, the undermentioned hypothesis developed:

H1a: Status ingestion has a positive influence on consumer attitudes towards forgeries of luxury trade names.

B. Integrity

Integrity represents single ethical consideration, self-denial, duty and honestness that related to lawfulness ( Wang et al. , 2005 ) . Research has found that consumers that are more lawful-minded possess negative attitudes towards forgeries and less willing toward purchase of forgeries ( Cordell et al. , 1996, Phau, I et al. , 2009 ) . This lead to the developed of hypothesis that:

H1b: Integrity has a negative influence on consumer attitudes towards forgeries of luxury trade names.

c. Value consciousness

Consumers would wish to buy a luxury trade names that associated with value, prestigiousness and benefits but they might non willing to pay a high monetary value for it ( Cordell et al, 1996 ) . Consumers who are value witting are different from consumers that are monetary value consciousness that merely concern for merchandise ‘s monetary value. They tend to maximise sensed public-service corporation or benefits to be acquired for their money.

Consumers perceived that forgeries have similar quality and map to genuine trade names, therefore they are more positive towards forgeries which is much cheaper than echt trade names ( Kim, H. & A ; Karpova, E. , 2011 ; Phau, I. & A ; Teah, M. , 2009 ) . Therefore, this survey propose that:

H1c: Value consciousness has a positive influence on consumer ‘s attitudes towards forgeries of luxury trade names.

d. Personal Gratification

Personal satisfaction could be defined as the desire for self-accomplishment, societal acknowledgment and to bask finer things in life ( Wang et al. , 2005 ) . Hence, consumers possess high personal satisfaction are witting on merchandise ‘s quality, visual aspect and trendiness. Harmonizing to Bloch et Al. ( 1993 ) counterfeits purchasers perceived themselves to be less successful, less confident and low perceived position. Therefore those with high personal satisfaction might hold low inclination towards goods of inferior quality ( Amatulli, C. & A ; Guido, G. , 2011 ; Phau, I. & A ; Teah, M. , 2009 ) .

Therefore, this survey proposed that:

H1d: Personal satisfaction has a negative influence on consumer attitudes towards forgeries of luxury trade names.

e. Novelty Seeking

Freshness seeking consumers tend to seek new and different trade names to fulfill their wonder ( Wang et al, 2005 ) . Counterfeits those in lower monetary value may go their picks ( Phau, I. & A ; Teah, M. , 2009 ; Wee C. H. et. al. , 1995 ) .

H1e: Freshness seeking has a positive influence on consumer attitudes towards forgeries of luxury trade names.

f. Materialism

For consumers with high degree of philistinism or materialist, they view that felicity come from acquisition of ownerships. They consume prefer consume position merchandises than general merchandises ( Wong, 1997 ) . As similar to position ingestion, for those who would wish to derive a particular individuality from others but without the fiscal capacity, counterfeits that perceived as lower-priced branded goods will go an alternate ( Kim, H. & A ; Karpova, E. , 2011 ; Phau, I et al. , 2010 ; Wee C. H. et. al. , 1995 ) . Therefore,

H1f: Materialism has a positive influence on consumer attitudes towards forgeries of luxury trade names.

g. Product Appearance

Luxury trade names ever associate with manner constituent therefore merchandise attributes play an of import function in act uponing consumer purchase purpose. Consumers are willing to pay for physical properties without paying for the associate quality ( Cordell et al. , 2006 ; Kim, H. & A ; Karpova, E. , 2009 ) . Physical will be one of the chief concerns when consumers purchase a forgery ( Wee C. H. et. al. , 1995 ) . Therefore,

H1g: Merchandise visual aspect has positive influence towards purchase purpose of imitative luxury trade names.

Most of the old research has suggest that attitudes toward behaviour are more accurate in foretelling purpose to buy behavior. Thus we hypothesize

H2: Attitude towards forgery is positively influence the purchase purpose of imitative luxury trade names.

3.2.2 Subjective norms towards purchase purpose of Counterfeits

Subjective norms play an of import function in act uponing a behaviour as people will portion information, cognition and experience with others. Consumer who has friends and household members who favourable in purchased forgeries may act upon them to hold a inclination towards forgeries. Therefore,

H3: Subjective norm is positively influence the purchase purpose of imitative luxury trade names.

3.3.3 Perceived Behavioural Control

Perceived behavioural control reflects past experience, knowledge about merchandises and expected obstructions. Consumers those think that their friends or household do non O.K. the ownership of imitative goods may non transport out the behaviour. Therefore,

H4: Sensed behavioural control is positively influence the purchase purpose of imitative luxury trade names.

Chapter 4

RESEARCH METHODOLOGY

4.1 Research Design

Integration methodological analysis will be utilized to look into the research subjects. Qualitative and quantitative study will be conducted in two stages. First stage, in deepness interview will be conducted as complementarity research to corroborate the context for theoretical theoretical account. Second phase will be acquiring the conclusive informations through quantitative study.

By far, most of the surveies conducted are by quantitative research, limited qualitative research has been identified. Qualitative research is utile in researching new elements and develops an initial apprehension towards studied market ( Amatulli, C & A ; Guido, G. , 2010 ) .

4.2 Phase One: In-depth Interview

Integration methodological analysis was used in many research with intent of researching point of views in early phase of research ( McCracken, 1998 ) or to heighten the descendent quantitative research to be conducted ( Greene et Al, 1989: 259 ) . Since there is limited research conducted in Malaysia, the chief intent is to derive initial understanding about consumer ‘s conceptualisation of imitative luxury trade names and to larn the linguistic communication they used to depict it. Meanwhile, this research to be conducted to corroborate the context for theoretical theoretical account developed based on old surveies. All determination hoped to back up the motives and factors that act uponing buy behavior identified from literature reappraisal.

4.2.1 Target Group:

In order to obtain the information to cover the whole population, 30 respondents from different age and sex classs will be selected. Selection standards will be every bit listed in Table 4.

4.2.2 Questions Design:

Research Question

Interview Question

Question 1:

To what extend are the relationship between Malayan consumers motive and attitudes toward forgeries trade name?

What brands do you see as luxury trade names?

Have you of all time buy a forgery of luxury trade names?

If YES, what have you purchased? ( delight stipulate the merchandises and trade names )

What factors those drive you to buy / non to buy imitative luxury trade names?

Do you experience different when utilizing a imitative luxury trade names versus echt trade names? Please depict your feeling.

Question 2:

To what widen the subjective norms in influence the Malayan purchase purpose towards forgeries of luxury trade name?

Make your equals or households of all time purchase imitative luxury trade names? How their purchase determinations act upon your purchase purpose?

Will you allow your household and friends know that you are utilizing a forgeries? Why?

Question 3:

To what widen the sensed behavioural control towards forgeries of luxury trade name influence the purchase purpose?

Do you believe you can easy purchase imitative merchandises from the market? Where will you believe of?

4.3 Phase 2: Quantitative Research

In this research, non-probability purposive quota sampling will be used to choose the respondents. Quota trying method efforts to obtain representative samples under cost restraint ( Malhotra, N. K, 2010 ) .

4.3.1 Sampling Design

Since Malaysia is comprises of three chief cultural groups, cultural group will be selected as one of the control class. Quota is assigned so that the sample component possessing control features proportionate to the existent population. As the mark group of this survey will be selected from Selangor, therefore the quota is assigned as harmonizing to the existent population composing in Selangor ( appendix 1 ) .

Age besides appear as an of import subgroup to be examined in inside informations as people from different age class may hold different desire on luxury trade names.

A

Population Composition ( Selangor )

Sample Composition

Control Characteristic

Percentage

Percentage

Age

A

A

20-24

15

A

25-29

15

A

30-34

17

A

35-39

17

A

40-44

14

A

45-54

22

A

A

100

A

A

A

A

Race

A

A

Malayans

53

A

Chinese

30

A

Indian

14

A

Others

3

A

A

100

A

4.3.2 Questionnaire Design

Hypothesis

Questions ( all in 7 points likert graduated table )

Mentions

H1a: Status ingestion has a positive influence on consumer attitudes towards forgeries of luxury trade names.

Q: I feel good when I am utilizing a luxury trade name even though it is a forgery.

Q: I instead use a forgery than being look down by others

Q: I would purchase a merchandise merely because it has position

Q: Well-known interior decorators ‘ merchandises mean higher societal economic position.

H1b: Integrity has a negative influence on consumer attitudes towards forgeries of luxury trade names.

Q: I will non back up forgery as this is unjust to the trade name proprietors.

Q: I feel guilty if I own a forgery.

Q: Merely unethical people buy imitative goods

Qs: When I buy imitative luxury trade names, I feel that I have done something unethical to the trade name proprietor and society.

Q: I value self control.

Adapted from Wang et al. , 2005

H1c: Value consciousness has a positive influence on consumer ‘s attitudes towards forgeries of luxury trade names.

Q: I buy forgeries because the monetary values of interior decorator merchandises are unjust and dent.

Q: The qualities of imitative luxury merchandises are every bit good as the echt merchandises.

Q: Counterfeit luxury trade names are more low-cost.

Q: I try to maximise the quality for the money spent.

Q: I am concerned about the monetary value and merchandise quality

Q: I will purchase whatever I like without concern about worthiness ( reverse-scored )

Adapted from Yeap, A. L. J, 2006

H1d: Personal satisfaction has a negative influence on consumer attitudes towards forgeries of luxury trade names.

Q: I will non take hazard to be exposed by friends that I am utilizing a forgery.

Q: I feel uncomfortable when I am utilizing a forgery interior decorator merchandise.

Q: Buying forgeries of luxury trade names will ache the luxury goods industry

Q: Buying forgeries of luxury trade names will conflict rational belongings

Q: I value societal acknowledgment

Adapted from Phau, I. & A ; Teah, M. , 2009 ; Wong et al. , 2005

H1e: Freshness seeking has a positive influence on consumer attitudes towards forgeries of luxury trade names.

Q: I am ever one of the number ones to seek new merchandises

Q: I own a batch of luxury merchandises

Q: I keep up with manner

Q: I am aroused to buy some interesting merchandises.

Adopted from Wang et al. , 2005

H1f: Materialism has a positive influence on consumer attitudes towards forgeries of luxury trade names.

Q: The imitative luxury goods I own give me a great trade of pleasance

Q: I would be happier if I can afford to purchase more things even though they are imitative

Q: The luxury trade names I own says a batch about how good I ‘m making in life.

Q: I like a batch of luxury in my life

Adapted from Swami, V. et al. , 2009

H1g: Merchandise visual aspect has positive influence towards purchase purpose of imitative luxury trade names.

Q: Counterfeit luxury trade names are merely every bit good as echt merchandises.

Q: I would purchase a imitative merchandise if no 1 could state it was a forgery

Q: I would purchase forgery merchandises even I could easy afford to purchase echt interior decorator merchandises.

Q: Counterfeits are inferior ( reverse-scored )

Adopted & A ; adapted from Norum, P.S. & A ; Cuno, A. , 2011

To mensurate Purchase Intention

Q: I have purpose to purchase forgeries in the following 12 months.

Q: There is nil the affair with buying imitative luxury trade names.

Q: I will seek to purchase forgeries luxury trade name in the hereafter.

Adapted from Marcketti, S. B. & A ; Shelley, M. C. , 2009

H2: Attitude towards forgery is positively influence the purchase purpose of imitative luxury trade names.

Q: In your sentiment, purchase of forgeries luxury trade names is

Harmful/ good

good /Useless ( change by reversal marking )

Foolish / wise ( change by reversal marking )

Worthless/ worthwhile

Not valuable/ Valuable

Adapted from Kim, H. & A ; Karpova, E. , 2009

H3: Subjective norm is positively influence the purchase purpose of imitative luxury trade names.

Q: Close friends and household think it is a good thought for me to purchase imitative luxury trade names

Q: Important people in my life desire me to purchase imitative luxury trade names

Q: The people who I listen to could act upon me to purchase a imitative luxury trade names.

Adapted from Kim, H. & A ; Karpova, E. , 2009

H4: Sensed behavioural control is positively influence the purchase purpose of imitative luxury trade names.

Q: For me, to purchase imitative luxury trade name is easy

Q: If I want to, I could easy purchase forgeries luxury trade names.

Q: Purchase of forgeries luxury trade names is wholly my pick.

Adapted from Kim, H. & A ; Karpova, E. , 2009

Appendix