The intention of Vietnammese customer to purchase counterfeit product: a theory of planned behavior approach

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

Nguyen Thi Thu Trang

THE INTENTION OF VIETNAMESE
CUSTOMER TO PURCHASE
COUNTERFEIT PRODUCT:
A THEORY OF PLANNED
BEHAVIOR APPROACH

MASTER OF BUSINESS (Honours)

Ho Chi Minh City – Year 2014


UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

Nguyen Thi Thu Trang

THE INTENTION OF VIETNAMESE
CUSTOMER TO PURCHASE
COUNTERFEIT PRODUCT:
A THEORY OF PLANNED
BEHAVIOR APPROACH

ID: 22110070

MASTER OF BUSINESS (Honours)
SUPERVISOR: Nguyen Thi Mai Trang

Ho Chi Minh City – Year 2014


ACKNOWLEDGEMENT
This thesis could not be accomplished without the help, advise, support,
guidance and encouragement of many people.
I wish to express my sincere gratitude to my advisor, Dr. Nguyen Thi Mai
Trang, for her clear and careful direction, guidance and correction to my thesis,
especially for her enthusiasm in answering reminding, help and support.
Secondly, I would like to thank my dear colleagues, friend and classmates for their
invaluable advice, help, encouragement and support during the time I was doing this
thesis.
Last but not least, I would like to express my great thanks to my husband and
my family for their support, assistance and encouragement for my study and thesis
fulfillment.


ABSTRACT
Vietnam is a developing country so counterfeit products are more than
increase appeared in Vietnam. However, so far the study for customer intention to
purchase counterfeit products in Vietnam has not yet been thoroughly conducted.
This research is carried out with the objectives to identify the measurement scale of
customer intention to purchase counterfeit products, identify the factors that impact
on customer intention to purchase counterfeit products and measure the strength of
relationship between these factors and customer intention to purchase counterfeit
products in the Vietnam.
This research is done by a thorough literature review on concepts relating to

customer intention to purchase counterfeit products from which the initial research
model and hypotheses are constructed. Research process has two steps including
Generation of Items used to assure the appropriateness of the initial research model;
Survey and data analysis used to collect the answer for the survey on various
peoples in the South Region of Vietnam with the sample size of 329 for data
analysis.
Number of statistical analysis techniques are used to analyze the data
collected via SPSS program. With research model which has factor analysis results
in the identification of factors having significant impact to customer intention to
purchase counterfeit products, and the extraction of three factor groups named as
Attitude toward the Behavior to purchase counterfeit products, Subjective Norm and
Perceived Behavioral Control. After regression analysis proved that attitude toward
the behavior to purchase counterfeit products has the highest impact. Besides that,
this study also researches the impact of perceived financial control on the
relationship between attitude toward purchasing counterfeit product and customer
intention to purchase counterfeit product.


TABLE OF CONTENTS
ACKNOWLEDGEMENT
ABSTRACT
TABLE OF CONTENTS
LIST OF ABBREVIATIONS
LIST OF TABLES
LIST OF FIGURES
CHAPTER 1 INTRODUCTION ............................................................................. 1
1.1 Research background......................................................................................... 1
1.2 Research objectives ........................................................................................... 4
1.3 Research scope .................................................................................................. 4
1.4 Research contribution ........................................................................................ 5

1.5 Research structure ............................................................................................. 5
CHAPTER 2 LITERATURE REVIEW ................................................................. 7
2.1 Counterfeit products .......................................................................................... 7
2.2 Theory of Planned Behavior .............................................................................. 9
2.3 Customer intention to purchase counterfeit product ......................................... 9
2.4 Attitude towards the behavior to purchase counterfeit product ...................... 10
2.5 Subjective Norms ............................................................................................ 11
2.6 Perceived Behavioral Control ......................................................................... 12
2.7 Perceived financial control .............................................................................. 13
2.8 Research Model ............................................................................................... 14
2.9 Hypotheses summary....................................................................................... 14
CHAPTER 3 RESEARCH DESIGN ..................................................................... 17
3.1 Research design ............................................................................................... 17
3.2 Measurement scale .......................................................................................... 19
3.3 Sample Size ..................................................................................................... 20
3.4 Sampling techniques ........................................................................................ 21


3.5 Data collection method .................................................................................... 21
3.6 Data analysis method ....................................................................................... 22
3.6.1 Statistical method ...................................................................................... 22
3.6.2 Descriptive statistics ................................................................................. 22
3.6.3 Reliability analysis.................................................................................... 22
3.6.4 Exploratory factor analysis ....................................................................... 23
3.6.5 Multiple regression analysis ..................................................................... 23
CHAPTER 4 DATA ANALYSIS ........................................................................... 24
4.1 Descriptive statistics ........................................................................................ 24
4.2 Assessment and refinement of measurement scale ......................................... 25
4.2.1 Refinement of measurement scale ............................................................ 25
4.2.2 Exploratory Factor Analysis (EFA) .......................................................... 29

4.3 Multiple Linear Regression ............................................................................. 31
4.3.1 Test of assumption .................................................................................... 32
4.3.2 Correlation analysis .................................................................................. 33
4.3.3 Regression analysis ................................................................................... 33
4.3.4 Hypotheses testing .................................................................................... 35
4.3.5 Moderating effect: Perceived Financial Control ...................................... 37
CHAPTER 5 CONCLUSIONS .............................................................................. 44
5.1 Findings ........................................................................................................... 44
5.2 Managerial implications .................................................................................. 46
5.2.1 Attitude towards the behavior to purchase counterfeit products .............. 46
5.2.2 Subjective Norms ...................................................................................... 47
5.2.3 Perceived Financial Control ..................................................................... 48
5.3 Limitations and future research direction ........................................................ 49
REFRENECES ........................................................................................................ 50
APPENDIX A QUESTIONARIES
BẢNG CÂU HỎI


APPENDIX

B:

GUIDELINE

FOR

QUALITATIVE

IN-DEPTH

INTERVIEW
APPENDIX C: SURVEY RESULTS
APPENDIX D: RESULTS OF MULTIPLE LINEAR REGRESSIONS
APPENDIX E: RESULTS OF MULTIPLE LINEAR REGRESSIONS FOR
MORDERATING VARIABLE
APPENDIX F: HISTOGRAM, NORMAL REGRESSION & SCATTER
PLOT OF DEPENDENT VARIABLE: CUSTOMER INTENTION TO
PURCHASE COUNTERFEIT PRODUCT


LIST OF ABBREVIATIONS
TPB: Theory of Planned Behavior
BIN: Customer intention
ATB: Attitude towards the behavior to purchase counterfeit products
SUN: Subjective norms
PBC: Perceived Behavioral Control
PFC: Perceived Financial Control
PFC_L: Perceived Financial Control with low group
PFC_H: Perceived Financial Control with high group


LIST OF TABLES
Table 2.1: Operational definitions of constructs ............................................................... 15
Table 3.1: Measurement scales ......................................................................................... 19
Table 3.2: Measurement scale after Qualitative Research ................................................ 20
Table 4.1 Descriptive statistics ......................................................................................... 25
Table 4.2: Reliability analysis of dependent factor .......................................................... 26
Table 4.3: Reliability analysis of independent factors ...................................................... 27
Table 4.4 Rotated Component Matrix .............................................................................. 31
Table 4.5 Correlation statistics ......................................................................................... 33

Table 4.6 Model Summary of multiple regression analysis ............................................. 34
Table 4.7 ANOVA of multiple regression analysis .......................................................... 34
Table 4.8 Coefficients of multiple linear regression......................................................... 35
Table 4.9 Hypotheses summary ........................................................................................ 36
Table 4.10 Summary result of the effect moderating variable ......................................... 39
Table 4.11 ANOVA summary result ................................................................................ 40


LIST OF FIGURES
Figure 2.1: Research model .............................................................................................. 14
Figure 3.1 Research process ............................................................................................. 18


1

CHAPTER 1
INTRODUCTION
1.1 Research background
There have been many studies in the world which researched the customer
intention to purchase counterfeit products, such as in Examining customer purchase
intentions for counterfeit products based on a modified theory of planned behavior
(Cheng et al., 2011), in which concluded that subjective norms are the strongest
influence on customer intention of counterfeit purchasing. Another strong effect
was observed with regard to the influence of perceived behavioral control. Most
importantly, a contribution of this investigation is identifying the negative influence
of perceived financial control on customer intention to purchase counterfeit
products that concerned that when people perceive that their financial ability
enables them to purchase original products, they tend to do so, and vice-versa.
Besides that, subjective norms strongly influence customer intention to purchase
counterfeit products. Along with retailers, marketers should launch marketing

campaigns to encourage word-of-mouth communication among friends and family
members when customer was not willing to pay the high price for an original
product but they can buy counterfeit products instead may discourage those them
purchasing. Besides that, an aggressive advertising campaign discouraging the
purchase and use of counterfeits may create a domino effect. People may be
influence by the opinions of others that purchasing counterfeit products is immoral.
Finally, since it was concluded that the perceived financial control, namely the
perceived affordability of authentic products, negatively impacts intention to
purchase counterfeits. Discounts or promotions campaigns from Marketers of
retailers would help reach potential customers. Once customers believe that the
price is reasonable and affordable they may become used to purchasing original
products and develop brand loyalty (as cited in Cheng et al., 2011). Or in The
effects of consumer orientations on the consumption of counterfeit luxury brands


2

(Bhardwaj, 2010), mentioned that integrity has no influence on subjective norm to
purchase counterfeit brands. Furthermore, the results indicate that favorable
attitudes toward the purchase of counterfeit brand has a positive influence on the
intentions to purchase counterfeit brands whereas it has a negative influence on the
intentions to purchase original brands. Additionally, the subjective norm shows a
positive relation with intentions to purchase counterfeit brands and perceived
control over the purchase of counterfeit brands show a negative relationship with
intentions to purchase counterfeit brands. Finally, based on the result of the
hypothesis for moderator testing, price sensitivity does not act as a moderating
factor in the relationship between attitudes and intentions to purchase counterfeit
brands. Based on the results obtained in the study, implications for managers,
educators, and policy makers have been suggested. Besides suggesting tactical
strategies to control the growing problem of selling counterfeit brands in the

markets, it is believed that there is a strong need to spread awareness and
information about the dark side of counterfeiting among consumers so that they
develop a resistance in consumption of counterfeit and illegally sold brands in the
market (as cited in Bhardwaj, 2010).
With the success of these previous authors when applying the Theory of
Planned Behavioral in counterfeit market, the author in this research will apply the
Theory of Planned Behavioral to research what are these factors to effect on
customer intention in the Vietnamese counterfeit market. Firstly, we will overview
the Vietnamese counterfeit market, such as information on the channel media: every
year, Vietnam has 308 cases to be tried for counterfeit production or trafficking in
counterfeit products. If in 2004 only 60 cases then in 2012, the cases were increased
to the 554 production and trafficking in counterfeit products. This suggests that
production of crimes, trafficking in counterfeit products tend to rise very rapidly,
becoming an alarming situation. In the past 5 years, the Vietnamese Custom
discovered and seized a variety of counterfeit products violating intellectual


3

property rights, such as 1,000 counterfeit bottles, 93 820 counterfeit brand cigarettes
Vinataba, 7729 cosmetic jars, 3756 kg counterfeit phone accessories brand Nokia,
the mobile phone 800 counterfeit Nokia brand, 3,940 bottles of counterfeit brand
lubricants and Castrol Honda, 1,320 table is the author of Philip brand, 137 728
counterfeit brand soda Arabao, was shown in the report (The people's security
online, 2013).
Besides that, according to report of the Market Management Department Ministry of Industry and Trade (2012), the country has discovered 13101 cases for
handling counterfeit, substandard and infringement of intellectual property rights,
sanctioning of administrative violations in 53 billion. And in quarter I/2013, they
also discovered 3,115 cases, handling administrative violations 13.5 billion worth of
13 billion violations.

With the same problem about counterfeit products, in the report of Electronic
Newspaper Vietnam Education (2012), Mr. Trinh Quoc Khanh who is deputy
captain of Smuggling Investigation Department - General Department of
Vietnamese Customs also mentioned that counterfeit products are not only sneaky
current passing through the border region container imports through the port.
Specifically, the unit conducted recently seized and destroyed containers with
nearly 10,000 counterfeit products by a company in Binh Tan district imported
through Cat Lai port. The amounts of counterfeit products are mostly luggage,
handbags by famous brands such as Louis Vuitton, Montblanc and Longchamp,…
The next, we will go through a brief opinion of the character as a product
manufacturer, as Electronic Legal Newspapers Ho Chi Minh City (2012), Ms.
Nguyen Thi Huong, Director of Law VNIP company and also is LV brand
representative in Vietnam, reported that LV has launched a campaign to "clean up"
areas where displaying counterfeit LV, regardless of the number of small or more
since 2009. Particularly, from the early years applying campaign with more than
200 test cases LV, for offenders repeated violations, LV was sued for damage


4

compensation. For example, in 2010 and 2011, LV sue in small businesses in
Saigon Square and An Dong Plaza, court results have forced offenders to
compensate the hundreds of millions. In parallel with the goal of hitting retail
systems, LV also focuses on clues, to control cross-border counterfeit products and
most counterfeit LV brand from the border of Vietnam and China, not through the
official channel. According to Counterfeit Products and Piracy Industry (2006),
Vietnam has a total counterfeit market value of US$ 122 million, including software
(US$ 96 million), books (US$ 16 million), movies (US$ 10 million) and cable
(unauthorized connections) (US$ 1.37 million), as well as clothes, cosmetics,
watches, etc. With this shows that Vietnam is one of the countries in the region have

warned the number of counterfeit products compared to many countries in
worldwide.
1.2 Research objectives
The overall objective of this study is to examine some factors influencing the
intention to purchase counterfeit product. Specifically, it investigates:
1. The relationship between attitude toward the behavior to purchase counterfeit
product and customer intention to purchase counterfeit product.
2. The relationship between subjective norms and customer intention to
purchase counterfeit product.
3. The relationship between perceived behavioral control and customer
intention to purchase counterfeit product.
4. And finally, the moderating effect of perceived financial control on the
relationship between attitude toward purchasing counterfeit product and
consumer intention to purchase counterfeit product.
1.3 Research scope
There are two kinds of counterfeit products from customer perception also:
deceptive and non-deceptive. Some consumers buy counterfeit products without
being aware of the intellectual property infringement, this research call this is the


5

deceptive counterfeit products. In this case, producers make customers thinking that
they are buying original products but in fact this product is made or sold illegally.
Therefore, customers will not be held accountable. However, some consumers are
aware that they are purchasing counterfeit products, this research call this is the
non-deceptive counterfeit products. In this case, these consumers known that they
are purchasing the products that are not legitimate. The non-deceptive counterfeit
products will be discussed in this research.
The scope of this research is limited people living in the Ho Chi Minh City

and Binh Duong province where one of the most dynamic and stylish in Vietnam is.
With these properties, the counterfeit products easily penetrate the markets of Ho
Chi Minh City and Binh Duong province.
1.4 Research contribution
The contribution of this research is finding these factors effect to customer
intention to purchase counterfeit products in Vietnamese market and the impact of
perceived financial control on the relationship between attitude toward the behavior
to purchase counterfeit product and customer intention to purchase counterfeit
product. Through that, these managements know what these real factors effect on
the Vietnamese customer intention and based on these results, this research hope to
support these managements by providing practical suggestions to help them to build
these plans to prevent the Vietnamese counterfeit market.
1.5 Research structure
This thesis comprises five chapters as following:
Chapter 1 named as “Introduction” generally introduces the subject area
interest with defined problems, research questions, research objectives, scope of the
research and sources of information to be collected for the research.
Chapter 2 named as “Literature Review” summarizes concepts and theories
relating to customers intention in previous studies which are linked to this research.
From such review, basic theories for studying will be synthesized to develop an
initial research model and hypotheses used for the research.


6

Chapter 3 named as “Research Methodology” introduces and reports the
research process together with the analyzed results.
Chapter 4 named as “Data Analysis” reports the analysis results of data
collected from the survey.
Chapter 5 named as “Conclusions” discusses the main finding in Chapter 4

the implications of the result, based on which conclusions and recommendations are
provided.


7

CHAPTER 2
LITERATURE REVIEW
In this chapter, theoretical background and review on previous studies are
presented. This Chapter includes three sections. The first section is theoretical
review relating to factors effect on customer intention as well as customer intention,
the second section presents the research model and the last section describes the
hypotheses development for this research.
2.1 Counterfeit products
There are four types of counterfeit products: (1) counterfeit the quality and
utility: Product quality is not good as well as original product or not using the
correct values with the origin, nature, and the names of the product; (2) counterfeit
trademark products or packaging of products: Counterfeit labels, packaging
products are counterfeit products names and addresses of other traders on the label
or packaging and counterfeit products or indication of origin of products, place of
manufacture, packaging assembly of products on the label or packaging of products;
(3) counterfeit intellectual property: counterfeit intellectual property products with
packaging branded merchandise, signs identical or indistinct marks, geographical
indications are protected for the item without the permission of trademark owner,
management organization or geographical indications are pirated copies were
produced without the permission of the copyright holders or related rights and (4)
the stamps, labels, packaging counterfeit products is stamps, labels, packaging of all
kinds of products including counterfeit decals, labels, packaging products, quality
stamps, stamp anti-counterfeiting, warranty and post -shrink merchandise content
counterfeit name and address traders, the origin of products, the place of production,

packing, assemble products. Counterfeit products are produced increasingly
sophisticated, increasingly more difficult to distinguish. At a certain time, for each
item there are signs to distinguish original and counterfeit products. But these signs
are always changing manufacturers so hard to capture full marks to distinguish


8

original products from counterfeit products in the market. But the author collected
the information to compare the difference between counterfeit and original products
as signs below: (1) the appearance: Inferior quality design, they look less attractive:
design, seam, completion of the products was not attend much attention as the
original products (but sometimes there are some counterfeit products look the same
with original products), (2) the color: slightly, (3) Materials: cheap material and
inferior quality (for example: lining of clothing, bag straps, buckles..), (4) Brand:
removed, altered (for example: adding a prefix or suffix to the original name), copy
(shape, spelling...), (5) Position: mark on counterfeit products is not the same on the
original products, (6) Distribution : private sales stores, (7) Price: lower than the
original products and buyers can bargain if the products is counterfeit; seller refuse
to issue sales invoices. For more information when comprising between counterfeit
and original product, if we only use the eyes when comparing samples between
original and counterfeit products, we will not see the difference between the paint,
sharp edges, packaging of them. If we look carefully, we will see labels record is
incomplete or incorrect and when we test or use these counterfeit products that we
will reveal much defects than these original products. Moreover, if we compare the
price of the products, we know that the counterfeit product will be cheaper than the
original product. Therefore, for these managements need to provide the knowledge
about the distinction and the harm of counterfeit products. Besides that, for
consumers who should receive the consultant of multiple sources from different
people around them, especially manufacturers, distributors (now many production

facilities, distribution give the solving problem by providing a phone number,
organization communication channels to guide consumers or built these industry
associations, consumer protection associations…to protect customer, was shown in
the report (Market Management Department, Ministry of Trade, 2012).
With the above information, we know that counterfeit product has many
kinds, but the author will focus in products with intellectual property and the stamps,
labels, packaging counterfeiting to research in Vietnamese market


9

2.2 Theory of Planned Behavior
The theory of planned behavior was developed from the theory of reasoned
action of Fishbein and Ajzen in 1975. According to the theory of reasoned action, if
someone has the positive evaluate (it name is attitude) and they think their relevant
want them to show it (it name is subjective norms), this results make them to have
more likely to do so. The high relationship between attitude and subjective norms
lead to the behavioral intention has been confirmed in many previous studies.
The Theory of Planned Behavior is expressed that human behavior is guided
by three kinds of considerations: beliefs about the likely consequences of the
behavior (behavioral beliefs), beliefs about the normative expectations of others
(normative beliefs), and beliefs about the presence of factors that may facilitate or
impede performance of the behavior (control beliefs). In their respective aggregates,
behavioral beliefs produce a favorable or unfavorable attitude toward the behavior;
normative beliefs result in perceived social pressure or subjective norm; and control
beliefs give rise to perceived behavioral control. In combination, attitude toward the
behavior, subjective norm, and perception of behavioral control lead to the
formation of a behavioral intention. As a general rule, the more favorable the
attitude and subjective norm, and the greater the perceived control, the stronger
should be the person’s intention to perform the behavior in question. Finally, given

a sufficient degree of actual control over the behavior, people are expected to carry
out their intentions when the opportunity arises. Intention is thus assumed to be the
immediate antecedent of behavior. However, because many behaviors pose
difficulties of execution that may limit volitional control, it is useful to consider
perceived behavioral control in addition to intention. To the extent that perceived
behavioral control is veridical, it can serve as a proxy for actual control and
contribute to the prediction of the behavior in question (as cited in Ajzen, 2006).
2.3 Customer intention to purchase counterfeit product


10

Intention is an indication to aware that a person's readiness to show behavior
and it is considered to be standing by a behavior. The intention is based on attitude
toward the behavior, subjective norms, and perceived behavioral control, with each
factor which is importance in relation to the behavior.
2.4 Attitude towards the behavior to purchase counterfeit product
According to the theory of reasoned action (TRA) and its extension, the
theory of planned behavior (TPB), there is a link between attitude, behavioral
intention, and behavior (Ajzen, 2005). It was shown that the attitude towards the
behavior to purchase counterfeit product will effect to intention customers to
purchase counterfeit product despite that they cannot have negative intentions and it
is direct predictor of the intention and behavior customers who in the decision
making process, they also show that it will be influences from who receives these
references.
According to Huang et al. (2004), attitude is an expressed of response in
favorable or unfavorable situation. The factors of attitude are often used as a
predictor of customer intentions and behaviors. But it cannot observe directly,
researchers can determine consumer attitudes through on measure scales (Huang et
al., 2004). Attitude towards the behavior to purchase counterfeit product can be

influenced by a number of subjects based on the previous research, these subjects
effect on attitude can be divided into two groups: social factors and personality
factors. Social influence changes on what the relationship relevant of customer
think on an individual consumer’s behavior (Ang et al., 2001).
In addition, customer will preview that the brand name, the label, and
identifying design characteristics such as logo, color, pattern, and accessories are
themselves valuable such as their own benefit, when they do not focus on quality,
only focus on useful and saving, they will easily accept one counterfeit product.
Even in case others see they purchase counterfeit product, customer also will not
feel embarrassed and they do not consider a customer image built on counterfeit
products as a problem (Babin, Darden, and Griffin 1994). Therefore, the attitude


11

towards the behavior to purchase counterfeit product has positively to customer
intention to purchase the counterfeit product and negatively to customer intention to
purchase the original product. Hence, the research expects the hypothesis below:
H1: There is a positive relationship between attitude towards the behavior to
purchase counterfeit product and customer intention to purchase counterfeit
product.
2.5 Subjective Norms
As mentioned in the Theory of Planned Behavior, it is showed that subjective
norms are determined by the belief concerning the expectations of important
references with belief is by motivation to finish (Ajzen, 2006). Subjective norms
explain the effect of social factors on customer intention to purchase counterfeit
product. Social factors can lead a person to give these different decisions which
means that support from social factors to the customer behavior would either
encourage involvement or not (Ang et al., 2001; Albers-Miller, 1999). This is also
demonstrated by Ajzen & Fishbein, 1975, subjective norms are shown as perception

with pressures of social factors to the beliefs whether they will perform the behavior.
If people think these social factors agree with their purchasing of counterfeit
product so customer intention to purchase counterfeit product will be increased
(Albers, 1999). Social factors have two groups as below: the first group includes
these regular interactions as family, friends, neighbors and colleague; the second
group has little interaction with each other, as social organizations, associations.
The family members can make a strong impact on the behavior of customer
intention when purchasing counterfeit product. We have: (1) Oriented family
including her/his parents. From parents, someone get oriented political and
economic significance of personal desire, love and virtue. Even those who no longer
buy multiple relationships with their parents, the parents' influence on the behavior
of buyers still can be very significant. In families where parents still living with
adult children have strongly affected by their decisions; (2) Own family including
his wife or her husband and children of people who buy, have a direct influence


12

over the daily shopping behavior. The family is purchasing organizations - the most
important consumer society and it has been studied quite extensively. Researchers
need to pay attention to the role and relative influence of wife, husband and children
for the procurement of products. Before, the wife has been the main shopper in the
family, especially such as food, clothing and other household items. Now has
changing, as more and more women have focus on working and the husband wants
to take care of family more. People who do research the product under the wrong
category will be essential if kept thinking that women are still the main customers
or only buy their products. Besides that, in the case of products are the expensive
kinds, usually husband and wife exchange to make decisions collectively.
Researchers need to determine how often members have greater influence in the
purchase of products. That may be due to the role, habits or their proficiency in

procurement decisions. So the subjective norms will have the positively the
customer intention to purchase counterfeit product. This leads to have the second
hypothesis:
H2: There is a positive relationship between the subjective norms and
customer intention to purchase counterfeit product.
2.6 Perceived Behavioral Control
According to Ajzen (2002), perceived behavioral control was described as
individual perceptions of the ease or difficulty of performing a specific behavior. In
the case of purchasing counterfeit product, those factors include find/access
information about counterfeit product, the time to find or access to counterfeit
product and individual ability to solve difficulties the customer may face in
counterfeit product process. Therefore this study assumes that perceived behavioral
control (information, time, ability to solve problems) positively effects on customer
intention to purchase the counterfeit product (Penz and Stottinger, 2005). That is
also an opinion of Ajzen (1991) who assume that perceived behavioral control
include easy find or access, knowledge about counterfeit products, and high ability
will positively influence the intention to purchase counterfeit product. Or according


13

to Bissonnette & Contento (2001), perceived behavioral control is an individual’s
perceptions about one’s ethical or moral obligations toward performing a behavior
Therefore, it is hypothesized that:
H3: There is a positive relationship between the perceived behavior control
and customer intention to purchase counterfeit product.
2.7 Perceived financial control
With perceived behavioral control concept, as Sahni (1994) researched and
adapted that the Theory of Planned Behavior (Ajzen, 2002), it for predicting
purchases of both inexpensive and expensive products. Or as Notani (1997)

concerned that another to improve understanding of the role of perceived of
forecasting customer purchasing intention. Numerous researchers mentioned that
customer purchasing intention is a function not only of attitudes and purchase
intentions but also of economic considerations. Moreover, the economic factor that
can influence behavioral intention in this case is perceived financial control.
Therefore, perceived ability to afford the customer purchasing whether perceived of
the products as expensive or inexpensive.
About counterfeit product, especially in fashion product, price is one of the
most important issues in affecting customer intention to buy original products or
counterfeit products because the counterfeit product is cheaper than original product
(Lai & Zaichkowsky, 1999). In developing countries, customers do not mentioned
the quality of products. If they like one products, but they cannot afford to purchase
original products and they use or purchase a look-alike products provides them an
opportunity to enjoy the style. A study by the Institute for Economic and Social
Research (2005) showed the interesting finding from the same survey showed that
Indonesian consumer willingness to purchase only original products if it is suitable
with their income or ability. In this sense, it is hypothesized that:


14

H4: Perceived financial control moderates the relationship between attitude
toward the behavior to purchase counterfeit product and customer intention to
purchase counterfeit product.
2.8 Research Model
In order to approach how the influence of critical factors to the customers
purchase intention, three factors including attitude towards the behavior to purchase
counterfeit product, subjective norms, perceived behavioral control will be used as
potential predictors of customers intention as presented in Figure 2.1.
And this chapter will present a research structure that will be used to explore

the relationship between the critical factors on customer intention. The contents
mentioned below are research hypotheses based on study model. To implement the
study various dependent, independent and moderating variables will be defined for
this model. The independent variable is critical factors and the dependent variable is
customer intention.
2.9 Hypotheses summary

Perceived Financial Control

Attitude toward the
behavior to purchase
counterfeit products

Subjective Norms

H1 (+)
H4

H2 (+)

H3 (+)

Customer intention to purchase counterfeit
product

Perceived Behavior Control

Figure 2.1: Research model

15

With corresponding hypotheses starting about the relationship between
critical factors and the intention of purchasing as following:
H1: There is a positive relationship between attitude towards the behavior to
purchase counterfeit product and consumer intention to purchase counterfeit product.
H2: There is a positive relationship between the subjective norms and consumer
intention to purchase counterfeit product.
H3: There is a positive relationship between the perceived behavior control and
consumer intention to purchase counterfeit product.
H4: Perceived financial control moderates the relationship between attitude toward
the behavior to purchase counterfeit product and consumer intention.
And the following, this research will go through the operational definitions
of constructs was used as below table:
Table 2.1: Operational definitions of constructs
No
1

2

Construct

Operational Definition

Sources

Counterfeit products

These tangible products are produces illegally, low quality,
performance and durability with same designs of original

products
In terms of attitude toward counterfeit purchasing, customers

Lai
Zaichkowsky
(1999)

assess their behavior according to features of counterfeit,
including quality, practical, reliability features. And customers
neglect personal feelings such as shame, guilt or illegal when
buying and using the un-authorized products
Subjective norms are individual’s perception of social normative
pressures, or are relevant to the beliefs of others regarding
whether they should perform the behavior in question. Therefore,
if people think their significant others agree with their purchasing

Augusto, Ituassu
and Rossi (2007)
&
Penz
and
Stottinger (2005)
Ajzen
and
Fishbein (1975)
& Albers-Miller
(1999)

Attitude towards the
behavior to purchase

counterfeit products

3

4

5

Subjective Norms

Perceived Behavioral
Control

Customer intention to

of counterfeits, or make such purchases themselves purchasing
intention and likelihood are increased.
Perceived behavioral control was describes individual
perceptions of the ease or difficulty of performing a specific
behavior. In the case of purchasing counterfeit products, those
factors include information regarding counterfeits, the time
required to access counterfeits and individual ability to solve
difficulties they may face in products purchases. Therefore this
study assumes that perceived behavioral control (information,
time, ability to solve problems) positively affects intention to
purchase counterfeits
Person performances the behavior shows that people do what

&

Ajzen (2002) &
Penz
and
Stottinger (2005)

Fishbein &