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Customers Behavior towards counterfeit

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CUSTOMERS BEHAVIOR TOWARDS COUNTERFEIT PRODUCTS-A CASE OF SOLAN TOWN IN

HIMACHAL PRADESH

Ravi Kumar,
Research Scholar, Shoolini University, Solan, H.P., INDIA.
R. K. Shukla1
Assistant Professor, Faculty of Basic Sciences, Shoolini University, Solan, H.P., INDIA.
K. C. Rojhe2
Associate Professor, faculty of Management Sciences& Liberal Arts, Shoolini University, Solan, H.P., INDIA.

Keywords: Counterfeit products; attitude; buying behavior.

Abstract:- Purpose- The aim of this study is to understand attitude and buying behavior of the customers towards counterfeit
products.
Method- Out of 200 respondents a total of 193 participants completed the questionnaire which was comprised of three
sections. Section 1 composed of 14 questions and section 2 contained 5 questions related to attitude and buying behavior
towards purchasing of counterfeit products respectively. Section 3 comprised of 5 questions for data collection regarding
demographics of the respondents. Chi-Square was used for the analysis of data.
Main Results- The result of the study proves that gender, age, education, income and profession have positive attitude
towards counterfeit products. But in some cases gender variable found non-significant relationship with buying counterfeits
is committing crime, counterfeit products do not hurt the economy and profession variable found insignificant relationship
with people buy counterfeits in retaliation to unfair practices of big businesses respectively. Similarly, the results indicated
that gender, age, education, income and profession are the factors which positively affect the buying behavior of the
customers towards counterfeit products. Whereas, gender variable found non-significant relationship with respect to
purchasing counterfeit products in the past year.

Introduction
In the present era counterfeiting is an emerging problemin
the market. It is seen that there are so many products in the
marketplace which have a similar use, similar packaging and
colour etc. But these products have a little bit difference in
the brand name (Adidas-Abidas, Lifebuoy-Lifejoy).
Generally, counterfeiting can be described as cheating
practice by attaching trademark. According to (Grossman
and Sharpiro, 1998) Counterfeiting is defined as illegally
copying authentic goods with a brand name. Some time it
has been seen that customer purchase the product by
assuming that they are purchasing the original product
because of less awareness or it may be due to misguidance
of the salesperson or similar products displayed on same
shelf in shopping malls or retail outlets.
In the present scenario counterfeiting is a profitable
industry. It is the production of replicas that have identical
packaging, trademarks, and labels as the genuine products
but use inferior quality materials in the production process.
The (Allen consulting group, 2003) defined counterfeiting as
“The unauthorized duplication of a product protected by one
or more intellectual property rights.” Also, counterfeiting
goods are illegal, low priced and often lower quality replicas
of products that typically possess high brand value (Lai and
Zaichkowsky, 1999). Meanwhile (Chaudhary and Walsh,
1996) defined “Counterfeiting products as trade products
that were identical with genuine products or products that
were difficult to be differentiated from the registered
trademark, so violating the rights of the trademark’s
owner.”(Bian and Veloutsou, 2005) also supported their
findings. Furthermore, (Cordell et al., 1996) defined
counterfeit product as “Any unauthorized manufacturing of
goods whose special characteristics are protected as
intellectual property rights (trademark, patents and
copyrights) constitutes product counterfeiting.” This was
also used by (Chaudhary et al.,2005). Moreover, counterfeit
product is defined as “A product that has been illegally
duplicated to appear identical to the genuine product (Ha
and Lenon, 2006).” Even though counterfeit goods are
affordable, cheaper and easily available but they may be
harmful to the consumer due to the inferior quality of
materials used in its manufacturing. Counterfeiting appears
to be a major problem for brand name, luxurious and high
priced consumer products. A number of industries observing

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counterfeit problem majorly include propriety foods,
medicines, cosmetics, computer accessories,
phoneaccessories, electrical appliances, toys, apparel,
watches and leather products. Considering globally, almost
five percent of all products are counterfeit, according to the
(International Anti Counterfeiting Coalition IACC, 2005)
and the (International Intellectual Property InstituteIIPI,
2003).The buying and selling of counterfeit goods
throughout the globe may be a common phenomenon and
the consumers are unaware of what they are purchasing and
for what they are paying. By considering these aspects
present study has the following objectives:-
1.1 To know about the general attitude of the customers toward
counterfeit products.
1.2 To know about the buying behavior of the customers toward
counterfeit products.
2. Review of Literature
The literature review plays a role of milestone in
the research. In this section efforts are directed to explore or
evaluate the results of the studies conducted by different
scholars on the same field or related field. It helps to
formulate the research objectives and also helps in the
discussion of the results.
There are various authors namely Phau, M. Teah,
K.K. Kwong, J.S.Y. Lee, A.C.B. Tse, M. Eisensd, De
Matos, S. Chuchinprakarn, X. Bian, L. Mountinho, and I.
Cheng etc. have covered various aspects like age, gender,
family, perception, perceived risk, quality and personal
influence and found that variables such as age, family,
gender and personal influence decision of buying
counterfeits. Also, education has an inverse relationship for
buying counterfeit products.
Some authors have found that consumers intention to buy
counterfeit products are dependent on the attitudes they have
toward counterfeits which are influenced by factors like
price, quality inference, perceived risk etc.
Phauet al., (2001) conducted a study on “Attitude
towards counterfeit products” they found that attitude refers
to the degree to which a person has a favorable appraisal of
the behavior in question and are an immediate indicator by
which his or her intention of conducting the specific
behavior can be predicted.Kwong, et.al (2003) studied
“College students’ ethical perceptions on buying counterfeit
products” in Missouri and reported that gender and age were
significantly related to the intention to buy pirated CDs.
Income and education had no relevance to ones intention to
purchase pirated CDs. Chuchinprakarn (2003) conducted a
study on “Consumption of counterfeit goods in Thailand:
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Who are the patrons?” with sample size 662 and suggested
that users of counterfeit goods tend to be male from a less
affluent family, less influenced by friends, strongly
influenced by families. Eisend and Schuchert-Guler
(2006) reported that attitude towards counterfeiting are the
driving force that influences purchase intention. Perceptions
of counterfeits are found to have a positive influence on
purchase intentions.De Matos et al., (2007) conducted a
review on “Consumer attitudes toward counterfeits: A
review and extension” in Brazil with sample size 400 and
reported that consumer intentions to buy counterfeited
products are dependent on the attitudes they have toward
counterfeits, which in turn are more influenced by perceived
risk, whether consumer have bought a counterfeit before,
subjective norm, integrity, price quality inference and
personal gratification. Phau and Teah (2009) studied
“Influence of consumers’ need for uniqueness on attitudes
towards counterfeiting of luxury brands” in Vietnam with
sample size 303.Their study seeks to understand the attitudes
and intentions of Vietnamese consumers who consciously
seek out counterfeit brands and indulge in purchase and they
suggested that practitioners formulate more effective
strategies to alleviate the counterfeiting problem in Vietnam.
Cheng et al., (2011) conducted a study on
“Examining customer purchase intentions for counterfeit
product based on modified theory of planned behavior” in
Vietnam with sample size 318 and indicated that subjective
norms exert the greatest impact on customer intentions to
purchase counterfeits and further he revealed implications
for marketers that makers must understand the key
influences on consumer behavior towards
counterfeits.Budiman (2012) studied “Analysis of consumer
attitudes to purchase intentions of counterfeiting bag product
in Indonesia” with sample size of 200 women and he found
that intrinsic factors have positive on consumer attitudes
towards pirated hand bags addition and conversely the status
also affects the intention of purchase.Hidayat and
Diwasasri (2013) carried out a study on “Factors
influencing attitudes and intention to purchase counterfeit
luxury brands among Indonesian consumers” in Indonesia
with sample size of 250 respondents aged from 16-40 with
the help of questionnaire method. With the help of path
coefficient analysis they summarized that social and
personality factors have most significant impact towards
attitudes. Triandewi and Tjiptono (2013) studied
“Consumer intention to buy original brands vs. counterfeits”
in Indonesia with sample size of 170 females aged between
15 and 50 years old. Using self administered questionnaire
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method and multiple regression analysis they have revealed
that past purchases and personal characteristics were
significant predictors of consumer intention to buy
counterfeits. Another major result also indicated that most
antecedents (except materialism and self image) had
significant impact on purchase intention of genuine
brands.Chaudhary et al., (2014) carried out a research on
“The determinants of purchase intention of consumers
towards counterfeit shoes” in Pakistan withsample size of
180 participants. They divided the questionnaire into two
parts which are demographics and various statements relate
to purchase intention, attitude, status etc. Their results
revealed that low price, easy access and past experience
have a positive significant relationship with attitude toward
buying counterfeit shoes. They also explored that value
consciousness and social status have an nonsignificant
relationship with attitude towards buying counterfeit
shoes.Rizwanet al., (2014) conducted a study on
“Consumer’s purchase intention towards counterfeit mobile
phones” in Pakistan with sample size of 150 people through
questionnaires. With the help of factor analysis and
structuralequational model they concluded that price,
previous experience, social influence and attitude are the
factors that positively affect consumer purchase intention
towards purchasing counterfeit mobile phones.
3. Research Methodology
3.1 Need and Scope: Now a days there is a cut throat
competition in the marketplace where a lot of substitutes are
available in the marketplace. Business houses face various
marketing challenges and among these are threat of
substitutes is counterfeit products. Counterfeit products spoil
brand name and market share. It may be seen in the market
that some products which are copied by the firms is also
available in the market.
3.2 Sample Size: Solan city in Himachal Pradesh has been
selected for the study. Sample size for present study was 193
which were selected conveniently from Solan. Out of 193
respondents, 98 were females and 95 were males
Counterfeit products vs. Customers attitude indicators. (Chi -SquareTable-4.1)
Question No. Gender
Counterfeit products are just as good as designer
0.004*
products.
Counterfeit goods demonstrate initiative and ingenuity. 0.000*
Buying counterfeits is a way to get back at uncaring
0.000*
and unfair business.
Prices of designer products are unfair and gouge. 0.006*
Counterfeiters are little guy who fight big business. 0.002*
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3.3 Data Collection: For the present study purpose primary
data has been used and collected through questionnaire
method. Reliability of questionnaire is checked out after
pilot survey.Solantown has 13 wards and 260 questionnaires
were randomly distributed among each ward. Out of which
200 questionnaires were returned and 7 were discarded
because of inappropriate answers. Therefore the sample size
for present study was 193.
3.4 Instruments for Data Collection: For the purpose of
data collection questionnaire method was used. Here in this
study a standardized questionnaire was used. This was
developed by Angela Cuno in 2008. This questionnaire was
divided into three sections in which first section consist of
the statement regarding the general attitude of the customers
towards counterfeit products whereas second section contain
the statement regarding the buying behavior ofcustomers
towards counterfeit products and the third section contain
the statement regarding personal characteristics of
customers. In this questionnaire Likert’s five point scale
(Strongly Agree, Agree, Neutral, Disagree, and Strongly
Disagree) has been used to know the general attitude and
buying behavior of customers towards counterfeit products.
Also (Unlikely, Likely, Very Likely, Don’t Know) and (Yes,
No, Can’t Say) has been used to know about the buying
behavior of the customers towards counterfeit products.
Further, in the demographic profile items, questionnaire
consists of variables named as gender, age, education,
income and current profession.
For the analysis of the collected data, SPSS 20.0 software
was used to gain relevant information from data.
4. Data Analysis
4.1 Analysis and Discussion:
To know about the general attitude of the customers
towards counterfeit products. According to our first
objective we have assumed a null hypothesis.
H0: There is no significant association between
demographic variables and customers attitude towards
counterfeit products.
Age Education Income Profession
0.000* 0.000* 0.000* 0.000*
0.000* 0.000* 0.000* 0.000*
0.000* 0.000* 0.000* 0.061**
0.001* 0.001* 0.000* 0.000*
0.000* 0.000* 0.000* 0.001*
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Buying counterfeit products is committing crime. 0.078** 0.003* 0.000* 0.000* 0.007*
I would buy counterfeit products even easily afford
0.002* 0.000* 0.000* 0.000* 0.000*
genuine.
Not purchase counterfeit if my family would be
0.000* 0.000* 0.000* 0.000* 0.000*
disappointed with me.
Selling counterfeit products is committing a crime. 0.000* 0.000* 0.000* 0.000* 0.000*
Buying counterfeit demonstrates wise shopping. 0.000* 0.012* 0.000* 0.000* 0.000*
Counterfeit do not hurt economy 0.239** 0.000* 0.000* 0.000* 0.000*
Would purchase counterfeit because friends wanted me
0.011* 0.000* 0.008* 0.000* 0.000*
to.
Counterfeit products hurt the manufacturer. 0.000* 0.000* 0.013* 0.000* 0.000*
Buying counterfeit is like playing a practical joke on
0.000* 0.000* 0.000* 0.000* 0.000*
manufacture of the non counterfeit products.

*Significant at 5% level, (p<0.05), where and ** represents non-significant.

Firstly, we assumed a null hypothesis for the gender. Hence we conclude that there is some significant
H0: There is no significant difference between gender relationship between gender and customer attitude
and customer attitude indicators. indicators.
Above table shows that in most of the cases all the Above chi-square table 1 with p value shows that Q6
customers’ attitude indicators are significant. It means that (Buying counterfeit products is committing crime) and Q11
null hypothesis is rejected. But in very few cases, some (Counterfeit products do not hurt the economy) are non-
customer attitude indicators are non-significant which means significant in Gender. So, we explained this below with the
that in those cases our null hypothesis is accepted. help of graph.

Gender: Male/Female vs. People who buy counterfeit products are committing a crime.
45
41
40
33 34
35
30
Percentage

25 23
Male
20 17
16 15 Female
15 13

10
4 4
5
0
SA A N D SD

From the above graph it is highlighted that in case of people
who are purchasing counterfeit goods are committing crime.
41% of female respondents disagrees whereas 34% of male
respondents have concluded the same response.
The above table shows the influence of gender on overall
attitude of the respondents towards counterfeit products. In
order to find out the influence, Chi Square was performed
and the result shows a non significant aftereffect (p=0.078,
p>0.05).
Therefore result shows that people are not aware about that
purchasing of counterfeit products is a crime.

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Gender: Male/Female vs. counterfeit products do not hurt the Indian economy.
40 38

35
29
30 27
24
25
Percentage

21
20 Male
16
14 Female
15 12
11
10 8

0
SA A N D SD

From the above graph it can be depicted that 38% of male
respondents have admitted that counterfeit products do not
hurt the Indian economy whereas 29% of female
respondents supported the same. In other words, male and
female respondents think alike that counterfeit products do
not hurt the economy of India.
Chi square shows a non significant result (p=0.239, p>0.05).
Therefore it is concluded that there is non-significant
association between respondent responses.
As it is concluded that people don’t consider purchasing of
counterfeit products is a crime in the similar manner it is
concluded from the above graph that purchasing of
counterfeit products does not affect the Indian economy.
H0: There is no significant difference between age and
customer attitude indicators.
The above table represents that all the indicators of customer
attitude are significant which means that our null hypothesis
is rejected. Hence, it is concluded that there is some
significant relationship between age and customer attitude
indicators.
In other words we can say that different age groups are
directly related to the indicators of customer attitude.
H0: There is no significant association between education
and customer attitude indicators.
The table highlights that all the customer attitude indicators
are significant. It means that our null hypothesis is rejected.
Therefore, it is concluded that there is some significant
association between education and the indicators of
customer attitude. I.e. we can say that different education
group are directly related to the indicators of customer’s
attitude.
H0: There is no significant association between income
and the indicators of customer attitude.
The above table depicts that all the customer attitude
indicators are significant which means that our null
hypothesis is rejected.
Thus, we conclude that there is some significant relationship
between income and customer attitude indicators. In other
words we can say that different income group directly
related to customer attitude indicators.
H0: There is no significant difference between profession
and the indicators of customer attitude.
The above table states that most of the customer attitude
indicators are significant whereas in very few cases some
indicators of customer attitude are non-significant.
Hence, it is concluded that there is some significant
association between profession and the indicators of
customer attitude.

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Profession vs. buying counterfeit products is a way to get back at uncaring and unfair big business.

60
54
50
50
44

40
Percentage

33
31
28 Service
30
Own Business
20 Student
13 12 12
10 7 8
4 4
0 0
0
SA A N D SD

On the basis of profession respondents were categorized in
three groups which were service class, own business and
students. From the above graph it can be stated that
maximum respondents of service class 50% have admitted
that buying counterfeit products is a way to get back at
uncaring and unfair big business followed by 44% of
students and 33% of own business respectively. Whereas 4%
respondents from each service class and students have
strongly disagreed that buying counterfeit products is a way
to get back at uncaring and unfair big business.
The table shows the influence of occupation on the
indicators of the attitude towards the counterfeit products.
Chi Square shows a non-significant outcome (p=0.061,
p>0.05). Thus, it is concluded that there is no significant
association between the occupations of the respondents and
buying counterfeit products is a way to get back at uncaring
and unfair big business. This means that people buy
counterfeit products in retaliation to unfair practices of big
businesses.

Counterfeit products vs. Customers buying behavior indicators. (Chi-Square Table-4.2 )

Question No. Gender Age Education Income Profession
Given the chance, people buy counterfeit goods. .000* .000* .000* .000* .000*
Next six months, how likely you will buy a
.000* .000* .000* .000* .000*
counterfeit.
Buy counterfeit goods in the past year. .159** .037* .009* .000* .000*
How many times knowingly bought counterfeit
.008* .003* .000* .000* .000*
goods.

Significant at 5% level, (p<0.05), where * represents at 5% H0: There is no significant association between demographic
level of significance and ** represents non-significant. variables and buying behavior of the customers towards
According to our second objective we have assumed a null counterfeit products.
hypothesis: Firstly we assume a null hypothesis for the gender.

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H0: There is no significant association between gender
and customers buying behavior indicators.
The above table shows that most of the customers buying
behavior indicators are significant. It means that our null
hypothesis is rejected. Whereas in some cases some
Gender: Male/Female vs. I have bought counterfeit goods in the past year.
60
49
50
38
40
Percenrage
30
23
20
10
0
YES
From the above graph, it can be stated that maximum male
respondents (39%) have neutral response when they were
asked about the purchase of counterfeit goods in the past one
year, whereas 38% have agreed and 23% of the respondents
declined for the purchase of counterfeit goods in the
previous year.
In case of female respondents, it can demonstrated
from the graph that 49% of female respondents have agreed
about the purchase of counterfeit products in the past one
year, whereas 27% of female respondents have neutral
response followed by 24% of female respondents have
declined about the purchase of counterfeit products in the
previous year.
The above table shows the influence of gender on
buying behavior indicators of the respondents towards the
counterfeit products. Chi Square result shows a non-
significant outcome (p=0.159, p>0.05). Therefore, it is
concluded that the gender have non-significant difference
with respect to People have bought counterfeit products in
the past year. From the above results it was found that not
many male customers give preference to buy counterfeit
products as compare to female counterparts.
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indicators of customers buying behavior are non significant
in those cases our null hypothesis is accepted.
Above chi-square table -2 with p value shows that Q3
(Buying counterfeit goods in the past year) is non-significant
in Gender. So, we explained it below with the help of graph.
39
27 Male
24
Female
NO CANT SAY
H0: There is no significant association between age and
customers buying behavior indicators.
The above table states that all the indicators of
customers buying behavior are significant. It means that our
null hypothesis is rejected.
We conclude that there is some significant relationship
between age and the indicators of customers buying
behavior. In other words we can say that different age group
directly related to customers buying behavior indicators.
H0: There is no significant association between education
and customers buying behavior indicators.
The above table highlights that all the customers
buying behavior indicators are significant which means that
the null hypothesis is rejected. We conclude that there is
some association between education and customers buying
behavior indicators.
In other words we can say that different education group is
directly related to customers’ buying behavior indicators.
H0: There is no significant association between income
and customers buying behavior indicators.
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The above table depicts that all the indicators of
customers buying behavior are significant. It means that null
hypothesis is rejected.
Hence, it is concluded that there is some relationship
between income and customers buying behavior indicators.
In other words we can say that different income group is
directly related to customers buying behavior indicators.
H0: There is no significant association between profession
and customers buying behavior indicators.
The above table shows that all the customers
buying behavior indicators are significant. It means that null
hypothesis is rejected. Thus, it is concluded that there is
some significant association between profession and the
indicators of customers buying behavior.
In other words we can say that different profession group is
directly related to customers buying behavior indicators.
The above table highlights that in most of the cases
our null hypothesis is rejected which means that there is
some relationship between gender, age, education, income
and profession towards counterfeit products. Hence, they
have positive attitude towards counterfeit products.
5. Discussion:
The buying behavior of consumers primarily
depends upon their attitudes. The attitudes of the consumers
can have a severe role upon buying behavior of counterfeit
products. In most of the cases demographic variables have
some significant association towards counterfeit products
which means that they have positive attitude towards
counterfeit products.
But in some cases demographic variables like
gender and profession don’t have any significant influence
on the indicators of attitude and buying behavior towards
counterfeit products.
Chi-Square test was been applied to drive the independence
of gender and their buying behavior. And the results
depicted that buying behavior is affected by gender of the
respondents. Also, it was found that male customers are
more ethical than female counterparts as the study showed
that 49% of female respondents shops counterfeit products
whereas only 38% of the male respondents purchases
counterfeit products.
Both male and female respondents have presented different
set of factor in the decision of purchase for the buying of
counterfeit products. Maximum important factors for the
male customers were the cheap price of the counterfeit
products, and their close friends. And the most important
factors for female customers were purchasing decision taken
in the past, family members etc. who are already a customers
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of counterfeit products and very likely to purchase it in the
near future.
6. Constructive Suggestions:
Our government is also suffering from counterfeit products
and doomed a large amount of acquirement in form of sales
tax and excise duty. Albeit there are a number of laws under
which legal proceeding can be taken against sellers and
manufacturers of fake products. Some of the laws are given
below:
6.1 Consumer protection act, 1986.
6.2 Trademarks Act, 1999.
6.3 Indian Penal Code 1860.
6.4 Bureau of Indian Standards Act, 1986.
But all the above mentioned laws are not imposing in real
life situations. So, Government of India and other legitimate
bodies should concern for the security and assurance of
appropriate business and support these big businesses
liberally by considering some of the suggestions given
below:
1) If cannot stop than we can suggest to a valid information
mentioned in the packaging of these fake products.
2) Make counterfeit or look alike a noticeable violation.
7. References:
1. Allen consulting group report: (2003), Retrieved from:
www.allenconsult.com.au.
2. Bian, X., &Mountinho, L. (2009). An investigation of
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3. Budiman, S. (2012). Analysis of consumer attitudes to
purchase intentions of counterfeiting bag product in
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12.
4. Bian, X., &Veloutsou, C. (2005). Consumers’ attitudes
regarding non-deceptive counterfeit brands in the UK
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8. Cheng, I., Fu, H.H., & Cam, L.T. (2011). Examining
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