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Piracy a big Business: Consumer responses "

."towards Counterfeits of Designer Lawn

:Submitted to
Dr.Manzoor A.Khalidi
:Submitted by
Roomana Murad
(08-0064)

:Supervisor

DR.ManzoorKhalidi
May 5, 2012

PROGRAM
BACHELORS OF BUSINESS ADMINISTRATION (BBA)
Spring 2012

National University of Computer & Emerging Science


Management Science Department, Karachi

FAST SCHOOL OF MANAGEMENT, KARACHI

RECOMMENDATION FOR EXTERNAL EXAMINATION


This final year project, hereto attached, titled, "Piracy a big Business:
Consumer responses towards Counterfeits of Designer Lawn"., prepared and
submitted by RoomanaMurad, in partial fulfillment of the requirements for
the degree of Bachelor of Business Administration (BBA), is hereby forwarded
for appropriate action.

Dr.Manzoor A. Khalidi

FAST SCHOOL OF MANAGEMENT, KARACHI

CERTIFICATE OF COMPLETION
This final year project, hereto attached, titled, Piracy a big business: Consumer responses
towards counterfeits of Designer Lawn, prepared and submitted by RoomanaMurad, in partial
fulfillment of the requirements for the degree of Bachelors of Business Administration (BBA), is
hereby forwarded for appropriate action .

Dr. Manzoor A. Khalidi


Advisor

Dr. Manzoor A. Khalidi


Head of Management Science Department

(ii)

ABSTRACT
Examines consumers' motivation for buying counterfeits or pirated goods. The findings indicated
that, compared to those who did not buy counterfeits of designer lawn, those who bought the
counterfeits viewed such purchases as less risky, and trusted stores that sell counterfeits more.
They did not see counterfeits as too unfair to designers or the clothing industry, thought they
benefit the society more, and did not see people who buy them as unethical.
We also investigated the influence of social, personality, and demographic factors on consumers'
attitude towards piracy. There was no influence of social factors and from the personality factors
we found that the more value-conscious, and the more integrity one had, the more favorable was
one's attitude towards piracy. Demographic characteristics did not show any significant effect in
influencing attitude.Finally, attitude towards piracy also did not had any significance in
influencing purchase intention.

ACKNOWLEDGEMENT

The special thanks go to my helpful supervisor and advisor Dr.Manzoor A.


Khalidi. The supervision and support he gave me truly help the progression
and smoothness of this research project. The co-operation and guidance is
much indeed appreciated.
My grateful thanks also go to Mr. Amir Adam and Mr. Hasan Javid who helped
me out in selecting a base study for the project and provided their valuable
time and constant support for making me believe that I have the capabilities
to conduct this research. This research project provided me with some
valuable experiences and helped me to learn within certain constraints such
as time.
I would like to thank Swee Hoon Ang(Associate Professor, National University
of Singapore), Pen Sim Cheng (Teaching Assistant, National University of
Singapore), ElisonA.C.Lim (PhD student, National University of Singapore),
Siok Kuan Tambyah ( Assistant Professor, National University of Singapore).
Without their research I would not have been able to make the framework of
this research.
Last but not least I would like to thank my friends and family members who
gave me constant morale support, especially Mr. Raheel Khoso who provided
me with the paid research papers, Sidra Irshad , Zill-e-Arsh and Mr. Radhay

Kirshan who helped me in understanding different aspects of the analysis of


the research and finally Mr. Naveed Murad Khoso.

CONTENTS
RECOMMENDATION FOR EXTERNAL EXAMINATION...........ii
CERTIFICATE OF COMPLETION.........................................iii
ABSTRACT.....................................................................iv
ACKNOWLEDGEMENT.....................................................v
LIST OF TABLES.............................................................ix
LIST OF FIGURES...........................................................x
EXECUTIVE SUMMARY....................................................xi

CHAPTER 1: BACKGROUND OF THE STUDY.......................1


1.1 Introduction....................................................................................................... 1
1.2 Measurement/ Instrument Selection..................................................................2
1.3 Rationale Of The Research................................................................................2
1.4 Scope Of The Study........................................................................................... 3
1.5 The Problem...................................................................................................... 3

CHAPTER 2: LITERATURE REVIEW....................................4


2.1 Counterfeit: A Big Business...............................................................................4
6

2.2 Consumer Behaviour......................................................................................... 7


2.21 Ethical Decision-Making............................................................................... 7
2.22 Unethical Consumer Behaviour...............................................................11
2.23 Evolution of Ethical Consumer Behaviour...................................................12
2.3 Counterfeit Products A Consumer Perspective..............................................12
2.31 Classification of Counterfeits......................................................................13
2.4 Factors Influencing The Purchase Of Counterfeit Goods..................................14
2.41 Consumer Attitude toward Counterfeits.....................................................15
2.42 Social Influences........................................................................................ 15
2.43 Personality Characteristics.........................................................................16
2.44 Purchase Intention..................................................................................... 19
2.45 Perceived Risk in Buying Fake Products......................................................19
2.46 Perceived Harms or Benefits to the Industry and Society...........................20
2.47 Previous Researches...................................................................................20

CHAPTER 3: THEORETICAL FRAMEWORK


21
3.1 Variables.......................................................................................................... 21
3.11 Attitude...................................................................................................... 21
3.12 Social Influences........................................................................................ 23
3.13 Personality Factors..................................................................................... 23
3.14 Purchase Intention..................................................................................... 23
3.15 Moderating Variable................................................................................... 23
3.2 Research Questions......................................................................................... 23
3.21 Hypothesis 1.............................................................................................. 23
3.22 Hypothesis 2.............................................................................................. 24
7

3.3 Conceptual Framework.................................................................................... 25


3.4 Method............................................................................................................ 26
3.41 Population.................................................................................................. 26
3.42 Sample and Sampling Method....................................................................27
3.43 Questionnaire............................................................................................. 27
3.5 Procedure........................................................................................................ 31
3.6 Software Employed......................................................................................... 31
3.7 Plan Of Analysis............................................................................................... 32

CHAPTER 4: FINDINGS
32
4.1 Results............................................................................................................. 32
4.2 Comparison with Hypothesis...........................................................................44

CHAPTER 5:DISCUSSION
47
5.1 Discussion of Research Findings......................................................................47
5.2 Limitations Of Research...................................................................................50
5.3 Implications Of Research.................................................................................50

BIBLIOGRAPHY
52

APPENDICES
Appendix I

(Frequencies)

Appendix II

(Reliability Analysis)
8

Appendix III
Appendix IV
Appendix V

(Questionnaire)
(Code Book)
(Code Sheet)

LIST OF TABLES
Table 2.1: 1995 IPR Seizures...................................................................7
Table 2.2: Comparison of prices between counterfeits and Original
products..............................................................................................19
Table 3.1: 12 Attitudinal items used to compare buyers and non-buyers
attitude...............................................................................................29
Table 3.2: Statements used to make Questionnaire................................30
Table 4.1: Frequency of Counterfeit products bought in Pakistan............33
Table 4.2: Difference of Responses of buyers and non-buyers purchase of
counterfeit products.............................................................................35
Table 4.3: Age of Respondents..............................................................37
Table 4.4: Education of Respondents.....................................................37
Table 4.5 : Income of Respondents........................................................38
Table 4.6 : Professional Status of Respondents......................................38
Table 4.7 : One Sample Test for non-buyers............................................39
Table 4.8 : One sample Test for buyers...................................................40
Table 4.9 : Correlation..........................................................................41
Table 4.10: Regression for dependent variable attitude..........................43
Table 4.11: Regression results for purchase intention.............................44

LIST OF FIGURES
Figure 2.1: Study of Ethics in Market place.....................................9
Figure 2.2: Model of Ethical Decision MakingFigure......................10
Figure 2.3: Evolution of Ethical Consumer....................................12
Figure 3.1: Variables of Research.................................................22
Figure 3.2: Effect of Social Influences and Personality factors on
Attitude.....................................................................................25
Figure3.3: Showing the demographics used in Questionnaire........31
Figure 4.1:Frequency of Counterfeit Products...............................34
Figure 4.2: Frequency of Counterfeits purchased by buyers of
designer lawn............................................................................. 36
Figure 4.3: Frequency of counterfeits purchased by non-buyers of
counterfeit lawn.........................................................................36

10

EXECUTIVE SUMMARY
Counterfeiting has become a business nowadays, the countries such as U.S
and many more are trying to overcome this problem. However it has become
very difficult to deal with this problem. Consumers are now more exposed to
these types of purchases and they do not feel counterfeiting is unethical or
immoral . Counterfeiting itself can be divided into two major categories i.e.
deceptive and non-deceptive. In deceptive counterfeiting the buyer does not
know he is buying a copied product and in another case buyers do know and
they still buy it.
They have a major reason for doing so , they feel that the producers of the
original products are unfair to them and charge very high prices. In return
they buy these counterfeit products , however the question then is that is it
unethical consumer behavior or not. There are different examples of
11

unethical consumer behavior such as switching price tags, shoplifting ,


buying unfriendly products to the environment and above all counterfeiting.
Counterfeiting is a harm to the consumer and as well as the producer
because both of them are having disadvantages. From the perspective of
consumer they are forgoing quality and the producers are losing their
royalties.
Like other Asian countries Pakistan is also exposed to such purchases and
every year the companies pay huge prices. The purpose of this study is to
examine counterfeiting in the local context therefore designer lawn was the
best product. Every year in Pakistan there are exhibitions held and new
designer prints are introduced for purchase at premium prices. The strange
thing is that the counterfeits of these designer lawns are present in the
market at very low prices and people for go quality and save their money by
buying these products. At the same time they become trendy and value
conscious.
This study examines the consumer responses towards the counterfeits of
Designer Lawn. There were three major objectives of this study :

To see the differences in responses of buyers and non-buyers towards

the counterfeits of designer lawn.


To see the impact of social influences , personality factors and

demographics on attitude.
To see the impact of attitude on purchase intention.

12

The buyers and non-buyers were classified as buyers of counterfeit lawn and
non-buyers of counterfeit lawn. The population of this research were the
females who bought designer lawn. The sample size of this study was 205 ,
from which 166 responded to the questionnaire and the results have been
analyzed from there . An age limit of 15 was set as a minimum age for this
particular research because they are dependent on parents.
The results showed that there was a difference in the attitude of buyer and
the non-buyers, to see this difference the means were compared.

Social

influences did not had any significant relationship with attitude while the
two personality factors value consciousness and integrity had a significant,
positive relationship with attitude. However personal gratification and
demographics did not had any significant relationship. Multiple Regression
and Correlation were applied.
Overall the results showed a difference between the buyers and non-buyers
but still the non-buyers did not had any negative attitude towards
counterfeits, because they were involved in buying other counterfeits such
as Text Books , Music CDs etc. The non-buyers did-not think it was immoral
or unethical when the mean scores were seen without comparing the buyers
with them. Therefore there was no significant relationship of attitude with
purchase intention.
One strange thin which was seen in the research was that people who have
high integrity show favorable attitude towards the counterfeits, this may be
13

so because people do not link law with counterfeiting. Finally the implications
are high for the managers , this research shows that there is a gap between
which the counterfeits are filling . If the Designers bring in law quality but
trend designer lawns with low prices people will buy them because the
people are highly value conscious.

14

CHAPTER 1: BACKGROUND OF THE STUDY


1.1 Introduction
It is an era where most of the people are talking about intellectual property
rights and companies are apprehensive about their products. They don't
want their products to be imitated and dispersed across the globe. Each
company has its own strategies, limitations and a specified way of producing
its products. After a series of inquiries and research a company produces
something incredible for its consumers. Once their product is imitated they
are forced to lose their profit margins.
Counterfeiting or piracy has become a big business today. China has been
criticized for producing counterfeits. What does the word "counterfeit"
actually mean? Counterfeits are defined as reproduced copies that are
identical to the legitimate articles including packaging, trademarks, and
labelling(Kay, 1990). If we study the facts companies all over the world are
losing millions of dollars due to counterfeits. Mainly third world countries are
subject to such products, reason being the consumers here are price
sensitive.
In Pakistan the counterfeit products are available everywhere from high
involvement products to low involvement products. High involvement
products can be home appliances and cosmetics etc. While low involvement
products can be sweets and other books such as novels, in Pakistan theses
all products are available at the shops. Even the counterfeits of designer
lawn and clothes are available in the market. Pakistani markets are heavily
embedded with these products due to low prices and being the neighbour
country of China these products are easily available.
Business Ethics is only integrated with managers, employees and leaders.
Frequently, consumers are portrayed as being taken advantage of by
1

marketers

rather

than

consumers

exhibiting

unethical

consumer

behaviour(Marchione & Ownbey, 2008).Theoretical models have been


developed to describe ethical decision making of marketers(Marchione &
Ownbey, 2008). There is a lack of theoretical frameworks in the literature
that address the multiple variables related to how consumers purchase fake
products.
Asia

accounts

for

more

than

one-third

of

the

losses

arising

from

counterfeiting("Copyright piracy declines in Asia for US", 1999). Studying the


fact, companies are actually interested in finding out the characteristics and
motives behind unethical purchases. It is interesting to know that the
consumers can also be immoral while making their purchases.
Price is a major determinant for buying counterfeit products but still there
are other factors influencing the purchase decision such as attitude,
personality factors, social influences and demographics. In such scenario, it
is vital to study that how the consumers distinguish imitated products and
what are the buying motives following such purchases. This is the
contemporary concern with which the world is dealing and an investigation
on this topic can help many businesses in Pakistan.

1.2 Measurement/ Instrument Selection

Primary Research
To collect primary data the questionnaires were distributed and then the
results were analysed to see that the hypothesis were accepted or rejected.

Secondary Research:
To get the background of the study following sources were used

Published Journal Articles


Books

Published general and articles were taken from different sources on website,
some of them were paid and others were not paid. To take out the relevant
literature review papers were read and incorporated with the research
objectives.

1.3 Rationale Of The Research


It is important to realize the need for doing a research on this particular area.
Pakistan is a country where the piracy laws are not that much rigid and the
copies of any product can be found very easily. Piracy is not an issue; it has
become a disease for the whole society. Even the copied books and toys are
easily available in the market.
The consumers are independent of taking their decisions and they attribute
themselves to be the responsible members of the society however the
consumers have become their own enemies by buying low quality products
with low prices.
In such circumstances the whole responsibility is of the consumer, who is the
end user of the product. So that's the reason it is important to understand:
how the consumers see these fake products and then does their attitude
change their buying behaviour or not.

1.4 Scope Of The Study


This study will just focus on the Designer Lawn industry, the purpose behind
is to study in context of local market. The reason for choosing this industry is
that the females of Pakistan are more prominent in buying Lawn especially in
the market of Karachi where in every season the exhibitions are held.
The Designer Lawn is available at high prices from Rs.5000 to onwards where
the females cannot buy such high priced designed lawn products. Then the
alternatives are available for the females at lower prices to buy the same
designs in the form of counterfeit products. This study has been just limited

to the industry and the city of Karachi where there is a huge market for these
products.

1.5 The Problem


Fake products have changed the current environment in which the firms are
competing. It is more aggressive and firms are losing their profit margins
very easily. Considering the fact that copying the products has become issue
for all types of industries.
The study has been divided into three major parts:
First Part: This part covers that the counterfeit products which are available
in Pakistan and how the buyers and non-buyers of counterfeit lawn buy
different counterfeits.
Second Part: This part contains 12 attitudinal items to see the attitude of
buyers vs. non-buyers.
Third Part: This part contains the effect of social influences and personality
factors on attitude and evaluates the effect of attitude on the purchase
intention.
The study evaluates the risk in terms of getting caught by the authorities in
buying fake products and how this risk attributes to the consumer buying
behaviours. On the other hand how the consumers feel while they are buying
the copied clothing; do they see it as a good act or they feel they are
harming the society. Further they find it as immoral act or a moral one
because everybody cannot afford high prices.
Friends and Family have an important part in life and therefore the study
cover that aspect. Two types of susceptibility would be studied; Informative
and Normative. Informative occurs when consumers are not knowledgeable
about the product category whereas normative are based upon the expert
opinion of others, but on the expectation of what impresses others(Bearden,
4

Netemeyer,

&

Teel,

1989).

Personality

influences

include

value

consciousness, personal gratification and integrity.

CHAPTER 2: LITERATURE REVIEW


Different studies have been conducted over time to see how the consumers
become unethical. A major issue which has emerged globally is dealing with
counterfeiting. A question needs to be answered that if counterfeiting is
illegal, buying counterfeits is unethical, than why consumers show positive
attitude towards fake and purchase the products.

2.1 Counterfeit: A Big Business


Counterfeiting transformed the overall environment for the businesses to operate in. The practice
of product counterfeiting or intellectual property rights theft of high-visibility, strong brand name
goods is a major problem(Aryanto, 2003).Quoted in Asian Wall street journal 1999; Producers of
these counterfeits deceive consumers into thinking that they are the genuine ones and took away
some US$12.4 billion worth of business from original manufacturers in 1998 (Ang, Cheng, Lim,
& Tambyah, 2001). The counterfeited products ranged from wearing apparel, consumer
electronics and media (e.g., motion pictures on laser disc, DVD, interactive and computer
software on CD-ROM, CD-R, floppy disc, tape, cellular phones, radio, power strip, lights, lamps,
electrical tool and appliance etc), cigarettes, watches and parts, handbags, wallets, backpacks,
toys, electronic games, sunglasses and headwear (Aryanto, 2003). The culprits committing such
crimes came from the biggest to the smallest of countries: China, Hong Kong, South Korea,
Singapore, Taiwan, Indonesia Thailand and Malaysia (Aryanto, 2003).
Indeed, Business Week reported that patent pirates took their heaviest toll on U.S. software
(annual loss, $9 billion), pharmaceuticals ($4 billion), movies ($1 billion), sound recordings ($2
billion), and books ($1 billion) (Chaudhry & Walsh, An Assessment of the Impact of
Counterfeiting in International Markets: The Piracy Paradox Persists, 1996). The Straits Times
quoted: Singapore saw a loss of US$62 million to piracy in 1999 (Ang, Cheng, Lim, & Tambyah,
2001). China has also become a platform for the export of counterfeit and pirated products to
other countries in Asia, Eastern Europe, and other territories in the world (CHOW, 2003). In
2002, U.S. Customs seized $48,622,9972 in counterfeit and pirated products at ports of entry in
5

the United States that were exported from China, the single largest source of these illegal
products (CHOW, 2003).The Business Software Alliance, an anti-counterfeiting consortium that
represents such companies as Microsoft, Novell, and Lotus, has estimated software piracy rates
for individual countries by comparing hardware sales and average software consumption patterns
against payments for software. Some of their estimated software piracy rates include Indonesia
(99%), Thailand (99%), Pakistan (99%), UAE (99%), Spain (88%), France (66%), and Britain
(49%) (Chaudhry & Walsh, An Assessment of the Impact of Counterfeiting in International
Markets: The Piracy Paradox Persists, 1996).
Nash in 1989 said that substandard counterfeit goods not only ruin goodwill and destroy
credibility; they can also be hazardous to the innocent end-purchaser, especially with regard to
pharmaceutical products(Wee, Tan, & Cheok, 1995). Trade officials and legislators in the United
States, Japan, and Western Europe have reacted with growing concern to the expansion of this
illegal activity, and are seeking new ways to control the phenomenon (Shapiro, 1988).
Further, as most of such research has been conducted in the West, little is
known about Asian consumers.(Ang, Cheng, Lim, & Tambyah, 2001).
According to Asian Wall Street Journal 1999 Asia accounts for more than onethird of the losses arising from counterfeiting(Ang, Cheng, Lim, & Tambyah,
2001).The difficulty for developing countries in this context is that they are
second comers in a world that has been shaped by first comers(Aryanto,
2003).In 2001, less than 1% of U.S. patents were granted to applicants from
developing countries, 65% of which were from seven advanced developing
countries.(Aryanto, 2003). According to Richardson 1996, enforcement of IPR
in developing countries is likely to become more difficult in the absence of
incentives (Aryanto, 2003).The reality in many developing countries is that
institution capacity is generally weak and in particular there is a lack of
experienced and well qualified officials.(Aryanto, 2003).
In 1995, the United States Customs Service confiscated the largest number
of

intellectual

property-related

seizures

from

China

(19%

of

total

merchandised seized), South Korea (15%), Hong Kong (8%), Taiwan (7%) and
India (3%)(Chaudhry & Walsh, An Assessment of the Impact of Counterfeiting
6

in International Markets: The Piracy Paradox Persists, 1996).Table 2.1lists the


U.S. trading partners, the number of seizures, the domestic value of
merchandise expropriated from each country, and the percentage change of
seizures from 1994-1995(Chaudhry & Walsh, An Assessment of the Impact of
Counterfeiting in International Markets: The Piracy Paradox Persists, 1996).
The counterfeits are manufactured at low costs but that definitely does not
means that the consumers are surely given a cost advantage and provided
with low priced products. However, it is an obvious thing that counterfeits
are priced low and the consumers tend to buy them. Then it becomes
important to study the Consumer Behaviour towards counterfeits.

Table 2.1
Fiscal Year 1995 IPR Seizures by Trading Partners
Source: U.S. Customs Service (February 7, 1996); International Anti-Counterfeiting

Domes
tic
value
(us $)

Percent
of total

19941995
% change

19%

10%

15%

140%

8%

(48%)

7%

(23%)

3%

(14%)

2%

190%

Rank

Country

Number of
seizures

China

136

Korea

954

Hong Kong

90

Taiwan

103

India

15

Panama

16

8,745,42
3
7,039,46
7
3,697,09
0
3,035,04
7
1,187,77
5
887,476

Mexico

50

783,466

2%

176%

Indonesia

659,578

1%

(2%)

Thailand

52

659,200

1%

(54%)

10

Japan

28

458,348

1%

148%

11

Canada

374,879

1%

120%

12

Singapore

353,066

1%

219%

13

Malaysia

348,060

1%

794%

14

Peru

323,600

1%

345%

15

Switzerland

10

275,014

1%

1%

16

Italy

12

266,667

1%

50%

17

Columbia

17

237,412

1%

(11%)

18

Lebanon

234,792

1%

1558%

19

France

12

1%

1556%

20

Unknown

453

200,411
14,729,8
75

32%

138%

Rest of the
world

112

1,960,69
9

4%

****

Total
countries

2091

46,457,3
45

100%

25%

Table 2.1: 1995 IPR Seizures

2.2 Consumer Behaviour


The field of consumer behaviour is the study of individuals, groups, or
organizations and the processes they use to select, secure, use, and dispose
of products, services, experiences, or ideas to satisfy needs and the impacts
that these processes have on the consumer and society(Hawkins, Best,
Coney, & Koch, 2004)(R.Solomon, 2008).

2.21 Ethical Decision-Making


Ethics, as a fundamental thought, has about as more divergent explanations
as there are theorists. According to P.W. Taylor, Ethics refers to inquiry into
the nature and grounds of morality where the term morality is taken to mean
moral

judgments,

standards,

and

rules

of

conduct(Ha

&

Lennon,

2006).DeGeorge(1982), Runes (1964) ,Fullerton et al., (1996),defines Ethics


as a system of moral principles that cover activities that are considered
importantly right and wrong, the rules or code of conduct recognized in
respect to a particular class of human behaviour; just or right standards
of behaviour between parties in a situation ; and the extent to which certain
8

behaviours are right or wrong, respectively(Dodge, Edwards, & Fullerton,


1996).
An ethical decision is a decision that is both legally and morally acceptable to
the larger community(E.Tenbrunsel & Smith-Crowe, 2008).Trevino et al.
(2006) provided this definition: behavioural ethics refers to individual
behaviour that is subject to or judged according to generally accepted moral
norms of behaviour. (E.Tenbrunsel & Smith-Crowe, 2008).An individuals
ethical attitude is a set of judgments about potentially unethical situations
that he or she will be familiar with through everyday interaction in the retail
marketplace as well as via the assessment of input from ones reference
groups (Dodge, Edwards, & Fullerton, 1996).To Fisk(1982), in assessing a
persons categorization of what is acceptable (unacceptable), the following
assumptions are made(Dodge, Edwards, & Fullerton, 1996):

Ethical behaviour is based on exchange of value for value.


Ethical behaviour results from independent judgments on the part of
both buyer and seller, and the expectation of ethical behaviour from
the other side of the buyer/seller dyad.

Thus, research on behavioural ethics is primarily concerned with explaining


individual

behaviour

that

occurs

in

the

context

of

larger

social

prescriptions(E.Tenbrunsel & Smith-Crowe, 2008).


The dimensions of Ethical Decision-Making change and can be classified into
two categories; the supply side and the demand side.
Ethical Decision-Making
Supply side
Demand Side

Business Side
Consumer Side

On the business side the ethical decision making refers to the marketing
ethics and the ethical guidelines for the marketing professionals. Less focus
has been given to the consumer side, where the consumers make the
9

decisions on the ethical basis.According to FuatFirat&Dholakia, 2003, p. 2:


However, such a focus is important, because understanding ourselves as
people who consume may explain much of what we are about as human
beings, since in late modernity, many claim, consumption is much of our life
(Papaoikonomou, Ryan, & Valverde, 2011).
Figure 2.1Examines the study of ethics in the marketplace taken from the
study of Papaoikonomou, Ryan &Valverde(2011).On the consumer side there
are two areas to be studied Consumer Ethics and Ethical Consumer
Behaviour. On Business Side, business ethics and relevantly Marketing Ethics
can be studied.
Figure 2.1: Study of Ethics in Market place
Consumer
Side
Consume
r Ethics

Business Side

Business Ethics

Ethical
Consumer
Behavior

Marketing Ethics

Consumer ethics studies how consumers perceive and react to potentially


unethical

purchase

situations

or

behaviours(Papaoikonomou,

Ryan,

&

Valverde, 2011).As mentioned by Chiu, Hsieh, Chang, & Lee, 2009; Vitell,
2003; Counterfeiting, using an expired sales coupon, shoplifting, receiving
too much change at the counter, or changing price tags on products are
some examples (Papaoikonomou, Ryan, & Valverde, 2011). Ethical consumer
Behaviour has been given different meaning by the author Low& Davenport,
2007; it refers to the making of consumer decisions according to social and
environmental considerations such as animal, social, and environmental
10

welfare (Papaoikonomou, Ryan, & Valverde, 2011).Murphy &Laczniak,1981;


Tsalikis&Fritzsche, 1989 said: Marketing is the most visible functional area
and those marketing practices that create the most controversy, such as
personal

selling,

advertising,

pricing,

and

packaging

are

subject

to

continuous review and scrutiny by consumers as well as the general public,


and when a marketer is judged to have committed a breach of ethics, public
outcry and condemnation are likely to follow(Dodge, Edwards, & Fullerton,
1996).
There are two scenarios in which the consumers make ethical or unethical
decisions. It is significant to know the key driver of ethical decision making.
When the decision makers are morally aware they engage in moral decision
making and if they are not morally aware then they engage themselves into
amoral decision making (Refer to Figure 2.2).Under the influence of an ethics
frame, decision makers are morally aware. Under the influence of other
frames (e.g., a business frame or a legal frame), however, decision makers
are not morally aware(E.Tenbrunsel & Smith-Crowe, 2008).If the marketplace
is to function effectively, ethical behaviour on the part of both buyers and
sellers is necessary(Dodge, Edwards, & Fullerton, 1996).Loucks (1987)
argues that even though buyers and sellers act in their own best economic
self-interest, the system itself is based upon mutually agreed-upon rules of
conduct and shared interests(Dodge, Edwards, & Fullerton, 1996).To Naisbitt
(1994), ethics can be specifically supportive to participants in a market
society where interests are distinctive, legitimate,and often not easily
compatible(Dodge, Edwards, & Fullerton, 1996). The enhancing attention of
marketers to positioning and improving the worth of relationships with
customers creates ethical behaviour on the component of both parties even
more crucial. Kotler (1994), in defining relationships in marketing, uses such
words as long-term, trusting, win-win(Dodge, Edwards, & Fullerton, 1996). As
relationships are developed, the perimeters between the client and the seller
become

blurred.

Buyers

and

sellers
11

with

shared

beliefs

become

interdependent. According to (Morgan & Hunt), 1994:Obviously,unethical


behaviour on the part of either party will prove disruptive to the relationship
and

produce

exchanges

that

will

be

both

unproductive

and

ineffective(Dodge, Edwards, & Fullerton, 1996).Ethical Decision-Making is


important when a consumer is buying a product and therefore is critical to
study.
Figure 2.2: Model of Ethical Decision Making
:Moral Awareness

No Moral
Awareness:

Ethical Frame

e.g., Business
Frame, Legal
Frame
Moral Decision
Making

Ethical
Decision

Amoral Decision
Making

Unethic
al

Ethical
Decision

Unethic
al

2.22 Unethical Consumer Behaviour


An unethical decision is a decision that is either illegal or morally
unacceptable to the larger community(E.Tenbrunsel & Smith-Crowe, 2008).
The darker side to consumer behaviour is being unethical and the factors
contributing to unethical decision making. A consumer can be unethical that
means he demands those products which are socially unacceptable to the
society. The most prominent forms are:
Purchasing Counterfeits
Shoplifting
Buying products which are unfriendly to the environment
12

Switching price tags etc.


Kay (1990) defines counterfeits as reproduced copies that are identical to the
legitimate articles including packaging, trademarks, and labelling(Ang,
Cheng, Lim, & Tambyah, 2001). There are two types of products, original and
copied ones. Original products are the one which are sold legally, and the
copied ones are termed as fake or counterfeits. Knowingly buying a
counterfeit is a true example of unethical consumer behaviour following by
different buying motives such as low prices, being competent and acceptable
in the society etc. Shoplifting is another act which is not acceptable, where
consumers are involved in theft. Entering a retail store and taking or using
store items without paying for it is a good example of shoplifting. Eating from
display or giving something to the child to eat is also referred to as
shoplifting.
You know the product you are buying is harmful to the society but yet you
buy it, is another form of unethical consumer behaviour, Similarly entering a
store and switching price tags has also become a major issue. A consumer
who switches price tags may justify his or her behaviour by thinking, it is
okay to switch price tags because I bet this retailer uses child labour to
manufacture these products(Callen-Marchione & Ownbey, 2008).
According to Fukukawa (2003); Morgan and Hunt(1994): Unethical behavior
by either the marketer or the consumer will lead to unproductive exchanges.
(Callen-Marchione & Ownbey, 2008). Unethical behavior by the consumer
may result in an increase in prices or to an inconvenient shopping
environment.(Callen-Marchione & Ownbey, 2008).Consumers who view big
business as charging exorbitant prices to exacerbate snob appeal may buy
counterfeit versions of the legitimate product to express their negative
perception of big business(Tom, Garibaldi, Zeng, & Pilcher, 1998).

13

2.23 Evolution of Ethical Consumer Behaviour


Ethics has become an important aspect and has gained its own importance;
more researches are being conducted on this topic in the marketplace.
During the years the evolution and studies on ethical consumer behaviour
have increased. Indeed, just six years into the current decade we already see
almost three-times the number of articles published since the previous
decade (E.Tenbrunsel & Smith-Crowe, 2008). Figure 2.3 shows how the
awareness about Ethical consumer behaviour increased over a period of 19
years.

2.3 Counterfeit Products A Consumer Perspective

The

Figure 2.3: Evolution of Ethical


Consumer

proliferation

of

counterfeits is one of the most pressing issues faced by the different


industries. Consumers are the root problem and they are the one who finally
consume the counterfeits. A considerable piece of counterfeit deficiency can
be traced to willing purchases by consumers. Understanding under what
temporal,

economic,

communal,

and

psychological

situation

persons

purchase counterfeits is absolutely crucial to comprehending the underlying


determinants of demand. Marketing scholars have conveyed anxiety over the
insufficient study accessible analyzing the patterns of counterfeit buying
consumers. However considerable literature review is not available to
14

understand the consumer patterns. This does not mean, however, that the
emerging literature onto consumer behavior towards counterfeit products is
entirely inapplicable.

2.31 Classification of Counterfeits


Researchers have classified counterfeiting into two categories; deceptive and
non-deceptive counterfeiting. In the case of deceptive counterfeiting,
consumers do not realize that they are buying a counterfeit product.Thus,
such counterfeits can only be deterred through supply-side measures.
However, consumers often wilfully buy a counterfeit good:a so-called nondeceptive

counterfeit.(Penz,

Schlegelmilch,

&

Stottinger,

"Voluntary

Purchase of Counterfeit Products: Empirical Evidence From Four Countries",


2009).
To gain a better understanding of what drives consumers to buy fake
products, two streams of literature are available to explain purchases of nondeceptive

counterfeits:

First,

evoke

the

branding

literature(Penz,

Schlegelmilch, & Stottinger, "Voluntary Purchase of Counterfeit Products:


Empirical Evidence From Four Countries", 2009). According to Bloch, Bush,
and Campbell, 1993; Cordell, Wongtada, and Kieschnick1996: If branded
products did not attract consumers, counterfeits would not be an issue.
Buying fake products means getting the prestige of branded products
without paying for it(Shapiro, 1988)(Penz, Schlegelmilch, & Stottinger,
"Voluntary Purchase of Counterfeit Products: Empirical Evidence From Four
Countries", 2009). Second, we draw on consumer misbehaviour research,
which uses the purchase of counterfeits as one of its classic examples
(Albers-Miller, 1999; Fullerton and Punj, 2004; Green and Smith, 2002).From
this research, we conclude that consumer awareness of the negative
consequences

of

counterfeits

products(Penz,

Schlegelmilch,

may
&

impact

Stottinger,

the

demand

"Voluntary

for

fake

Purchase

of

Counterfeit Products: Empirical Evidence From Four Countries", 2009). In

15

such cases the consumer become unethical and his ethical decision making
process is hindered by some of the factors.
In the case of pirated literature and counterfeit computer softwares, the
university students are more exposed to them given their needs for such
products in the course of their studies. Given the high prices of original books
and computer softwares, the lower-priced counterfeit versions are likely to be
popular among students, especially those with limited budgets.(Wee, Tan, &
Cheok, 1995).Then it surely means that non-deceptive counterfeits are
equally popular among the consumers as the original products. There it has
become imperative to know that in what conditions a consumer is willing to
buy a counterfeit.

2.4 Factors Influencing The Purchase Of Counterfeit Goods


Past investigations have recognised two

drivers

of

counterfeit-purchase

behaviors:

The appealing charge of copied products; and

The self-image of the buyers who purchase such products.

However extended studies have been carried out to study the other factors
influencing the purchase of counterfeits, contributing to unethical behaviors
of the consumers. According toMcDonald & Roberts, 1994:It can be argued
that counterfeiters are good marketers because they have found a need and
are finding a way to fulfill it(Tom, Garibaldi, Zeng, & Pilcher, 1998).(Arellano,
1994)said: In many cases of selling of fake products, the main purpose does
not seem to deceive consumers but to satisfy them(Tom, Garibaldi, Zeng, &
Pilcher, 1998).

16

To devise courses that efficiently combat the burden of counterfeiting, it is


necessary to determine and diagnose the existence of the segment(s) of
consumer accomplices whoever buy counterfeit goods. Not all consumers
purchase counterfeit products, and among those whoever do purchase
counterfeit products ,there are most necessarily differences within the
frequency of purchase and differences within the importance and/or
satisfaction of product characters via product category.A research identified
the influence of following factors on the consumers attitude and purchase
decision. Those were identified as:

Social influences

Value Consciousness

Integrity

Personal Gratification

Perceived Risk in buying fake products

Perceived harms or benefits to the industry and society

Spot the difference: Consumer responses towards counterfeits(Ang, Cheng,


Lim, & Tambyah, 2001) studies the following factors in the context of clothing
industry. It is routinely held by people that buyers purchase counterfeits
because of their lower cost, latest study proposes that non-price factors
interpret

more

of

why

consumers

buy

counterfeits.

Among

these

components, buyer mind-set and behaviour appear to be particularly worthy

17

of further investigation because the buy decisions often made under the
leverages of consumer attitude.

2.41 Consumer Attitude toward Counterfeits


Attitude is . . .a learned predisposition to behave in a consistently
favourable or unfavourable manner with respect to a given object as
explained by Schiffman and Kanuk(Matos, Trindade, & Rossi, "Consumer
attitudes toward counterfeits: a review and extension", 2007). Indeed,
according to Bagozzi et al. (2002, p. 4), the most widely accepted definition
of attitude conceives of it as an evaluation, for example: . . .a psychological
tendency that is expressed by evaluating a particular entity with some
degree of favor or disfavor explained by

Eagly and Chaiken.(Matos,

Trindade, & Rossi, "Consumer attitudes toward counterfeits: a review and


extension", 2007).
Attitudes

are

actually

evaluative

statements

either

favourable

or

unfavourable-concerning objects, people or events. Attitude can be positive


or negative; if the attitude of a person is positive towards a product he will
be more likely to purchase that product. Similar is the case with copied
products, if a consumers attitude is positive he will buy a counterfeit. The
fundamental thought of stance headed for counterfeits is not new in the
literature. It has been researched widely, but its operationalization was
encountered to vary from study to study. It becomes noticeable that there is
no concurrence amid examiners on the components constituting this
concept. For example, researchers such as Bian and Veloutsou (2007)
considered

only

the

righteous

and

lawful

sides

of

attitude

toward

counterfeits, whereas de Matos et al.s (2007) scale is more concerned with


consumer preferences and benefits.(Kwong, Yu, Leung, & Wang, 2009).

2.42 Social Influences


An

important

determinant

of

an

individual's

behaviour

is

others'

influence(Bearden, Netemeyer, & Teel, 1989). Researchers have categorized


two type of social influences; Informative Susceptibility and Normative
18

Susceptibility. First, consumers may be informationally susceptible, where


products are bought based on the expert opinions of others. Burnkrant and
Cousineau (1975) defined normative influence as the tendency to conform to
the expectations of others(Bearden, Netemeyer, & Teel, 1989). In such cases,
the views of others regarding quality and whether it is a wise purchase are
critical. Usually, informational susceptibility occurs when consumers are not
knowledgeable of the product category. Second, consumers may be
normatively

susceptible.

Normative

susceptibility

concerns

purchase

decisions that are based not on the expert opinions of others, but on the
expectations of what would impress others(Ang, Cheng, Lim, & Tambyah,
2001).Normative influence is reflected in individuals' attempts to comply
with the expectations of others to achieve rewards or avoid punishments,
and it operates through the process of compliance(Bearden, Netemeyer, &
Teel, 1989). Normative belief forms the consumers perception of what
relevant others think of whether one should or should not purchase
counterfeits(Penz, Wien, Stttinger, & Wien, 2005).
Park and Lessig (1977) proposed that individuals may either search for
information from knowledgeable others or make inferences based upon the
observation of the behaviour of others(Bearden, Netemeyer, & Teel,
1989).Informational

influence

operates

through

the

process

of

internalization, which occurs if information from others increases the


individual's knowledge about some aspect of the environment(Bearden,
Netemeyer, & Teel, 1989). A person who is really close to an individual tends
to have influence on the buying behaviour. An individual is more likely to buy
a product which is referred by his friend or is accepted in his social circle. If
copied products devalue a persons image in his social gathering he will
avoid such products. Thus consumer susceptibility to interpersonal influence
is defined as the need to identify or enhance one's image with significant
others through the acquisition and use of products and brands, the
willingness to conform to the expectations of others regarding purchase
19

decisions, and/or the tendency to learn about products and services by


observing

others

and/

or

seeking

information

from

others(Bearden,

Netemeyer, & Teel, 1989).If peers or reference groups were to have expert
knowledge on the differences between originals and counterfeits (such as in
product quality), the negative consequences of being perceived to purchase
counterfeits will therefore have an effect on consumers perception towards
counterfeits(Phau & Teah, 2009).

2.43 Personality Characteristics


Personality influences have three determinants; Value Consciousness,
Personal Gratification and integrity.
Integrity - Rokeach in 1968 proposed integrity, as it is related to
lawfulness, is linked to responsibility, honesty, and self-control(Kim &
Karpova, 2010). The person who tends to be more lawful has a
different attitude and is ethical in making his decisions. Consumer buy
of a counterfeit is not a lawless individual proceed, but as buyer
participation in a counterfeit transaction supports illicit undertaking
(i.e. counterfeit selling), consumers respect for lawfulness might
interpret

how

much

engagement

he/she

will

have

in

buying

counterfeits.(Rokeach, 1968 explains: Integrity, as it is related to


lawfulness, is linked to responsibility, honesty, and self-control(Kim &
Karpova, 2010).Integrity is negatively associated with attitude toward
counterfeits(Matos,

Trindade,

&

Rossi,

2007).In

accordance

to

Kohlbergs (1976) moral competence theory, consumerss behaviours


are affected by their personal sense of justice(Phau & Teah, 2009).The
impact of fundamental principles like credibility will affect the sentence
towards succumbing to unethicalactivities. Integrity is determined by
personal ethical standards and obedience tothe law(Phau & Teah,
2009).
Value Consciousness - Zeithaml 1988, describes, Perceived value as
"the consumer's overall assessment of the utility of a product based on
20

what is received and what is given, on the assumption that for most
people price and quality are the most salient "give and get"
components, we define value consciousness as a concern for paying
low prices, subject to some quality constraint(Lichtenstein, Netemeyer,
& Burton, 1990). This definition is consistent with the definition of
Monroe and Petroshius (1981; i.e., the ratio of quality to price), the
findings of Zeithaml (1988) on the meaning of value used by many
consumers (i.e., "the quality I get for the price I pay"), and several
other definitions of value that appear in the literature (cf. Zeithaml
1988)(Lichtenstein,

Netemeyer,

1990).Parasuraman&Grewal(2000)

saysvalue

&
consciousness

Burton,
differs

fromprice consciousness in that value includes get (i.e., the benefits


a buyer acquires from sellers offering) and give (i.e., the cost the
buyer pays to acquire the offering) components(Kim & Karpova,
2010).To, Chapman and Wahlers(1999), inference of quality by the
price level is a common belief among consumers and an important
factor in consumer behavior(Matos, Trindade, & Rossi, 2007). To, Tellis
and Gaeth, (1990),consumers tendency to believe that high (low)
price means high (low) quality becomes even more important when
there is little information about the product quality or the consumer is
unable to judge product quality.(Matos, Ituassu, & Rossi, 2007).As
proposed also by Huang et al. (2004), considering that counterfeits are
usually sold at lower prices, the greater the relationship price-quality
for the consumer,. So an individual is more concerned about the prices
and is sensitive. He purchases what is available at lower prices; even
the copied products. The prices can be as attractive as shown in table
2.2.
If brand relative standing is important to a person but he or she is
unable to afford the expensive originals, he or she is likely to turn to
counterfeit goods as low-cost substitutes for the originals .It is evident
that limited budgets for students stand the main focus for buying the
21

counterfeit books. According to, Gentr Putrevu& Shultz (2006):


Although there may be little surface difference from the original, the
super-copy is usually found in non-authorized dealers shops at a more
affordable price(Kwong, Yu, Leung, & Wang, 2009). Kattoulas (2002)
proposed that in Japan, consumers purposefully buy a super-copy for
casual use and save genuine articles for formal and important social
events (Kwong, Yu, Leung, & Wang, 2009).Most research has shown
that given a price/quality trade-off, the perceived quality of the
counterfeit product increases a consumers willingness to obtain
it(Chaudhry & Stumpf, 2011). Indeed, a few studies have claimed that
consumers who purchased counterfeits did not believe that they were
inferior in quality to the genuine products(Matos, Ituassu, & Rossi,
2007)(Penz, Schlegelmilch, & Stottinger, "Voluntary Purchase of
Counterfeit Products: Empirical Evidence From Four Countries", 2009).

Table 2.2
Typical Prices for Original and Counterfeit Merchandise
Source: A. Adelson, Retail Facts, Retail Fiction, The New York Times (September 16,
1995)

Type of Merchandise

Original Price

Counterfeit Price

Rolex Watch

$4,000

$15-35

Louis Vuitton handbag

400

30-60

Chanel Scarf

300

10

Ray Ban sunglasses

70-200

Guess jeans

60

25

Polo Ralph Lauren pique


shirt
Warner Brothers Looney
Tunes tie
Nike Sports T-shirt

50

25

28

17

Dallas Cowboys cap

17

22

Jurassic Park home video

13

Table 1.2: Comparison of prices between counterfeits and Original


products
Personal Gratification Ang et al., 2001; Wang et al., 2005 described
personal gratification as the need for a sense of accomplishment,
social recognition, and the desire to enjoy the finer things in life(Phau
& Teah, 2009). There are conflicting results in this aspect in the
literature because Bloch et al. (1993) suggest consumer attitudes
toward counterfeits that consumers choosing a counterfeit see
themselves as less well off financially, less confident, less successful
and lower status than counterfeit non-buyers; on the other hand, result
found by Ang et al. (2001) showed no significant influence of personal
gratification on consumer attitudes toward counterfeits(Matos, Ituassu,
& Rossi, 2007).

2.44 Purchase Intention


A consumer buys a product when he feels that the product is fulfilling his
desired demands. According to the theory of planned behavior (TPB),
purchase behaviour is determined by the purchase intention, which is in turn
determined by attitudes as described by Fishbein and Ajzen, 1975.The more
favourable consumer attitudes towards counterfeiting are, the higher the
chances those consumers will purchase counterfeit brands. Similarly, the
more unfavourable consumer attitudes towards counterfeiting are,the less
likely are the chances of purchase. (Phau & Teah, 2009).

2.45 Perceived Risk in Buying Fake Products


Risk in buying counterfeits may encompass getting apprehended by
administration for purchasing phony products. Some purchasers of phony
goods may believe that such goods manage not injure the authentic
manufacturers, the commerce, and society at large. They may even believe
that the reduced charges of counterfeits make them inexpensive to those
who would else not be adept to enjoy the initial products. Social leverage
23

mentions to the consequences other ones have on consumer behaviour. This


can be informational where the attitudes of others considering certain goods
and services sway one's behaviour; or it can be normative where the
anticipations of other ones leverage one's behaviour. Thus, the consumer
sacrifices any implied or expressed product warranty, and the perceived risk
mitigation properties associated with the warranty (Olson, 1972;Bearden and
Shimp, 1982)(Ang, Cheng, Lim, & Tambyah, 2001).

2.46 Perceived Harms or Benefits to the Industry and Society


An individual can perceive harms or benefits in terms of industry and society.
One can perceive buying a counterfeit as harm, or he may think that
charging high prices make a distinction in classes and therefore it is not a
problem to buy counterfeits.

2.47 Previous Researches


In 1995 a research was conducted by Chow-Hou Wee, Soo-Jiuan Tan and
Kim-Hong Cheok(Wee, Tan, & Cheok, 1995) to study impact of non-price
determinants on the purchase intention of counterfeits. Eight possible nonprice

determinants

of

consumers

behavioural

intention

towards

the

purchase of counterfeit products were studied from which five were psycho
graphically-based, two were product-related, and one was demographic in
nature. Results showed that these determinants had an impact on consumer
purchase intention.Demographic variables; educational attainment and
household

income

are

more

common

variables

affecting

purchase

intention(Wee, Tan, & Cheok, 1995).

Most variables significantly affect attitudes (i.e. price-quality inference,


subjective norm, perceived risk, integrity, dummy and personal gratification)
towards counterfeits (Matos, Trindade, & Rossi, "Consumer attitudes toward
counterfeits: a review and extension", 2007) . In the same study it was found
that buyers showed more favorable attitude than the non-buyers. Another
24

study also concluded the same; Consumers who have bought pirated CDs
before had more favorable views about counterfeits than those who have
never bought such products (Ang, Cheng, Lim, & Tambyah, 2001). In the
same study social influences were also studied, that how they change
attitude of consumers. The influence of friends and family members is likely
to be more successful in changing the attitudes toward piracy(Ang, Cheng,
Lim, & Tambyah, 2001). Information susceptibility emerged to have a
significant negative relationship towards perceptions of counterfeits(Phau
& Teah, 2009).

Significantly consumers in Asia are more influenced to buy fake, because


there are no regulations and Governments are less interested in intellectual
property right laws. The more value-conscious one was, the more favorable
was one's attitude towards piracy(Ang, Cheng, Lim, & Tambyah, 2001).

Integrity i.e. if a person thinks he is lawful will show a negative attitude


towards counterfeits. Similar results were found in a study of Ang et al
(2001). It was also explained in article of Kim and Karpovas study done on
Consumer Attitude towards counterfeits(Kim & Karpova, 2010).

It has been concluded in different researches that if the attitudes are positive
toward fake products, the person is like to purchase the product and finally
he becomes unethical in his purchase decision.

CHAPTER 3: THEORETICAL FRAMEWORK


3.1 Variables
This study had three parts the first part involved to see the views of the
buyers and non-buyers with reference to attitude, next part involved

25

studying effect of personality factors and social influences on attitude and


finally the impact of attitude on the purchase intention.

3.11 Attitude
For studying attitude a 12 attitudinal scale was developed with the major
components:

Risk in buying
Trust in stores
Worthy Purchase
Fairness to designers and clothing industry
Morality of Buying
Beneficial to society
All Right to buy

Social Influences
Attitude
towards Piracy

Personality
Factors

26

Purchase
Intention

Figure 3.1: Variables of Research, Social Influences, Personality


factors, Attitude and Purchase Intention

3.12 Social Influences


These include two factors

Normative Susceptibility
Informative Susceptibility

3.13 Personality Factors


There are there components of personality factors

Value consciousness
27

Integrity
Personal Gratification

3.14 Purchase Intention


This is the dependent variable, on which attitude is affecting

3.15 Moderating Variable


Demographics were used as a moderating variable in the study.

3.2 Research Questions


These are the research questions to be studied:

3.21 Hypothesis 1
There are seven components of hypothesis 1, to study the views of buyers
and non-buyers towards the counterfeit products i.e. Designer Lawn

H1a: Buyers of counterfeits perceive purchase of such products to


be less risky.
H1b: Buyers of counterfeits perceive buying counterfeits as
worthy purchase.
H1c: Buyers perceive that they benefit society and help clothing
industry
H1d: Buyers perceive that it is fair to designers
H1e: Buyers do not perceive buying counterfeits as an immoral or
unethical activity
H1f: Buyers perceive that the stores selling counterfeit designer
lawn can be trusted.
H1 g: Buyers perceive that it is okay to buy counterfeit designer
lawn.

28

3.22 Hypothesis 2
Hypothesis 2 has six components to be studied; this involves personality
factors and social influences impact on attitude and finally impact of attitude
on the purchase intention.

H2a: The less the person is Normative Susceptible the more


positive attitude he has towards counterfeits.
H2b: The less the person is Informative Susceptible the more
positive attitude he has towards counterfeits.
H2c: Individuals who are more value consciousness, show
favourable attitude towards counterfeits.
H2d: Individuals who value integrity show negative attitude
towards counterfeits.
H2e: Individuals seeking personal gratification show negative
attitude towards counterfeits.
H2f: Individuals who have

favourable

attitude

counterfeits are more like to buy those products.

3.3 Conceptual Framework

29

towards

In

Figure3.2: Effect of Social Influences and Personality


factors on Attitude

this

model the variables can be seen .The model explains that Informative
Susceptibility, Normative Susceptibility, Value Consciousness, Integrity,
Personal gratification are independent variables on which attitude is
dependent. And then Purchase intention is dependent upon the attitude
towards piracy. It means that if the attitude is positive the person would be
more likely to buy the counterfeit.
30

Informative Susceptibility tend to have negative impact on attitude


towards piracy because friends and family members who are experts
and can tell about original products therefore they will have negative

views about fake products.


Similarly in case of normative susceptibility, if buying counterfeit
damages the image of buyer, the buyer will be resistant to buy. The
people who are normative susceptible wanted to look good and they
want to be accepted in their social circle. Therefore if its social circle is
reluctant and show negative attitude towards counterfeits then he will
never show favourable attitude because we want to be accepted in the
society. In such case the opinion leaders are important for the

consumer.
Value consciousness means that the person is paying lower prices
subject to quality constraints. When consumer will have price
advantage he will show favourable attitude and therefore will purchase

the product.
In case of integrity, where the person cares for lawfulness, honesty,
politeness, responsibility and self control he will show a negative
attitude counterfeits, the reason being he will feel that he is not being
honest while purchasing such products, he does not feel good about
destroying the industry, he will regard it as an irresponsible act and
finally will give importance to its central locus of self control which will

stop him to buy these products.


Finally if personal gratification will be higher i.e. the consumer wants
quality and do not want to forgo warranty, he will be willing to buy the
original product at high price because he will see that the product is
reliable.

3.4 Method
3.41 Population
The population of this study were the females of Karachi who buy Designer
Lawn and the population was heterogeneous. The purpose behind is to see
31

the demographic characteristics of the females who show more favourable


attitude towards counterfeits , in relation to education, income, professional
status, and age

3.42 Sample and Sampling Method

The sample size for my study was205above with three age groups,
starting from below 26 to above 40. However there was a limit placed
that is the age group was selected above 15 because children do not

have a say in buying the lawn products, their parents administer them.
Convenience sampling used as a sampling method for this study
because the research aims to study the demographics of the people

who show favourable attitude towards unethical purchases.


Finally there were 166 respondents who gave a feedback to this
research and the results were calculated from there.

3.43 Questionnaire

The Questionnaire consisted of six major parts;


Part I: Measured to overall purchase of counterfeits in Pakistan
Part II: Measured the attitude of the consumers towards piracy.
Part III: Measured purchase intention.
Part IV: Measure Informative and Normative Susceptibility.
Part V: Measured personality characteristics of value consciousness, integrity
and personal gratification.
Part VI: Measured respondent demographic characteristics

32

Attitude towards piracy:A 12 item strongly disagree (1) to strongly


agree (5) were used. These included risk involved in buying the counterfeit
lawn, trust in stores, morality in buying, fairness to designers, role in helping
the industry, benefits to society, enjoying the trends. Seven of the scores
were reverse scored, shown in the table 3.1.

Purchase intention: Four items, anchored not at all (1) to definitely


will, were asked. The included how likely they were to recommend their
friends and how likely they themselves were to buy the counterfeit designer
lawn.

Informative Susceptibility:(Bearden, Netemeyer, & Teel, 1989) scale


was used for this purpose.Strongly disagree (1) to strongly agree (5) the
scale was used. The statements included consulting others and getting
information from friends and family.

Normative Susceptibility: (Bearden, Netemeyer, & Teel, 1989) scale


was used. A 5 point scale was used from strongly disagree (1) to strongly
agree (5). The statements were used like making good impressions on
others and buying products that other like.

Value Consciousness: Five points scale was used from (Lichtenstein,


Netemeyer, & Burton, 1990). The statements included such as concerned
about price and quality, getting moneys worth and maximizing quality.

Integrity: To measure integrity the scale was taken from Ang et als study.
They were rated on 5 points scale from strongly disagree (1) to strongly
agree (5). The statements included politeness, honesty, responsibility and
self control.

33

Personal Gratification: To measure the scale was taken from Ang et als
study. It included having sense of accomplishment and was rated on 5 points
scale.

Demographic characteristics: Finally demographic characteristics were


used in questionnaire such as age, education, income, and professional
status. Information on whether they have bought any other counterfeit
products and designer lawn was asked from the respondents.

NOTES: The statements are shown in table 3.2 to prepare the


questionnaire.

Table 2.1: 12 Attitudinal items used to compare buyers and nonbuyers attitude
Buyers

NonBuyers

Views

3.43

2.97

3.12

2.63

3.26

2.97

Risk in buying counterfeit designer lawn


1. It is quite risky to buy counterfeit
designer lawn*
Trust in stores that sell counterfeit designer
lawn
2. I do not trust stores that sell counterfeit
designer lawn*
3. Stores that sell counterfeit designer
lawn are untrustworthy.*
Worthy Purchase
4. Pirated designer lawn is not worth
buying*
Fairness to designers and clothing industry
5. Pirated designer lawn is not fair to
designers because it robs them of their
royalties*
6. Counterfeit designer lawn help the
clothing industry
34

3.10

2.96

3.62

3.09

3.42

2.94

3.00

2.92

7. Pirated designer lawn help to make


designers more popular
Morality of Buying counterfeit designer lawn
8. People who buy counterfeit designer
lawn have no morals.*
9. Only unethical people buy counterfeit
designer lawn*
Beneficial to society
10.
Counterfeit designer lawn benefit
society
11.
Without counterfeit designer
lawn, many people will not be able to
enjoy trends
All Right to buy counterfeit designer lawn
12.
It is OK to buy counterfeit
designer lawn
Overall Attitude

Notes:
All differences between buyers and non-buyers of counterfeit designer
lawn were significant
*Reverse-scored items, the mean values have already been reversed
scored, for example a higher value means a more favorable attitude.

Table 3.2: Statements used to make Questionnaire

Statements
Informative Susceptibility
1. I often consult other people to help the best alternative available from
Pakistani Designer Lawn.
2. I frequently gather information from friends or family about Pakistani
Designer Lawn before I buy.
3. If I have little experience with Pakistani Designer Lawn, I often ask my
friends about it.
Normative Susceptibility
1. It is important that others like the Pakistani Designer Lawn I buy.
2. I like to know which Pakistani Designer Lawn make good impressions on
others.
Value Consciousness

35

1. I am very concerned about low prices, but I am equally concerned about


Pakistani Designer Lawns quality.
2. When purchasing Pakistani Designer Lawn, I always try to maximize the
quality I get for the money I spend.
3. When I buy Pakistani Designer Lawn, I like to be sure that I am getting my
moneys worth.
Integrity
1. I consider honesty as an important quality for ones character
2. I consider very important that people be polite.
3. I admire responsible people.
4. I like people that have self-control.
Personal Gratification
1. I always attempt to have a sense of accomplishment.
Purchase Intention
1. I will likely buy counterfeit designer lawn.
2. I will like recommend my friends to buy counterfeit designer lawn.

Demographics
Age

Below 26
26-40
Above
40Income
Family

Education
Below Rs.50,000
Rs.50,000-100,000
Below intermediate
Above 100,000
Intermediate-Bachelors
Above
Masters Status
Professional
Student
Housewife
36
Working
women
Figure3.3:
Showing
the demographics used in Questionnaire
Others

3.5 Procedure
Following steps were conducted for the purpose of research:
To study the factors a questionnaire was prepared.
Data was gathered with the help of questionnaire.
Then the data was recorded properly so that it can be studied.
This data was then analysed using different tests.
Hypothesis for the research was accepted or rejected.
Conclusion of the study was provided.

3.6 Software Employed


The software used was SPSS in order to make the research more reliable.

3.7 Plan Of Analysis


Following tests were used

Chi square test


Multiple regression test
Cronbach alpha
Correlation

CHAPTER 4: FINDINGS
4.1 Results
Part 1: Analyzing the overall purchase of counterfeit
products and with respect to buyers and non-buyers
37

The first research objective was to find out the products bought as
counterfeits in Pakistan, and overall response rates of the people who buy
counterfeit lawn. Then it was seen that the buyers of counterfeit lawn and
the non-buyers have any difference in buying the other counterfeit products.
The results are discussed below in detail.

Products that are normally purchased as counterfeit products:


Consumers were asked to tick on the products which they buy as
counterfeits. For finding out the highest purchase of counterfeit products
frequencies were taken out. From those frequencies a table has been
generated below. From this table it can be interpreted that consumers buy all
the things as counterfeits, which were provided in the questionnaire. The
exact responses are shown in the table4.1.
Most of the consumers bought Text books as counterfeit products the reason
being that the majority of questionnaires were filled by the age group less
than twenty six who had education of intermediate or bachelors and were
primarily students (refer table 4.3,4.4,4.5,4.6).

NOTE: Table4.1 and 4.2 has been generated from appendix 1


(Frequencies)

Table 4.1: Frequency of Counterfeit products bought in Pakistan

Counterfeit
s

Yes

No

Yes (%)

No (%)

Text Books
Music CDs

99
81

67
85

59.6
48.8

40.4
51.2

38

Clothes
Film CDs
Stationery
Designer Lawn
Other Books
Jewelry
Watches
Shoes
Mobile Phones
Food
Toys
Cosmetics
Perfumes
Spectacles
Home

80
74
71
69
67
65
59
57
55
48
48
47
45
45
34

86
92
95
97
99
101
107
109
111
118
118
119
121
121
131

48.2
44.6
42.8
41.6
40.4
39.2
35.5
34.3
33.1
28.9
28.9
28.3
27.1
27.1
20.5

51.8
55.4
57.2
58.4
59.6
60.8
64.5
65.7
66.9
71.7
71.7
71.1
72.9
72.9
78.9

Appliances
Ties

24

142

14.5

85.5

100%
90%
80%
70%
60%
50%
40%

No (%)

30%

Yes (%)

20%
10%
0%

Figure 4.1:Frequency of Counterfeit Products

Then the consumers were more involved in buying the Music CDs with 48.8%
response rate. Designer Lawn had a response rate of 41.6% where clothes
39

had a slightly high response i.e. 48.2%.The lowest purchases were of Home
Appliances and Ties, the reason can be that Home Appliances are high
involvement products where the reason for the lowest purchase of Ties can
be that the respondents were female and in cultural perspective females do
not wear ties.

Differences in buying Behavior of Buyers and Non-Buyers of


Designer Lawn
From this table we analyze that the non-buyers of counterfeit designer lawns
buy less counterfeit products than the buyers of counterfeit designer lawns.
The non-buyers buy Text books (61.9%) and Music CDs (42.3%) mostly as
counterfeit products. On the other hand the buyers are heavy users of
counterfeit designer lawns and clothes (75.4%).
If we compare the percentages the Non-Buyers has low response on all
categories except Text Books, they buy more Text books than the buyers.
From the graph we can see that Buyers of Designer Lawn also purchase
Cosmetics, Clothes and Music CDs in huge quantities and they are more
exposed to other counterfeit products.
Table 4.2: Difference of Responses of buyers and non-buyers
purchase of counterfeit products

Non-Buyers
Counterfeits Yes (%)

Buyers
Yes (%)

Text Books
Music CDs
Clothes
Film CDs
Stationery
Designer Lawn
Other Books
Jewelry
Watches
Shoes
Mobile Phones
Food

56.5
58
75.4
50.7
49.3
100
50.7
55.1
50.7
56.5
49.3
37.7

61.9
42.3
28.9
40.2
38.1
0
33
27.8
24.7
18.6
21.6
22.7
40

Toys
Cosmetics
Perfumes
Spectacles
Home
Appliances
Ties

20.6
16.5
16.5
21.6
17.5

40.6
75.4
42
34.8
26.1

7.2

24.6

Buyers
120
100
80
60

Yes (%)

40
20
0

Figure 4.2: Frequency of Counterfeits purchased by buyers of


designer lawn
Whereas the non-buyers more likely buy the Text Books, Music CDs, Film CDs,
Stationery etc.

41

Non-Buyers
70
60
50
40
Yes (%)

30
20
10
0

Figure 4.3: Frequency of counterfeits purchased by non-buyers of


counterfeit lawn

Part2: Analyzing the Difference in views of Buyers and NonBuyers


The second objective of the study was to see difference in the views of
buyers and non-buyers of counterfeit designer lawn with the help of 12
attitudinal scales.The results are shown below.

Demographics
For finding out the demographics chi-square method was used to see the
overall respondents age, professional status, income and education.
Table 4.3: Age of Respondents
Lawn * Age Crosstabulation
Age
0
Lawn

Total

<26

Total
26-40

>40

No

Count

60

20

16

97

Yes

Count

39

14

14

69

Count

99

34

30

166

42

From this table we see that the majority respondents were below the age of
26 while age group 26-40 are 34 and above 40 are only 30. Here the 0
represents the missing values as some of the respondents did not specify
their age and the total missing numbers were 3.
Below age 26 age group buyers of counterfeit were 39 while the non-buyers
were 60 in number, for the age group 26-40 the buyers were 14 and nonbuyers were 20 and finally above 40 buyers were 14 and the non-buyers
were 16.
Table 4.4: Education of Respondents
Lawn * Education Crosstabulation
Education
0

Lawn

Total

Below

Intermediate or

Intermediate

Bachelors

Above Masters

No

Count

20

58

16

97

Yes

Count

12

32

17

69

Count

11

32

90

33

166

Total

In the section of education the majority respondents were Intermediate or


bachelors, below intermediate and above masters were more or less equal,
in income section the highest number of respondents were with an income of
above 100,000 and finally in the section of professional status majority of
respondents were students and on second number working women.
Table 4.5: Income of Respondents
Lawn * Income Crosstabulation
Income
0

Lawn

<Rs.50,000

Total

50,000-100,000

<100,000

No

Count

26

26

38

97

Yes

Count

25

19

22

69

43

Total

Count

10

51

45

60

166

Table 4.6: Professional Status of Respondents


Lawn * Professional Status Crosstabulation
Status
0

Student

House Wife

Total
Working

Other

women
Lawn

Total

No

Count

52

18

23

97

Yes

Count

33

19

12

69

Count

85

37

35

166

Views on the basis of 12 attitudinal Statements:


For finding out the difference in views the means and t values are calculated
of the buyers and the non-buyers and then compared.The consumers who
bought counterfeits had more favorable attitude towards the purchase of
such products with a mean of 3.00 vs. 2.98 that of the non-buyers.

The buyers did not perceive counterfeits as risky(x = 3.43 vs. 2.97;

t=22.75, p<0.05)
The buyers trusted the stores more (x= 3.12 vs.2.63; t=24.59,p<0.05)
The buyers felt that the counterfeits were worth buying(x=3.26 vs.

2.97; t=23.376,p<0.05)
The buyers felt that it was fair to designers and the clothing

industry(x=3.10 vs.2.96 ;t=68.54p<0.05)


The buyers did not feel it immoral or unethical(x=3.5 vs. 3.4;t=26.27

p<0.05)
The buyers

believed

that

they

vs.3.09;t=34.35,p<0.05)

44

benefited

the

society(3.62

Finally

the

buyers

felt

all

right

to

buy

counterfeits(x=3.42

vs.2.94;t=24.061,p,0.05)
On the basis of these results we come to know that there is a prominent
difference between the views of buyers and the non-buyers of counterfeit
designer lawn, the higher score of buyers show a more favorable attitude
towards the counterfeits. All the 12 attitudinal scale scores of buyers and the
non-buyers have a significant difference.

45

Table 4.7: One Sample Test for non-buyers

One-Sample Test

Test Value = 0

95% Confidence Interval of the


Difference

Df

Sig. (2-tailed)

Mean Difference

Lower

Upper

Risk in Buying

22.253

94

.000

2.96842

2.7036

3.2333

Trust in Stores

20.400

95

.000

2.62500

2.3695

2.8805

Worthy Purchase

21.571

95

.000

2.97917

2.7050

3.2533

Fairness

74.021

94

.000

2.96491

2.8854

3.0444

Beneficial to society

27.664

96

.000

3.08763

2.8661

3.3092

Morality

33.808

93

.000

3.40426

3.2043

3.6042

All Right

22.727

96

.000

2.93814

2.6815

3.1948

Attitude

44.639

96

.000

2.98478

2.8521

3.1175

46

Table 4.8: One sample Test for buyers

One-Sample Test

Test Value = 0

95% Confidence Interval of the


Difference

Df

Sig. (2-tailed)

Mean Difference

Lower

Upper

Risk in Buying

22.750

68

.000

3.43478

3.1335

3.7361

Trust in Stores

24.588

68

.000

3.12319

2.8697

3.3767

Worthy Purchase

23.376

68

.000

3.26087

2.9825

3.5392

Fairness

68.537

68

.000

3.09662

3.0065

3.1868

Beneficial to society

34.350

68

.000

3.62319

3.4127

3.8337

Morality

26.269

66

.000

3.50000

3.2340

3.7660

All Right to buy

24.061

68

.000

3.42029

3.1366

3.7039

Attitude

42.040

68

.000

3.00035

2.8579

3.1428

47

Part3: Analyzing Attitude towards piracy and purchase


intention
The third and final objective was to see affect of social influences and
personality factors on attitude. In addition to that finding impact of
demographics on attitude and finally analyzing the impact of attitude on
purchase intention.

Affect

of

Social

influences,

personality

factors

and

demographics on attitude
For finding out the impact correlation and regression was used. Two multiple
regression tests were performed, first involved predicting attitudes towards
piracy based on social influences, and personality and demographic
characteristics. The second regressed the effect of attitude on purchase
intention. The tables show the regression(table 4.10 and 4.11) and
correlation results (table 4.9). The correlation table shows a significant
relationship between the independent variables i.e. normative susceptibility,
informative susceptibility, personal gratification, value consciousness and
integrity, attitude and purchase intention

Table 4.9: Correlation

48

Correlations

Value

Informativ Normativ Integrit

Consciousness

Value

Pearson

Consciousness

Correlatio

Self

Attitud

Purchase

Gratification

Intention

.395**

.506**

.476**

.326**

.462**

.101

.000

.000

.000

.000

.000

.196

165

165

165

165

165

165

165

.395**

.429**

.253**

.180*

.347**

.209**

.000

.001

.020

.000

.007

Sig. (2tailed)

Informative

Pearson
Correlatio
n

Sig. (2tailed)

Normative

.000

165

166

166

166

166

166

166

.506**

.429**

.365**

.332**

.399**

.117

.000

.000

.000

.000

.000

.134

165

166

166

166

166

166

Pearson
Correlatio
n

Sig. (2tailed)

49

166

Correlations

Value

Informativ Normativ Integrit

Consciousness

Value

Pearson

Consciousness

Correlatio

Self

Attitud

Purchase

Gratification

Intention

.395**

.506**

.476**

.326**

.462**

.101

.000

.000

.000

.000

.000

.196

165

165

165

165

165

165

165

.395**

.429**

.253**

.180*

.347**

.209**

.000

.001

.020

.000

.007

Sig. (2tailed)

Informative

Pearson
Correlatio
n

Sig. (2tailed)

Normative

.000

165

166

166

166

166

166

166

.506**

.429**

.365**

.332**

.399**

.117

.000

.000

.000

.000

.000

.134

165

166

166

166

166

166

Pearson
Correlatio
n

Sig. (2tailed)

50

166

From the regression results it was seen that two factors influencing attitude were significant
(F=8.96, p<0.05 with adjusted R square change 0.343). Attitude was positively influenced by
Value Consciousness and Integrity; while there was no significant negative impact seen on
attitude. There was no significant effect of normative, informative, personal gratification and
demographics on attitude.
Further there was no significant effect of attitude on purchase intention .Even
the person who is showing a negative attitude can also like purchase the
counterfeit products and recommend it to his friends.
Value Consciousness and Integrity have both positive effects this means that
the more the person is value consciousness and has integrity he has more
favorable attitude toward the purchase of counterfeits.

51

Table 4.10: Regression for dependent variable attitude

Model Summary

Change Statistics

R Square
Sig. F Change

000.

df2

df1

155

F Change

Change

343a.

8.976

Model

a. Predictors: (Constant), Status, Normative, Income, Self Gratification, Education,


Informative, Age, Value Consciousness, Integrity

52

Coefficientsa

Standardized
Un-standardized Coefficients

Model

Std. Error

(Constant)

1.531

.236

Informative

.083

.049

Normative

.070

Integrity

Coefficients

Beta

Sig.

6.473

.000

.127

1.704

.090

.044

.130

1.602

.111

.126

.059

.230

2.141

.034

Self Gratification

.011

.052

.021

.207

.836

Value Consciousness

.141

.051

.237

2.755

.007

Age

.017

.060

.022

.280

.780

-.099

.054

-.132

-1.834

.069

Income

.057

.044

.091

1.304

.194

Status

-.021

.054

-.030

-.379

.705

Education

a. Dependent Variable: Attitude

53

Table 4.11: Regression results for purchase intention

Model Summary

Change Statistics

R Square
Sig. F Change

353.

df2

df1

164

F Change

Change

005a.

866.

Model

a. Predictors: (Constant), Attitude

54

Coefficientsa

Standardized
Un-standardized Coefficients

Model

(Constant)

Attitude

Coefficients

Std. Error

2.389

.458

.139

.149

Beta

.072

Sig.

5.211

.000

.931

.353

a. Dependent Variable: Purchase Intention

4.2 Comparison with Hypothesis


Now these all results are discussed properly in terms of hypothesis

Hypothesis 1
H1a: Buyers of counterfeits perceive purchase of such products to be less
risky.
This hypothesis has been accepted because the mean of buyers is greater
than the non-buyers and they perceive purchase of such products to be less
risky therefore their attitude is more positive towards counterfeit designer
lawn.
H1b: Buyers of counterfeits perceive buying counterfeits as worthy purchase.
This hypothesis has also been accepted, because here the mean also is
higher from non-buyers and they account it as worthy purchase.

55

H1c: Buyers perceive that they benefit society and help clothing industry
Buyers also think that they also benefit society and they also help clothing
industry because they feel that the designers become more popular when
counterfeit designer lawn are purchased and even the clothing industries
have a benefit of bringing in new types of products and there is huge
competition among the companies. This hypothesis have also been accepted
H1d: Buyers perceive that it is fair to designers
Relative to the non-buyers the buyers perceive that it is fair to designers
when they buy counterfeit designer lawns because they are the ones who
bring in new trends and then charge very high prices which are not
affordable by everyone. Therefore they count it as an appropriate behaviour.
This hypothesis has also been accepted.
H1e: Buyers do not perceive buying counterfeits as an immoral or unethical
activity
This hypothesis has been accepted, consumers do not find these products to
be immoral and unethical therefore they frequently purchase these products.
They tend to have a positive response towards the counterfeits.
H1f: Buyers perceive that the stores selling counterfeit designer lawn can be
trusted.
Since, the buyers do not find it risk, unethical and immoral therefore they
also trust the stores which sell these products. Therefore this hypothesis has
also been accepted.
H1 g: Buyers perceive that it is okay to buy counterfeit designer lawn.
This is an important statement which actually explains the favourable
attitude towards the counterfeit purchases. The buyers of counterfeit
actually feel that this is okay to buy the counterfeits because they do not
56

find any harm in doing that. Rather they feel that they are benefiting
everyone and further punishing the designers for charging high prices. And
overall without these counterfeits they would not have been able to enjoy
the new trends and designs. This hypothesis has also been approved.

Conclusion
Components of hypothesis1 are all accepted and there is a significant
difference in views of buyers and non-buyers of the counterfeit
designer lawn.

Hypothesis 2
Hypothesis 2 has six components to be studied; this involves personality
factors and social influences impact on attitude and finally impact of attitude
on the purchase intention.
H2a: The less the person is Normative Susceptible the more positive attitude
he has towards counterfeits.
There was no significant relationship between normative susceptibility and
attitude, this hypothesis has been rejected.
H2b: The less the person is Informative Susceptible the more positive
attitude he has towards counterfeits.
There was no significant relationship between informative susceptibility and
attitude therefore this hypothesis has also been rejected.
H2c: Individuals who are more value consciousness, show favourable attitude
towards counterfeits.

57

This hypothesis has been accepted, the people who are more value
consciousness they have a positive attitude towards the counterfeits. The
significant value is 0.007; t=2.755, B=0.237 p<0.05.
H2d: Individuals who value integrity show negative attitude towards
counterfeits.
This hypothesis has been rejected, in Pakistan people who value honesty,
politeness, responsibility and self control has a more favourable attitude
towards the counterfeit designer lawn. However it is very surprising that
integrity have a positive impact rather than a negative impact. The
significant value then is 0.034; t=2.141, B=0.230 p<0.05.

H2 e: Individuals seeking personal gratification show negative attitude


towards counterfeits.
There was no significant relationship this hypothesis has been rejected.
H2 f: Individuals who have favourable attitude towards counterfeits are more
like to buy those products.
This hypothesis has been rejected; this statement is not true that people who
show favourable attitude are more likely to buy the counterfeit products.
Here in Pakistan even the people who show negative attitude also show the
desire to buy counterfeit designer lawn.

Conclusion
The social influences do not have any impact on the attitude
The personality factors, value consciousness and integrity have a
positive impact on attitude.
Attitude does not have any significant impact on the purchase
intention.
58

CHAPTER 5:DISCUSSION
5.1 Discussion of Research Findings
There are interesting significant attitudinal differences of buyers and nonbuyers. The buyers and the non-buyers are different in their views; the
buyers show a favorable attitude towards the counterfeits and therefore are
not hesitant to buy the products. However it should be noted that the people
who do not buy counterfeit lawn do buy other counterfeit products. They are
heavy users of Counterfeited text books, Music CDs and Film CDs. This then
implies that the overall females of Pakistan are exposed to the counterfeited
products and they do not find any harm in buying such products since the all
mean scores range between 2.5 and 3. That means that the attitude is not
that much unfavorable this actually shows that the females of Pakistan
acknowledge buying counterfeit products. The problem of not buying
counterfeit products is that they have inferior quality but however in buying
counterfeit lawn there is no such issue.
One more important thing which must be noted here is that the mean of
morality for buyers is 3.5 and for non-buyers is 3.4, that means both have
them do not think that buying counterfeit is immoral or unethical. This
highlights an important aspect that why there are so many counterfeit
products available in the Pakistani markets and is hard to stop these
transactions. However, it does not only harm international markets but are
also harmful for the industries in Pakistan. The products which are of high
quality and are branded suffer a lot. In the context of the local market the
designer lawn market is boosting however if this thing is does not stopped
the companies will suffer.
The non-buyers overall do not find any risk in buying counterfeit products
since the mean is 2.97 of these consumers and they also think it is a worthy
purchase with the same mean score 2.97. Which is somewhat a neutral
score; therefore we can say that they are also exposed to buying counterfeit
59

products. The regression test between attitude and purchase intention was
therefore not significant because the non-buyers have the tendency to buy
these products and recommend them to their friends even though they
havent purchased them yet.
These findings also explain the Asian philosophy of sharing that means that
without buying counterfeits nobody will be able to enjoy new trends and also
they are benefiting the society as a whole. The non-buyers had here a mean
score of 3.09, that means that the also thought that copied designs of lawn
benefit society and help the clothing industry.
Overall this can also be evidenced that the non-buyers also think that the
designers are unfair by charging higher prices and it is best way to take the
revenge from them and on other hand they also think that they are getting
popularity , then they imply that both the designers and the society is
getting benefit at the same time. Further it is also a benefit for the clothing
industry because the buyers are frequently purchasing the products in their
daily routines. One more aspect which can be a sense of patriotism in the
Pakistani consumers i.e. they buy counterfeits because they are helping the
local markets and the businesses which cannot compete internationally. The
products which are imported are highly expensive and when the counterfeit
books or other things are available at lower prices that mean that a new
industry has been developed and the local businesses take the advantage.
Most importantly there is a very less difference between the attitudes of
buyers and the non-buyers i.e. the mean score of non-buyers is 2.98 and of
buyers is 3.00. This shows that it is very difficult to handle the counterfeiting
business Asian markets and it has become a disease, while people do not
accept the reality that they are harmful to the businesses.
What can be done about these all issues is still hard because of the matter of
the fact that people do not understand that they are unethical in their
decision making. This is the point where relevant awareness must be created
60

and the message must be properly conveyed because the branded products
do charge very high prices. The overall perception of the females of Pakistan
has to be changed so that they do not buy and promote the manufacture of
counterfeit designer lawn.
There was no significant affect of social influences on the counterfeit
purchases. People who are normative susceptible or informative susceptible
there is no significant effect on their attitude towards buying the counterfeit
products. This can be because the females of Pakistan do not regard and
give any significant importance to buying counterfeits. Females are not
reluctant to ask about the alternatives in the market and they do not want to
make good impressions or anything like that infront of their colleagues and
friends. There is no harm in buying products and they are involved in their
daily routine therefore they do not give attention to these things.
Further if we talk about the personality factors, there are two dominant
features which have significant effect on attitude i.e. value consciousness
and integrity. First talking about value consciousness we come to know that
the more the person seeks value for money and maximizing the quality he is
more involved in buying the counterfeit products as a whole therefore the
manufacturers and designers can bring in those products through which the
consumers do not buy counterfeit products and also enjoy the new trends in
the market.
A shocking thing was that integrity, i.e. lawfulness does not bring in a
negative attitude towards the counterfeit products. Even the females who
value honesty, politeness, self control and responsibility have a positive
attitude towards the copied products because they do not find it unlawful to
buy these products. The females feel overall that it is okay to buy such
products and do not have any link with lawfulness. Then it is important for
the females to create awareness that it is not lawful to buy products like this.
This explains the overall culture of Pakistani culture that there are no tight
61

laws and therefore being lawful does not make any difference on the
attitudes.
Finally the personal gratification also does not have impact on attitude this
means that females of Pakistan do not gratify the sense of accomplishment;
they can forgo quality on the lower prices of products. The reason can be the
high inflation in the country; people do not want to buy high priced branded
products because they have to buy their necessities. However, they want to
enjoy the new trends and clothing styles which can be easily done by buying
counterfeit designer lawns.

Limitations Of Research 5.2


First of all the major two limitations in conducting this research are that it is
limited to only one city i.e. Karachi and secondly there was a time constraint.
This research has to be conducted within a period of 6 months. Secondly a
sample size of 205 respondents does not represent the whole population of
the consumers of counterfeit designer lawn. Therefore the final results can
be change from the attitudes of whole population. Further these results
cannot be generalized due to convenience sampling.
Understanding the need of doing such research it is important to extend this
study nationwide and present the overall picture. It is recommended that in
future a more detailed study is done in order to understand that why the
business of counterfeits have become a big issue internationally.

Implications Of Research 5.3


Interestingly, the companies are facing big losses due to the purchase of fake
products. China has changed the dynamics of doing the business. People in
Pakistan, now are more exposed to such products since these products are
easily available everywhere. It carries huge importance for the managers to
understand that which type of consumers are more willing to buy such
products and what is the overall attitude of the population towards it.
62

This will help the managers to understand the consumer behaviour, so they
can convince their consumers that buying fake products is illegal and harm
to the society. Managers can also make strategies that how they can
encourage the consumers to buy original products. Different segments can
have different attitude towards piracy and therefore Managers can also make
strategies accordingly and target them in better way.
The matter of fact now is that consumer is everything for a business and
therefore the companies must try to educate them so they show positive
attitude toward buying original products. It should not be neglected that the
companies charge high prices for branded products therefore the consumers
are always complaining, they also have to follow the trends and gain
acceptance in society. This is the main reason they are motivated towards
fake, as soon as this phenomenon is understood the companies will realize
"Why counterfeiting has become big business?"
So the question really arises what can be really done about these losses, one
thing is evident that there is a gap between which is being filled by the
counterfeit products. Why not original, why counterfeits the answer is
simple because people cannot afford to buy the products. In Pakistan there
are a very small chunk of people who can afford the designer lawns such as
Asim Jofa , Maria B etc because of the high prices but wearing them is a
symbol of status and a symbol of fashion therefore people buy the
counterfeits regardless of the quality issues they may face. So there is a gap
which can be filled with other products, which are fashion oriented but of
lower prices and further are a symbol of fashion. So this study is actually
useful for the designers and as well as the managers who are handling these
all things, until now the designers have not realized the losses which they
are having from the manufacturing of the counterfeits of the designer lawn.

63

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66

Appendix I
(Frequencies)

Frequencies of Buying Counterfeit Products by the non-buyers of


Counterfeit of Lawns

Text Books
Cumulative
Percent

Valid Percent

Percent

Frequency

38.1

38.1

38.1

37

No

100.0

61.9

61.9

60

Yes

100.0

100.0

97

Total

Valid

Other books
Cumulative
Percent

Valid Percent

Percent

Frequency

67.0

67.0

67.0

65

No

100.0

33.0

33.0

32

Yes

100.0

100.0

97

Total

Valid

Cosmetics
Cumulative
Percent

Valid Percent

Percent

Frequency

83.5

83.5

83.5

81

No

100.0

16.5

16.5

16

Yes

100.0

100.0

97

Total

Valid

Perfumes
Cumulative
Percent

Valid Percent

Percent

Frequency

83.5

83.5

83.5

81

No

100.0

16.5

16.5

16

Yes

100.0

100.0

97

Total

Valid

Toys

Cumulative
Percent

Valid Percent

Percent

Frequency

79.4

79.4

79.4

77

No

100.0

20.6

20.6

20

Yes

100.0

100.0

97

Total

Valid

Clothes
Cumulative
Frequency
Valid

Percent

Valid Percent

Percent

No

69

71.1

71.1

71.1

Yes

28

28.9

28.9

100.0

Total

97

100.0

100.0

Jewelry
Cumulative
Percent

Valid Percent

Percent

Frequency

72.2

72.2

72.2

70

No

100.0

27.8

27.8

27

Yes

100.0

100.0

97

Total

Valid

Spectacles
Cumulative
Percent

Valid Percent

Percent

Frequency

78.4

78.4

78.4

76

No

100.0

21.6

21.6

21

Yes

100.0

100.0

97

Total

Valid

Stationery
Cumulative
Percent

Valid Percent

Percent

Frequency

61.9

61.9

61.9

60

No

100.0

38.1

38.1

37

Yes

100.0

100.0

97

Total

Valid

Appliances
Cumulative
Percent

Valid Percent

Percent

Frequency

82.5

82.5

82.5

80

No

100.0

17.5

17.5

17

Yes

100.0

100.0

97

Total

Valid

Watches
Cumulative
Percent

Valid Percent

Percent

Frequency

75.3

75.3

75.3

73

No

100.0

24.7

24.7

24

Yes

100.0

100.0

97

Total

Valid

Ties
Cumulative
Percent

Valid Percent

Percent

Frequency

92.8

92.8

92.8

90

No

100.0

7.2

7.2

Yes

100.0

100.0

97

Total

Valid

Lawn

Cumulative
Percent
100.0

Valid Percent
100.0

Percent
100.0

Frequency
97

No

Valid

Food
Cumulative
Percent

Valid Percent

Percent

Frequency

77.3

77.3

77.3

75

No

100.0

22.7

22.7

22

Yes

100.0

100.0

97

Total

Valid

Music CDs
Cumulative
Percent

Valid Percent

Percent

Frequency

57.7

57.7

57.7

56

No

100.0

42.3

42.3

41

Yes

100.0

100.0

97

Total

Valid

Shoes
Cumulative
Percent

Valid Percent

Percent

Frequency

81.4

81.4

81.4

79

No

100.0

18.6

18.6

18

Yes

100.0

100.0

97

Total

Valid

Film CDs
Cumulative
Percent

Valid Percent

Percent

Frequency

59.8

59.8

59.8

58

No

100.0

40.2

40.2

39

Yes

100.0

100.0

97

Total

Valid

Mobile Phones
Cumulative
Percent

Valid Percent

Percent

Frequency

78.4

78.4

78.4

76

No

100.0

21.6

21.6

21

Yes

100.0

100.0

97

Total

Valid

Frequencies of Buying Counterfeit Products by the Buyers of Counterfeit of


Lawns
Frequency Table
Text Books
Cumulative
Percent

Valid Percent

Percent

Frequency

43.5

43.5

43.5

30

No

100.0

56.5

56.5

39

Yes

100.0

100.0

69

Total

Valid

Other Books
Cumulative
Percent

Valid Percent

Percent

Frequency

49.3

49.3

49.3

34

No

100.0

50.7

50.7

35

Yes

100.0

100.0

69

Total

Valid

Cosmetics
Cumulative
Percent

Valid Percent

Percent

Frequency

55.1

55.1

55.1

38

No

100.0

44.9

44.9

31

Yes

100.0

100.0

69

Total

Valid

Perfumes
Cumulative
Percent

Valid Percent

Percent

Frequency

58.0

58.0

58.0

40

No

100.0

42.0

42.0

29

Yes

100.0

100.0

69

Total

Valid

Toys
Cumulative
Percent

Valid Percent

Percent

Frequency

59.4

59.4

59.4

41

No

100.0

40.6

40.6

28

Yes

100.0

100.0

69

Total

Valid

Stationery
Cumulative
Percent

Valid Percent

Percent

Frequency

50.7

50.7

50.7

35

No

100.0

49.3

49.3

34

Yes

100.0

100.0

69

Total

Valid

Clothes
Cumulative
Percent

Valid Percent

Percent

Frequency

24.6

24.6

24.6

17

No

100.0

75.4

75.4

52

Yes

100.0

100.0

69

Total

Valid

Jewelry
Cumulative
Percent

Valid Percent

Percent

Frequency

44.9

44.9

44.9

31

No

100.0

55.1

55.1

38

Yes

100.0

100.0

69

Total

Valid

Spectacles
Cumulative
Percent

Valid Percent

Percent

Frequency

65.2

65.2

65.2

45

No

100.0

34.8

34.8

24

Yes

100.0

100.0

69

Total

Valid

Appliances
Cumulative
Percent

Valid Percent

Percent

Frequency

73.9

73.9

73.9

51

No

100.0

26.1

26.1

18

Yes

100.0

100.0

69

Total

Valid

Watches
Cumulative
Percent

Valid Percent

Percent

Frequency

49.3

49.3

49.3

34

No

100.0

50.7

50.7

35

Yes

100.0

100.0

69

Total

Valid

Ties
Cumulative
Percent

Valid Percent

Percent

Frequency

75.4

75.4

75.4

52

No

100.0

24.6

24.6

17

Yes

100.0

100.0

69

Total

Valid

Lawn
Cumulative
Percent
100.0

Valid Percent
100.0

Percent
100.0

Frequency
69

Yes

Valid

Food
Cumulative
Percent

Valid Percent

Percent

Frequency

62.3

62.3

62.3

43

No

100.0

37.7

37.7

26

Yes

100.0

100.0

69

Total

Valid

Music CDs
Cumulative
Percent

Valid Percent

Percent

Frequency

42.0

42.0

42.0

29

No

100.0

58.0

58.0

40

Yes

100.0

100.0

69

Total

Valid

Shoes
Cumulative
Percent

Valid Percent

Percent

Frequency

43.5

43.5

43.5

30

No

100.0

56.5

56.5

39

Yes

100.0

100.0

69

Total

Valid

Film CDs
Cumulative
Percent

Valid Percent

Percent

Frequency

49.3

49.3

49.3

34

No

100.0

50.7

50.7

35

Yes

100.0

100.0

69

Total

Valid

Mobile Phones
Cumulative
Percent

Valid Percent

Percent

Frequency

50.7

50.7

50.7

35

No

100.0

49.3

49.3

34

Yes

100.0

100.0

69

Total

Valid

Overall Frequency Buyers and Non-Buyers


Text Books
Cumulative
Percent

Valid Percent

Percent

Frequency

40.4

40.4

40.4

67

No

100.0

59.6

59.6

99

Yes

100.0

100.0

166

Total

Valid

Other Books
Cumulative
Percent

Valid Percent

Percent

Frequency

59.6

59.6

59.6

99

No

100.0

40.4

40.4

67

Yes

100.0

100.0

166

Total

Valid

Cosmetics
Cumulative
Percent

Valid Percent

Percent

Frequency

71.7

71.7

71.7

119

No

100.0

28.3

28.3

47

Yes

100.0

100.0

166

Total

Valid

Perfumes
Cumulative
Percent

Valid Percent

Percent

Frequency

72.9

72.9

72.9

121

No

100.0

27.1

27.1

45

Yes

100.0

100.0

166

Total

Valid

Toys
Cumulative
Percent

Valid Percent

Percent

Frequency

71.1

71.1

71.1

118

No

100.0

28.9

28.9

48

Yes

100.0

100.0

166

Total

Valid

Stationery
Cumulative
Percent

Valid Percent

Percent

Frequency

57.2

57.2

57.2

95

No

100.0

42.8

42.8

71

Yes

100.0

100.0

166

Total

Valid

Clothes
Cumulative
Percent

Valid Percent

Percent

Frequency

51.8

51.8

51.8

86

No

100.0

48.2

48.2

80

Yes

100.0

100.0

166

Total

Valid

Jewelry
Cumulative
Percent

Valid Percent

Percent

Frequency

60.8

60.8

60.8

101

No

100.0

39.2

39.2

65

Yes

100.0

100.0

166

Total

Valid

Spectacles
Cumulative
Frequency
Valid

Percent

Valid Percent

Percent

No

121

72.9

72.9

72.9

Yes

45

27.1

27.1

100.0

Total

166

100.0

100.0

Appliances
Cumulative
Percent

Valid Percent

Percent

Frequency

78.9

78.9

78.9

131

No

99.4

20.5

20.5

34

Yes

100.0

6.

6.

10

100.0

100.0

166

Total

Valid

Watches
Cumulative
Percent

Valid Percent

Percent

Frequency

64.5

64.5

64.5

107

No

100.0

35.5

35.5

59

Yes

100.0

100.0

166

Total

Valid

Ties
Cumulative
Percent

Valid Percent

Percent

Frequency

85.5

85.5

85.5

142

No

100.0

14.5

14.5

24

Yes

100.0

100.0

166

Total

Valid

Lawn
Cumulative
Percent

Valid Percent

Percent

Frequency

58.4

58.4

58.4

97

No

100.0

41.6

41.6

69

Yes

100.0

100.0

166

Total

Valid

Food
Cumulative
Percent

Valid Percent

Percent

Frequency

71.1

71.1

71.1

118

No

100.0

28.9

28.9

48

Yes

100.0

100.0

166

Total

Valid

Music CDs
Cumulative
Percent

Valid Percent

Percent

Frequency

51.2

51.2

51.2

85

No

100.0

48.8

48.8

81

Yes

100.0

100.0

166

Total

Valid

Shoes
Cumulative
Percent

Valid Percent

Percent

Frequency

65.7

65.7

65.7

109

No

100.0

34.3

34.3

57

Yes

100.0

100.0

166

Total

Valid

Film CDs
Cumulative
Percent

Valid Percent

Percent

Frequency

55.4

55.4

55.4

92

No

100.0

44.6

44.6

74

Yes

100.0

100.0

166

Total

Valid

Mobile Phones
Cumulative
Percent

Valid Percent

Percent

Frequency

66.9

66.9

66.9

111

No

100.0

33.1

33.1

55

Yes

100.0

100.0

166

Total

Valid

Appendix II
(Reliability Analysis)

Cronbach Alpha

Normative
Reliability Statistics
Value Consciousness

ReliabilityCronbach's
Statistics
Alpha Based on
Cronbach's
Standardized
Cronbach's
Alpha
N of Items
N of Items
Items
Alpha
.745
3
2
713.
713.

Informative
Integrity

Reliability Statistics
Reliability Statistics
Cronbach's
Cronbach's
Alpha Based on
Alpha
N of Items

N of Items
Standardized
.876 Items

Cronbach's
4

Alpha

678.

678.

Overall
Reliability Statistics
Cronbach's
Alpha

N of Items
.772

Item Statistics
Mean

Std. Deviation

Informative

3.2727

.92340

165

Normative

3.2667

1.12148

165

Integrity

3.9798

1.10352

165

Value Consciousness

3.7293

1.01652

165

Self Gratification

3.7879

1.16759

165

Reliability Statistics
Cronbach's
Alpha

N of Items
.727

Item-Total Statistics
Cronbach's
Scale Mean if
Item Deleted

Scale Variance if Corrected ItemItem Deleted

Total Correlation

Alpha if Item
Deleted

Normative

22.3384

15.477

.515

.678

Purchase Intention

22.7990

17.961

.202

.751

Self Gratification

21.8172

14.925

.553

.668

Value Consciousness

21.8758

15.615

.577

.666

Attitude

22.5864

18.270

.512

.696

Informative

22.3323

17.132

.431

.698

Integrity

21.6253

14.763

.625

.651

Demographics

23.8611

21.282

-.061

.760

Appendix III
(Questionnaire)

Sr #

_______________

CONSUMER RESPONSE TOWARDS COUNTERFEIT DESIGNER


CLOTHES OR LAWN
Counterfeits are defined as reproduced copies of the original
products. These copies are easily available in the different parts of
the world including Pakistan. Asian countries account for one-third
of such purchases. For the purpose of this study counterfeit refers
to copies of designer lawn and clothes that may not have the
designer label, but have the same design and are sold by the
retailer with the information that the item is a copy of a particular
designer label.
The purpose of this questionnaire is to study the consumer responses
towards the counterfeit products. The product category used here are
Pakistani Designer Lawn or clothes, reason behind is to study in the context
of local industry.
Counterfeit Designer Lawns and clothes are easily available in the market
with lower prices. Example the shop keepers must have told you several
times that these prints are of Gul Ahmed, Firdous with the same design and
colors with a much lower price, however those are not original but copied
products. Similarly, designs of Pakistani designer dresses are also copied and
sold in the market. This research is aimed at such purchases where the
consumer knowingly purchases the counterfeit product. This must be kept in
mind while filling the questionnaire that you are buying these copied
products knowingly that means the shop keeper have already informed you
that these are not original.
This research is undertaken as a part of the final year of Business
Administration studies conducted at FAST school of management (National
University of Computer and Emerging Sciences). The information will remain

confidential and the results will be used to understand the consumer


response towards counterfeits.

Thank you for providing us with your valuable time, your


response will be highly appreciated.

Education

Age

Below intermediate
Intermediate or
Bachelor
Masters and above

Below 26
26-40
Above 40
Family monthly income

Professional Status

Below Rs. 50,000


Rs. 50,000 to 100,000
Above 100,000

Student
Housewife
Working women
Other _________________

Which of the following products you will buy knowingly that it is a


counterfeit? (Tick all that apply)
Text Books
Other Books
Cosmetics
Perfumes
Toys

Stationery
Clothes
Jewelry
Spectacles
Home
Appliances
(AC, Fridge,
TV etc)

Watches
Ties
Designer
Lawn
Food (Sweets,
Chewing

Music
CDs
Shoes
Film CDs
Mobile
Phones

Which of the products mentioned above, you will not buy as counterfeit?
Please specify the reason.
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Rank according to your opinion. Please Tick ()

Strong
ly
Agree
Agree
(4)
Neithe
r agree
nor
disagr
Disagr
ee
Strong
ly
disagr

Statements
It is quite risky to buy counterfeit Pakistani
Designer Lawn
I do not trust stores that sell pirated Pakistani
Designer Lawn
Stores that sell pirated Pakistani Designer Lawn
are quite untrustworthy.

Pirated Pakistani Designer Lawn are not worth


buying.
Pirated Pakistani Designer Law are not fair to
the designers because it robs them of their
royalties.
Pirated Pakistani Designer Lawn help the
clothing industry.
Pirated Pakistani Designer Lawn or help to
make designers more popular.
Without pirated Pakistani Designer Lawn, many
people will not be able to enjoy the new trends.
Pirated Pakistani Designer Lawn benefit society.
People who buy pirated Pakistani Designer
Lawn have no morals.
Only unethical people buy pirated Pakistani
Designer Lawn
It is OK to buy pirated Pakistani Designer Lawn
If I have little experience with Pakistani
Designer Lawn, I often ask my friends about it.
I often consult other people to help the best
alternative available from Pakistani Designer
Lawn.
I frequently gather information from friends or
family about Pakistani Designer Lawn before I
buy.
It is important that others like the Pakistani
Designer Lawn I buy.
I like to know which Pakistani Designer Lawn
make good impressions on others.

Strong
ly
Agree
Agree
(4)
Neithe
r
agree
nor
Disagr
ee
Strong
ly
disagr

Statements

I am very concerned about low prices, but I am


equally concerned about Pakistani Designer
Lawns quality.
When purchasing Pakistani Designer Lawn , I
always try to maximize the quality I get for the
money I spend.
When I buy Pakistani Designer Lawn, I like to
be sure that I am getting my moneys worth.
I consider honesty as an important quality for
ones character

Strongl
y
Agree
Agree
(4)
Neithe
r agree
nor
disagr
Disagr
ee
Strongl
y
disagr

Statements
I consider very important that people be polite.
I admire responsible people.
I like people that have self-control.
I always attempt to have a sense of
accomplishment.
Please Tick ()

Definite
ly will
(5)
Probabl
y will
(4)
May or
May not
(3)
Probabl
y wont
(2)

Definite
ly wont
(1)

Statements
I will likely buy counterfeit Pakistani
Designer Lawn .
I will recommend my friend to buy
counterfeit Pakistani Designer Lawn.

Thank you for your valuable Time

Appendix IV
(Code Book)

Appendix V
(Code Sheet)

Counterfeit Products

T
e
x

Demograp
hics

O
t
h

C
o
s

P
e
r

T
o
y

S
t
a

C
l
o

J
e
w

S
p
e

A
p
p

W T
a i
t
e

D
e
s

F
o
o

M
u
s

S
h
o

F
i
l

R
e
s
1

A
g
e
1

E
d
u
2

F
a
m
3

P
r
o
1

1
0

1
1

1
2

1
3

1
4

1
5

1
6

1
7

1
8

1
9

2
0

2
1

2
2

Attitudes towards pirated Designer


and Clothes
Be
ne
Fairnes
fici
Tru
s to
al
st
design
to
in
er and
soc
M R Sto
W industr
iet
o i
o
res
y
y
b s
r

D
o

Q
u
i
3

Lawn

Mo
rali
ty
of
bu
yin
g

N
o
t
5

N
o
t
5

H
e
l
2

M
a
k
5

B
e
n
3

E
n
j
5

N
o

U
n
t
4

Social
Influences

A
l
l

O
K

U
n
e
2

Nor
ma
tiv
e

Inform
ative

Purch
ase
Intent
ion

Personality
Factors

Value
Consio
usness

Inte
grit
y
R
e
c
o
m
m
e
n
d

A
s
k
3

C
o
n
1

G
a
t
5

O
t
h
5

G
o
o
5

C
o
n
5

M
a
x
5

G
e
t
5

H
o
n
5

P
o
l
5

L
i
k
1

F
r
i
e
n
d
s
3
2
2
3
3
3
0
1
4
1
1
4
0
3
3
1
1
3
2
3
1
5

2
3

2
4

2
5

2
6

2
7

2
8

2
9

3
0

3
1

3
2

3
3

3
4

3
5

3
6

3
7

3
8

3
9

4
0

4
1

4
2

4
3

4
4

4
5

4
6

4
7

4
8

4
9

5
0

5
1

5
2

5
3

5
4

5
5

5
6

5
7

5
8

5
9

6
0

6
1

6
2

6
3

6
4

6
5

5
4
3
3
1
5
3
4
2
1
2
3
3
5
3
4
2
3
3
1
1
3
5
4
3
2
3
4
4
3
4
3
3
3
4
1
3
3
1
1
1
4
3

6
6

6
7

6
8

6
9

7
0

7
1

7
2

7
3

7
4

7
5

7
6

7
7

7
8

7
9

8
0

8
1

8
2

8
3

8
4

8
5

8
6

8
7

8
8

8
9

9
0

9
1

9
2

9
3

9
4

9
5

9
6

9
7

9
8

9
9

1
0
0
1
0
1
1
0
2
1
0
3
1
0
4
1
0
5
1
0
6
1
0
7
1
0
8

4
4
3
3
5
1
2
2
2
1
3
2
4
3
1
2
5
3
5
4
1
3
3
3
5
5
3
1
1
3
1
4
1
4
2
5
1
1
3
3
3
3
1

1
0
9
1
1
0
1
1
1
1
1
2
1
1
3
1
1
4
1
1
5
1
1
6
1
1
7
1
1
8
1
1
9
1
2
0
1
2
1
1
2
2
1
2
3
1
2
4
1
2
5
1
2
6
1
2
7
1
2
8
1
2
9
1
3
0
1
3
1
1
3
2
1
3
3
1
3
4
1
3
5
1
3
6
1
3
7
1
3
8
1
3
9
1
4
0
1
4
1
1
4
2
1
4
3
1
4
4
1
4
5
1
4
6
1
4
7
1
4
8
1
4
9
1
5
0
1
5
1

1
1
1
4
2
1
3
1
2
3
4
5
4
3
2
3
4
3
2
5
4
5
2
2
2
3
2
1
1
1
1
3
1
2
3
3
3
4
5
3
2
3
4

1
5
2
1
5
3
1
5
4
1
5
5
1
5
6
1
5
7
1
5
8
1
5
9
1
6
0
1
6
1
1
6
2
1
6
3
1
6
4
1
6
5
1
6
6

2
3
2
3
5
3
3
4
3
5
4
4
4
1
2

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