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 to purchase counterfeit products, and the extractio

Nguyen Thi Thu Trang

THE INTENTION OF VIETNAMESE

Ho Chi Minh City – Year 2014

Nguyen Thi Thu Trang

SUPERVISOR: Nguyen Thi Mai Trang

Ho Chi Minh City – Year 2014

Secondly, I would like to thank my dear colleagues, friend and classmates for their invaluable advice, help, encouragement and support during the time I was doing this thesis

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

my family for their support, assistance and encouragement for my study and thesis fulfillment

ABSTRACT

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

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

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

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

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

TABLE OF CONTENTS

ACKNOWLEDGEMENT

ABSTRACT

TABLE OF CONTENTS

LIST OF ABBREVIATIONS

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 1

1.1 Research background 1

1.2 Research objectives 4

1.3 Research scope 4

1.4 Research contribution 5

1.5 Research structure 5

CHAPTER 2 LITERATURE REVIEW 7

2.1 Counterfeit products 7

2.2 Theory of Planned Behavior 9

2.3 Customer intention to purchase counterfeit product 9

2.4 Attitude towards the behavior to purchase counterfeit product 10

2.5 Subjective Norms 11

2.6 Perceived Behavioral Control 12

2.7 Perceived financial control 13

2.8 Research Model 14

2.9 Hypotheses summary 14

CHAPTER 3 RESEARCH DESIGN 17

3.1 Research design 17

3.2 Measurement scale 19

3.3 Sample Size 20

3.4 Sampling techniques 21

3.5 Data collection method 21

3.6 Data analysis method 22

3.6.1 Statistical method 22

3.6.2 Descriptive statistics 22

3.6.3 Reliability analysis 22

3.6.4 Exploratory factor analysis 23

3.6.5 Multiple regression analysis 23

CHAPTER 4 DATA ANALYSIS 24

4.1 Descriptive statistics 24

4.2 Assessment and refinement of measurement scale 25

4.2.1 Refinement of measurement scale 25

4.2.2 Exploratory Factor Analysis (EFA) 29

4.3 Multiple Linear Regression 31

4.3.1 Test of assumption 32

4.3.2 Correlation analysis 33

4.3.3 Regression analysis 33

4.3.4 Hypotheses testing 35

4.3.5 Moderating effect: Perceived Financial Control 37

CHAPTER 5 CONCLUSIONS 44

5.1 Findings 44

5.2 Managerial implications 46

5.2.1 Attitude towards the behavior to purchase counterfeit products 46

5.2.2 Subjective Norms 47

5.2.3 Perceived Financial Control 48

5.3 Limitations and future research direction 49

REFRENECES 50 APPENDIX A QUESTIONARIES

B ẢNG CÂU HỎI

APPENDIX B: GUIDELINE FOR QUALITATIVE IN-DEPTH INTERVIEW

APPENDIX C: SURVEY RESULTS

APPENDIX D: RESULTS OF MULTIPLE LINEAR REGRESSIONS

APPENDIX E: RESULTS OF MULTIPLE LINEAR REGRESSIONS FOR MORDERATING VARIABLE

APPENDIX F: HISTOGRAM, NORMAL REGRESSION & SCATTER PLOT OF DEPENDENT VARIABLE: CUSTOMER INTENTION TO PURCHASE COUNTERFEIT PRODUCT

LIST OF ABBREVIATIONS

TPB: Theory of Planned Behavior

BIN: Customer intention

ATB: Attitude towards the behavior to purchase counterfeit products SUN: Subjective norms

PBC: Perceived Behavioral Control

PFC: Perceived Financial Control

PFC_L: Perceived Financial Control with low group

PFC_H: Perceived Financial Control with high group

LIST OF TABLES

Table 2.1: Operational definitions of constructs 15

Table 3.1: Measurement scales 19

Table 3.2: Measurement scale after Qualitative Research 20

Table 4.1 Descriptive statistics 25

Table 4.2: Reliability analysis of dependent factor 26

Table 4.3: Reliability analysis of independent factors 27

Table 4.4 Rotated Component Matrix 31

Table 4.5 Correlation statistics 33

Table 4.6 Model Summary of multiple regression analysis 34

Table 4.7 ANOVA of multiple regression analysis 34

Table 4.8 Coefficients of multiple linear regression 35

Table 4.9 Hypotheses summary 36

Table 4.10 Summary result of the effect moderating variable 39

Table 4.11 ANOVA summary result 40

LIST OF FIGURES

Figure 2.1: Research model 14Figure 3.1 Research process 18

CHAPTER 1 INTRODUCTION 1.1 Research background

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

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

(Bhardwaj, 2010), mentioned that integrity has no influence on subjective norm to purchase counterfeit brands Furthermore, the results indicate that favorable attitudes toward the purchase of counterfeit brand has a positive influence on the intentions to purchase counterfeit brands whereas it has a negative influence on the intentions to purchase original brands Additionally, the subjective norm shows a positive relation with intentions to purchase counterfeit brands and perceived control over the purchase of counterfeit brands show a negative relationship with intentions to purchase counterfeit brands Finally, based on the result of the hypothesis for moderator testing, price sensitivity does not act as a moderating factor in the relationship between attitudes and intentions to purchase counterfeit brands Based on the results obtained in the study, implications for managers, educators, and policy makers have been suggested Besides suggesting tactical strategies to control the growing problem of selling counterfeit brands in the markets, it is believed that there is a strong need to spread awareness and information about the dark side of counterfeiting among consumers so that they develop a resistance in consumption of counterfeit and illegally sold brands in the market (as cited in Bhardwaj, 2010)

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

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

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

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

13 billion violations

With the same problem about counterfeit products, in the report of Electronic Newspaper Vietnam Education (2012), Mr Trinh Quoc Khanh who is deputy captain of Smuggling Investigation Department - General Department of Vietnamese Customs also mentioned that counterfeit products are not only sneaky current passing through the border region container imports through the port Specifically, the unit conducted recently seized and destroyed containers with nearly 10,000 counterfeit products by a company in Binh Tan district imported through Cat Lai port The amounts of counterfeit products are mostly luggage, handbags by famous brands such as Louis Vuitton, Montblanc and Longchamp,…

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

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

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

1.3 Research scope

There are two kinds of counterfeit products from customer perception also: deceptive and non-deceptive Some consumers buy counterfeit products without being aware of the intellectual property infringement, this research call this is the

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

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

1.4 Research contribution

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

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

1.5 Research structure

This thesis comprises five chapters as following:

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

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

Chapter 3 named as “Research Methodology” introduces and reports the research process together with the analyzed results

Chapter 4 named as “Data Analysis” reports the analysis results of data collected from the survey

Chapter 5 named as “Conclusions” discusses the main finding in Chapter 4 the implications of the result, based on which conclusions and recommendations are provided

CHAPTER 2 LITERATURE REVIEW

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

2.1 Counterfeit products

There are four types of counterfeit products: (1) counterfeit the quality and utility: Product quality is not good as well as original product or not using the correct values with the origin, nature, and the names of the product; (2) counterfeit trademark products or packaging of products: Counterfeit labels, packaging products are counterfeit products names and addresses of other traders on the label

or packaging and counterfeit products or indication of origin of products, place of manufacture, packaging assembly of products on the label or packaging of products; (3) counterfeit intellectual property: counterfeit intellectual property products with packaging branded merchandise, signs identical or indistinct marks, geographical indications are protected for the item without the permission of trademark owner, management organization or geographical indications are pirated copies were produced without the permission of the copyright holders or related rights and (4) the stamps, labels, packaging counterfeit products is stamps, labels, packaging of all kinds of products including counterfeit decals, labels, packaging products, quality stamps, stamp anti-counterfeiting, warranty and post -shrink merchandise content counterfeit name and address traders, the origin of products, the place of production, packing, assemble products Counterfeit products are produced increasingly sophisticated, increasingly more difficult to distinguish At a certain time, for each item there are signs to distinguish original and counterfeit products But these signs are always changing manufacturers so hard to capture full marks to distinguish

original products from counterfeit products in the market But the author collected the information to compare the difference between counterfeit and original products

as signs below: (1) the appearance: Inferior quality design, they look less attractive: design, seam, completion of the products was not attend much attention as the original products (but sometimes there are some counterfeit products look the same with original products), (2) the color: slightly, (3) Materials: cheap material and inferior quality (for example: lining of clothing, bag straps, buckles ), (4) Brand: removed, altered (for example: adding a prefix or suffix to the original name), copy (shape, spelling ), (5) Position: mark on counterfeit products is not the same on the original products, (6) Distribution : private sales stores, (7) Price: lower than the original products and buyers can bargain if the products is counterfeit; seller refuse

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

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

2.2 Theory of Planned Behavior

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

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

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

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

2.3 Customer intention to purchase counterfeit product

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

2.4 Attitude towards the behavior to purchase counterfeit product

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

is direct predictor of the intention and behavior customers who in the decision making process, they also show that it will be influences from who receives these references

According to Huang et al (2004), attitude is an expressed of response in favorable or unfavorable situation The factors of attitude are often used as a predictor of customer intentions and behaviors But it cannot observe directly, researchers can determine consumer attitudes through on measure scales (Huang et al., 2004) Attitude towards the behavior to purchase counterfeit product can be influenced by a number of subjects based on the previous research, these subjects effect on attitude can be divided into two groups: social factors and personality factors Social influence changes on what the relationship relevant of customer think on an individual consumer’s behavior (Ang et al., 2001)

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

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

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

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

2.5 Subjective Norms

As mentioned in the Theory of Planned Behavior, it is showed that subjective norms are determined by the belief concerning the expectations of important references with belief is by motivation to finish (Ajzen, 2006) Subjective norms explain the effect of social factors on customer intention to purchase counterfeit product Social factors can lead a person to give these different decisions which means that support from social factors to the customer behavior would either encourage involvement or not (Ang et al., 2001; Albers-Miller, 1999) This is also demonstrated by Ajzen & Fishbein, 1975, subjective norms are shown as perception with pressures of social factors to the beliefs whether they will perform the behavior

If people think these social factors agree with their purchasing of counterfeit product so customer intention to purchase counterfeit product will be increased (Albers, 1999) Social factors have two groups as below: the first group includes these regular interactions as family, friends, neighbors and colleague; the second group has little interaction with each other, as social organizations, associations The family members can make a strong impact on the behavior of customer intention when purchasing counterfeit product We have: (1) Oriented family including her/his parents From parents, someone get oriented political and economic significance of personal desire, love and virtue Even those who no longer buy multiple relationships with their parents, the parents' influence on the behavior

of buyers still can be very significant In families where parents still living with adult children have strongly affected by their decisions; (2) Own family including his wife or her husband and children of people who buy, have a direct influence

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

to take care of family more People who do research the product under the wrong category will be essential if kept thinking that women are still the main customers

or only buy their products Besides that, in the case of products are the expensive kinds, usually husband and wife exchange to make decisions collectively Researchers need to determine how often members have greater influence in the purchase of products That may be due to the role, habits or their proficiency in procurement decisions So the subjective norms will have the positively the customer intention to purchase counterfeit product This leads to have the second hypothesis:

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

2.6 Perceived Behavioral Control

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

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

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

and customer intention to purchase counterfeit product

2.7 Perceived financial control

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

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

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

2.8 Research Model

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

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

2.9 Hypotheses summary

Figure 2.1: Research model

Attitude toward the

behavior to purchase

counterfeit products

Subjective Norms

Perceived Behavior Control

Customer intention to purchase counterfeit

With corresponding hypotheses starting about the relationship between critical factors and the intention of purchasing as following:

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

purchase counterfeit product and consumer intention to purchase counterfeit product

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

intention to purchase counterfeit product

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

consumer intention to purchase counterfeit product

H4: Perceived financial control moderates the relationship between attitude toward

the behavior to purchase counterfeit product and consumer intention

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

of constructs was used as below table:

Table 2.1: Operational definitions of constructs

No Construct Operational Definition Sources

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

performance and durability with same designs of original products

Lai & Zaichkowsky (1999)

2 Attitude towards the

behavior to purchase

counterfeit products

In terms of attitude toward counterfeit purchasing, customers assess their behavior according to features of counterfeit, including quality, practical, reliability features And customers neglect personal feelings such as shame, guilt or illegal when buying and using the un-authorized products

Augusto, Ituassu and Rossi (2007)

& Penz and Stottinger (2005)

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

pressures, or are relevant to the beliefs of others regarding whether they should perform the behavior in question Therefore,

if people think their significant others agree with their purchasing

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

Ajzen and Fishbein (1975)

& Albers-Miller (1999)

4 Perceived Behavioral

Control

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

Ajzen (2002) & Penz and Stottinger (2005)

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

considerably influence intention

Notani (1997) This chapter presented a summary of definitions and perceptions in literature for the concepts of customer intention as well as attitude towards the behavior to purchase counterfeit product, subjective norms, perceived behavior control and perceived financial control Given there has no previous research conducted to determine the factors or identify the set of criteria used to measure the customer intention in Vietnamese market Based on the findings of this chapter, this research will attempt to find out the set of factors and set of customer intention in Vietnam as

well as measure the relationship between them The research methodology

developed to test the hypotheses derived from the proposed research model is presented 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

Focus group (n=6)

- Cronbach’s Alpha

- Exploratory Factor Analysis (EFA)

- Multiple Regression Analysis

Figure 3.1 Research process

objective

Research model and hypotheses

Final questionnaire

Research design

Qualitative research

Draft questionnaire

Reliability analysis Validity analysis Hypothesis testing

Conclusions and recommendations Survey (n=329)

3.2 Measurement scale

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

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

Table 3.1: Measurement scales

ATB 1 Generally speaking, counterfeits have satisfying

quality

Augusto, Ituassu and Rossi (2007) & Penz and Stottinger (2005)

ATB 2 Generally speaking, counterfeits are practical

ATB 3 Generally speaking, counterfeits are reliable

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

ATB 5 For me to buy/use counterfeits is convenient

ATB 6 For me to buy/use counterfeits is wise

ATB 7 For me to buy/use counterfeits is proud

Ajzen and Fishbein (1975)

& Albers-Miller (1999)

SUN 2 How much do your partners think you should

purchase counterfeit products?

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?

Behavioral Control

PBC 1 I have enough time to find and purchase

counterfeits

Ajzen (2002) & Penz and Stottinger (2005)

PBC 2 I have enough information to find and access

PFC 1 I could likely afford to pay such a price for

purchasing original products

Notani (1997) 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

purchase counterfeit product

BIN 1 I will make effort to buy counterfeits next 6

month

Fishbein & Ajzen (1975) BIN 2 I will plan to purchase any counterfeits next 6

months

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

Table 3.2: Measurement scale after Qualitative Research

ATB 1 Generally speaking, counterfeits have satisfying quality ATB 2 Generally speaking, counterfeits are practical

ATB 3 Generally speaking, counterfeits are reliable

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

ATB 5 For me to buy/use counterfeits is convenient

ATB 6 For me to buy/use counterfeits is wise

ATB 7 For me to buy/use counterfeits is proud

Norms

SUN 1 My parents think I should purchase counterfeit products 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

Behavioral Control

PBC 1 I have enough time to find and purchase counterfeits PBC 2 I have enough information to find and access counterfeits PBC 3 I am able to control and solve difficulties when

finding/purchasing counterfeits

Financial Control

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

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

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

3.3 Sample Size

As cited in Sekaran and Bougie (2011), to determine sample size, we need to follow some rules of thumb as below:

 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 the number of variables in the analysis (Hair et al., as cited in Nguyen, 2012): n ≥ 100 and n ≥ 5k (where k is equal to the number of variables)

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

With these above information and this research has 21 variables used for the factors analysis, therefore the minimum sample size should be 105 (21x5) With the initial Research model, there are 5 independent variables; minimum sample size for this should be 186 (50+8x17) In light of the above two requirements, this research choose 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 carefully obtained, it is then possible to generalize the results to the whole population as suggested 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 these counterfeit products) to investigate whether the measurement scale was understood and suitable or not As a result, these comments for the quantitative research used

for 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 most the respondents for the final questionnaire via online survey: email, Google survey, Facebook Data was collected through questionnaire survey was considered as the primary 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 was also important to the research especially in the literature review and session five of

3.6.2 Descriptive statistics

Data analysis was conducted on respondents’ data in two perspectives: Descriptive data analysis and inferential data analysis Descriptive statistics provides us with the techniques of numerically and graphically presenting information that gives an overall picture of the data collected The researcher used Pearson’s correlation co-efficient calculation after data was aggregated to turn categorical data to numerical representation that required numerical methods from such, descriptive statistics, frequency tables, graphics, and correlation Tables Were developed to help describe the data gathered Inferential statistics were obtained and data was present in descriptive statistics of each objective where percentages were used to infer to the data collected Techniques were applied such as histogram curves, to numerical data making inferences or predictions to the population based

on data collected from only part of the population This meant that the researcher drew generalizations based on authentic data coupled with interviews (qualitative data) 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’s alpha, and the item-to-total Correlation coefficients will be used to reject the inappropriate 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

inter-item covariance among the inter-items and v-bar equals the average variance From this formula, 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 In most Social Science research situations, Cronbach’s alpha of 0.60 or higher is considered “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 by one 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 sampling technique 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 of hypotheses testing about these factors effect on customer intention to purchase counterfeit 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 descriptive statistics; (2) Assessment and refinement of measurement scale; (3) Hypotheses testing and (4) Chapter summary

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

4.1 Descriptive statistics

350 questionnaires were sent to interviewees who live in Viet Nam There were 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%) are from 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 of respondents who have income less than 5 million VND per month is 14.9%, from 5 million VND to 10 million VND per month is 44.9%, from 11 million VND to 15 million VND per month is 24.4% and more than 15 million VND per month is 24.4% The results are in the Table 4.1

In the percentage of education level of the respondents, the number of respondents who intermediate degree is 3.0 %, associate degree is 3.3%, bachelor’s degree 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

4.2 Assessment and refinement of measurement scale

4.2.1 Refinement of measurement scale

In this part of this research, the measurement scales are assessed and refined by:

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

Income per

month

(million VND)

- 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

Item-Correlation

Cronbach's Alpha if Item Deleted

Customer intention to purchase counterfeit product - BIN (4 items) Cronbach’s Alpha= 0.894

Table 4.3: Reliability analysis of independent factors Code Scale Mean if

Item Deleted

Scale Variance if Item Deleted

Corrected Total Correlation

Cronbach's Alpha if Item Deleted

Attitude towards the behavior to purchase counterfeit product - ATB (7 items) Cronbach’s Alpha= 0.872

Reliability of attitude toward the behavior to purchase counterfeit products

As the result of Cronbach’s Alpha of attitude toward the behavioral to purchase counterfeit product is shown in the Table 4.3, it is (0.872) which is larger than 0.6, and all the corrected item-total correlation are larger than 0.3 Therefore, it

is accepted for exploratory factor analysis (EFA) later

Reliability of subjective norms

As the result is shown in the Table 4.3, it is (0.914) which is larger than 0.6, and all the corrected item-total correlation are larger than 0.3 Hence, subjective norm is accepted for exploratory factor analysis (EFA) later

Reliability of perceived behavior control

According to the Table 4.3, it is (0.758) which is larger than 0.6, and all the corrected item-total correlation are larger than 0.3 That is reason perceived behavior control is accepted for exploratory factor analysis (EFA) later

Reliability of perceived financial control

As the result of Cronbach’s Alpha of perceived financial control is shown in the Table 4.3, it is (0.809) which is larger than 0.6, and all the corrected item-total correlation are larger than 0.3 Therefore, these variables are accepted for exploratory factor analysis (EFA) later

Reliability of customer intention to purchase counterfeit product

As the result of customer intention to purchase counterfeit product is shown

in the Table 4.2, it is (0.894) which is larger than 0.6, and all the corrected total correlation are larger than 0.3 So, customer intention to purchase counterfeit product factor is accepted for exploratory factor analysis (EFA) later

item-4.2.2 Exploratory Factor Analysis (EFA)

KMO and Barlett’s Test:

After having the reliability of measurement scale result, the Exploratory Factor Analysis (EFA) method conducted to test the validity of the measurement of

scales The EFA testing has showed the result that KMO values of all the

independent factors, perceived financial control factor and Behavioral Intention factor are greater than 0.6 at the Bartlett’s Test Significance of 000 (which is

smaller than 0.05) So, the extracted variance meets the requirement of EFA testing

The results are in the KMO and Barlett’s Test in Appendix C

In summary, the KMO and Barlett’s Test confirmed that the data was suitable for factor analysis

Total Variance Explained

With the Total Variance Explained of independent factors, the research will stay at factor three with the eigenvalues of three factors is greater than 1, the result

of this has showed that the factors in this construction were as what the hypotheses assumed All the eigenvalues in the listed are more than 1 (6.563, 1.605, 1.334) Besides, the percentage of cumulative has explained of the 67.88% of the variances Besides that, for these independent factors, the eigenvalues in the Total Variance explained is 3.148 (which are above 1) and the percentage of cumulative for the variance is explained as 78.71% All the result is in Appendix C

Rotated Component Matrix

The Rotated Factor Matrix in Table 4.4 which displays the items and factor loading for rotated factors, with loading more than 0.5 are acceptable The items cluster into these groups was defined which these factors loadings were great than

0.50 All variables belonged to the right concept as the research had proposed in advance

After rotating, 18 variables of this research were divided into the four components:

Component 1 “Attitude towards the behavior to purchase counterfeit product” (ATB) included ATB 1; ATB 2; ATB 3; ATB 4; ATB 5; ATB 6; ATB 7

Component 2 “Subjective Norms” (SUN) included SUN 1; SUN 2; SUN 3; SUN 4

Component 3 “Perceived behavior control” (PBC) included PBC 1; PBC 2; PBC 3

Component 4 “Customer intention to purchase counterfeit product” (BIN) included BIN 1; BIN 2; BIN 3; BIN 4

In conclusion, the measurement scales have applied in this research has convergent validity and discriminant validity