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1Factor influence Purchase decision of consumer toward counterfeit products.

Factor influence Purchase decision of

consumer toward counterfeit products

Muhammad Qasim (11223003)

Sunbal Iqbal (11123029)

Maryam Nazeer Cheema (11223017)

MBA (3-years)

Students of GIFT University Gujranwala

Department of Management Sciences

Supervised by: Muhammad Abid Awan

Lecturer GIFT University Gujranwala

(Data Analysis)

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Contents

Abstract ......................................................................................................................................................... 4

1. Introduction ........................................................................................................................................... 5

1.1 Significance of the study ............................................................................................................... 5

1.2 Problem statement ......................................................................................................................... 5

1.3 Aim of the study ............................................................................................................................ 6

1.4 Research objective ........................................................................................................................ 6

1.5 Research Question ........................................................................................................................ 7

1.6 Delimitations of the study ............................................................................................................. 7

2 Literature Review .................................................................................................................................. 7

2.1 Frame Work ................................................................................................................................ 13

3 Research Methodology ....................................................................................................................... 20

3.1 Sample Selection (size & Techniques): ...................................................................................... 20

3.2 Population frame ......................................................................................................................... 21

3.3 Unit of analysis ........................................................................................................................... 21

3.4 Type of study .............................................................................................................................. 21

3.5 Time Horizon .............................................................................................................................. 22

3.6 Researcher Strength .................................................................................................................... 22

3.7 Instrument development/selection .............................................................................................. 22

3.8 Data collection procedures .......................................................................................................... 23

3.9 Data analysis techniques ............................................................................................................. 23

3.10 Data analysis software ................................................................................................................ 23

4 Exploratory Data Analysis .................................................................................................................. 24

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4.1 Demographic Information ........................................................................................................... 24

The above table shows the percentages of different demographic variables i.e. Gender, Age , Income ,

Qualification of our respondents. ................................................................................................................ 24

4.2 Descriptive Analysis ................................................................................................................... 24

4.3 Reliability .................................................................................................................................... 25

4.4 Factor analysis ............................................................................................................................ 26

5 Correlation .......................................................................................................................................... 28

6 Regression ........................................................................................................................................... 29

Regression Equation ................................................................................................................................... 29

7 TWO-sample Independent T-test ........................................................................................................ 32

8 ANOVA .............................................................................................................................................. 33

9 Discussion ............................................................................................................................................ 34

10 Conclusion ....................................................................................................................................... 35

11 Implications and Contribution ........................................................................................................ 35

12 Future research ............................................................................................................................... 35

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AbstractOne of the rising issues in the economy is the sale and purchase of the counterfeit products inopen markets. This increase rate in the sale and purchase of the counterfeit lead toward theeconomic disasters and they also affect the sale volume a well as Brand image of the originalBrands. For that reason explore different factor which positively enhance the purchase decisionof the consumers toward Counterfeit products. These factors are Finding Grace, EndingMonotony, Positive externalities, affordability for bottom of permanent, creating authenticity andknowledge Deficiency. By controlling these factors the purchase of the counterfeit products can

be reduced. To prove the relationship of these factors with purchase behavior we select a sampleof 225 respondents from Gujranwala , Sialkot , Daska , Sambrial an taxila these are all the

persons who are the purchaser of original Brands but knowingly they also purchase counterfeitProducts also.Key words: Counterfeit products, finding grace, Ending Monotony

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1. Introduction

1.1 Significance of the study

Counterfeit purchases are one of the most serious problems facing luxury brand marketers. The

luxury brand industry is losing well over $12 billion annually due to counterfeits. Counterfeiting

has become a worldwide problem valued at more than $250 billion; accounting for almost 2% of

world trade in 2009 (Interpol, 2009). Counterfeit is a worldwide problem, every developing as

well as developed country facing this problem on macro level. It directly impact on economy of

every country. In Pakistan it is more prominent as compared to other country due to lawlessness;

it is a major factor of our backwardness & frustration. The demand and supply of the counterfeit

product both are illegal activities. These products damage our economic condition very badly.

The purchase and sale of the counterfeit products increased day by day. To control the purchase

percentage of counterfeit products the thing which our economy need is the awareness of effect

of counterfeit products in consumers. Make the consumer rational while purchasing a product

this study is much helpful for them.

1.2 Problem statement

Counterfeit goods are defined as identical copies of authentic products (Lai and Zaichowsky,

1999).About forty years ago the first cases of brand counterfeiting emerged. At that time, only a

few manufacturers of very highly priced and very prestigious products like textiles, jewelry and

accessories were affected and it was assumed that this phenomenon would be of minor

significance. Since then, however, counterfeiting has become widespread and has developed into

an economic problem of international significance. Recent figures estimate that seven percent of

the worlds merchandise trade, or $512 billion in 2004, may be based on trade with c ounterfeit

products (Balfour 2005). Due to high trend of counterfeiting multinational companies as well as

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worldwide. According to recent calculations seven percent or $512 billion in 2004 merchandise

trade is based on counterfeit products throughout the world. (Balfour 2005).

Now a day Counterfeiting become a worldwide economic problem, counterfeiting is growing

very rapidly throughout the world it is a crime which is spreading very fast day by day. (Phillips,

2005). Counterfeit products are defined as indistinguishable copies of valid products which is

identical to the original products (Lai and Zaichowsky, 1999). In other words we can say that

Counterfeit products are those which are identical to a brand which is registered and that product

violate upon the rights of the original brand holder. [Chaudhry, P.E. and M.G. Walsh, 1996

Grossman, G. and C. Shapiro, 1988.]. Counterfeit products are those which are associated with

remarkable brand name and due to its remark ability different people copied their features in

other products and made the identical copies of these branded products and then sale these

products with the name of associating brand on cheap price and some time on the same time with

poor quality in different markets.

Counterfeit products are same copy of the original product but the quality of the product varies in

counterfeit goods many people are unable to differentiate between original and fake because they

sold counterfeit product by associating it with remarkable brand some time people may judge the

valid and fake product but mostly they become confuse between original and fake products.

(Zaichkowsky, 1995). But some people are status conscious and to maintain the status eco they

bought luxury counterfeit goods by their own willingness (Bloch et al., 1993).

There are different types in counterfeiting counterfeits are may the manufacturing of the goods

which are same in their packing with the brand name or same in colors which looks same as the

original one and can easily betray customer. (Key, H., and 1990.).

By the many passing years the problem of counterfeit spread widely it is a big threat for the

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like its brand name its symbol with which it is associated. (Bosworth, D. and D. Yang, 1996).

The studies which are only focus on the appearance of the products are unable to differentiate

between the counterfeit product which have two different types which are deceptive and non-

deceptive counterfeiting (Grossman, G. and C. Shapiro, 1988, Chakra borty, G., A. T. Allred,

and T. Bristol., 1996).

In old studies mostly researchers mostly focus on supply side instead of demand side. (Bamossy

and Scammon, 1985), but focus is on demand side of counterfeiting mostly in recent studies.

(Ang et al., 2001; Nia and Zaichkowsky, 2000; Phau and Teah, 2009; Wilcox et al., 2009;

Zaichkowsky, 2006).

Demand of counterfeit affected by the demand for luxury products because people cannot afford

them and they want to be socially stable thats why they move towards counterfeiting. (Ang et

al., 2001; Nia and Zaichkowsky, 2000; Wilcox et al., 2009; Zaichkowsky, 2006).many

researcher studied about counterfeiting and some study about its practices that these goods which

are unlawful and people buy them without any restriction it is criminal act. The researcher who

studied this criminological act in demand side includes criminologists, criminal psychiatrist and

sociologists studying deviant behavior, legal scholars as well as business and marketing scholars

(Albers-Miller 1999; Dubinsky et al. 2005; Harvey and Ronkainen 1985).

In past decade researcher focus of study is empirical investigation about the counterfeit of supply

side they mostly neglect the demand side of counterfeiting since mid- 1990s after publishing a

special issue about Psychology and Marketing in which major focus is the consumer behavior

about different things also study about the customer fraud and misbehave by Budden and

Griffith (1996) in this response the famous scholar of marketing, Elisabeth Hirschman, show

attention and express that there is great need to explore the demand side of counterfeit and

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consumer behavior about purchasing counterfeit.

Different studies showed that counterfeiting is a crime but the customer give many reasons for

using counterfeits they have many justifications they think that it is not a crime to buy or use any

counterfeit product customers are willing to buy counterfeit due to different reasons they may

buy counterfeit because its reasonable.(Tom et al., 1998).

According to suggestion of Tom et al. (1998) the customer of counterfeit do not think and care

about the loss of economy due to counterfeit products they thought that they bought goods which

give them comfort in reasonable price which is very cheap as compare to original one. They do

not think that it is against law or criminal act they give justification that nothing wrong to

purchase counterfeit they said that the branded products charge more than 1ts worth which is not

affordable so they purchase counterfeit product but they do not care that it is harmful for whole

economy. Due to this behavior of customer counterfeiting is spreading vary rapidly.

Mostly it has seen that companies who manufacture counterfeit have much influence on the

behavior of consumer as well as on whole society. People who purchase counterfeit give

justification of their behavior towards counterfeiting they much concerned about the price rather

than quality. (Shoham et al., 2008). But the purchase of counterfeit is harmful for the original

brand holder it damages our economy on large scale it may have some advantages for the

companies who manufacture counterfeit products or for the customer but it have a great loss for

original one. Morales (2005) it is also seen that mostly people buy counterfeit products to

maintain their social status they just buy it for show off and want to look more then their friends

and their society in less resources. Due to fewer resources they buy counterfeit for status quo.

So we can say that people demand counterfeit products due to purchasing power , social status ,

cultural norms , personally traits , demographic features and after analyzing the cost and benefit

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2.1 Frame Work

Figure 1

Knowledge

Deficiencies

Positive

Externalities

Buying

Behavior

Finding Grace

Ending

Monotony

Intention to

purchaseAttitude

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CreatingAuthenticity

Affordability for

bottom ofparamount

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Finding Grace: Grace means charm, elegance and poise. While purchasing anything people

keeps this thing in their mind to maintain their status and self-respect. Normally counterfeit is

influenced by people who either didnt able to afford brands, want to maintain social status, find

shortcut or are heavy purchaser. For that purpose they give their justifications that Brands are

expensive and unaffordable for a middle class community; therefore they purchase counterfeit

goods on lower prices in order to maintain their social status easily. Some time they want to look

superior in the eyes of others or want to attend a party of brand conscious people at that time

they found counterfeit as shortcut to maintain their social status. In our society social status is

one of the reasons to use counterfeit brands because every consumer wants to increase his looks

with precious brands in order to look superior and expensive in the eyes of other. But this thing

is difficult a consumer having less income so he use counterfeit to fulfill his desire in less

income. So the finding grace has the positive impact on the attitude of the consumer toward

counterfeit purchase.

H 1: finding the grace significantly affect the attitude of the consumer toward counterfeit

products.

Ending Monotony: According to dictionary monotony means Uniformity or lack of variation in

pitch, intonation, or inflection. In other words monotony create to visit a place again and again

and seeing same thing. Same will happened in the scenario of brands people get bored to visit a

brand again and again as they always see same products at that shop because brand has the

limited no. of articles. To end their monotony they move towards counterfeit products. Once they

came towards it if they find a different product there they buy that product to look different from

others. So we can say that ending monotony has the relationship with purchasing of counterfeit.

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Brands are having good quality and can use for long term due to that people get bored to use it

again and again this will increase their utility and they move towards counterfeit products. In

brands there are limited designs but more number of buyers everybody has to purchase these

products so to differentiate themselves from others they move towards counterfeit products. It is

the nature of a human to look different to behave different from other people for that they move

towards counterfeit products because in that they have more choices and more different and

unique styles which differentiate them from their social circle. From all the discussion we can

say that there is a positive relationship between ending monotony and attitude of the consumer

toward counterfeit products which further move toward the purchase intention of consumer about

counterfeit products.

H 2: Ending monotony has significant impact on the attitude of the consumer toward


Knowledge deficiency: Knowledge deficiency means lack of awareness, information etc. this

lack of knowledge affect Consumer. This knowledge deficiency of consumer also effects the

purchase decision of the consumer. The people who have lack of knowledge about the brands

they move toward the purchase of the counterfeit products. Sometime people purchase

counterfeit products because they didnt know about brands and t hey purchase it by considering

it original Brand. Sometime faulty product recognition plays an important role in the purchase of

the counterfeit products. Because people have no personal capability to judge the difference

between the original and he counterfeit products so the shopkeeper shows them such qualities of

a product which didnt have these qualities in actual which results consumer purchase that

product which is the counterfeit. People also didnt know form where they purchase branded

product this is all because of their knowledge deficiency. When the consumer dont have any

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idea about the location of branded product he will prefer to purchase counterfeit instead of to

search out the branded shops. Consumer also comes toward counterfeit product due to peers.

peer also effect the purchase decision of the consumer who has the knowledge deficiency about

the products because the consumer try to follow their peer group which they said , they act and

they wear consumer also try to convert himself in these things. If their peer uses counterfeit they

think that it is the right choice for themselves also. Attractiveness of a product also cause for the

purchase of the counterfeit products because People dont have any idea about the comfort level

of the original product they prefer the physical outlook of the product. Misperception and

knowledge deficiency about brand led us towards buying of a counterfeit product. From this we

can extract a relationship between Purchase of the counterfeit and knowledge deficiency this is

the positive relationship. If the knowledge deficiency increases in the customer then it positively

move toward the attitude of the consumer toward the counterfeit.

H 3: knowledge deficiencies positively impact the attitude of the consumer toward

counterfeit.

Positive Externalities: An externality is an effect of a purchase or use decision by one set of

parties on others who did not have a choice and whose interests were not taken into account

(dictionary.com).Counterfeit product have a positive effect on the purchase of the branded

goods. In the absence of counterfeit products brands can create its monopoly and can charge

whatever they want to charge from the consumers. No doubt counterfeit is a crime but it also

playing a vital role to decrease the exploitation of the consumers they also create stability in the

market in pricing as well as designing and create healthy competition against brands. Sometime

people thinks that brands over charge from their worth and due to that they became market driver

so counterfeit products are good as they create a competition with brands as counterfeit products

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charge less and create a healthy competition in the market, due to counterfeit products brand

image of a product also decreases as people can get a chance to get lump sum same quality from

the market in the form of counterfeit goods. So the relationship which exists between attitude of

the consumer toward counterfeit product and positive externalities is positive.

H 4: The positive externalities significantly increase the attitude of the consumer toward

counterfeits.

Creating authenticity: Brands are expensive to purchase and are quite common in some societies.

People want to differentiate themselves with other for that they want to get anything unique

which make them rebel in society for that they start to purchase counterfeit. Consumer thinks

himself as rational consumer he did not purchase brands because they are costly having low

product line with almost same quality with counterfeit. So he moves toward counterfeit to fulfill

his desire in minimum resources. Consumer also thinks himself as sensible shopper while saying

that what he is purchasing is much better and superior form others. They said counterfeit play

same role as brand so why they purchase costly when cheaper option is available. Some time

they purchase counterfeit and think that other does not able to know or cannot differentiate that

between original and counterfeit. Consumer thinks that he is doing a sensible act while deceiving

other with counterfeit. On the other hand smart shop keeper who sell counterfeit products

convince customer by telling qualities and by the price of that product. Both the customer from

the demand side and the seller from supply side of counterfeiting show their positive attitude

towards counterfeiting by creating authenticity in product.

H 5: Creating authenticity positive impact on the attitude of the consumer toward


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Affordability for bottom of paramount: Pakistan is a developing country in which individual

income as well as inflation rate is quite high and due to instability with in the country people are

engaged in financial crises and cant afford to buy luscious stuff and they move towards

purchasing of counterfeit. Behavior of consumers changes towards brands because brands charge

much and people are having less purchasing p ower and cant able to buy brands. Family pressure

also enforces people to purchase counterfeit products. Families having less income are unable to

purchase brands and came towards counterfeit products. Sometime consumer from less affluent

families influence by pairs and from trend they try to follow that trend and peer due to lack of

affordability they move towards the attitude of the consumer toward counterfeit. Affordability

for bottom of permanent has a positive relation with the attitude of the consumer toward

counterfeit.

H 6: Affordability for bottom of permanent has significant impact on consumer attitude.

Attitude towards counterfeit products: Attitude of consumer toward counterfeit product lead

toward the intention to purchase of counterfeit products. Attitude towards intention to purchase

counterfeit products can be positive or negative effect on the basis of the explained factors.

Attitude to counterfeit is positive to Intention to purchase counterfeit then the consumer go for

the purchase of the counterfeit product and in other situation the attitude of the consumer about

the counterfeit products is negative then the intention to purchase counterfeit towards the

purchase of counterfeit go reverse. So the purchase of counterfeit product is totally depending on

the attitude of the customer about the counterfeit products.

H 7: Attitude of consumer toward counterfeit product is significantly affect the intention

to purchase of the counterfeit products

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H 8: Intention to purchase of counterfeit significantly impacts on the purchase of

counterfeit.

Intention to purchase: Intention is the willingness or unwillingness of the consumer or thinking

of the consumer about the purchase of the counterfeit products. If the attitude of the consumer

about counterfeit is positive then the intention to purchase is also positive toward the purchase

decision of the counterfeit, if they have positive thinking then they purchase the product

otherwise do not purchase the counterfeit product in our study we assume that the intention to

purchase of counterfeit has positive toward counterfeit purchase.

H 9: Intention to purchase of counterfeit significantly impact the counterfeit purchase

H10: Creating authenticity differs according to age

H11: Affordability of Bottom of permit differs in different age groups.

H12: Knowledge deficiency Differs according to the Qualification Level

H13: Level of ending monotony differs to Qualification level.

3 Research Methodology

3.1 Sample Selection (size & Techniques):

In our study we checked how attitude, intention to purchase counterfeit product and the

purchase decision of individual vary in different cities i.e. Sialkot, Gujranwala, Daska, Taxila,

and sambrial. To fulfill this thing Cluster sampling is most suitable sampling technique for our

study. Thats why we use cluster sampling in our study.

The formula to calculate the sample size for our study is 1:10 which mean for every 1

question we have 10 respondents. The no. of variables in our study is 9 and we ask 5 question

against one variable so total no. of question which we asked is 9*5=45 questions so according to

that the total no. of respondents us 45*5= 225

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So n=225 and the response rate is 97.77%.Our study type is casual study because we

want to check the impact of different factors which we address in our study on the buying

behavior of consumers toward counterfeit products. Our one of research question is to investigate

and identify the relationship between factors and consumer buying behavior. In this study

researchers inference is minimal because our study type is non-contrived we collect all

information in the natural setting no personal effort is added. Our sample frame is individual who

are the buyer of original brand but knowingly purchase the counterfeit products. The time

horizon which we use in our study is Cross-sectional because we have to follow the time limit

and we check the responses of different individuals in same time period.

3.2 Population frame

Our research topic is the purchase of the counterfeit products. To analyze the factor which

influence the purchase decision of the individuals the target population of our study is the

individuals who are the purchaser of counterfeit products and sometime knowingly purchase the

counterfeit products and these people are belong to Sialkot, Gujranwala, Daska, Taxila and

Sambrial.

3.3 Unit of analysis

The objective of our study is to explore the factor which influences the purchase behavior of

individuals toward counterfeit products. To fulfill this objective our base for analysis is the

individual who ever use the counterfeit products as well as Original products.

3.4 Type of study

As we check the impact of independent variables on dependent variables which are not addressed

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in literature in with relation to purchase of counterfei t products so our study type Casual

study.

3.5 Time Horizon

The time horizon of or study is cross-sectional due to time limit. We are unable to check the

purchase behavior of people in different time periods. For this we personally involve in the

interview with the respondents which is difficult in given time limit. So in our study we only

check the purchase behavior of different individuals in a particular time period through

questionnaire.

3.6 Researcher Strength

We have grip on our topic i.e. factor which affect the purchase decision of individuals toward the

counterfeit products. To get the thorough knowledge about our topic we read latest articles on

counterfeit. In these articles we know many forms of the counterfeit product like piracy, copy,

illegitimacy etc. to know the difference between the terms which use in place of counterfeit we

read articles on that particular term. Our personal experience also help us to get more

information about the demand side of the counterfeit we firstly check our attitude while we

purchase a counterfeit product what factor influence us to purchase that particular product. After

that we conduct some interviews with the buyer of the counterfeit users and know the attitude of

individual while purchasing the counterfeit products.

3.7 Instrument development/selection

As we said our study is more exploratory. The variable which we select which is not addressed in

the literature so we have to developed new scale for our independent variables. However the

attitude of the consumer, intention to purchase and the purchase is addressed in the literature

with respect to other factors so we go for adaption for these variables.

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3.8 Data collection procedures

The time horizon of our study is cross-sectional and the sample size is 225 so data collection

through questionnaire is more suitable for our study because we have no sufficient time to

conduct interviews of 225 respondents. The technique which is used to collect data is cluster

sampling because the objective of study is to check the buying Behavior of individual

geographically.

3.9 Data analysis techniques

The objective of our study is to check the impact of independent variables on the dependent

variable so to analysis our data we use the regression analysis techniques , to check Hypothesis

which we develop on the basis of Research objective and research questions we run T-test and

one-way ANOVA.

3.10 Data analysis software

For our data analysis we use SPSS software.

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4 Exploratory Data Analysis

4.1 Demographic Information

Table 1

Description Percentages Description PercentagesMale 0.56 Students 0.45Female 0.44 Employee 0.15530 & below 0.635 Businessman 0.2731-40 0.17 Other 0.12541-50 0.145 Below 5000 0.28

50 & Above 0.05 5001-10,000 0.185Metric & below 0.08 10,001-15000 0.16Intermediate 0.185 15,001 & Above 0.375Bachelor 0.41 Master 0.325

The above table shows the percentages of different demographic variables i.e. Gender, Age ,

Income , Qualification of our respondents.

4.2 Descriptive Analysis

Table 2

Statistics Mean Std. Deviation VarianceFG 4.1975 1.31213 1.722EM 4.4525 1.22410 1.498KD 4.2940 1.25019 1.563PE 4.5231 1.12399 1.263

ABP 4.4700 1.16425 1.355CA 4.4967 1.14144 1.303

ATP 4.4290 1.30240 1.696

PI 4.3608 1.20472 1.451BB 4.3225 1.29833 1.686The above table shows the descriptive analysis of all items this table shows the average

respondents, standard deviation i.e. S.D tells the spread of the data and the variance i.e. is no

missing values, outliers in the data and the .e. the squared deviation from the mean. By running

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the EDA there is no missing value and out of range value in the data and for normality the results

of skewness and kurtosis should be zero for normality. Our data results for skewness and kurtosis

are close to zero which means our data is normal. We also run the Q-Q plot, fisher box plot but

the results of these analysis are not support our study. So we rely on the results of Skewness and

kurtosis.Table2 shows the results of skewness and kurtosis.

Table 3

Items Missing Skewness KurtosisFG 0 -.419 -.382EM 0 -.622 .089KD 0 -.225 -.358PE 0 -.455 .054

ABP 0 -.212 -.049CA 0 -.296 -.498

ATP 0 -.197 -.509PI 0 -.373 -.155BB 0 -.334 -.556

4.3

ReliabilityReliability is run to check the relationship between all dimensions of a specific variable. It

checks that all the items in a variable are hand together and define a single concept from

different angles. It also tells the internal consistency between the items for thatpurpose we use

the value of Chronback Alpha.

The condition for reliability is that the value of chronback alpha should be greater than

0.60(nunnli 1970). Table 3 shows the reliability of all independent variables

Table 4

Serial name Variable name Cronbach's alpha no of items1 FG2 EM 0.837 6

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3 KD 0.829 64 PE 0.801 55 ABP 0.87 85 CA 0.77 56 ATP 0.818 67 PI 0.811 58 BB 0.826 6

The value of alpha for all variables is greater than 0.60 which means all items of all variables are

hand together and define the concept.

4.4 Factor analysis

Factor analysis is combination of methods which is used to observe how our construct scales

manipulate the response of related variables.

Many scientific studies are based on the fact that various v ariables are used to differentiate

objects (Rietveld& Van Hout 1993: 251). Means the study which have different variables use

questionnaire to measure the response of different respondents about single object from different

dimensions but the study in which intellectual ability is experienced measured via different

several subtests (Darlington 2004). Although the use of variables the study becomes complicated

but it is a good way to measure the different aspect of same underling variable Factor Analysis

and Principal Components Analysis both are used to shrink he huge data of objects to smaller

figure of extent and components. These techniques are used when questionnaire is used in study

to analyze the association between the objects. It is also used in general to shrink a larger set of

variables to a smaller set of variables that explain the important extent of variability.

Specifically, Factor analysis aims to find original hidden factors, whereas principal components

analysis aims to summarize experimental variability by a lesser number of apparatus.

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It also tell The loading score of dimensions of all self-developed concepts i.e. with how much

percentage the item is load on the dependent variable for that the value of loading score is greater

than 0.40 if the condition is fulfill than the dimensions which we use define the concepts

The EFA has two assumptions which have to fulfill for rendering of further analysis.

i. The value of KMO should be greater than 0.6 It tells the accuracy of sample size

ii. The score of Bartleys test signif icance should be less than 0.05. it tells about the

genralizability of the sample size on the population.

EFA tells us the reflection of items on the variable. Table 4 tells the loading score and the values

of KMO and Bartleys test.

Table 5

Serial no FG EM KD PE ABP CA ATP PI BB1 0.801 0.74 0.67 0.658 0.714 0.712 0.691 0.68 0.7922 0.707 0.6 0.814 0.758 0.789 0.703 0.78 0.592 0.8233 0.731 0.81 0.812 0.678 0.718 0.804 0.766 0.801 0.7954 0.619 0.77 0.75 0.8 0.675 0.776 0.729 0.796 0.809

5 0.792 0.76 0.68 0.725 0.71 0.704 0.808 0.74 0.7366 0.799 0.72 0.769 0.64 0.779 0.7397 0.7238 0.68Variance explained 55.41 54.3 55.926 52.61 52.15 52.6 57.147 54.042 61.336KMO 0.831 0.84 0.819 0.87 0.696 0.841 0.828 0.835 0.879Bartle s .000 0 0 0 0 0 0 0 0

According to the above results. The loading scores of all variable are greater 0.40. The

assumptions of KMO and Bartleys test also fulfill. In our analysis we put all items in one basket

or shrink the items in one component. These results are on the basis of fixed no. of values.

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5 Correlation

Correlation is basically run to analyze the relationship between two or more variable. It also measure

that how two variables move in relation to each other. It measures the strength and direction of linear

relationship between two variables that how two variables move with respect to each other. Table 5

shows the strength and direction of two variables.

Table 6FG EM KD PE ABP CA ATP PI BB

FG 1

EM .635 1

KD .615 .732 1

PE .520 .645 .532 1

ABP .495 .589 .565 .748 1

CA .490 .598 .563 .749 .749 1

ATP .551 .629 .604 .594 .613 .650 1

PI .563 .569 .500 .572 .608 .643 .698 1

BB .541 .508 .440 .559 .574 .567 .598 .785 1

All values of correlation are significant at 0.01.

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The highest strength is 0.698 it is between PI and ATP. This strong relationship might be due to

multicoronality. The relationship between all variables is positive at significant level 0.01. Which

means there are 99% chances that the relationship between these all two variables remains same as

shown in the above table if the sample changes and the sample size and population remain same?

There are 1% chances that the result of sample will change.

6 Regression

Our research problem is to check the effect of factors on the purchase decision of consumer toward

Counterfeit products. For that problem statement we develop 8 hypotheses which are based on to

check the impact of different factors which address in the study on the dependent variable. For that

purpose we have to apply regression because regression tells the impact of independent variable on

the dependent variable. Our frame work contains 3 dependent variable thats why we have 3 model

of regression equation. Table 6, 7 and table 8 shows the impact of factors on the dependent variables.

In first model we run the regression equation between FG, PE, KD, ABP, EM and Purchase attitude .

Table 7

Variables Coefficient values Std. Error T sig HypothesisFixed value .155 .290 .537 .592FG .133 .066 2.027 .044 AcceptEM .187 .087 2.148 .033 AcceptKD .154 .079 1.940 .054 AcceptPE .030 .098 .301 .764 RejectABP .150 .092 1.636 .104 Reject

CA .315 .094 3.354 .001 Accept

Regression Equation

ATP=0.155+.133FG+.187Em+.154KD+.030PE+.150ABP+.315CA

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This equation shows that the other all factors remain unchanged or zero then the attitude of the

consumers toward counterfeit remain 0.155 and if the one people move toward FG then the attitude

toward counterfeit products increase by 0.133, knowledge deficiency increase then the ATP will

increase by 0.154 and with the change in EM the ATP will increase by 0.187 and the change rate in

ATP due to change in PE is 0.030 and the due to ABP the change rate in ATP is 0.150 and the

change rate in ATP due to change in CA is 0.315.

Coefficient values tells the per unit change in the attitude of the purchase of the counterfeit products.

The hypothesis for positive externality and ABP rejected because the significance value is less than

0.05. This means that the PE and ABP do not have significant positive impact on the attitude toward

purchase intention.

Table 8

Variables Coefficient Std. Error T Sig. HypothesisFixed value 1.499 .217 6.905 .000ATP .646 .047 13.732 .000 Accept

This is the second model of regression equation in this model the purchase attitude is independent

and the intention to purchase is dependent. This model shows that if the attitude of consumer is zero

then the fixed value of purchase intention of consumer is 1.499 and with the increase in the purchase

attitude the purchase intention increase by 0.646.

The hypothesis is accepted because the results are significant and the purchase attitude has the

significant impact on the intention to purchase.

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of Consumers toward counterfeit products. These percentages tell the real time jump in the

explanation of variable which is overestimated by the R square. R square overestimate the

percentage with the increase in the independent factor but in reality this jump is not accurate then

adjusted R square adjusts the value at the real point.

7 TWO-sample Independent T-test

Two sample t-tests are run to check the difference between the mean of two population our one of

research question is how the Buying Behavior between two genders varies. To answer this research

question we use two sample independent t-tests. To apply this test the assumption of t-test should be

fulfilled i.e.

Normal Data

Leven Test should be insignificant

Table 10 shows the results of two samples T-test

Table 11

F Sig. T df sig. Mean Diff. Hypothesis3.721 .055 -1.760 198 .080 -.32373 Rejected

In this output we assume the mean variance between buying behavior of male and female is

equal. The mean difference between buying behavior of male and female is 0.32373.the

assumption of Levine test is fulfilled i.e. the results are insignificant so we can apply the two

sample t-test.The results of t-test significant because the p-value is greater than the 0.05 which means the

difference in Buying Behavior between male and female is significant which shows that the

mean difference between Buying Behavior of male and female also occurs in the population.

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8 ANOVA

ANOVA is used to check the difference between the averages of more than two populations. In

our research question we want to check the effect of Qualification in the Buying Behavior of the

consumer toward Counterfeit Products. Positive externalities, Affordability for bottom of permit

and creating authenticity Differ according to the age and knowledge differences and Ending

monotony varies according to Qualification level. We use One-Way ANOVA test. The

assumption of ANOVA test is the result of test of homogeneity should be insignificant.

Table 11 shows the results of ANOVA:

Table12

VariableName Levine test Sig. F Sig.

Hypothesis

PE .754 3.378 0.019 AcceptEM 0.323 0.3609 0.014 AcceptABP 0.128 2.528 0.059 AcceptKD 0.916 3.631 0.014 AcceptCA 1.581 5.322 0.002 AcceptBB 0.707 1.573 0.197 Reject

The assumption of test of Homogeneity is filled i.e. the results of Levine test should be insignificant

the above table shows the insignificant results. So we can run the ANOVA for that research question

and the results of ANOVA are statistically insignificant which means that the mean buying Behavior

of counterfeit products not differ according to the qualification. So our hypothesis rejected which

means that the mean of all populations is equal. The other hypothesis for knowledge deficiency ,

positive externality , creating authenticity Ending monotony all are significant which means the

hypothesis for all that variables are accepted.

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9 Discussion

The hypothesis H4 rejected which is the positive externality has the positive impact on the

attitude of consumer toward the purchase intention of the counterfeit products. The reason for

rejection is that the most of our respondents are students which think that the counterfeit has no

positive impact on the market condition because they dont have enough exposure of the market

environment and the students and the below 30 year of age which are unable to compare the

price affect due to involvement of the counterfeit products. The second hypothesis which is

rejected is that the level of buying behavior differs between genders but according to the

respondents the difference is exist but the difference on the base of 200 respondents is not

significant which means in actual this is not happen in population. The reason behind that are the

cultural values of province Punjab. In these areas the gender differences are not much higher

thinking and behavior of male and female almost the same in Sialkot, Daska, Sambrial and

Gujranwala. The next Hypothesis which is rejected is that the buying Behavior of consumer

toward counterfeit products varies if the Qualification level varies but these sample results are

not applicable on the population in reality in our population the buying Behavior is not varies if

the qualification level changes. This also happens due to strong belief, values and personality

traits. In our culture from the childhood our mind set is very strongly attached with which we

learn in our learning session so it is difficult for us to change our belief values and personally

traits. The all other Hypothesis of our research are accepted. Which means all independent

variables has the positive impact on the attitude toward the purchase of counterfeit and the

attitude also positively impact on the intention to purchase and finally intention force or lead the

consumer toward the purchase of counterfeit products. Acceptance of hypothesis shows that the

level of finding grace, Ending monotony, knowledge deficiency and creating authenticity have

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the same level in population. The H10 and H11which is creating authenticity differs in different

age groups. This hypothesis accepted which means that this difference is also exist in the whole

population the level of creating authenticity and Affordability for bottom of the permanent of

differs in different age groups. The hypothesis H12 and H11 accepted which is the knowledge

deficiency and ending monotony differs according to the Qualification level. Which means that

this difference also exist in the whole population. With the increase in the qualification level the

knowledge about different products also increases so the qualification affects the Knowledge

deficiency. The ending monotony also differs with the change in qualification.

10 Conclusion

This paper sought to the outline the some of the factors which causes for the Buying behavior of

the consumer toward the counterfeit products. The all factors significantly impact the buying

behavior except positive externalities and Affordability of bottom of parament. The hypothesis

for these two variables is rejected due to insignificant results.

11 Implications and Contribution

This research is applicable in all marketing research processes for the branded apparels. This also

helpful for the Brand owners to sustain their sale volume this research explores the new factors

which are not addressed in the literature.

12 Future research

We recommend some other factors which cause for the buying of the counterfeit products which

should be discuss in the study but we cannot include these variables some of the variables which

can be addressed are acceptance level of the counterfeit products in the society, Attractive

Esthetical, idealization, Bargaining Lovers, Show off habits, Fear of Lost Product, Discount on

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Original Brands in off seasons/policies of original brands, Sellers Enforcement, Window

Shopping. The further research can be done by finding the relation of these variables with the

buying behavior of consumer toward counterfeit products.

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Tasks

Problem

Statemet

Literature

Review

Frame Work

Research

Proposal

Methodology

Analysis of Data

Final

Presentation

muhammad qasim (11223003)

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