UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyễn Hạo Nhiên WHAT EFFECT CONSUMERS’ INTENTION TO BUY COUNTERFEIT LUXURY BRANDS? THE MODERATING ROLE OF PRODUCT INVOLVEMENT AND PRODUCT KNOWLEDGE: EVIDENCE FROM VIETNAM MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2015 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyễn Hạo Nhiên WHAT EFFECT CONSUMERS’ INTENTION TO BUY COUNTERFEIT LUXURY BRANDS? THE MODERATING ROLE OF PRODUCT INVOLVEMENT AND PRODUCT KNOWLEDGE: EVIDENCE FROM VIETNAM ID: 22130049 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr. Ngô Viết Liêm Ho Chi Minh City – Year 2015 WHAT EFFECT CONSUMERS‘ INTENTION TO BUY COUNTERFEIT LUXURY BRANDS? i ACKNOWLEDGEMENTS Firstly, I would like to specially thank my supervisor, Dr. Ngo Viet Liem, for his guidance. Without him, this thesis would not have been finished.
Secondly, I would also like to thank my thesis committee, Dr. Nguyen Dinh Tho, Dr. Nguyen Thi Mai Trang, Dr. Nguyen Thi Nguyet Que, and Dr.
Tran Ha Minh Quan, for their insightful comments. Their advices helped me improve this thesis significantly. Thirdly, I would like to acknowledge all the professors and staffs of International School of Business, University of Economics Ho Chi Minh City for providing me the best opportunities to study and develop deep understanding about research and business. Finally, I would like to express my gratitude to my dear family and friends.
This thesis would have never come true without their encouragements and supports. WHAT EFFECT CONSUMERS‘ INTENTION TO BUY COUNTERFEIT LUXURY BRANDS? ii TABLE OF CONTENTS ABSTRACT. The emerging luxury market. Existing studies on counterfeiting.
Scope of the study. 7 CHAPTER 2: LITERATURE REVIEW. Counterfeit purchase intention. Value-expressive and social-adjustive function.
14 CHAPTER 3: RESEARCH METHODOLOGY. 24 CHAPTER 4: DATA ANALYSIS. 26 WHAT EFFECT CONSUMERS‘ INTENTION TO BUY COUNTERFEIT LUXURY BRANDS? iii 4. Data collection result and demographics.
Exploratory factor analysis. Confirmatory factor analysis. Composite reliability and average variance extracted. Divergent reliability and Pearson correlation.
Limitations and future research. 68 WHAT EFFECT CONSUMERS‘ INTENTION TO BUY COUNTERFEIT LUXURY BRANDS? iv LIST OF TABLES Table 2.1: Summary of definitions .2: Summary of hypotheses .2: Summary of research criteria .1: In-depth interview results.4: Item-total statistics for product knowledge scale .5: Item-total statistics for counterfeit purchase intention scale .6: Cronbach‘s alphas after item reduction .7: KMO and Bartlett‘s test .8: Promax rotation with Kaiser Normalization, k=4 .9: Modification indices covariances .10: Composite score and average variance extracted .11: Square root of average variance extracted and correlations .13: Summary of research criteria results .14: Hierarchical multiple regression – Model A .15: Hierarchical multiple regression – Model B .16: Hierarchical multiple regression – Model C .17: Hypothesis test results. 45 WHAT EFFECT CONSUMERS‘ INTENTION TO BUY COUNTERFEIT LUXURY BRANDS? v LIST OF FIGURES Figure 2.1: Modified confirmatory factor analysis model .2: Moderation effect of product involvement on the relationship between value- expressive function and counterfeit purchase intention .3: Moderation effect of product knowledge on the relationship between social- adjustive function and counterfeit purchase intention. 43 WHAT EFFECT CONSUMERS‘ INTENTION TO BUY COUNTERFEIT LUXURY BRANDS? 1 ABSTRACT In recent years, luxury market is growing fast worldwide—particularly in Asia.
However, along with the growth is the emerging threat from counterfeits. Despite many works on counterfeiting, more works are needed to investigate the impacts of psychological aspects on counterfeit purchasing intention. Furthermore, the interaction effects of the psychological factors and two important constructs in consumer behavioral studies— product involvement and product knowledge—were also examined to further understand the problem. In order to achieve the research objectives, five respondents took part in in-depth interviews to check the wordings of a 25-item questionnaire.
The revised questionnaire was used in the main survey. 248 respondents participated in the survey, and 201 usable answers were retained. Tests were conducted to examine the validity and reliability of the measurement scales, which resulted in the elimination of an item. The hypotheses were then tested with hierarchical multiple regression method.
The results from the tests indicated that social-adjustive function significantly affected counterfeit purchase intention (p < .