The intention of vietnammese customer to purchase counterfeit product, a theory of planned behavior approach

With research model which has factor analysis results in the identification of factors having significant impact to customer intention topurchase counterfeit products, and the extraction

Nguyen Thi Thu Trang

THE INTENTION OF VIETNAMESE

CUSTOMER TO PURCHASE

COUNTERFEIT PRODUCT: A

THEORY OF PLANNED BEHAVIOR APPROACH

Ho Chi Minh City – Year 2014

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-Nguyen Thi Thu Trang

THE INTENTION OF VIETNAMESE

CUSTOMER TO PURCHASE

COUNTERFEIT PRODUCT: A

THEORY OF PLANNED BEHAVIOR APPROACH

ID: 22110070

SUPERVISOR: Nguyen Thi Mai Trang

Ho Chi Minh City – Year 2014

This thesis could not be accomplished without the help, advise, support,guidance and encouragement of many people.

I wish to express my sincere gratitude to my advisor, Dr Nguyen Thi MaiTrang, for her clear and careful direction, guidance and correction to my thesis,especially for her enthusiasm in answering reminding, help and support

Secondly, I would like to thank my dear colleagues, friend and classmates for theirinvaluable advice, help, encouragement and support during the time I was doing thisthesis

Last but not least, I would like to express my great thanks to my husband and

my family for their support, assistance and encouragement for my study and thesisfulfillment

Vietnam is a developing country so counterfeit products are more thanincrease appeared in Vietnam However, so far the study for customer intention topurchase counterfeit products in Vietnam has not yet been thoroughly conducted.This research is carried out with the objectives to identify the measurement scale ofcustomer intention to purchase counterfeit products, identify the factors that impact

on customer intention to purchase counterfeit products and measure the strength ofrelationship between these factors and customer intention to purchase counterfeitproducts in the Vietnam

This research is done by a thorough literature review on concepts relating tocustomer intention to purchase counterfeit products from which the initial researchmodel and hypotheses are constructed Research process has two steps includingGeneration of Items used to assure the appropriateness of the initial research model;Survey and data analysis used to collect the answer for the survey on variouspeoples in the South Region of Vietnam with the sample size of 329 for dataanalysis

Number of statistical analysis techniques are used to analyze the datacollected via SPSS program With research model which has factor analysis results

in the identification of factors having significant impact to customer intention topurchase counterfeit products, and the extraction of three factor groups named asAttitude toward the Behavior to purchase counterfeit products, Subjective Norm andPerceived Behavioral Control After regression analysis proved that attitude towardthe behavior to purchase counterfeit products has the highest impact Besides that,this study also researches the impact of perceived financial control on therelationship between attitude toward purchasing counterfeit product and customerintention to purchase counterfeit product

ABSTRACT

TABLE OF CONTENTS

LIST OF ABBREVIATIONS

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 1

1.1 Research background 1

1.2 Research objectives 4

1.3 Research scope 4

1.4 Research contribution 5

1.5 Research structure 5

CHAPTER 2 LITERATURE REVIEW 7

2.1 Counterfeit products 7

2.2 Theory of Planned Behavior 9

2.3 Customer intention to purchase counterfeit product 9

2.4 Attitude towards the behavior to purchase counterfeit product 10

2.5 Subjective Norms 11

2.6 Perceived Behavioral Control 12

2.7 Perceived financial control 13

2.8 Research Model 14

2.9 Hypotheses summary 14

CHAPTER 3 RESEARCH DESIGN 17

3.1 Research design 17

3.2 Measurement scale 19

3.3 Sample Size 20

3.4 Sampling techniques 21

3.5 Data collection method 21

3.6 Data analysis method 22

3.6.1 Statistical method 22

3.6.2 Descriptive statistics 22

3.6.3 Reliability analysis 22

3.6.4 Exploratory factor analysis 23

3.6.5 Multiple regression analysis 23

CHAPTER 4 DATA ANALYSIS 24

4.1 Descriptive statistics 24

4.2 Assessment and refinement of measurement scale 25

4.2.1 Refinement of measurement scale 25

4.2.2 Exploratory Factor Analysis (EFA) 29

4.3 Multiple Linear Regression 31

4.3.1 Test of assumption 32

4.3.2 Correlation analysis 33

4.3.3 Regression analysis 33

4.3.4 Hypotheses testing 35

4.3.5 Moderating effect: Perceived Financial Control 37

CHAPTER 5 CONCLUSIONS 44

5.1 Findings 44

5.2 Managerial implications 46

5.2.1 Attitude towards the behavior to purchase counterfeit products 46

5.2.2 Subjective Norms 47

5.2.3 Perceived Financial Control 48

5.3 Limitations and future research direction 49

REFRENECES 50 APPENDIX A QUESTIONARIES

BẢNG CÂU HỎI

APPENDIX C: SURVEY RESULTS

APPENDIX D: RESULTS OF MULTIPLE LINEAR REGRESSIONS

APPENDIX E: RESULTS OF MULTIPLE LINEAR REGRESSIONS FOR MORDERATING VARIABLE

APPENDIX F: HISTOGRAM, NORMAL REGRESSION & SCATTER PLOT

OF DEPENDENT VARIABLE: CUSTOMER INTENTION TO PURCHASE COUNTERFEIT PRODUCT

LIST OF ABBREVIATIONS

TPB: Theory of Planned Behavior

BIN: Customer intention

ATB: Attitude towards the behavior to purchase counterfeit productsSUN: Subjective norms

PBC: Perceived Behavioral Control

PFC: Perceived Financial Control

PFC_L: Perceived Financial Control with low group

PFC_H: Perceived Financial Control with high group

Table 2.1: Operational definitions of constructs 15

Table 3.1: Measurement scales 19

Table 3.2: Measurement scale after Qualitative Research 20

Table 4.1 Descriptive statistics 25

Table 4.2: Reliability analysis of dependent factor 26

Table 4.3: Reliability analysis of independent factors 27

Table 4.4 Rotated Component Matrix 31

Table 4.5 Correlation statistics 33

Table 4.6 Model Summary of multiple regression analysis 34

Table 4.7 ANOVA of multiple regression analysis 34

Table 4.8 Coefficients of multiple linear regression 35

Table 4.9 Hypotheses summary 36

Table 4.10 Summary result of the effect moderating variable 39

Table 4.11 ANOVA summary result 40

LIST OF FIGURES

Figure 2.1: Research model 14

Figure 3.1 Research process 18

CHAPTER 1 INTRODUCTION

1.1 Research background

There have been many studies in the world which researched the customerintention to purchase counterfeit products, such as in Examining customer purchaseintentions for counterfeit products based on a modified theory of planned behavior(Cheng et al., 2011), in which concluded that subjective norms are the strongestinfluence on customer intention of counterfeit purchasing Another strong effect wasobserved with regard to the influence of perceived behavioral control Mostimportantly, a contribution of this investigation is identifying the negative influence

of perceived financial control on customer intention to purchase counterfeitproducts that concerned that when people perceive that their financial abilityenables them to purchase original products, they tend to do so, and vice-versa.Besides that, subjective norms strongly influence customer intention to purchasecounterfeit products Along with retailers, marketers should launch marketingcampaigns to encourage word-of-mouth communication among friends and familymembers when customer was not willing to pay the high price for an originalproduct but they can buy counterfeit products instead may discourage those thempurchasing Besides that, an aggressive advertising campaign discouraging thepurchase and use of counterfeits may create a domino effect People may beinfluence by the opinions of others that purchasing counterfeit products is immoral.Finally, since it was concluded that the perceived financial control, namely theperceived affordability of authentic products, negatively impacts intention topurchase counterfeits Discounts or promotions campaigns from Marketers ofretailers would help reach potential customers Once customers believe that theprice is reasonable and affordable they may become used to purchasing originalproducts and develop brand loyalty (as cited in Cheng et al., 2011) Or in Theeffects of consumer orientations on the consumption of counterfeit luxury brands

(Bhardwaj, 2010), mentioned that integrity has no influence on subjective norm topurchase counterfeit brands Furthermore, the results indicate that favorableattitudes toward the purchase of counterfeit brand has a positive influence on theintentions to purchase counterfeit brands whereas it has a negative influence on theintentions to purchase original brands Additionally, the subjective norm shows apositive relation with intentions to purchase counterfeit brands and perceivedcontrol over the purchase of counterfeit brands show a negative relationship withintentions to purchase counterfeit brands Finally, based on the result of thehypothesis for moderator testing, price sensitivity does not act as a moderatingfactor in the relationship between attitudes and intentions to purchase counterfeitbrands Based on the results obtained in the study, implications for managers,educators, and policy makers have been suggested Besides suggesting tacticalstrategies to control the growing problem of selling counterfeit brands in themarkets, it is believed that there is a strong need to spread awareness andinformation about the dark side of counterfeiting among consumers so that theydevelop a resistance in consumption of counterfeit and illegally sold brands in themarket (as cited in Bhardwaj, 2010)

With the success of these previous authors when applying the Theory ofPlanned Behavioral in counterfeit market, the author in this research will apply theTheory of Planned Behavioral to research what are these factors to effect oncustomer intention in the Vietnamese counterfeit market Firstly, we will overviewthe Vietnamese counterfeit market, such as information on the channel media: everyyear, Vietnam has 308 cases to be tried for counterfeit production or trafficking incounterfeit products If in 2004 only 60 cases then in 2012, the cases were increased

to the 554 production and trafficking in counterfeit products This suggests thatproduction of crimes, trafficking in counterfeit products tend to rise very rapidly,becoming an alarming situation In the past 5 years, the Vietnamese Customdiscovered and seized a variety of counterfeit products violating intellectual

property rights, such as 1,000 counterfeit bottles, 93 820 counterfeit brand cigarettesVinataba, 7729 cosmetic jars, 3756 kg counterfeit phone accessories brand Nokia,the mobile phone 800 counterfeit Nokia brand, 3,940 bottles of counterfeit brandlubricants and Castrol Honda, 1,320 table is the author of Philip brand, 137 728counterfeit brand soda Arabao, was shown in the report (The people's securityonline, 2013).

Besides that, according to report of the Market Management Department Ministry of Industry and Trade (2012), the country has discovered 13101 cases forhandling counterfeit, substandard and infringement of intellectual property rights,sanctioning of administrative violations in 53 billion And in quarter I/2013, theyalso discovered 3,115 cases, handling administrative violations 13.5 billion worth of

-13 billion violations

With the same problem about counterfeit products, in the report of ElectronicNewspaper Vietnam Education (2012), Mr Trinh Quoc Khanh who is deputycaptain of Smuggling Investigation Department - General Department ofVietnamese Customs also mentioned that counterfeit products are not only sneakycurrent passing through the border region container imports through the port.Specifically, the unit conducted recently seized and destroyed containers with nearly10,000 counterfeit products by a company in Binh Tan district imported through CatLai port The amounts of counterfeit products are mostly luggage, handbags byfamous brands such as Louis Vuitton, Montblanc and Longchamp,…

The next, we will go through a brief opinion of the character as a productmanufacturer, as Electronic Legal Newspapers Ho Chi Minh City (2012), Ms.Nguyen Thi Huong, Director of Law VNIP company and also is LV brandrepresentative in Vietnam, reported that LV has launched a campaign to "clean up"areas where displaying counterfeit LV, regardless of the number of small or moresince 2009 Particularly, from the early years applying campaign with more than

200 test cases LV, for offenders repeated violations, LV was sued for damage

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

2 The relationship between subjective norms and customer intention to

purchase counterfeit product

3 The relationship between perceived behavioral control and customer

intention to purchase counterfeit product

4 And finally, the moderating effect of perceived financial control on therelationship between attitude toward purchasing counterfeit product and consumerintention to purchase counterfeit product

1.3 Research scope

There are two kinds of counterfeit products from customer perception also:deceptive and non-deceptive Some consumers buy counterfeit products withoutbeing aware of the intellectual property infringement, this research call this is the

deceptive counterfeit products In this case, producers make customers thinking thatthey are buying original products but in fact this product is made or sold illegally.Therefore, customers will not be held accountable However, some consumers areaware that they are purchasing counterfeit products, this research call this is thenon-deceptive counterfeit products In this case, these consumers known that theyare purchasing the products that are not legitimate The non-deceptive counterfeitproducts will be discussed in this research.

The scope of this research is limited people living in the Ho Chi Minh Cityand Binh Duong province where one of the most dynamic and stylish in Vietnam is.With these properties, the counterfeit products easily penetrate the markets of HoChi Minh City and Binh Duong province

1.4 Research contribution

The contribution of this research is finding these factors effect to customerintention to purchase counterfeit products in Vietnamese market and the impact ofperceived financial control on the relationship between attitude toward the behavior

to purchase counterfeit product and customer intention to purchase counterfeitproduct Through that, these managements know what these real factors effect onthe Vietnamese customer intention and based on these results, this research hope tosupport these managements by providing practical suggestions to help them to buildthese plans to prevent the Vietnamese counterfeit market

1.5 Research structure

This thesis comprises five chapters as following:

Chapter 1 named as “Introduction” generally introduces the subject areainterest with defined problems, research questions, research objectives, scope of theresearch and sources of information to be collected for the research

Chapter 2 named as “Literature Review” summarizes concepts and theoriesrelating to customers intention in previous studies which are linked to this research.From such review, basic theories for studying will be synthesized to develop aninitial research model and hypotheses used for the research

CHAPTER 2 LITERATURE REVIEW

In this chapter, theoretical background and review on previous studies arepresented This Chapter includes three sections The first section is theoreticalreview relating to factors effect on customer intention as well as customer intention,the second section presents the research model and the last section describes thehypotheses development for this research

or packaging and counterfeit products or indication of origin of products, place ofmanufacture, packaging assembly of products on the label or packaging of products;(3) counterfeit intellectual property: counterfeit intellectual property products withpackaging branded merchandise, signs identical or indistinct marks, geographicalindications are protected for the item without the permission of trademark owner,management organization or geographical indications are pirated copies were producedwithout the permission of the copyright holders or related rights and (4) the stamps,labels, packaging counterfeit products is stamps, labels, packaging of all kinds ofproducts including counterfeit decals, labels, packaging products, quality stamps, stampanti-counterfeiting, warranty and post -shrink merchandise content counterfeit name andaddress traders, the origin of products, the place of production, packing, assembleproducts Counterfeit products are produced increasingly sophisticated, increasingly moredifficult to distinguish At a certain time, for each item there are signs to distinguishoriginal and counterfeit products But these signs are always changing manufacturers sohard to capture full marks to distinguish

to issue sales invoices For more information when comprising between counterfeitand original product, if we only use the eyes when comparing samples betweenoriginal and counterfeit products, we will not see the difference between the paint,sharp edges, packaging of them If we look carefully, we will see labels record isincomplete or incorrect and when we test or use these counterfeit products that wewill reveal much defects than these original products Moreover, if we compare theprice of the products, we know that the counterfeit product will be cheaper than theoriginal product Therefore, for these managements need to provide the knowledgeabout the distinction and the harm of counterfeit products Besides that, forconsumers who should receive the consultant of multiple sources from differentpeople around them, especially manufacturers, distributors (now many productionfacilities, distribution give the solving problem by providing a phone number,organization communication channels to guide consumers or built these industryassociations, consumer protection associations…to protect customer, was shown inthe report (Market Management Department, Ministry of Trade, 2012).

With the above information, we know that counterfeit product has manykinds, but the author will focus in products with intellectual property and the stamps,labels, packaging counterfeiting to research in Vietnamese market

2.2 Theory of Planned Behavior

The theory of planned behavior was developed from the theory of reasonedaction of Fishbein and Ajzen in 1975 According to the theory of reasoned action, ifsomeone has the positive evaluate (it name is attitude) and they think their relevantwant them to show it (it name is subjective norms), this results make them to havemore likely to do so The high relationship between attitude and subjective normslead to the behavioral intention has been confirmed in many previous studies

The Theory of Planned Behavior is expressed that human behavior is guided

by three kinds of considerations: beliefs about the likely consequences of thebehavior (behavioral beliefs), beliefs about the normative expectations of others(normative beliefs), and beliefs about the presence of factors that may facilitate orimpede performance of the behavior (control beliefs) In their respective aggregates,behavioral beliefs produce a favorable or unfavorable attitude toward the behavior;normative beliefs result in perceived social pressure or subjective norm; and controlbeliefs give rise to perceived behavioral control In combination, attitude toward thebehavior, subjective norm, and perception of behavioral control lead to theformation of a behavioral intention As a general rule, the more favorable theattitude and subjective norm, and the greater the perceived control, the strongershould be the person’s intention to perform the behavior in question Finally, given

a sufficient degree of actual control over the behavior, people are expected to carryout their intentions when the opportunity arises Intention is thus assumed to be theimmediate antecedent of behavior However, because many behaviors posedifficulties of execution that may limit volitional control, it is useful to considerperceived behavioral control in addition to intention To the extent that perceivedbehavioral control is veridical, it can serve as a proxy for actual control andcontribute to the prediction of the behavior in question (as cited in Ajzen, 2006)

2.3 Customer intention to purchase counterfeit product

Intention is an indication to aware that a person's readiness to show behaviorand it is considered to be standing by a behavior The intention is based on attitudetoward the behavior, subjective norms, and perceived behavioral control, with eachfactor which is importance in relation to the behavior

2.4 Attitude towards the behavior to purchase counterfeit product

According to the theory of reasoned action (TRA) and its extension, thetheory of planned behavior (TPB), there is a link between attitude, behavioralintention, and behavior (Ajzen, 2005) It was shown that the attitude towards thebehavior to purchase counterfeit product will effect to intention customers topurchase counterfeit product despite that they cannot have negative intentions and it

is direct predictor of the intention and behavior customers who in the decisionmaking process, they also show that it will be influences from who receives thesereferences

According to Huang et al (2004), attitude is an expressed of response infavorable or unfavorable situation The factors of attitude are often used as apredictor of customer intentions and behaviors But it cannot observe directly,researchers can determine consumer attitudes through on measure scales (Huang etal., 2004) Attitude towards the behavior to purchase counterfeit product can beinfluenced by a number of subjects based on the previous research, these subjectseffect on attitude can be divided into two groups: social factors and personalityfactors Social influence changes on what the relationship relevant of customer think

on an individual consumer’s behavior (Ang et al., 2001)

In addition, customer will preview that the brand name, the label, andidentifying design characteristics such as logo, color, pattern, and accessories arethemselves valuable such as their own benefit, when they do not focus on quality,only focus on useful and saving, they will easily accept one counterfeit product.Even in case others see they purchase counterfeit product, customer also will notfeel embarrassed and they do not consider a customer image built on counterfeitproducts as a problem (Babin, Darden, and Griffin 1994) Therefore, the attitude

towards the behavior to purchase counterfeit product has positively to customerintention to purchase the counterfeit product and negatively to customer intention to

purchase the original product Hence, the research expects the hypothesis below:

H1: There is a positive relationship between attitude towards the behavior to purchase counterfeit product and customer intention to purchase counterfeit product.

2.5 Subjective Norms

As mentioned in the Theory of Planned Behavior, it is showed that subjectivenorms are determined by the belief concerning the expectations of importantreferences with belief is by motivation to finish (Ajzen, 2006) Subjective normsexplain the effect of social factors on customer intention to purchase counterfeitproduct Social factors can lead a person to give these different decisions whichmeans that support from social factors to the customer behavior would eitherencourage involvement or not (Ang et al., 2001; Albers-Miller, 1999) This is alsodemonstrated by Ajzen & Fishbein, 1975, subjective norms are shown as perceptionwith pressures of social factors to the beliefs whether they will perform the behavior

If people think these social factors agree with their purchasing of counterfeit product

so customer intention to purchase counterfeit product will be increased (Albers,1999) Social factors have two groups as below: the first group includes theseregular interactions as family, friends, neighbors and colleague; the second grouphas little interaction with each other, as social organizations, associations Thefamily members can make a strong impact on the behavior of customer intentionwhen purchasing counterfeit product We have: (1) Oriented family including her/hisparents From parents, someone get oriented political and economic significance ofpersonal desire, love and virtue Even those who no longer buy multiplerelationships with their parents, the parents' influence on the behavior of buyers stillcan be very significant In families where parents still living with adult children havestrongly affected by their decisions; (2) Own family including his wife or herhusband and children of people who buy, have a direct influence

over the daily shopping behavior The family is purchasing organizations - the mostimportant consumer society and it has been studied quite extensively Researchersneed to pay attention to the role and relative influence of wife, husband and childrenfor the procurement of products Before, the wife has been the main shopper in thefamily, especially such as food, clothing and other household items Now haschanging, as more and more women have focus on working and the husband wants

to take care of family more People who do research the product under the wrongcategory will be essential if kept thinking that women are still the main customers oronly buy their products Besides that, in the case of products are the expensivekinds, usually husband and wife exchange to make decisions collectively.Researchers need to determine how often members have greater influence in thepurchase of products That may be due to the role, habits or their proficiency inprocurement decisions So the subjective norms will have the positively thecustomer intention to purchase counterfeit product This leads to have the secondhypothesis:

H2: There is a positive relationship between the subjective norms and customer intention to purchase counterfeit product.

2.6 Perceived Behavioral Control

According to Ajzen (2002), perceived behavioral control was described asindividual perceptions of the ease or difficulty of performing a specific behavior Inthe case of purchasing counterfeit product, those factors include find/accessinformation about counterfeit product, the time to find or access to counterfeitproduct and individual ability to solve difficulties the customer may face incounterfeit product process Therefore this study assumes that perceived behavioralcontrol (information, time, ability to solve problems) positively effects on customerintention to purchase the counterfeit product (Penz and Stottinger, 2005) That isalso an opinion of Ajzen (1991) who assume that perceived behavioral controlinclude easy find or access, knowledge about counterfeit products, and high abilitywill positively influence the intention to purchase counterfeit product Or according

to Bissonnette & Contento (2001), perceived behavioral control is an individual’sperceptions about one’s ethical or moral obligations toward performing a behaviorTherefore, it is hypothesized that:

H3: There is a positive relationship between the perceived behavior control and customer intention to purchase counterfeit product.

2.7 Perceived financial control

With perceived behavioral control concept, as Sahni (1994) researched andadapted that the Theory of Planned Behavior (Ajzen, 2002), it for predictingpurchases of both inexpensive and expensive products Or as Notani (1997)concerned that another to improve understanding of the role of perceived offorecasting customer purchasing intention Numerous researchers mentioned thatcustomer purchasing intention is a function not only of attitudes and purchaseintentions but also of economic considerations Moreover, the economic factor thatcan influence behavioral intention in this case is perceived financial control.Therefore, perceived ability to afford the customer purchasing whether perceived ofthe products as expensive or inexpensive

About counterfeit product, especially in fashion product, price is one of themost important issues in affecting customer intention to buy original products orcounterfeit products because the counterfeit product is cheaper than original product(Lai & Zaichkowsky, 1999) In developing countries, customers do not mentionedthe quality of products If they like one products, but they cannot afford to purchaseoriginal products and they use or purchase a look-alike products provides them anopportunity to enjoy the style A study by the Institute for Economic and SocialResearch (2005) showed the interesting finding from the same survey showed thatIndonesian consumer willingness to purchase only original products if it is suitablewith their income or ability In this sense, it is hypothesized that:

H4: Perceived financial control moderates the relationship between attitude toward the behavior to purchase counterfeit product and customer intention to purchase counterfeit product.

2.8 Research Model

In order to approach how the influence of critical factors to the customerspurchase intention, three factors including attitude towards the behavior to purchasecounterfeit product, subjective norms, perceived behavioral control will be used aspotential predictors of customers intention as presented in Figure 2.1

And this chapter will present a research structure that will be used to explorethe relationship between the critical factors on customer intention The contentsmentioned below are research hypotheses based on study model To implement thestudy various dependent, independent and moderating variables will be defined forthis model The independent variable is critical factors and the dependent variable iscustomer intention

2.9 Hypotheses summary

Perceived Financial Control

Attitude toward the

H1 (+) behavior to purchase

H4 counterfeit products

Subjective Norms H2 (+)

H3 (+)

Customer intention to purchase counterfeit

product

Perceived Behavior Control

Figure 2.1: Research model

With corresponding hypotheses starting about the relationship between

critical factors and the intention of purchasing as following:

H1: There is a positive relationship between attitude towards the behavior to

purchase counterfeit product and consumer intention to purchase counterfeit product

H2: There is a positive relationship between the subjective norms and consumer

intention to purchase counterfeit product

H3: There is a positive relationship between the perceived behavior control and

consumer intention to purchase counterfeit product

H4: Perceived financial control moderates the relationship between attitude toward

the behavior to purchase counterfeit product and consumer intention

And the following, this research will go through the operational definitions

of constructs was used as below table:

Table 2.1: Operational definitions of constructs

1 Counterfeit products These tangible products are produces illegally, low quality, Lai &

performance and durability with same designs of original Zaichkowsky products (1999)

2 Attitude towards the In terms of attitude toward counterfeit purchasing, customers

behavior to purchase assess their behavior according to features of counterfeit, Augusto, Ituassu counterfeit products including quality, practical, reliability features And customers and Rossi (2007)

neglect personal feelings such as shame, guilt or illegal when & Penz and buying and using the un-authorized products Stottinger (2005)

3 Subjective Norms Subjective norms are individual’s perception of social normative Ajzen and

pressures, or are relevant to the beliefs of others regarding Fishbein (1975) whether they should perform the behavior in question Therefore, & Albers-Miller

if people think their significant others agree with their purchasing (1999)

of counterfeits, or make such purchases themselves purchasing intention and likelihood are increased.

4 Perceived Behavioral Perceived behavioral control was describes individual Ajzen (2002) &

Control perceptions of the ease or difficulty of performing a specific Penz and

behavior In the case of purchasing counterfeit products, those Stottinger (2005) factors include information regarding counterfeits, the time

required to access counterfeits and individual ability to solve difficulties they may face in products purchases Therefore this study assumes that perceived behavioral control (information, time, ability to solve problems) positively affects intention to purchase counterfeits

5 Customer intention to Person performances the behavior shows that people do what Fishbein &

purchase counterfeit product they say they are going to do Ajzen (1975)

6 Perceived Financial Control Perceptions of individual ability to afford products will Notani (1997)

considerably influence intention.

This chapter presented a summary of definitions and perceptions in literaturefor the concepts of customer intention as well as attitude towards the behavior topurchase counterfeit product, subjective norms, perceived behavior control andperceived financial control Given there has no previous research conducted todetermine the factors or identify the set of criteria used to measure the customerintention in Vietnamese market Based on the findings of this chapter, this researchwill attempt to find out the set of factors and set of customer intention in Vietnam aswell as measure the relationship between them The research methodologydeveloped to test the hypotheses derived from the proposed research model ispresented in the next chapter

CHAPTER 3 RESEARCH DESIGN

This chapter will introduce research methodology that is used to test the

Research framework developed in previous session It will present research design,

how to generate surveyed questionnaires, how to survey for research data, how to

access this data set to know if it is reliable and analyze the data from pilot survey by

reliability and factor analysis and how to conduct the final survey to collect the data

for analysis

3.1 Research design

The research objective is the priority step in the research After that, these

literature reviews were review to find these relevant concepts about the theory of

planned behavior in these previous researchers These concepts also see as the

foundation for the proposed model and hypothesis research in later chapters The

next, the research go through on the method of collecting data, the determining of

resource, measurement scale and also sampling design with data analysis method

Continuously, based on measurement scale borrowed from these previous

researches, a draft questionnaire was built and translated into Vietnamese With this

draft questionnaire which was revised by qualitative research to adjust confusing

content before launching research The qualitative research was conducted by a

focus group to adjust the measurement scale After that, the final questionnaire is

made in both English and Vietnamese version with Likert scale of 5 points given the

targeted respondents are all people levels who should have a deep view on the

questions asked The measurement scale of indicators is Likert scale from 1 to 5

such as strongly disagree, disagree, neutral, agree, and strongly agree was used to

survey to collect data for analysis process which provided the conclusions and

recommendations in the final step

18

objective

Research modeland hypotheses

- Multiple Regression Analysis

3.2 Measurement scale

All the factors from the model in this research are original from manyprevious studies with citing Based on the literature review briefing, the mostappreciate measurement scale is a multivariate scale applied for this research

In summary, based on the previous research and after refinement, 17variables are selected and grouped according to their characteristic, namely: attituderelated factors, subjective norm related factors, perceived behavioral control relatedfactors and perceived financial control related factors The list of variables andmeasurement scale using for this research is summarized in Table 3.1

Table 3.1: Measurement scales

Coding

Coding of

variables factors

1 ATB Attitude ATB 1 Generally speaking, counterfeits have satisfying Augusto,

behavior to ATB 2 Generally speaking, counterfeits are practical Rossi (2007) &

purchase ATB 3 Generally speaking, counterfeits are reliable Penz and

counterfeit ATB 4 For me to buy/use counterfeits is virtue of thrift Stottinger

product ATB 5 For me to buy/use counterfeits is convenient (2005)

ATB 6 For me to buy/use counterfeits is wise.

ATB 7 For me to buy/use counterfeits is proud.

2 SUN Subjective SUN 1 How much do your parents think you should Ajzen and

SUN 2 How much do your partners think you should & Albers-Miller

purchase counterfeit products? (1999) SUN 3 How much do your friends think you should

purchase counterfeit products?

SUN 4 How much do your relatives think you should

purchase counterfeit products?

3 PCB Perceived PBC 1 I have enough time to find and purchase Ajzen (2002) &

Control PBC 2 I have enough information to find and access Stottinger

counterfeits (2005) PBC 3 I am able to control and solve difficulties when

finding/purchasing counterfeits

3 PFB Perceived PFC 1 I could likely afford to pay such a price for Notani (1997)

Financial purchasing original products.

Control PFC 2 For me to spend a lot of money for purchasing

original products is easy.

PFC 3 My personal income permits me to easily spend

money for original products.

4 BIN Customer BIN 1 I will make effort to buy counterfeits next 6 Fishbein &

product BIN 3 I will expect to purchase any counterfeits next 6

months.

BIN 4 If I had an opportunity; I would purchase a

counterfeit products in the future

1 ATB Attitude ATB 1 Generally speaking, counterfeits have satisfying quality.

towards the ATB 2 Generally speaking, counterfeits are practical.

behavior to ATB 3 Generally speaking, counterfeits are reliable.

purchase ATB 4 For me to buy/use counterfeits is virtue of thrift.

counterfeit ATB 5 For me to buy/use counterfeits is convenient.

product ATB 6 For me to buy/use counterfeits is wise.

ATB 7 For me to buy/use counterfeits is proud.

2 SUN Subjective SUN 1 My parents think I should purchase counterfeit products

Norms SUN 2 My partners think I should purchase counterfeit products

SUN 3 My friends think I should purchase counterfeit products SUN 4 My relatives think I should purchase counterfeit products

3 PCB Perceived PBC 1 I have enough time to find and purchase counterfeits.

Behavioral PBC 2 I have enough information to find and access counterfeits.

Control PBC 3 I am able to control and solve difficulties when

finding/purchasing counterfeits

3 PFB Perceived PFC 1 I could likely afford to pay such a price for purchasing

Control PFC 2 For me to spend a lot of money for purchasing original

products is easy.

PFC 3 My personal income permits me to easily spend money for

original products.

4 BIN Customer BIN 1 I will make effort to buy counterfeits next 6 month.

intention to BIN 2 I will plan to purchase any counterfeits next 6 months.

purchase BIN 3 I will expect to purchase any counterfeits next 6 months.

counterfeit BIN 4 If I had an opportunity; I would purchase a counterfeit

3.3 Sample Size

 500 > sample size > 30 are appropriate for most research

 Where samples are to broken into subsamples (males/ females, juniors/ seniors,…), a minimum size of 30 for each subgroup is necessary

 In multivariable analysis, the sample size should be several times (preferably

10 times or more) as large as the number of variable in the analysis

In addition, the minimum size of sample for factor analysis should be 50,preferably 100 and should be 5 times (preferably 10 times or more) as large as thenumber of variables in the analysis (Hair et al., as cited in Nguyen, 2012): n ≥ 100and n ≥ 5k (where k is equal to the number of variables)

Besides that, as cited in Nguyen (2012), the minimum sample size which is requiresfor the Multiple Linear Regression should be: n ≥ 50 + 8p (where p is equal to thenumber of independent factors)

With these above information and this research has 21 variables used for thefactors analysis, therefore the minimum sample size should be 105 (21x5) With theinitial Research model, there are 5 independent variables; minimum sample size forthis should be 186 (50+8x17) In light of the above two requirements, this researchchoose the biggest sample size Therefore, sample size used for this research should

be more than 186

3.4 Sampling techniques

In quantitative researches, it is believed that if the sample is carefullyobtained, it is then possible to generalize the results to the whole population assuggested by The author was sent the draft questionnaire to 6 peoples who live at

Ho Chi Minh City (each of them had the opportunity to meet or use thesecounterfeit products) to investigate whether the measurement scale was understoodand suitable or not As a result, these comments for the quantitative research usedfor adjustment of the measurement scales (see Appendix C)

3.5 Data collection method

Method to collect data which use to in this research has two ways: with mostthe respondents for the final questionnaire via online survey: email, Google survey,Facebook Data was collected through questionnaire survey was considered as theprimary data for this research Besides that, others sources such as text books,internet information and other materials (such as journals, newspapers, etc.) were

also used in research as the second data This kind of data collection method wasalso important to the research especially in the literature review and session five ofthis research.

3.6 Data analysis method

3.6.1 Statistical method

The technique used to in this research is analyzing data by SPSS (StatisticalPackage for Social Scientists) however personal coding and categorizing data wasdone manually

3.6.2 Descriptive statistics

Data analysis was conducted on respondents’ data in two perspectives:Descriptive data analysis and inferential data analysis Descriptive statisticsprovides us with the techniques of numerically and graphically presentinginformation that gives an overall picture of the data collected The researcher usedPearson’s correlation co-efficient calculation after data was aggregated to turncategorical data to numerical representation that required numerical methods fromsuch, descriptive statistics, frequency tables, graphics, and correlation Tables Weredeveloped to help describe the data gathered Inferential statistics were obtained anddata was present in descriptive statistics of each objective where percentages wereused to infer to the data collected Techniques were applied such as histogramcurves, to numerical data making inferences or predictions to the population based

on data collected from only part of the population This meant that the researcherdrew generalizations based on authentic data coupled with interviews (qualitativedata) and personal observations made by the researcher

3.6.3 Reliability analysis

To assess the internal consistency of the data used for the survey, Cronbach’salpha, and the item-to-total Correlation coefficients will be used to reject theinappropriate item The formula for the standardized Cronbach’s alpha is presented

in Formula 3.1 In that, N is equal to the number of items, c-bar is the average

item covariance among the items and v-bar equals the average variance From thisformula, if increasing the number of items, alpha will be increased Additionally,alpha will be low if the average inter-item correlation is low Conversely,Cronbach’s alpha will increase if the average inter-item correlation increases Inmost Social Science research situations, Cronbach’s alpha of 0.60 or higher isconsidered “acceptable”

3.6.4 Exploratory factor analysis

After collecting data from main survey, the Exploratory Factor Analysis (EFA)method was applied to explore the inter relationship between the variables

 Barlett’s test was smaller 0.05 (p<0.05)

 The KMO index was greater than 0.6 (the range from 0 to 1)

3.6.5 Multiple regression analysis

The Multiple regression is used for the hypotheses testing, in order to study the correlation and determine the variation in five independent factors explained byone dependent factor According to Leech et al (2005), the Multiple regression requires many assumptions but there are six major things: (1) A linear relationship between the predictor variables and dependent variable; (2) Independence of

residuals (errors); (3) Homoscedasticity of residuals/ equal error variances; (4) No multicollinearity; (5) No significant outliers; and (6) Residuals/ errors are normally distributed

In summary, the chapter presents the research process, from building the measurement scale to use to the measurement scale in official questionnaire to collect data It also mentions the method to release the sample size and samplingtechnique The data collection methods and methods to analyze the data also

concern in this chapter

CHAPTER 4 DATA ANALYSIS

This chapter will present the assessment of measurement scales and result ofhypotheses testing about these factors effect on customer intention to purchasecounterfeit product as well as customer intention to purchase counterfeit product in

Ho Chi Minh City The content of this chapter is as follows: (1) Sample descriptivestatistics; (2) Assessment and refinement of measurement scale; (3) Hypothesestesting and (4) Chapter summary

Likewise, a discussion of the research findings is discussed at the end of thischapter

4.1 Descriptive statistics

350 questionnaires were sent to interviewees who live in Viet Nam Therewere 329 replies

In term of gender of this survey, 49.5% of respondents are male and 50.5%

of respondents are female The results are in the Table 4.1

Out of 329 respondents in term of age, there are 273 respondents (90.1%) arefrom 18 to 30 years old, while 54 respondents (17.8%) from 31 to 40 years old and

2 respondents (0.7%) from 41 to 50 years old The number is in the Table 4.1

In the percentage of income per month of the respondents, the number ofrespondents who have income less than 5 million VND per month is 14.9%, from 5million VND to 10 million VND per month is 44.9%, from 11 million VND to 15million VND per month is 24.4% and more than 15 million VND per month is24.4% The results are in the Table 4.1

In the percentage of education level of the respondents, the number ofrespondents who intermediate degree is 3.0 %, associate degree is 3.3%, bachelor’sdegree is 68.3% and graduate degree (master’s, doctoral) is 34.0% The results are

in the Table 4.1

In addition, in the percentage of work status of the respondents, the number

of respondents who working full-time or part-time is 95.0 % and who unemployed

is 5.0% The results are in the Table 4.1

Table 4.1 Descriptive statistics

- Cronbach’s alpha to test the reliability of measurement scales

- Exploratory factor analysis (EFA) to test the validity of measurement scales

Firstly, the Cronbach’s alpha test is carried out in order to test the reliability of

the measurement scales The condition of each scales are over 0.6 is acceptable for

the reliability of them Besides, in order to increase the Cronbach’s alpha of the

scales, the variables which the item-total correlation are smaller than 0.3 are

considered to be deleted

Secondly, the EFA is also conducted to test the validity of the measurement

scales The principal component extraction method is used the varimax rotation

method The criteria for the validity of EFA method for measurement scales are the

Eigenvalue is greater than 1 and the total variable explained is over 50%

Table 4.2: Reliability analysis of dependent factor