Chapter II Literature Review
2.2 Individual difference
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Even though certain consumers concern most about price tag, they still have strong desire to present the outstanding image to others, and have possession to reflect quality standard of living (Festinger, 1954). Hence, they might choose counterfeit over genuine products when there is a price benefit (Bloch et al., 1993), this finding also suggested by Grossman and Shapiro (1988) that counterfeit goods usage could maintain the social status and quality attributes of branding products with price advantage. As such, consumers might face a conflict between actual identity and imitate appearance when they decide to purchase counterfeit goods, however, it would be compromised with the incentive of money-saving (Jinhwa, 2009), and under this pattern of consumption behavior, consumers who purchases counterfeit luxury goods might still receive same level of self-gratification as those who purchase genuine luxury goods. Consequently, researcher forms the following hypothesis:
H2b. Motivation of self-gratification will enhance individual’s purchase intention of counterfeit luxury bag, while price is an essential concern.
2.2 Individual Difference
2.2.1 Self-Confidence
In current society, possession isan important object to represent personal identity (Belk, 1988), hence, according to Shavitt (1989) that individuals are likely to purchase items which can assist them to define their social and personal identities, and luxury
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products can be significantly represent in this regard (Dodd et al., 2000; O’Cass, 2000;
Solomon, 1985).
Moreover, even though there are many different social classes, the demand of luxury goods remains high and consumers expect higher quality as well (Kim, Sullivan
& Forney, 2007). Luxury brand becomes one acquisition to represent individual’s social status, identities and can enhance self-confidence as well (Kim et al., 2007). Therefore, consumers who purchase name brand products might be viewed as a person who concern about self-consciousness and especially the self-image they present (Penz &
Stottinger, 2005).
From Jinhwa’s (2009) research, an individual who has an undetermined self-concept would probably end up acquire low self-esteem, therefore, they are likely to purchase prestigious luxury goods so as to present upper-class social status and to help them build up and sustain individual identities and self-images. Moreover, when a low self-esteem person purchases counterfeit goods may view themselves as an individual who has lower economic status, lower self-confident, lower social status and less success than those who purchases genuine luxury goods. Therefore, the following hypothesis is derived to address to the influence of self-confidence on consumption:
H3. Individual with lower self-confidence is more likely to purchase genuine luxury bag.
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2.2.2 Moral Concern
From the U.S. Customs and Border Protection Office of International Trade (2007) survey, 70 percent of counterfeit goods are fashion or luxury products, under this fact, most consumers might purchase counterfeit goods as an alternative, and take it quite acceptable. However, producing and selling counterfeit goods can cause lots of problems, especially it violates the intellectual property of luxury brand design and cause unequal industrial competition (Jinhwa, 2009), therefore, to understand consumers’ purchase intention toward counterfeit luxury goods will be helpful for luxury industry.
From Lichtenstein, Ridgway and Netemeyer's (1993) research, they pointed out price is the most significant factor which will influence purchase intention, hence, buying counterfeit goods might be beneficial to individual’s self-interest and satisfaction (Nill & Schultz, 1996). However, ethical issue has been widely discussed in the counterfeits-related literature as one of factors which will determined consumers’
purchase motivation, Penz and Stottinger (2015) claimed that the concept of moral examination has an important role in the consumer behavior.
People tend to present ideal model to others to consolidate personal image, and moral concern could moderate the result of idealism on purchase intention. Moreover, idealism is positively related to moral concern, and moral concern has significantly effect to purchase intention (Ha & Lennon, 2006). Therefore, from Jinhwa (2009)
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research individual who consider ethical obligation issue would feel shameful when they are discovered buying counterfeit goods by others.
To sum up the previous literature review, if behavior is regulated within moral judgment by society, individual would willing to follow and perform it, however, if it is beyond moral concern, one would less willing to engage in (Nguyen & Biderman, 2008). Hence, the concept is adopted to purchase intention of luxury goods, and the hypothesis is developed:
H4. Individual who considers moral concern is less likely to purchase counterfeit luxury bag.
2.2.3 Sociability
According to Megan Minmin C. website, the article mentions twelve reasons ofconsumers’ purchase intention to luxury products, sociability is one of those which can be referred as social tool, social network effect and identity recognition etc.
(http://meganminminc.com/filter/%E5%A5%A2%E4%BE%88%E5%93%81%E7%A D%96%E7%95%A5/12-Reasons-Why-Consumers-Buy-Luxury-Goods-12). Besides, the global leading market research also a consulting firm, Ipsos, points out that purchase
intention to luxury goods can become a social
lubricant(https://www.wszchina.com/shechipin.html).
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Furthermore, from Zhihu website that it is essential to present an individual’s identity in certain social events, especially for the upper class gathering, hence, luxury brand’s products become the representative objects in these kinds of social activities.
For example, wearing a Patek Philippe in the high-end social event will bring you an advantage of social recognition, frankly speaking, people usually view luxury goods as an item to display and maintain their social status in the reality world (https://www.zhihu.com/question/26226526). Therefore, based on above argument, the researcher can infer the following hypothesis:
H5. Individual who is more sociable is more likely to purchase genuine luxury bag.