Asia Pacific Journal of Marketing and Logistics

Analysis of the moral mechanism to purchase counterfeit luxury goods: evidence

from China
Yushi Jiang, Miao Miao, Tariq Jalees, Syed Imran Zaman,
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Yushi Jiang, Miao Miao, Tariq Jalees, Syed Imran Zaman, (2019) "Analysis of the moral mechanism
to purchase counterfeit luxury goods: evidence from China", Asia Pacific Journal of Marketing and
Logistics, https://doi.org/10.1108/APJML-05-2018-0190
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Analysis of the
Analysis of the moral mechanism moral
to purchase counterfeit luxury mechanism

goods: evidence from China

Yushi Jiang and Miao Miao
School of Economics and Management, Southwest Jiaotong University, Chengdu, China
Received 21 May 2018
Tariq Jalees Revised 12 October 2018
Accepted 14 December 2018
College of Management and Sciences, Karachi Institute of Economics and Technology,
Pakistan Air Force, Karachi, Pakistan, and
Syed Imran Zaman
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School of Economics and Management, Southwest Jiaotong University,

Chengdu, China and
Department of Business and Administration,
Jinnah University of Women, Karachi, Pakistan

Abstract
Purpose – The purpose of this paper is to extend the theory of reasoned action and the theory of planned
behaviour to measure the effects of ethical and moral antecedents (e.g. integrity, moral judgement, extrinsic
religiosity and intrinsic religiosity, and ethical concern) on attitudes towards counterfeit luxury products.
Additionally, it also measured the effects on attitudes towards purchase intention.
Design/methodology/approach – The scope of the study is the Chinese market. The sample size for the
study was 412 participants, and data were collected through established scales and measures. Structural
equation modelling was used to test the developed model.
Findings – All the developed hypotheses were accepted. All the antecedents negatively affect attitudes
towards counterfeit luxury products. At the same time, attitude has a positive effect on purchase intention.
The results are consistent with those of earlier studies.
Research limitations/implications – Samples were gathered from just a single region in southwest China,
which limits the generalisability of the discoveries. As past research in fake goods buying has done, future
investigations relating to this situation in the domain of ethical reasoning should accumulate samples from
other regions of China as well, as customer perception relating to profound morality and counterfeit Purchase
Intention may change from region to region.
Practical implications – A few customers hold the opinion that luxury brands are lucrative because of the
excessive costs of their products and therefore feel vindicated in buying counterfeits (Penz and Stottinger,
2005). Combatting this conviction requires luxury brand managers to endorse effective moral ideals and
social commitment messages to prevail upon purchasers.
Social implications – A few customers trust that they are helping local people, such as the peddlers who
offer the fakes or the producers who make these goods, suggesting in a way that a few individuals have
positive attitudes towards these type of counterfeit goods sold locally. For such customers, there can be
marketing messages that can show them the other side of the issue, such as the lost sales and loss caused to
the organisations, which result in people becoming jobless because of their actions.
Originality/value – The primary goal of the study is to explore the relationship between the moral
measurements of consumers and their attitudes and purchase intentions in the Chinese market.
Keywords Theory of planned behaviour, Consumer ethics, Consumer decision making,
Theory of reasoned action, Theory of ethical values
Paper type Research paper

Introduction
Counterfeit merchandise includes indistinguishable or close to indistinguishable copies of
genuine products and brands, frequently linked with purchases made on occupied city roads or
Asia Pacific Journal of Marketing
rural kitty parties (Tucker, 2008; Bhatia, 2018). Counterfeiting is an international phenomenon and Logistics
© Emerald Publishing Limited
1355-5855
This study was supported by a grant from the National Natural Science Foundation of China (71572156). DOI 10.1108/APJML-05-2018-0190
 APJML that has been developing enormously as of late. As indicated by the European Commission, the
quantity of instances catalogued in the EU has multiplied since 2007, growing from the luxury
segment to numerous other merchandise classifications (Martinez and Jaeger, 2016). The trade
transactions in fake items represent 10 per cent of world trade transactions and are found in all
merchandise categories, ranging from mechanical parts to pharmaceuticals (Hennigs et al.,
2012; Teah et al., 2015). The counterfeiting products and brands is a productive business, and in
Asia, billions of dollars are lost every year because of the production and sale of counterfeit
merchandise in Taiwan, Malaysia, Thailand, Indonesia, Singapore, South Korea, Hong Kong
and China (Yeap and Ramayah, 2006; Pueschel et al., 2017).
The luxury brands and products industry is an extremely lucrative one, which is
developing at an extraordinary rate, yet at the same time, its growth has been limited by the
producers of luxury counterfeit goods. As technological innovation develops increasingly
cutting-edge techniques, it is becoming simpler to fabricate luxury goods (Phau, Sequeira
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and Dix, 2009; Li and Yi, 2017) of improved quality (Eisend and Schuchert-Güler, 2006) at a
lower cost of innovation and development (Gentry et al., 2006). Fake luxury merchandise, for
example, shoes, bags and garments, are made at differing levels of quality, with the most
energy going into copying subtle style features; every so often, the aim is simply to trick
purchasers who only glance at the name and do not realise what the genuine goods look like
(Nordin, 2009; Hussain et al., 2017). Traditionally, researchers studying buying behaviour
have been highly concerned with the phenomenon of luxury fashion products and hedonic
spending (Hoyer and Stokburger-Sauer, 2012). Research on fake luxury goods is scarce and
usually centres on the production side. In this context, there is less research on what arouses
interest in counterfeit brands (Bian and Veloutsou, 2007).
The investigation of emerging customers is vital for the exploration of the moral aspects of
consumer advertising and marketing on a global scale in light of the fact that their value
preferences may affect moral conduct in a direction different from that of regular buyers, and
so far, there have been few studies about how their value preferences impact their moral
insights into marketplace behaviours. A particular examination of this possible difference in
market behaviour is possible through an analysis of the consumption of counterfeit luxury
goods (Wilcox et al., 2009). Specifically, less research has centred around the particular
antecedents of consumer attitudes and purchase intentions, for example, moral commitments
towards various kinds of counterfeit items, such as luxury and fashion goods (Augusto de
Matos et al., 2007). Nonetheless, shoppers are significant users of counterfeit products, and all
things considered, it is fundamentally important to comprehend the morals and ideals of
buyers who intentionally buy counterfeit products (Vitell and Muncy, 1992; Jain et al., 2017).
This study attempts to answer the appeal for investigations to analyse the behavioural
rationales of shoppers who deliberately search for counterfeit goods and brands and enjoy
them while paying little thought to the danger of enforced fines (Prendergast et al., 2002). This
research adds to the counterfeit literature by demonstrating the particular antecedents of
attitudes towards purchase intention for fake goods. Specifically, we look at the effect of
integrity (INT), moral judgement (MJ), religiosity (REL) and ethical concern (EC) on purchase
intentions and attitudes towards counterfeits in two types of settings (i.e. luxury and fashion).
Primarily, the present investigation attempts to forecast the direct and indirect impacts of
moral judgement, integrity, extrinsic and intrinsic religiosity, and Ethical concern in
association with buyers’ attitudes towards purchasing counterfeit products. These results
may enable policymakers and experts to design more successful techniques to lessen the issue
of counterfeiting in China (Bloch et al., 1993). It attempts to investigate Chinese shoppers’
outlook in connection with buying counterfeit luxury and fashion brands.
The preceding literature has demonstrated that the theory of reasoned action (TRA) and
the theory of planned behaviour (TPB) are profoundly relevant to consumers’ attitudes
and intentions towards counterfeits of extravagant and luxury brands (Wang et al., 2005;
 Imran et al., 2018). Previously, both of these theories have been utilised to comprehend the Analysis of the
psychological developments influencing the behaviours and intentions of purchasers moral
favouring counterfeit luxury products (Celuch et al., 2004; Arli and Pekerti, 2017). Hence, this mechanism
research will also utilise them for support. However, the objective of this research is to
investigate only those shoppers who knowingly purchase counterfeit articles. This
investigation, apart from its general aims, intends to combine current results with a
thorough model of antecedents and drivers in the background of volitional buying in the
Chinese market for counterfeit items in luxury products settings.
The subsequent sections include a more detailed review of the literature, and the
conceptual framework and the theoretical grounding of the framework is also discussed. In
addition, the methodology and results sections describe the hypothesis and statistical
analysis of the paper. Ultimately, the conclusions, implications, limitations and future
research recommendations are discussed.
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Literature review
This research understands counterfeits as “replicated duplicates that are indistinguishable to
the authentic products and goods including item labelling, brand trademarks and product
packaging” (Hoon Ang et al., 2001; Chiu and Leng, 2016). These are typically offered at a far
lower cost than the genuine goods and are frequently substandard in quality compared to the
originals (Lai and Zaichkowsky, 1999). Earlier literature has primarily recognised two types of
buyers of counterfeits, non-deceptive and deceptive buyers. The former are customers who
effectively and intentionally searched out counterfeit goods (Cordell et al., 1996) and the latter
are those who are unconsciously drawn into the buying process for counterfeit products
believing that they are legitimate pieces of merchandise (Tom et al., 1998; Ting et al., 2016).
Given the extent of the problem, earlier studies exploring the demand side of counterfeit
goods are unusually comprehensive (Staake et al., 2009). A considerable portion of the past
investigations directed towards investigating the association between attitude and intention
of counterfeit buyers have utilised models of attitude-behaviour, for example, the theory of
reasoned action (TRA) and its extension, the theory of planned behaviour (TPB) (Ajzen, 1991), to
explain the decision-making process of the purchasers’ of counterfeit goods ( Jirotmontree, 2013).
An indicator that is frequently found to be quite suitable for intentions towards counterfeit
luxury goods is attitude (Phau, Teah and Lee, 2009). In light of the previous review of the
literature, the researchers have attempted to assemble applicable antecedents of attitude towards
counterfeits and purchase intentions into four classes, particularly purchase environment, social/
cultural context, product aspects and individual qualities (Eisend and Schuchert-Güler, 2006).

Overview of counterfeit luxury goods

At present, luxury merchandise, costly and selective goods, for example, Polo shirts, Rolex
watches, Gianni Versace suits and Hermes handbags, have been added to the list of items
targeted for forgery (Nia and Zaichkowsky, 2000). Earlier analysts have characterised luxury
products as specific brand merchandise that, aside from any utilitarian value, provide esteem
to consumers (Husic and Cicic, 2009). Current research proposes that people favour purchasing
popular and national brands to increase their status in society, paying little heed to whether
they are genuine products (Husic and Cicic, 2009). People place more importance on image or
status than on the item itself, which implies that an extravagant item should be exclusive as
well as be acknowledged, perceived and appreciated by others (Husic and Cicic, 2009).

Theory of reasoned action

The TRA, initially put forward by Ajzen and Fishbein (1980), offers a generalised outline of
individuals’ behaviour, which is influenced by three beliefs, specifically their attitude (A) about
 APJML the behaviour, their subjective norms (SN) and their intention to perform the behaviour or
behavioural intention (BI). The theory claims that people’s behavior intentions is a combination
of their attitude about the conduct and subjective norms, which implies that BI ¼ A + SN
(Ajzen and Fishbein, 1980).

Theory of planned behaviour

The TPB is an expansion of Ajzen and Fishbein’s (1975) TRA, which is proposed for the
forecast and comprehension of specific behaviours in defined contexts (Ajzen, 1991). As
indicated by the TPB, an individuals’ real behaviour is impacted by his or her behavioural
intent and is also controlled by his or her attitude, subjective standards and perceived
behavioural controls towards achieving the behaviour. Attitude towards the behaviour is
characterised as an individuals’ negative or positive appraisal of the behaviour. A positive
or negative attitude is specifically impacted by the intensity of the behaviour and
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convictions with respect to the likely result.

Consumer ethics
As indicated by Vitell (2003, p. 33), “all facets of shopper behaviour have a vital moral
element”. Previous analysts have analysed moral decision making in consumer, business and
advertising settings. Singhapakdi et al. (1999) found that shoppers’ moral judgments differed
according to the circumstances and costs and benefits of the individual. For instance, when
looking at moral perception scores among advertisers and shoppers, it was found that
advertisers were opposed to seeing moral issues in circumstances in which they gain by
dubious practices. In contrast, buyers were less perceptive of moral circumstances in which
marketers were deceived (i.e. shoppers profited in some way). According to Singhapakdi et al.
(1999), the “vicinity” or “closeness” an individual feels to the pertinence of the moral problem
may affect his or her general judgements.
Customers’ buying behaviour is fundamentally guided by the perception of the brand
and attributes of the product. Albers-Miller (1999) proposed that purchasers will cast off
their averred moral standards for low cost and related peripheral item characteristics.
Norum and Cuno (2011) found that the majority of counterfeit products purchasers do not
see that they are doing any damage by obtaining these goods. Shoppers’ hedonic desires
far exceed their moral concerns (Chaudhry and Stumpf, 2011). Moral limitations might be
specifically associated with the level of law implementation and discipline, as the
examination of Chinese urban metropolises of Shanghai and Wuhan illustrate (Cheung
and Prendergast, 2006). For a few customers, trespassing upon the applicable law involves
a feeling of risk and an experience of adventure, fun and satisfaction (Perez et al., 2010). As
such, customers are prepared to lower, completely or partially, their consideration for
morals and different risks of satisfaction, well-being, law violation and so forth, as the
product’s attractiveness increases and turns out to be rationally appealing.

Attitudes towards counterfeits

The TPB is a reasonably developed framework on consumer intentions that has been
effective in explaining and forecasting attitude and behaviour over an extensive range of
fields. As specified by the TPB, Purchase intention is guided by purchase behaviour, which
is influenced by attitude, perceived behavioural control and subjective norms (Ajzen, 1991).
The interaction of attitude towards purchasing, subjective norms and perceived behavioural
control has been studied with diverse items and products (Alfadl et al., 2012), however, it has
not been studied with consideration for the comprehensive moral and ethical antecedents of
attitudes towards luxury brands. Attitude is an “educated inclination to react to a
circumstance in a constructive or adverse manner” (Huang et al., 2004). Attitude is the
 construct that is regularly utilised as an indicator of buyer intentions and consumer Analysis of the
behaviour. As consumer attitudes cannot be directly observed, scholars must depend on moral
measuring attitudes via other measures (Huang et al., 2004). mechanism
Customers who hold positive attitudes towards counterfeit goods and take part in buying
such merchandise every now and then engage in double-sided principles. Purchasers excuse
themselves of fault by defending their actions and transferring the responsibility onto the
manufacturers of such merchandise (Penz and Stottinger, 2005). Such situational morals
strengthen additional buying, aiding illicit merchandise manufacturers (Hoon Ang et al., 2001).
Purchasers legitimise their purchasing activities by arguing that illegal manufacturers of
merchandise have brought down margins more than the genuine product manufacturers, and
thus, they do not feel “deceived” (Stöttinger and Penz, 2015). Further, the illicit goods’
manufacturers are believed to give an achievable ambition to purchasers who cannot manage
the price of the genuine products but who still desire to obtain the prestige, value and status
linked with holding such products (Gentry et al., 2001).
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Earlier research has analysed the financial, lawful, quality and moral factors that form
and impact the attitudes of customers (Wang et al., 2005). Ultimately, utilitarian benefits
are critical when acquiring counterfeits of luxury brands. Nevertheless, due to the status
and prestige offered by branded luxury items, there is a significant desire to claim these
products (Chadha, 2007).

Conceptual framework
The research framework and models depended upon various concepts and theories, which
can be segregated into two classes of hypotheses: behavioural theories, for example, the
TRA (Ajzen and Fishbein, 1975), the TPB (Ajzen, 1991) and the general theory of marketing
ethics (Hunt and Vitell, 1986). These theories have been extensively used in diverse contexts
for explaining consumer’s attitudes and behaviour.
The TRA (Ajzen and Fishbein, 1980) explains individual attitudes and behaviours. This
theory has four components: attitude (A), subjective norms (SN), behavioural intention (BI),
and actual behaviour (AB). Attitude has a direct relationship with subjective norms (SN) and
behavioural intention (BI). Subjective norms have a direct relationship with behavioural
intention and actual behaviour.
The TRA has several limitations. For example, individuals do not think in a systematic
matter as was suggested by the theory. Additionally, actual behaviour has time and
money constraints. In view of these constraints, another variable, perceived behaviour
control (PCB), was added to the theory of reasoned action (TRA), and it was renamed the
theory of planned behaviour (TPB). This perceived behavioural control (PCB) has a direct
link with attitude (A), behavioural intention (BI) and actual behaviour. This study has
seven variables: integrity, moral judgement, intrinsic religiosity, extrinsic religiosity,
ethical concern, attitudes and purchase intentions. Integrity, moral judgement, and
intrinsic religiosity have been explained through attitude. Extrinsic religiosity has been
explained through subjective norms. In addition, ethical concern has been explained
through perceived behavioural control, and purchase intention has been explained
through behavioural intention. In this framework, we have explored all the antecedents
through attitude and its impact on purchase intention.
This research paper utilises the TPB (Ajzen, 1991) as the hypothetical structure to clarify
the buying process of counterfeit luxury goods. There is an important association between
intention and attitude that can be a useful indicator of behaviour (Ajzen and Fishbein, 1980).
Further adding to attitude, the person’s apparent subjective norms (Ajzen, 1991) and self-
characteristics (Shaw et al., 2000) could have an effect on purchase behaviour.
In agreement with ethical decision-making models to explain moral behaviour, buyers’
behaviours are influenced by their feeling of fairness (Hunt and Vitell, 1986). The impact
 APJML of fundamental standards such as integrity, religiosity, ethical concern and moral
judgement will influence the feeling in the context of immoral actions (Steenhaut and
Van Kenhove, 2006).

Hypotheses development
Integrity
Customers’ ethical convictions towards counterfeiting have consequences for the
demand side of counterfeiting (Shoham et al., 2008). If, under certain circumstances, a
law-abiding individual does not perceive buying counterfeit goods as immoral, they may
then be more inclined or encouraged to buy a counterfeit product (Poddar et al., 2012).
If shoppers look at integrity as vital, the prospects of them seeing counterfeit luxury goods
or brand in a constructive way would be substantially lower (Wang et al., 2005):
H1. Integrity inversely influences attitudes towards counterfeit luxury products for
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Chinese consumers.

Moral judgement
Theories of ethical and moral judgment, for instance, a theory proposed by Hunt and Vitell
(Shang et al., 2008), have similarly been used in counterfeit research, and this theory has
been recognised as a standout among the most typically used frameworks while thinking
about theft and counterfeiting (Kos Koklic and Vida, 2016).
Buying counterfeit goods ignores typically imparted values in the market centre
(Dodge et al., 1996). Moral examinations of what is “basically excellent and awful” (De
George, 2011) explain a crucial part of consumption behaviour, as these examinations may
have a self-confining effect on the individual. Consequently, we expect that an improved
comprehension of the ethical decision-making part of buying counterfeit items will affect
customers’ concerns with this practice. Customers intend to excite others by getting fake
goods, which is wrong ethically. The more they comprehend this thought, the more they
would feel humiliated and experience negative outcomes for their self-perception if this
were uncovered. In addition, purchasers who themselves have solid ethical
predispositions are more free from others’ evaluations (Penz and Stottinger, 2005):
H2. Moral judgment negatively influences the attitude toward counterfeit luxury
products for Chinese consumers.

Religiosity
Allport and Ross (1967) characterised two classes of religiosity, extrinsic religiosity
and intrinsic religiosity – which are indistinguishable from the practical and utilitarian
dichotomy talked about by King and Hunt (1972). In a subsequent study, Allport and Ross
(1967) stated that the extrinsically inspired individual utilises religion practically, while the
intrinsically inspired lives his/her religion (accentuating the significance of convictions,
rules, and ideology). In this way, intrinsic religiosity could be disclosed by how much
religion impacts everyday lives, while extrinsic religiosity is how much an individual
utilises religion for different purposes, for example, yearnings for social possessions or
favouring a few activities of the religion (Bellu and Fiume, 2004). In spite of the apparent
broad tensions in the religion and utilisation literature, the idea of religiosity having a
substantial impact on buyer materialism is recognised (Veer and Shankar, 2011):
H3. Inner religiosity inversely influences consumers’ attitudes towards counterfeit
luxury products for Chinese consumers.
H4. Outer religiosity inversely influences consumers’ attitudes towards counterfeit
luxury products for Chinese consumers.
 Ethical concern Analysis of the
Moral guidelines, standards, and/or benchmarks that guide the behaviour of a person or a moral
group can be specified as the morals of a person that can be used in the selling, purchase, mechanism
selection and utilisation of products or services (Riquelme et al., 2012). A person’s moral
concern helps diminish immoral behaviour by discerning the ethical standpoint of an action.
It is esteem that a man has and could be inferred to be a lasting notion (Schwartz, 2001). It
can be characterised as how much the purchasers believe that dubious practices are wrong
or not wrong, deceitful or moral (Vitell and Muncy, 1992):
H5. Ethical concern inversely influences consumers’ attitudes towards counterfeit
luxury products for Chinese consumers.

Attitude and purchase intention

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The TPB states that buying behaviour is impacted by buying intention, which is affected by
attitude (Ajzen and Fishbein, 1975). This relationship is in turn influenced by the
accessibility of opportunities and resources (Chang, 1998). Immoral choices including the
acquisition of luxury counterfeit items are reliant on the attitudes of customers and do not
change with the class of the product (Wee et al., 1995). Customers with a positive attitude
towards counterfeit goods are more likely to purchase counterfeit items. If they hold
negative attitudes, buyers abstain from acquiring counterfeit luxury items (Wee et al., 1995).
Based on the above discussions, the derived hypothesis on attitude and purchase intention is
presented below:
H6. Positive attitudes towards counterfeit luxury products for Chinese consumers
positively influence their attitudes towards the purchase intention of counterfeit
luxury products.

Methodology
Procedure
Initially, the study measured the normality of the items and the univariate normality of the
construct. Subsequently, it measured the reliability and validity of the adapted
questionnaire on the present data set. Next, the overall model was tested in two stages.
Initially, a CFA for each construct was tested, followed by the testing of the overall model
using AMOS (Hair et al., 1998). Other details relating to methodology are described below.

Sample and data collection procedure

The Chinese market was the focus of this research, as it is the nation with the most
significant spending proportions for luxury items. The World Luxury Associations official
report has also indicated that China represents approximately 28 per cent of aggregate
worldwide expenditure (Zhang, 2012). Furthermore, China is seen as one of the fundamental
manufacturers of counterfeit merchandise. Additionally, the ineffectual implementation of
Chinese intellectual property right laws to safeguard genuine luxury products and curb
the development luxury counterfeit goods give rise to disbelief in the immorality of
counterfeiting among people in general (Muthiani and Wanjau, 2012).
Information was gathered by means of a convenience sample using an online survey
distributed through five trained enumerators. Furthermore, private messages were spread
by means of e-mail, which provided the link to the online Wenjuan website, requesting that
potential respondents take part in research about counterfeiting. Online studies these days
are becoming quite well known as research instruments because they allow for fast and
efficient dispersion at a favourable cost (Wilson and Laskey, 2003). The distributed survey
was accessible in Chinese and in English. No incentive was offered for completing it.
 APJML The online survey website captured data from Chinese customers living in different
important urban centres in Chengdu ( Jinniu, Jinsha, Wuhui and Xipu) and gathered 612
finished survey forms. A total of 412 finished survey form participants reported that at least
once in their lives they had bought a product that was a counterfeit. Therefore, we have
taken this as the concluding sample size estimate for this research, providing a successful
reaction percentage of approximately 18 per cent, which appears to be sensibly high for
investigations utilising comparative convenience sample approaches.

Research framework
The framework utilised for the investigation of this research (see Figure 1) encompasses the
following four independent variables: Integrity (Int), Moral judgement (MJ), Intrinsic
Religiosity (INR), Extrinsic Religiosity (ER) and Ethical concern (EC). The framework also
includes one mediating variable, consumer attitudes towards counterfeit luxury goods; and
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it finally contains one variable that is dependent, purchase intention (PI). As mentioned
earlier, the framework utilised is the TRA and its extension the TPB.

Survey instrument
The research questionnaire was created in English and converted into Chinese by an expert
local language translator and checked for irregularities. It was once more checked for
irregularities after back-translation into English from Chinese by another expert interpreter.
Established scales were adjusted and utilised as a part of the study. The depiction of the
items in the scale and their reliabilities are recorded and reflected in Table I. Segment
A included demographic factors in the scale, which are utilised to estimate “Gender”, “Age”,
“Education”, “Occupation” and “Income”. Segment B contained scale items on moral
elements, which are utilised to estimate “Integrity” ( four inquiries), “Moral judgement” ( four
inquiries), “Intrinsic Religiosity” (three inquiries), “Extrinsic Religiosity” (three inquiries)
and “Ethical concern” ( four inquiries). Segment C is composed of items that analyse
attitudes towards the counterfeiting of luxury goods ( five inquiries). Segment D contained
items in the scale to examine purchase intention (four inquiries). All the questions were
answered using a seven-point Likert scale, with one denoting “strongly disagree” and seven
signifying “strongly agree”.

Integrity

Moral Judgement

Purchase
Attitudes Intentions

Intrinsic
Religiosity

Extrinsic
Religiosity

Figure 1.
Theoretical framework Ethical concern
 Variable Number Percentage
Analysis of the
moral
Gender mechanism
Male 205 49.7
Female 207 50.2
Age
Up to 18 Years 92 22.3
19 to 29 Years 121 29.3
30 to 39 Years 56 13.5
40 to 49 Years 62 15
At least 50 Years 81 19.6
Income
Up to Rmb 1k 32 7.7
Rmb 1.5 to 2.4k 49 11.8
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Rmb 2.5 to 3.4k 93 22.5

Rmb 3.5 to 4.4k 126 30.5
Rmb 5.5k or More 112 27.1
Marital status
Single 185 44.9
Married 227 55
Job status
Students 127 30.8
Employed 288 69.9
Education
Primary 43 10.4
High School 59 14.3
College 148 35.9
Bachelors 102 24.7
Masters 60 14.5 Table I.
Total 412 100 Respondents profile

Profile of the respondents

As shown in Table I, the valid sample size for this paper was 412, which is appropriate for
studies based on structural equation modelling (Byrne, 2016). The sample was comprised
of 49.8 per cent, or 205, male respondents and 50.2 per cent, or 207, female respondents
and had a median age of 32 years. Approximately 45 per cent, or 185, respondents were
single, and the remaining 55 per cent, or 227, of the respondents were married.
Approximately 30 per cent, or 127, of the respondents were students, and the remaining
70 per cent, or 288, of the respondents were employed. Most of the respondents
(75 per cent or 309) had education up to the intermediate level, and 25 per cent, or 103,
were at least graduates.

Measures and scale

All the constructs are based on seven-point Likert scales adopted from earlier studies.

Moral judgement scale

In this paper, the construct Moral Judgment is based on the scale of Reidenbach and Robin
(2013). The reliability of these constructs in earlier studies ranged between 0.80 and 0.87
(Table AI).
 APJML Religiosity scale
The study measures intrinsic and extrinsic religiosity via constructs used by Kirkpatrick
and Hood (1990), which have been adapted from the Allport religious orientation scale. This
scale was developed by Allport and Ross (1967) and is one the most renowned scales for
measuring religiosity.
Only three items each for intrinsic and extrinsic religiosity have been used for this study;
reliability in earlier literature ranged between 0.80 and 0.83 (Table AI).

Ethical concern scale

Ethical concern is defined as the moral and lawfulness perception of an individual. This study
has adopted the scale by Chaudhry and Stumpf (2011). In all, there are only four items used for
this study; its reported reliability in previous literature ranged between 0.70 and 0.84 (Table AI).
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Integrity scale
This study has adopted the integrity (Int) measure from the scale of Rokeach Value
Survey (Rokeach, 1973). Altogether, there are four items utilised to measure this construct
(Table AI). The reliability in previous literature was between 0.76 and 0.84.

Purchase intention scale

The Purchase intention scale is adapted from measures developed by Wang et al. (2005), and
each has five items (Table AI).

Attitude scale
Attitude is a positive or negative pre-decided mindset towards a product or a brand (van der
Linden et al., 2015; Maier et al., 2015). This study has adopted the attitude scale used by
Francis et al. (2015). It has reported reliability in previous literature ranging between 0.70
and 0.90 (Table AI).

Analysis technique
After ascertaining the normality of the data, the constructs’ reliability and the validity of the
model was tested through structural educational modelling.

Fit measures
In this study, the six indices of the measures of fitness are presented in Table II.

Results
Description and reliability of initial constructs
After the preliminary analysis, descriptive normality analyses were carried out to
ascertain internal consistently and univariate normality. The summarised results are depicted
in Table III.
The highest skewness value is purchase intention (SK ¼ 1.20, M ¼ 4.97, SD ¼ 1.15), and the
lowest is for moral judgement (SK ¼ 0.39, M ¼ 4.56, SD ¼ 1.35). Similarly, the highest kurtosis
value is for ethical concern (KR ¼ 1.23, M ¼ 4.37, SD ¼ 0.98), and the lowest is for integrity
(KR ¼ 0.97, M ¼ 4.87, SD ¼ 0.98). The values of skewness and kurtosis ranged between ±2.5.
Therefore, the constructs have univariate normality (Fahrmeir and Tutz, 2013).

Goodness-of-fit measures CFI TLI GFI AGFI RMSEA Pclose

Table II.
Measures of fit Threshold values ⩾ 0.90 ⩾ 0.80 ⩾ 0.90 ⩾ 0.80 o 0.05 W 0.05
 Cronbach’s α value for integrity (α ¼ 0.89, M ¼ 4.87, SD ¼ 0.98) is the highest, and the Analysis of the
lowest is for attitude (α ¼ 0.77, M ¼ 4.97, SD ¼ 1.15). Cronbach’s α for all the constructs are moral
at least 0.70, which confirms the internal consistency of the adapted constructs ( John and mechanism
Benet-Martínez, 2000).

Convergent validity
All the factor loadings on all the indicator variables are greater than 0.60 (refer to Figure 2),
and the fit indices are within the prescribed criteria. Therefore, the adapted constructs fulfil
the requirements of convergent validity (Shammout, 2007).

Measures Mean SD Skewness Kurtosis Reliability (α)

Integrity 4.87 0.98 0.89 0.97 0.89

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Moral judgement 4.56 1.35 0.39 1.09 0.87

Ex. religiosity 5.18 1.45 0.98 1.13 0.78
In. religiosity 5.09 0.87 1.01 1.14 0.81
Ethical concern 4.37 0.98 1.11 1.23 0.78
Attitude 5.26 1.02 1.10 1.19 0.77 Table III.
Purchase intention 4.97 1.15 1.20 1.17 0.83 Descriptive analysis

1
e4 Int_1 0.6
1 4
e3 Int_2 0.71

1 0.76 Integrity
e2 Int_3 77
0.
1
e1 Int_4

1
–0

e8 MJ_1
.2

0.
78
3

1 0.86
e7 MJ_2 1
1 0.87 Moral. J. A_1 e17
69
e6 MJ_3 86 –0.33 0. 1
0. 0.63 A_2 e18
1 Attitude
e5 MJ_4 0.68
0.6 1
A_3 e19
4
1
e12 ER_1 4 1
0.
73 –0.4 A_4 e20
1
e11 ER_2 0.79
1 0.79 E_Rel
e10 ER_3
7
.4

0.35
–0

1
e16 INR_1
55

0.8
–0.

1 0
0.80
e15 INR_2
1 0.74 In_Rel 1
e14 INR_3 0.75 PI_1 e21
P_Intention 0.76
1
0. PI_3 e23
79
1 1
e28 EC_1 0.7 PI_4 e24
1 0
e27 EC_2 0.78

1 0.79 Et.Con Figure 2.

e26 EC_3 69 Overall model
0.
1 (standardized)
e25 EC_4
 APJML Discriminate validity
The uniqueness and distinctiveness of the constructs were tested through discriminant
validity analysis (Hyuncheol, 2013) (Table IV ).
Square roots of the variance explained of all the constructs is greater than the square of
each pair of correlations, confirming that the constructs adopted are unique and distinct
(Wainer and Braun, 1988).

Confirmatory factor analysis

The CFA for each construct used in this study was tested through SEM (Byrne, 2016). The
CFA results of each construct are depicted in Table V.
The CFA results (refer to Table V ) show that the fit indices of all the constructs exceed
the prescribed criteria, confirming that each model fits adequately (Byrne, 2016).
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Fitness of the overall model

The tested model fits very well, and the relationships, as depicted in Figure 2, are significant.

Overall model results

As we can see from the baseline and real measures in Table VI, all the indices are fit for
this study.

Hypothesised results
The SEM model and output show that all six hypotheses were accepted, as depicted in
Table VII.

Measures 1 2 3 4 5 6 7

Integrity (1) 0.89

Moral judg. (2) 0.1 0.86
Ex. religiosity (3) 0.11 0.17 0.79
In. religiosity (4) 0.16 0.15 0.12 0.88
Ethical cons.(5) 0.1 0.21 0.14 0.2 0.85
Table IV. Attitude (6) 0.05 0.11 0.19 0.22 0.3 0.84
Discriminant validity Purchase int. (7) 0.11 0.19 0.17 0.21 0.11 0.12 0.82

χ2 CFI AFI GFI RMSEA Pclose

Integrity 13.56 0.913 0.928 0.967 0.03 0.52

Moral judg. 14.77 0.926 0.967 0.968 0.04 0.64
Ex. religiosity. 12.44 0.956 0.954 0.975 0.02 0.65
In. religiosity 11.73 0.989 0.979 0.968 0.04 0.67
Ethical cons. 9.59 978 0.976 0.949 0.05 0.69
Table V. Attitude 8.70 0.913 0.945 0.923 0.04 0.72
Confirmatory Purchase intention 10.33 0.927 0.967 0.983 0.01 0.75
factor analysis Criteria Low ⩾ 0.90 W 0.90 W 0.90 o0.05 W 0.50

χ2 CFI AFI GFI RMSEA Pclose

Table VI.
Summary of the Overall model 23.21 0.967 0.956 0.955 0.03 0.72
fit measures Criteria Low ⩾ 0.90 W0.9 W0.9 o0.05 W0.50
 H1 on the negative influence of integrity (M ¼ 4.87, SD ¼ 0.98) on attitude towards Analysis of the
counterfeit luxury products (M ¼ 5.26, SD ¼ 1.02) was substantiated (SRW ¼ −0.23, moral
CR ¼ −4.89, p o 0.05). mechanism
H2 on the negative influence of moral judgment (M ¼ 4.56, SD ¼ 1.35) on attitude towards
counterfeit luxury products (M ¼ 5.26, SD ¼ 1.02) was substantiated (SRW ¼ −0.33,
CR ¼ −6.34, po0.05).
H3 on the negative influence of external religiosity (M ¼ 5.18 SD ¼ 1.45) on attitude
towards counterfeit luxury products (M ¼ 5.26, SD ¼ 1.02) was substantiated
(SRW ¼ −0.44, CR ¼ −10.46, po0.05).
H4 on the negative influence of internal religiosity (M ¼ 5.09, SD ¼ 0.87) on
attitude towards counterfeit luxury products (M ¼ 5.26, SD ¼ 1.02) was substantiated
(SRW ¼ −0.47, CR ¼ −7.029, p o 0.05).
H5 on the negative influence of ethical concern (M ¼ 5.26, SD ¼ 1.02) on purchase intention
towards counterfeit luxury products (M ¼ 4.97, SD ¼ 1.15) was substantiated (SRW ¼ −0.55,
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CR ¼ −11.26, po 0.05).
H6 on the positive influence of attitude (M ¼ 5.26, SD ¼ 1.02) on purchase intention towards
counterfeit luxury products (M ¼ 4.97, SD ¼ 1.15) was substantiated (SRW ¼ 0.35, CR ¼
11.461, po 0.05).

Discussion
H1
This investigation showed that integrity is an essential part of shopper attitudes towards
fake luxury products, acknowledging past investigations by Augusto de Matos et al.
(2007) and Wang et al. (2005). This study found that purchasers who thought judgements
of politeness, responsibility and honesty to be imperative have a tendency to have
negative attitudes towards counterfeit merchandise. For this reason, H1 is accepted.
However, the relationship is not as substantial compared to other constructs, perhaps
because of differences in socioeconomic groups, subculture and personal ethos, given the
Chinese market backdrop.

H2
Moral Judgment with respect to the buying of counterfeit goods was theorized to negatively
impact attitudes towards counterfeit luxury goods (H2). There is support for this
hypothesis, as seen from Figure 2, which is in accordance with past studies that recommend
that a person’s Moral Judgment intensity adversely impacts his/her expectation to take part
in shopping for counterfeit goods (Al-Rafee and Cronan, 2006).

H3
The hypothesis on the adverse effects of shoppers’ Intrinsic Religiosity on buyer’s attitude
was validated. As can be observed from Figure 2, inherent religiosity has a noteworthy
negative impact on attitude, which agrees with a past study (Quoquab et al., 2017).

SRW SE CR p-value Decision

Integrity namely Attitude −0.23 0.03 −4.89 0.002 Accepted

Moral J. namely Attitude −0.33 0.05 −6.34 0.001 Accepted
Ext. religiosity namely Att. −0.44 0.06 −10.46 0.000 Accepted
Int. religiosity namely Att. −0.47 0.08 −7.029 0.001 Accepted
Eth cons. namely Attitude −0.55 0.09 −11.26 0.001 Accepted Table VII.
Attitude namely P. intention 0.35 0.07 11.461 0.001 Accepted Results of hypothesis
 APJML Therefore, we affirm H3. The higher the purchasers’ inherent religiosity, the more they
comprehend these practices as deceptive or unethical. When comparing this with other
moral and ethical factors as well, Intrinsic Religiosity has a substantial impact on attitudes.

H4
Extrinsic Religiosity also negatively affected purchaser attitudes towards counterfeit
luxury goods. Extraneous religiosity also has the most robust association with consumer
attitudes when compared with all other constructs. The outcomes of this study affirm H4. It
can be inferred that shoppers with high outward individual religiosity have a predisposition
to avoid these dishonest practices. These outcomes uncovered that outward religiosity is a
critical indicator of shopper attitudes.

H5
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We discovered robust confirmation for H5 with regard to the relationship of Ethical Concern
for every item with the positive measures of consumer attitudes. Ethical concern have a
negative connection for the two items and significantly influenced their ability to utilise a
luxury or fashion good, obtain a luxury or fashion product and the general recurrence of
taking part in an illegal exchange (Nunes et al., 2004).

H6
Buyer attitudes towards fake luxury products were found to have a positive association
with shopper Purchase Intentions towards fake luxury merchandise. This finding was
consistent with past investigations by Harun et al. (2012), Nordin (2009), Imran et al. (2018)
and Jiang et al. (2018). Thus, H6 is endorsed.

Concluding discussion
Counterfeiting is a global issue that harms numerous businesses. Battling this issue requires
better understanding the reasons that impact shoppers’ choices to buy counterfeit goods.
This research increases the confined set of explorations on ethical and moral antecedents of
attitudes towards counterfeit goods (Staake et al., 2012). This study has accomplished this
by creating and testing a model of ethical and moral antecedents of shopper attitudes and
intentions towards fake products with regard to luxury items.
Earlier research on attitudes towards fake luxury goods buying shows several varied
findings, perhaps because the greater part of those studies concentrated on the immediate
and direct impacts of moral convictions and attitudes on purcahse intentions, which may
have kept these investigations from giving a complete depiction of the rationale that drives
or represses counterfeit purchases (Kwong et al., 2003; Chapa et al., 2006). This paper utilises
luxury item classifications and online survey techniques with customers in their regular
setting to demonstrate that it is not merely integrity, ethical concerns, religiosity or ethical
judgements interaction with attitude alone, but rather it is a mix of each one of these
variables that impact buyers’ attitudes and purchase intention for counterfeit items. This
notion is a crucial input as it highlights the significance of taking an all-encompassing
perspective towards counterfeit utilisation and buying behaviour to comprehend its
complex fundamental inspirations.
The current investigation adds to the past research on counterfeit goods, as it is one of
the limited number of studies that analysed insufficient comprehension of comprehensive
ethical and moral antecedents of attitudes that impact the counterfeit luxury goods
purchase process. The exploration, based on earlier work, called for more investigations
concerning different sorts of ethical and moral factors that may assume a part in counterfeit
luxury goods buying methods (Kim et al., 2009). Furthermore, the impact of extrinsic and
 intrinsic religiosity was analysed – an essential yet rarely examined part of Rest’s moral Analysis of the
decision-making process ( Jordan, 2007). moral
In light of the discoveries of this investigation, there are interesting ramifications for mechanism
designing aggressive tactics against counterfeiting for Chinese customers. More research is
needed for a better understanding the demand side of counterfeiting. In addition, it could be
recommended that the counterfeiting issue might not be pertinent only to Chinese customers
but rather to customers in general, include those living in different nations. It is critical that
policymakers, brand managers and researchers comprehend that cost is not the primary
factor that impacts shoppers considering buying fakes of luxury brands (Poddar et al., 2012;
Bian and Moutinho, 2011).

Theoretical implications
This investigation adds new information to an under-explored phenomenon with regard to
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forged goods utilisation by recommending that, regardless of whether buyers perceive the
ethical issues affecting utilisation, they may in any case purchase counterfeits. Further, our
investigation extends the present understanding of unethical goods consumption. We speculate
that, when buyers are confronting the ethical situation of counterfeits, where complying with
the ethical standard would cause lost benefits, they may lean towards the advantages of
acquiring counterfeits. Furthermore, this is the case regardless of whether the association
between ethical concern and buying attitude towards counterfeit goods is negative, as
demonstrated by empirical outcomes, which conflicts with past research (Wilcox et al., 2009). It
might be the consequence of the uncertainty of ethical issues entrenched in counterfeits of
luxury brands.
Moreover, this investigations supports our theoretical comprehension of the association
amongst ethicality and counterfeit goods buying practices in a variable ethical judgement
situation by going beyond the negative impact of morality on counterfeit buying attitude to
exhibit their constructive outcomes on counterfeit luxury goods purchase intention (Cronan
and Al-Rafee, 2008; Fernandes, 2013). In particular, when people are given an ethical
predicament relating to counterfeit luxury purchasing, they utilise moral thinking
procedures to legitimise the intensified counterfeit goods buying intention.
Astonishingly, for the Chinese customers in this investigation, religiosity appears to
have an intensified effect on counterfeit buying attitude in contrast with moral judgments
related with counterfeit products use, as reflected in different studies (Bian and Forsythe,
2012). Subsequently, advertisers of original brands to Chinese customers may need to
feature the socio-normative features of counterfeit buying in their ads to a more prominent
degree, as opposed to its moral measurement, which is utilised as a part of their ads for
Western buyers. In particular, for their Chinese customers, advertisers of original brands
may utilise ads demonstrating the “loss of face” and “shame” in social settings if shoppers
are discovered utilising counterfeit items as opposed to feeling “guilty” because of its
negative ethical or moral affiliations, which may have worked better with their Western
buyers.

Practical implications
Makers of luxury products and governmental bodies may profit from the discoveries of this
investigation as another way to deal with change in shoppers’ attitudes is to underline the
idea of face or “mianzi” that Chinese buyers respect (Phau and Teah, 2009; Zhou and Belk,
2004). By stressing shame or indignity, that is, loss of face, as the outcome of acquiring
counterfeit luxury merchandise, owners of luxury brands can battle against counterfeits in
areas where administrative or implementation systems are undeveloped.
Another reason for the impetus for buying the counterfeit goods has been highlighted
recently by Tang et al. (2014) under the umbrella of ethicality measurement, is that a portion
 APJML of the individuals who buy imitations and counterfeits see advantages of their acquisitions
beyond the motivation for cash. A few customers trust that they are helping local people,
such as the peddlers who offer the fakes or the producers who make these goods, suggesting
in a way that a few individuals have positive attitudes towards these type of counterfeit
goods sold locally. For such customers, there can be marketing messages that can show
them the other side of the issue, such as the lost sales and loss caused to the organisations,
which result in people becoming jobless because of their actions.
As a matter of fact, with counterfeiters utilising ranking methods to isolate better-quality
imitations from weaker imitations (Gentry et al., 2006), at present, counterfeit luxury
merchandise is of such high calibre that it is difficult for purchasers to recognise counterfeit
items. Subsequently, a methodology for luxury brand proprietors and fashioners is to
outline advanced elements or invest in more robust distinction traits that are harder to
mimic and exorbitant to counterfeit.
In addition, a few customers hold the opinion that luxury brands are lucrative because of
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the excessive costs of their products and therefore feel vindicated in buying counterfeits
(Penz and Stottinger, 2005). Combatting this conviction requires luxury brand managers to
endorse effective moral ideals and social commitment messages to prevail upon purchasers.

Conclusion
In contrast with the background of the considerable development in the luxury market and
an expanded interest in forged branded items, studies about particular factors that
substantially impact counterfeit perception and forged goods shopping behaviour in
differing markets have increased in prominence. In this circumstance, the point of this
investigation was to give and observationally explore an all-inclusive framework of the
ethical/moral antecedent of attitudes for fake luxury products. In light of hypothetical and
observational understandings of the acknowledgement of counterfeits in the Chinese
market, we proposed a model of determinants that impacts the exchange between authentic
and fake luxury merchandise from a purchaser’s point of view.
Policies towards forgery and counterfeiting are becoming stricter on a worldwide scale.
While China is moving past being a transitional economy, there is still a long road ahead to
decrease forgery and counterfeiting. Moreover, forgery can be considered a deeply
established social issue at the same time as being a monetary issue. In this way, it is vital for
policymakers and corporate administrators to design and develop strategies that focus on
various countries or nations as opposed to any social gatherings. Nonetheless, this
investigation means to contribute towards the gap in the research in understanding the
inspirations driving the acquisition of counterfeit luxury products that are non-deceptive for
Chinese shoppers. Like other investigations (Phau and Teah, 2009; Penz and Stöttinger,
2008), the TRA and the TPB are observed to be suitable conceptual structures to support the
utilisation behaviour of forgeries of luxury items and brands. This investigation
additionally sets up the use of the TRA and the TPB in counterfeit studies (Kim and
Karpova, 2010) and additionally expands the premise of complete moral and ethical factors
affecting attitudes in research in the literature on counterfeits.

Limitations and future direction

There are various limitations that ought to be noted in this investigation. First, the
utilisation of self-reporting instruments may not capture a legitimate impression of
genuine behaviour, and some under-informing may have happened. Second, the
investigation was conducted in the south-west area of China; similarly, the generalisability
of the discoveries to the whole populace might be restricted. Third, given that this
investigation did generally identify about the counterfeit luxury goods to the respondents,
 but still distinct product classifications might be affected by more than the components Analysis of the
considered in this investigation. moral
It would be fascinating to perceive how diverse cultural backgrounds and nationalities mechanism
contrast in their views of acquiring counterfeits. This is more related to the views of various
societies about what is considered moral and not moral. The association between moral and
ethical factors with attitudes and how they impact the purchase intention of fakes ought to
be investigated. Likewise, more than 1m travellers visit China every year, and it would be
worth examining whether visitors are likely to buy counterfeits when in China, and what are
the variables that determine this behaviour.

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 Appendix Analysis of the
moral
mechanism
Intrinsic religiosity
INR_1 I enjoy reading about my religion
INR_2 It is important to me to spend time in private thought and prayer
INR_3 I have often had a strong sense of God’s presence
Extrinsic religiosity
ER_1 What religion offers me most is comfort in times of trouble and sorrow
ER_2 I pray mainly to gain relief and protection
ER_3 I go to a religious service to spend time with my friends
Integrity
Int_1 I consider honesty an important quality for one’s character
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Int_2 I consider it very important that people are polite

Int_3 I like people who have self-control
Int_4 I admire responsible people
Ethical concerns
EC_1 Luxury counterfeiting infringes on intellectual property
EC_2 Luxury counterfeiting damages the movie industry
EC_3 Obtaining counterfeit movies is illegal
EC_4 Obtaining counterfeit movies is unethical
Moral judgement
MJ_1 It is morally wrong to purchase counterfeits of luxury brands
MJ_2 It is acceptable for my family to purchase counterfeits of luxury brands
MJ_3 It is traditionally acceptable to purchase counterfeits of luxury brands
MJ_4 It is tacitly promised to purchase counterfeits of luxury brands in recent business environments
Purchase intention
PI_1 I would think about a luxury counterfeit as a choice when buying something
PI_2 I will buy counterfeit luxury products
PI_3 I will recommend that my friends and relatives purchase counterfeit luxury products
PI_4 I would always say positive things about counterfeit luxury product
Attitude towards counterfeits
A_1 Considering price, I prefer counterfeit luxury products
A_2 I like shopping for counterfeit products
A_3 Buying counterfeit luxury products generally benefits consumers Table AI.
A_4 There is nothing wrong with purchasing counterfeit luxury products Questionnaire with
A_5 Generally, buying counterfeit market goods is a better choice codes of variables

Corresponding author
Miao Miao can be contacted at: miaomiao@swjtu.cn

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