Counterfeit Products and the Role of the Consumer in Saudi Arabia
Author(s)
Abbas N. Albarq
Affiliation(s)
School of Economics & Administrative Science, Al Imam Ibn Muhammad Ibn Saud University, Riyadh, Saudi Arabia.
School of Economics & Administrative Science, Al Imam Ibn Muhammad Ibn Saud University, Riyadh, Saudi Arabia.
ABSTRACT
The aim of this paper is to investigate the key antecedents of Saudi consumers’ attitudes toward counterfeit products. The study is also set out to examine the relationship of consumers’ attitude towards counterfeit product with purchase intention. The study adopted the self-administered survey methodology technique using a pre-validated pre-piloted questionnaire. The questionnaire was adapted from one previously used in Brazil. A survey of 520 respondents was selected in Riyadh market based on convenience-sampling method to test the hypothesized relationships using structural equation model (SEM) with maximum likelihood estimation. The empirical results from the structural model suggest that Saudi consumers’ intentions to buy counterfeited products are influenced by perceived risk, subjective norm, price-quality inference, prior purchase of counterfeits, and integrity. The paper reinforces the mediator role that attitude plays in the relationship between these antecedents and behavioral intentions. By having a better understanding of the consumers’ behavioral intentions of buying counterfeit products, the manufacturers and marketers of the genuine brand products can make better marketing strategies to entice the consumer to buy the original product and not the counterfeit version. Theoretical contribution of this study is an extension of knowledge of consumers’ attitude with regards to counterfeit products.
The aim of this paper is to investigate the key antecedents of Saudi consumers’ attitudes toward counterfeit products. The study is also set out to examine the relationship of consumers’ attitude towards counterfeit product with purchase intention. The study adopted the self-administered survey methodology technique using a pre-validated pre-piloted questionnaire. The questionnaire was adapted from one previously used in Brazil. A survey of 520 respondents was selected in Riyadh market based on convenience-sampling method to test the hypothesized relationships using structural equation model (SEM) with maximum likelihood estimation. The empirical results from the structural model suggest that Saudi consumers’ intentions to buy counterfeited products are influenced by perceived risk, subjective norm, price-quality inference, prior purchase of counterfeits, and integrity. The paper reinforces the mediator role that attitude plays in the relationship between these antecedents and behavioral intentions. By having a better understanding of the consumers’ behavioral intentions of buying counterfeit products, the manufacturers and marketers of the genuine brand products can make better marketing strategies to entice the consumer to buy the original product and not the counterfeit version. Theoretical contribution of this study is an extension of knowledge of consumers’ attitude with regards to counterfeit products.
Cite this paper
Albarq, A. (2015) Counterfeit Products and the Role of the Consumer in Saudi Arabia. American Journal of Industrial and Business Management, 5, 819-827. doi: 10.4236/ajibm.2015.512079.
Albarq, A. (2015) Counterfeit Products and the Role of the Consumer in Saudi Arabia. American Journal of Industrial and Business Management, 5, 819-827. doi: 10.4236/ajibm.2015.512079.
References
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http://ec.europa.eu/taxation_customs/resources/documents/customs/customs_controls
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http://www.jstor.org/stable/40469968
http://dx.doi.org/10.1080/10696679.1999.11501840 [13] Tellis, G.J. and Gaeth, G.J. (1990) Best Value, Price Seeking, and Price Aversion: The Impact of Information and Learning on Consumer Choices. Journal of Marketing, 54, 34-45.
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http://dx.doi.org/10.1086/209386 [19] Albers-Miller, N.D. (1999) Consumer Misbehavior: Why People Buy Illicit Goods. Journal of Consumer Marketing, 16, 273-287.
http://dx.doi.org/10.1108/07363769910271504 [20] Ang, S.H., Cheng, P.S., Lim, E.A.C. and Tambyah, S.K. (2001) Spot the Difference: Consumer Responses towards Counterfeits. Journal of Consumer Marketing, 18, 219-235.
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http://dx.doi.org/10.1177/009365093020003001 [23] Hair Jr., J.F., Anderson, R.E., Tatham, W. and Black, W.C. (2006) Multivariate Data Analysis. 5th Edition, Prentice Hall, Upper Saddle River. [24] Fornell, C. and Larcker, D.F. (1981) Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18, 39-50.
http://dx.doi.org/10.2307/3151312 [25] Abbas, A., Suleiman, A. and Almualla, A. (2013) Using Structural Equation Modeling for Beginner. Ithraa, Inc., Amman. [26] Byrne, B.M. (2001) Structural Equation Modeling with AMOS: Basic Concepts, Applications, and Programming. Lawrence Erlbaum Associates, Mahwah. [27] Arab News (2015) 1.5 Million Counterfeit Products Seized.
http://www.arabnews.com/news/534026 [28] The Saudi Arabian Monetary Agency (2015) Pilgrims’ Receipt.
http://www.sama.gov.sa/en-US/Currency/Pages/Pilgriams.aspx
[1] Kotler, P. and Keller, K. (2014) Marketing Management. 15th Edition, Prentice Hall, Saddle River. [2] Bian, X. and Veloutsou, C. (2008) Consumers’ Attitudes Regarding Non-Deceptive Counterfeit Brands in the UK and China. Journal of Brand Management, 14, 211-222.
http://dx.doi.org/10.1057/palgrave.bm.2550046 [3] Saudi Customs Information Center (2015) Annual Report Saudi Customs.
http://www.customs.gov.sa/sites/sc/en/about_detail [4] United Trademark & Patent Services (2015) Counterfeiting Targets. [5] Norum, P. and Cuno, A. (2011) Analysis of the Demand for Counterfeit Goods. Journal of Fashion Marketing and Management, 15, 27-40.
http://dx.doi.org/10.1108/13612021111112322 [6] Albarq, A.N. (2013) Theoretical Consideration: Internet Banking Acceptance in Kingdom of Jordan. International ournal of Business and Management Invention, 2, 18-27. [7] European Union (2012) Report on EU Customs Enforcement of Intellectual Property Rights. Results at the EU Border 2011.
http://ec.europa.eu/taxation_customs/resources/documents/customs/customs_controls
/counterfeit_piracy/statistics/2012_ipr_statistics_en.pdf [8] Ajzen, I. and Fishbein, M. (1980) Understanding Attitudes and Predicting Social Behavior. Prentice-Hall, Englewood Cliffs. [9] Huang, J.H., Lee, B.C.Y. and Ho, S.H. (2004) Consumer Attitude toward Gray Market Goods. International Marketing Review, 21, 598-614.
http://dx.doi.org/10.1108/02651330410568033 [10] Cespedes, F.V., Corey, E.R. and Rangan, V.K. (1988) Gray Markets: Causes and Cures. Harvard Business Review, 66, 75-83. [11] Cordell, V., Wongtada, N. and Kieschnick, R.L. (1996) Counterfeit Purchase Intentions: Role of Lawfulness Attitudes and Product Traits as Determinants. Journal of Business Research, 35, 41-53.
http://dx.doi.org/10.1016/0148-2963(95)00009-7 [12] Chapman, J. and Wahlers, A. (1999) Revision and Empirical Test of the Extended Price-Perceived Quality Model. Journal of Marketing Theory and Practice, 7, 53-64.
http://www.jstor.org/stable/40469968
http://dx.doi.org/10.1080/10696679.1999.11501840 [13] Tellis, G.J. and Gaeth, G.J. (1990) Best Value, Price Seeking, and Price Aversion: The Impact of Information and Learning on Consumer Choices. Journal of Marketing, 54, 34-45.
http://dx.doi.org/10.2307/1251868 [14] Havlena, W.J. and De Sarbo, W.S. (1991) On the Measurement of Perceived Consumer Risk. Decision Sciences, 22, 927-939.
http://dx.doi.org/10.1111/j.1540-5915.1991.tb00372.x [15] Bonoma, T.V. and Johnston, W.J. (1979) Decision Making under Uncertainty: A Direct Measurement Approach. Journal of Consumer Research, 6, 177-191.
http://www.jstor.org/stable/2488874
http://dx.doi.org/10.1086/208760 [16] Zinkhan, G.M. and Karande, K.W. (1990) Cultural and Gender Differences in Risk-Taking Behavior among American and Spanish Decision Markers. The Journal of Social Psychology, 131, 741-742.
http://dx.doi.org/10.1080/00224545.1991.9924657 [17] Donthu, N. and Garcia, A. (1999) The Internet Shopper. Journal of Advertising Research, 39, 52-58. [18] Dowling, G.R. and Staelin, R. (1994) A Model of Perceived Risk and Intended Risk-Handling Activity. Journal of Consumer Research, 21, 119-134.
http://www.jstor.org/stable/2489744
http://dx.doi.org/10.1086/209386 [19] Albers-Miller, N.D. (1999) Consumer Misbehavior: Why People Buy Illicit Goods. Journal of Consumer Marketing, 16, 273-287.
http://dx.doi.org/10.1108/07363769910271504 [20] Ang, S.H., Cheng, P.S., Lim, E.A.C. and Tambyah, S.K. (2001) Spot the Difference: Consumer Responses towards Counterfeits. Journal of Consumer Marketing, 18, 219-235.
http://dx.doi.org/10.1108/07363760110392967 [21] Bearden, W.O., Netemeyer, R.G. and Teel, J.E. (1989) Measurement of Consumer Susceptibility to Interpersonal Influence. Journal of Consumer Research, 15, 473-481.
http://www.jstor.org/stable/2489543
http://dx.doi.org/10.1086/209186 [22] Kim, M.S. and Hunter, J.E. (1993) Relationships among Attitudes, Behavioral Intentions, and Behavior: A Meta-Analysis of Past Research, Part 2. Communication Research, 20, 331-364.
http://dx.doi.org/10.1177/009365093020003001 [23] Hair Jr., J.F., Anderson, R.E., Tatham, W. and Black, W.C. (2006) Multivariate Data Analysis. 5th Edition, Prentice Hall, Upper Saddle River. [24] Fornell, C. and Larcker, D.F. (1981) Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18, 39-50.
http://dx.doi.org/10.2307/3151312 [25] Abbas, A., Suleiman, A. and Almualla, A. (2013) Using Structural Equation Modeling for Beginner. Ithraa, Inc., Amman. [26] Byrne, B.M. (2001) Structural Equation Modeling with AMOS: Basic Concepts, Applications, and Programming. Lawrence Erlbaum Associates, Mahwah. [27] Arab News (2015) 1.5 Million Counterfeit Products Seized.
http://www.arabnews.com/news/534026 [28] The Saudi Arabian Monetary Agency (2015) Pilgrims’ Receipt.
http://www.sama.gov.sa/en-US/Currency/Pages/Pilgriams.aspx