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Keywords Counterfeiting, Consumer attitudes, Music industry
Abstract Examines consumers' motivation for buying counterfeits or pirated goods. The findings indicated that, compared to those who did not buy pirated music CDs, those who bought the counterfeits viewed such purchases as less risky, and trusted stores that sell counterfeits more. They did not see counterfeits as too unfair to singers or the music industry, thought they benefit the society more, and did not see people who buy them as unethical. We also investigated the influence of social, personality, and demographic factors on consumers' attitude towards piracy. We found that the more value-conscious and less normatively susceptible one was, and the less integrity one had, the more favorable was one's attitude towards piracy. Demographic characteristics were also significant in influencing attitude. Males and those from lower income groups held more.favorable attitudes. Finally, attitude towards piracy was significant in influencing purchase intention.
Introduction
Counterfeiting, or piracy, is big business. Counterfeits are defined as reproduced copies that are identical to the legitimate articles including packaging, trademarks, and labeling (Kay, 1990). Producers of these counterfeits deceive consumers into thinking that they are the genuine ones and took away some US$12.4 billion worth of business from original manufacturers in 1998 (Asian Wall Street Journal, 1999a). Part of the reason for this lucrative business is that the margins are high and demand is strong. Duplicating a music compact disk (CD) from an original, for example, can cost as low as US30 cents in some Asian countries. These CDs are then sold at US$6 or more, which is about half the price of the original CDs. It is therefore not surprising that there are consumers who would prefer to buy counterfeit CDs (Tom et al., 1998). By being willing collaborators to buy counterfeits, there is no deception, and they are not the victims of a scam. It would therefore be instructive to understand the reasons behind their favorable attitude and intention towards piracy and the purchase of counterfeits.
Past studies have identified two drivers of counterfeit-purchase behaviors:
(1) the attractive pricing of fake products; and
(2) the self-image of the consumers who buy such products.
Price plays a critical role in the appeal of fake products. Tom et al. (1998), for example,...