Academic journal article Journal of Business Economics and Management

Examination of Attitudinal and Intentional Drivers of Non-Deceptive Counterfeiting in a South Asian Context

Academic journal article Journal of Business Economics and Management

Examination of Attitudinal and Intentional Drivers of Non-Deceptive Counterfeiting in a South Asian Context

Article excerpt

1. Introduction

Counterfeiting trade being a global phenomenon is growing rapidly across the nations. It accounts about seven percent of the global trade (Ergin 2010). Since 2005 counterfeiting trade has expanded up to $ 360 billion of worth globally. It is expected to grow in value up to $ 960 billion by 2015 (Frontier economics 2011). This situation poses a serious threat to genuine industry worldwide (Bian, Veloutsou 2007). Despite the legal restrictions (Ergin 2010) and genuine industry's counter efforts counterfeiting trade continues to grow rapidly (Chaudhry et al. 2009). China is a main counterfeits producer while USA is a key consumer of counterfeits with little domestic production. Macro factors that boosted the counterfeiting trade globally are globalization of world markets, political corruption, and weak implementation of anti-counterfeiting laws (Chaudhry, Zimmerman 2009). This study examines the indirect influence of WOM, ethical and legal sensitivities and direct influence of affordability, easy availability and legal sensitivity on consumers' purchase intentions of the non-deceptive counterfeits. Despite the growing demand for non-deceptive counterfeits globally few researches examined the impact of these factors on consumer attitudes toward the non-deceptive counterfeits and their purchase intentions in a single study. Grossman, Shapiro (1988) divided the counterfeits into two categories the deceptive and non-deceptive counterfeits. In case of deceptive counterfeiting consumers are deceived by the fake products, which resemble the genuine products. Conversely, in case of non-deceptive counterfeiting consumers knowingly buy the fake products (Bamossy, Scammon 1985; Bloch et al. 1993) which is a serious issue.

Affordability of counterfeits attracts consumers to buy them (Albers-Miller 1999; Harvey, Walls 2003). Easy access to counterfeits makes them more attractive (Stumpf et al. 2011). Lee, Workman (2011) stated that counterfeit product buyers hold positive attitudes toward counterfeits and show little ethical and legal concerns than non-users (Norum and Cuno 2011). Word of mouth is a vibrant channel of marketing communication (Henricks 1998; Silverman 1997) but researchers have gained little insights of its effectiveness since it is difficult to study its impact (Hung, Li 2007). Due to their illicit nature, non-deceptive counterfeits are not promoted through public media (e.g. Newspapers, TV etc.). Thus, besides internet, which is full of loopholes to promote counterfeits, WOM may be a possible factor stimulating demand for non-deceptive counterfeits. These facts support the examination of WOM effect on consumers' attitudes toward the non-deceptive counterfeits in conjunction with other important variables in a single study. Theoretical contributions and practical implications of this study are elucidated in "discussion and conclusion" sections.

2. Theoretical bases and conceptual model

2.1. Attitudes and intentions toward counterfeits

Understanding attitude is important as it affects the behavior. This study applies theory of Reasoned Action (TRA) (Fishbein, Ajzen 1975) to explain the consumers' attitudes toward the non-deceptive counterfeit mobile handsets and their purchase intentions. TRA has been enormously applied to explain the consumer behavior (see de Matos et al. 2007). However, this study partially uses the TRA (Fishbein, Ajzen 1975) to explain how WOM, ethical and legal sensitivities influence consumers' attitudes toward nondeceptive counterfeits. Therefore, only two components of this theory; antecedents of attitude, relationship between attitude and intentions are applied in the present study. In a theoretical framework, some aspects of a theory or theories can be incorporated according to the research situation and objectives (see Hsrtel et al. 1998). TRA is flexible enough that other relevant variables can be incorporated into it (Ajzen 1991). …

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