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(1)International Master’s Program in International Communication Studies College of Communication National Chengchi University. 治 政 Master’s Thesis大 立 ‧. ‧ 國. 學. n. al. er. io. sit. y. Nat. A Study of the Motivations of the Purchase of Genuine Luxury Bags and of Counterfeit Luxury Bags. Ch. engchi. i n U. v. Student: Advisor:. October 2018 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(2) . A Study of the Motivations of the Purchase of Genuine Luxury Bags and of Counterfeit Luxury Bags. Student: Advisor:. 政 治 大. 立. ‧ 國. 學 y. sit er. io. A Thesis. ‧. Nat. n. Submittedato i v in l International Master’s Program. n. C. h Communication International e n g c h i UStudies National Chengchi University. In Partial Fulfillment of the Requirement For the degree of Master of Arts. October 2018. DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(3) Acknowledgements. I would like to express my deepest thanks and sincere appreciate to my thesis advisor Cheng, Kuo for her support, advices and guidance throughout the writing process. With her help and encouragement that I could complete my thesis despite all the difficulties. Moreover, I would like to express my gratitude to Professor Hong Chi, Shiau and Mei Ying, Tsai for gave me helpful advices on proposal and final defense.. 治 政 大 me during the time of I would also like to thank my close friends for supporting 立 ‧ 國. 學. thesis writing, and participators who helped me filled up the questionnaire survey. Not to forget all the support I have received from IMICS friends.. ‧ sit. y. Nat. The most important that many thanks to my family for everything, especially. n. al. er. io. supporting me emotionally through all the tough time of writing the thesis. Thank you!. Ch. engchi. i n U. v. i DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(4) Abstract. The purpose of this study was to examine the consumers’ behavior of purchasing genuine and counterfeit luxury bags. Additionally, this study indicated that consumers’ purchase behavior toward luxury bags are affected by purchase motivation— conspicuous. consumption. and. self-gratification,. individual. difference—self-. confidence, moral concern and sociability, and product involvement to examine dependent variable. A total of 202 female respondents completed the survey were. 治 政 大products. Simple regression collected from social media group which discuss luxury 立 ‧ 國. 學. analysis and hierarchical multiple regression analysis were used to test the hypotheses. Statistical results suggest that each variable has significant effect on consumers’. ‧. purchase behavior, both on genuine and counterfeit luxury bags, especially conspicuous. sit. y. Nat. consumption and self-gratification. However, while examined all variables at the same. n. al. er. io. time that self-gratification lost its explanatory value because conspicuous consumption. i n U. v. and self-gratification have high correlation coefficient, and therefore cause the conflict effect.. Ch. engchi. KEYWORDS: genuine luxury bags, counterfeit luxury bags, purchase motivation, conspicuous consumption, self-gratification, self-confidence, product involvement. ii DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(5) Table of Contents. Chapter I Introduction..................................................................................................1 1.1. Background…...................................................................................................1. 1.2. Research Purpose and Significance of the Study..............................................2. Chapter II Literature Review.......................................................................................5 2.1. Motivation........................................................................................................5. 2.1.1. Conspicuous Consumption.......................................................................5. 2.1.2. Self-Gratification......................................................................................7. 立. Individual difference........................................................................................9. 學. ‧ 國. 2.2. 政 治 大. Self-Confidence.......................................................................................9. 2.2.2. Moral Concern........................................................................................11. 2.2.3. Sociability...............................................................................................12. ‧. 2.2.1. sit. y. Nat. 2.4. Demographic Factors....................................................................................14. n. al. er. Product Involvement......................................................................................13. io. 2.3. Ch. engchi. i n U. v. Chapter III Research Methodology............................................................................16 3.1. Research Framework........................................................................................16. 3.2. Research Procedure..........................................................................................18. 3.2.1. First Stage: In-depth Interview................................................................18. 3.2.1.1. Selection Criteria of Interviewees...............................................18. 3.2.1.2. Interview Questions and Summarize...........................................20. 3.2.2. Second Stage: Questionnaire Survey.......................................................21. 3.2.2.1. Sampling and Questionnaire Design............................................22 iii DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(6) 3.3. Measurement of Research Variables and Reliability Test.............................23. Chapter IV Data Analysis and Results......................................................................29 Chapter V Conclusion and Suggestions.....................................................................35 5.1. Summary and Limitations of Research Results.............................................35. 5.2. Suggestion for Future Research.....................................................................38. References.....................................................................................................................41 Appendix I English Version of the Questionnaire....................................................47 Appendix II Chinese Translation of the Questionnaire...........................................54. 立. 政 治 大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. iv DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(7) List of Figures and Tables. Figure 1. Research Framework………………………………………………………..17 Figure 2. Example of Targeting Sample (Social Media's Group / Page) ……...……....22 Figure 3. Importance of Purchase Motivation among Female Consumer…………….37. Table 1. Information Regarding Participants in In-depth Interview…………………...19 Table 2. Measurement Scales of Research Variables………………………………….23. 政 治 大 Table 4. Demographics of 立 Respondents……………………………………………....29 Table 3. Reliability Coefficients and Factor Loadings of Research Variable………….27. ‧ 國. 學. Table 5. Results of Hypothesis Testing ..………..........................................................30 Table 6. Hierarchical Multiple Regression Analysis for Purchasing Genuine Luxury. ‧. Bags…………………………………………………………………………………...32. y. Nat. io. sit. Table 7. Hierarchical Multiple Regression Analysis for Purchasing Counterfeit Luxury. er. Bags………………………………………………………………………………......33. al. n. v i n Table 8. Summary of Research C Hypotheses and Outcomes h e n g c h i U of the Analysis……...….35. v DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(8) Chapter I Introduction. 1.1 Background. Living in the society which is filled with messages of luxury brands in multiple channels, such as, advertisement, social media or TV commercial etc., longing for the purchase of luxury goods is no longer a daydreaming for consumers, moreover, some. 治 政 大and fashionable style. Along of them may see it as a way to show one’s social status 立 ‧ 國. 學. with the common use of social media and e-commerce, luxury industry is eager to seek for the exposure through online platform to increase consumers’ intention to purchase. ‧. luxury goods (Jinhwa, 2009).. sit. y. Nat. n. al. er. io. Different from the necessities, luxury goods can be recognized as high quality and. i n U. v. a symbol of upper social class, the intrinsic meaning of luxury goods not only just the. Ch. engchi. product itself, but also the ideology behind purchasing which can be referred as its’ symbol meaning. Hence, luxury goods become the symbol of social economic class, it has the hint of showing off individual’s property and will gradually promote the formation of social status hierarchy. Therefore, possessing luxury goods satisfy personal sense of achievement among social needs (Yann, 2010).. In reality, however, not everyone can afford to purchase genuine luxury goods, as a result, those who are less affluent may seek for counterfeit goods of luxury brands to 1 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(9) satisfy their needs as well as to gain enjoyment. However, despite that some people are willing to pay less money to get counterfeit products, others may refuse to purchase the fake one for various reasons. For example, some consumers may find out the gap of quality between genuine and counterfeit after the purchase. It is possible that use of counterfeit goods may further generate sense of guilt and negative self-image or selfconscious (Jinhwa, 2009). Accordingly, the research purpose of this study focuses on the differences of purchase intention toward genuine and counterfeit goods, and specify luxury bags.. 立. 政 治 大. ‧. ‧ 國. 學. 1.2 Research Purpose and Significance of the Study. With regard to research on luxury related consumer behavior, most of the research. sit. y. Nat. focus on consumer behavior, such as individual’s motivation of purchasing genuine. n. al. er. io. luxury goods, or only target on the counterfeits’ aspect to prevent transaction happens. i n U. v. (Victor V., Nittaya &Robert L., 1996). However, this research will like to both. Ch. engchi. understand consumer’s behavior and attitude toward purchasing genuine luxury goods and counterfeit goods, and further compare the different factors between them. Furthermore, according to Jing daily article, counterfeit goods are classified into five levels range from “1:1”, “super A”, “A”, “B” and “C” in China which is recognized as major counterfeit market, and the study will only take level of “1:1” and “super A” as reference. (https://jingdaily.com/china-counterfeit-report-do-factory-extras-really-. exist/).. 2 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(10) Purchasing genuine luxury goods or counterfeit goods is not an essential need to satisfy consumers, the need usually comes from individual’s psychological aspect and society. Under current society, the major motivation of purchasing luxury goods is a behavior to pursue and show the social status, it can attribute to unsatisfied sense of belonging and materialism (Kasseretal, 1995; Rose and Dejesus, 2007). However, take conspicuous consumption as an only reason of purchasing counterfeit goods is not sufficient to support previous scholar research, cannot explain different types of consumers as well(. and. to discuss more variables.. 立. 2017), therefore, it is important for the research. 政 治 大. ‧ 國. 學. Different motivations and needs will lead to different purchase intention, some. ‧. people will purchase genuine luxury goods, on the other hand, others might consider. sit. y. Nat. counterfeit goods with same design but poorer quality. The behavior can be explained. n. al. er. io. by various factors, hence, in the research will include motivation, individual differences. i n U. v. and product involvement to testify how each variable relates to purchase intention of. Ch. engchi. genuine or counterfeit luxury goods, and explain the results of two different purchase behaviors. Moreover, following is the research questions for this study,. •. Research Question. Q1. How would the consumer’s motivation lead to different purchase intention between genuine and counterfeit luxury bag? Q2. How would the individual differences lead to different purchase intention between genuine and counterfeit luxury bag? 3 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(11) Q3. How would the individual level of product involvement lead to different purchase intention between genuine and counterfeit luxury bag?. 立. 政 治 大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 4 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(12) Chapter II Literature Review. 2.1 Motivation. 2.1.1. Conspicuous Consumption. According to Yann’s (2010) study that motivation of luxury consumption can be categorized into two reasons:. 立. 治 政 personal and social大 factor,. and social factor of. ‧ 國. 學. consumption based on the explicit behavior that is eager to show-off themselves which refer to socially express. The idea has frequently been brought out in previous research,. ‧. and mostly focus on Veblen’s well-knowing conspicuous consumption concept. sit. y. Nat. (Manson, 2001; O’Cass & Frost, 2004; Truong et al., 2008). Therefore, conspicuous. n. al. er. io. consumption can be viewed as one of significant and meaningful motivations toward luxury goods consumption.. Ch. engchi. i n U. v. The “Veblen Effect” means that individual is willing to purchase a functionally equivalent product with high price to represent prestigious social status (Bagwell & Bernheim, 1996), hence, it can be referred as “conspicuous consumption”, which sums up that no matter rich or ordinary people will consider purchasing luxury goods to impress others and gain more social status. As Veblen (1899, p.29) mentioned, “Individual becomes indispensable to accumulate, to acquire property, in order to retain one’s good name.” Theoretically, to explain the behavior of conspicuous consumption 5 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(13) that individual will tend to purchase luxury goods to gain recognition from group of people who socially situated either directly or considerably above them (Ericksen, 1996; Mason, 1998).. There are lots of motivations relate to previous research, to reflect higher social status by conspicuous consumption seems to consolidate the phenomenon of consumer purchasing behavior (Yann, 2010). Therefore, purchase luxury goods would satisfy individual’s intrinsic needs of recognition from others. Based on the literature review. 治 政 大 so far, researcher can develop a hypothesis: 立 ‧ 國. 學. H1a. Motivation of conspicuous consumption will enhance individual’s purchase. ‧. intention of genuine luxury bag.. sit. y. Nat. n. al. er. io. There are lots of counterfeit goods exist in luxury market, it can be viewed as a. i n U. v. reproduction of luxury brand (Victor V., Nittaya &Robert L., 1996), they are the. Ch. engchi. alternative to the genuine one with lower price (Adrian & Halldor, 2007), and quality might not have obvious differences (James W., Sanjay & Clifford J., 2006). Moreover, marketers will likely produce counterfeit products with well knowing brand name.. From the previous research of counterfeit goods, they examined lots of factors, including economic, quality, legal and ethical issues etc., will have the influence effect to consumers’ purchase intention toward counterfeit goods (Marin & Pakize, 2006; Swee Hoon et al., 2001; Victor V., Nittaya &Robert L., 1996). Researchers point out 6 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(14) related reputation and social status are significant reasons for consumers to purchase counterfeits goods of luxury brands (Victor V., Nittaya &Robert L., 1996; Fang et al., 2005), in other word, while purchasing counterfeit goods would present connotation of prestige to consumers but only in the condition that quality is decent.. Moreover, an individual’s conspicuous consumption can associate to social class position, they are likely to relate themselves with social status they are, both in or above (Mellott, 1983). Hence, if a product is too expensive for individual to purchase, they. 治 政 大 substitute for the genuine would probably consider buying counterfeit as an affordable 立 ‧. ‧ 國. 學. one (Ian, Min & Agnes, 2009). As such, the following hypothesis is proposed:. H1b. Motivation of conspicuous consumption will enhance individual’s purchase. y. sit. n. al. er. io. one.. Nat. intention of counterfeit luxury bag when it is difficult to distinguish it from the genuine. 2.1.2. Self-Gratification. Ch. engchi. i n U. v. According to Ian, Min and Agnes (2001) research, they point out individual’s gratification is related to personal satisfaction of accomplishment and social recognition, importantly, desire to enjoy the hedonistic life is one of important psychological factors to fulfill. Moreover, from previous studies show luxury goods consumption can trigger the feeling of intangible happiness (Dubois & Laurent, 1994). 7 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(15) that purchasing behavior includes the concept of emotional responses and excitement (Benarrosh-Dahan, 1991).. Purchasing luxury brand tend to be influenced by various motivations, nevertheless, when the individual need to satisfy self-gratification, they would likely end up purchase products which can provide pleasure (Marwa & Adrian Razvan, 2016). Based on this concept, it can be clearly explained by hedonistic effect which individual more concerns about intrinsic feeling and pleasure instead of price tag. From Roux and. 治 政 大 to emotion of pleasure Foch (1996) research, luxury goods consumption resembles 立 ‧ 國. 學. while purchasing luxury goods has shifted position from status symbol to hedonism, individual view it as an action of self-gratification. Therefore, based on above literature. ‧. review, the hypothesis is developed:. sit. y. Nat. al. n. genuine luxury bag.. er. io. H2a. Motivation of self-gratification will enhance individual’s purchase intention of. Ch. engchi. i n U. v. However, price means everything for smart shoppers who referred as not impulsive consumers, cost saving is the priority for them when it comes to purchase products. Mano and Elliott (1997) brought out the concept of price saving “it may be a source of pride and accomplishment as much as their desire to escape their class habits and to acquire the appearance of certain upper social status” (Jinhwa, 2009, p.26).. 8 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(16) 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. 治 政 大this pattern of consumption incentive of money-saving (Jinhwa, 2009), and under 立 ‧ 國. 學. 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:. sit. y. Nat. n. al. er. io. H2b. Motivation of self-gratification will enhance individual’s purchase intention of. i n U. counterfeit luxury bag, while price is an essential concern.. 2.2. Ch. engchi. v. 2.2.1. Individual Difference. 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 9 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(17) 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. 治 政 大 they present (Penz & concern about self-consciousness and especially the self-image 立 ‧. ‧ 國. 學. Stottinger, 2005).. From Jinhwa’s (2009) research, an individual who has an undetermined self-. sit. y. Nat. concept would probably end up acquire low self-esteem, therefore, they are likely to. n. al. er. io. purchase prestigious luxury goods so as to present upper-class social status and to help. i n U. v. them build up and sustain individual identities and self-images. Moreover, when a low. Ch. engchi. 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.. 10 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(18) 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. 治 政 大 goods will be helpful for consumers’ purchase intention toward counterfeit luxury 立 ‧. ‧ 國. 學. luxury industry.. From Lichtenstein, Ridgway and Netemeyer's (1993) research, they pointed out. sit. y. Nat. price is the most significant factor which will influence purchase intention, hence,. n. al. er. io. buying counterfeit goods might be beneficial to individual’s self-interest and. i n U. v. satisfaction (Nill & Schultz, 1996). However, ethical issue has been widely discussed. Ch. engchi. 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) 11 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(19) 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:. 立. 政 治 大. ‧. Sociability. n. al. er. io. sit. y. Nat. 2.2.3. ‧ 國. luxury bag.. 學. H4. Individual who considers moral concern is less likely to purchase counterfeit. i n U. v. According to Megan Minmin C. website, the article mentions twelve reasons. Ch. engchi. 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).. 12 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(20) 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:. 立. 政 治 大. ‧ 國. ‧. 2.3. 學. H5. Individual who is more sociable is more likely to purchase genuine luxury bag.. Product Involvement. sit. y. Nat. n. al. er. io. Product involvement indicates to an individual’s involvement level to the certain. i n U. v. style or fashion concept of luxury products (Jinhwa, 2009), and it also relates to the. Ch. engchi. consciousness of fashion which varies from person to person. Besides, acquire the sense of fashion consciousness does not need to become either an opinion leader or a fashion innovator, it depends on individual’s enthusiasm to fashion, design and even one’s appearance (Summers, 1970; Jonathan & Mills, 1982).. From luxury goods-related research, the reason to purchase premium products attribute to the high satisfaction of items’ traits, such as prestige, brand image and fashion design, additionally, product involvement would reflect to how valuable 13 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(21) consumers perceived from luxury goods (O’Cass, 2001). Hence, it is necessary to understand the relation between product involvement and consumers’ purchase intention because previous research had proved that product involvement can cause the influence on consumer behavior (Bertrandias & Goldsmith, 2006; Goldsmith, 2002; Penz & Stottinger, 2015; Wee et al., 1995).. Moreover, Penz and Stottinger (2005) research had supported that product involvement has a strong negatively affect for consumers to purchase counterfeit goods,. 治 政 on the other words, individual who has high level of大 product involvement will less 立 ‧ 國. 學. likely to purchase counterfeit products. Hence, the hypothesis relates to product involvement and purchasing intention is conducted:. ‧. Nat. sit. n. al. er. io. genuine luxury bag.. y. H6. Individual who has a higher product involvement is more likely to purchase. 2.4. Demographic Factors. Ch. engchi. i n U. v. Demographic factors can be helpful for scholars to understand individual’s purchase intention and consumption habits toward luxury products. The research examines four demographic characteristics, including age and disposable income. Firstly, age can be an important indicator for individual to purchase genuine or counterfeit luxury bags, researcher targeting on age group between 20 and 45 because they are the major population who pay attention to fashion industry, and the internet 14 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(22) users which online survey can easily reach to. Moreover, elderly people are recognized as authentic population who might has higher possibility to purchase genuine luxury bags (Gardyn, 2002; Moschis et al., 2004; Singh et al., 2007; Strain et al., 2002).. Secondly, level of disposable income can be evaluated whether individual has ability to purchase luxury products. Adapting the standard price theory, individual who has higher disposable income can purchase more premium products than others (Ikeda, 2006). From this perception, others who have lower disposable income might more. 治 政 大 (2002) research presents likely purchase counterfeit luxury goods, however, Francese’s 立 ‧. ‧ 國. io. sit. y. Nat. n. al. er. as well.. 學. an opposite idea that lower disposable income can selectively purchase luxury goods. Ch. engchi. i n U. v. 15 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(23) Chapter III Research Methodology. 3.1 Research Framework. The research would like to examine consumers’ different purchase intentions toward genuine and counterfeit luxury bags, and how related variable influence individual’s purchase behavior. Both qualitative and quantitative methods are used for. 治 政 大interviews and questionnaire data collection, that is, the researcher conducts in-depth 立 ‧ 國. 學. survey so as to examine whether there are significant relationships between consumers’. purchase intentions and some psychological variables. In-depth interviews are. ‧. conducted among luxury bag owners, then, questionnaires survey is conducted to gather. n. al. er. io. sit. y. Nat. information for the analyses, with a view to finding out answers to the research question.. i n U. v. The research framework of this study and research procedures are presented in the following Figure 1,. Ch. engchi. 16 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(24) Figure 1. Research Framework. 政 治 大. 立. ‧. ‧ 國. 學. •. Research Hypotheses. sit. y. Nat. n. al. er. io. H1a. Motivation of conspicuous consumption will enhance individual’s purchase intention of genuine luxury bag.. Ch. engchi. i n U. v. H1b. Motivation of conspicuous consumption will enhance individual’s purchase intention of counterfeit luxury bag when it is difficult to distinguish it from the genuine one. H2a. Motivation of self-gratification will enhance individual’s purchase intention of genuine luxury bag. H2b. Motivation of self-gratification will enhance individual’s purchase intention of counterfeit luxury bag, while price is an essential concern. 17 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(25) H3. Individual with lower self-confidence is more likely to purchase genuine luxury bag. H4. Individual who has a high consideration of moral concern is less likely to purchase counterfeit luxury bag. H5. Individual who is more sociable is more likely to purchase genuine luxury bag. H6. Individual who has a higher product involvement is more likely to purchase genuine luxury bag.. 立. 政 治 大. 3.2.1. ‧. ‧ 國. 學. 3.2 Research Procedure. In-depth Interview. sit. y. Nat. n. al. er. io. In-depth interviews are conducted to obtain insights of various factors that may. Ch. i n U. v. influence consumer’s purchase intention toward either genuine luxury bags or. engchi. counterfeit bags. With the aid of interview, researcher can make sure hypotheses are significant and can clearly understand which variables cause consumers to have different purchase intention toward genuine and counterfeit luxury bag.. 3.2.1.1. Selection Criteria of Interviewees. The purpose of this interview is to investigate significant explanatory variables which may be related to consumer behaviors. Six females, who are purchasers and users 18 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(26) of luxury bags are included in the in-depth interview. These six interviewees are ages between 20 and 45. The Table 1 summarizes the background information about the participants of the in-depth interview.. Table 1. Information Regarding Participants in In-depth Interview Date of Code. Name. Age. Status Interview. 25. Participant B. Nicole. 立43. Participant C. Joe. 23. Student. Yichen. 36. Project planner. Michelle. 33. Flight attendant. 29. Employee of CTCB. io. y. sit. Amy. er. Participant F. 2018/5/12. ‧. Participant E. Employee of global company. 學. Participant D. ‧ 國. Grace. Nat. Employee 治of headhunter company 政 大. Participant A. al. n. v i n During the interview, everyCrecruited individual will be given few questions, they hengchi U. will be interviewed in the same time and will last approximately 20 minutes in total. Furthermore, the procedure will be carried out as interviewer presents variables, including motivation, individual differences and product involvement, then ask questions to find out whether variables are factors to trigger consumers purchase intention.. 19 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(27) 3.2.1.2. Interview Questions and Summarize. There will be seven interview questions in total to further verified the reliability of variables. Interview questions are developed, Q1. Have you ever purchased genuine and counterfeit luxury bag? Q2. Will you purchase luxury bag to show off your social status or fashion sense, and consider buying counterfeit one as well?. 政 治 大 Q3. Will you consider buying luxury bag as a self-gratification for yourself, and how 立. ‧ 國. 學. about purchasing counterfeit one?. ‧. Q4. Will you view product involvement as an index of purchasing genuine or. sit. y. Nat. counterfeit luxury bag? for example, if an individual has a higher recognition of certain. io. n. al. er. product that whether he/she only willing to purchase genuine one or not.. i n U. v. Q5. Is a moral concern being one of factor for you to refuse purchasing counterfeit luxury bag?. Ch. engchi. Q6. Is an amount of social activities influencing your choice between purchasing genuine and counterfeit luxury bag? Q7. Do you view yourself as an individual who has higher or lower self-confidence character? Is this factor influencing your choice of buying genuine or counterfeit luxury bag?. 20 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(28) To sum up the interview results, respondents tend to purchase luxury bag to represent social status and sometimes they may view it as an item to show-off, further, they tend to consider purchasing counterfeits if other people cannot recognize it is the fake one. Buying luxury bags can also be explained as “treat myself well” for such participants, but they are unlikely to choose counterfeits when it comes to selfsatisfaction only if it is cost-effective.. Moreover, product and brand involvement is an essential factor for interviewees,. 治 政 they will only consider purchasing genuine one when大 they have high recognition on 立 ‧ 國. 學. certain brand or design. However, respondents all agree moral concern would have negative influence on purchasing counterfeit products, additionally, individual who has. ‧. high sociability would tend to purchase genuine items to display social status and. sit. y. Nat. wealth when they participant in social events. For the last question, respondents who. n. al. er. io. view themselves as a low self-confidence person would rather purchasing expensive. i n U. v. genuine bags because this purchase behavior would boost up their confidence.. Ch. engchi. Therefore, hypotheses are constructed and examined to make sure the result is significant related based on the result of in-depth interview.. 3.2.2. Questionnaire Survey. After the in-depth interviews, questionnaire survey is the main data collection method used in this study for the purpose of quantitative data analysis. 21 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(29) 3.2.2.1. Sampling and Questionnaire Design. The researcher conducts a survey to find out the differences of consumers’ purchase intention toward genuine and counterfeit luxury bags in Taiwan, and questionnaire will all be completed by female between 20 and 45years old who whether has purchase experience of genuine and counterfeit luxury bags. The research wish to collect data from at least 200 respondents who have purchase intentions for either genuine or counterfeit luxury bags.. 立. 政 治 大. ‧ 國. 學. The survey will both use English and Mandarin, and the distribution is via internet because online distribution provides an easy access to reach the targeting sample.. ‧. Moreover, questionnaire will be posted on several luxury bag related websites so as to. n. al. er. io. prize as the incentive for individual who fill up the survey.. sit. y. Nat. include interested respondents (See Figure 2). In addition, movie ticket will be a lottery. Ch. engchi. i n U. v. Figure 2. Example of Targeting Sample (Social Media’s Group/Page). 22 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(30) The questionnaire is divided into four sections. The first section will be respondents’ demographic profile, and the second section will evaluate respondents’ motivation factors. Moreover, the third section is individual differences, including selfconfidence, moral concern and sociability, and the last section will measure how product involvement influence individual’s purchase intention toward genuine and counterfeit luxury bags.. 3.3. Measurement of Research Variables and Reliability Test. 立. 政 治 大. ‧ 國. 學. Following will list each variable’s measureable scale and detailing questions, and each scale might be slightly adjusted to adapt the research objective.. ‧. Consumption. •. y. athe i v Orientation Scale l CConspicuous Consumption n U Ghoshal, 2011) - 4 items h e nMazumdar (Chaudhuri, g c h i and. n. Conspicuous. •. sit. Study. er. io. Variable. Nat. Table 2. Measurement Scales of Research Variables. Constructed by the researcher - 2 items. -I buy some products because I want to show others that I am wealthy. -I would enjoy buying a designer label because not many can afford it. -If my friends can see me using a brand or a product, I will purchase an expensive version that can make me the center of attraction. -I feel proud when others say that I have a fine taste. -I might consider purchase counterfeits a. when it is difficult to distinguish between the counterfeit and the genuine luxury bags for me. 23 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(31) Table 2. Measurement Scales of Research Variables…continued b. when the counterfeit luxury bag has no difference with genuine one in others perception. c. when the quality of counterfeit luxury bag is good and acceptable. •. the Experiential/Hedonic Related Scale (Spangenberg, Voss, and Crowley, 1997; Tsai, 2005) - 2 items. Self-Gratification. •. the survey from Jinhwa Lee’s (2009) and Boonhee & Seung-Hee’s (2009) research - 3 items. -It is important for me to possess really nice things, such as genuine luxury bags.. 政 治 大 -I buy counterfeit products立 if I think genuine designer products are too expensive. -Buying luxury bags gives me a lot of pleasure.. ‧ 國. 學. -Low price is an important factor to consider for my purchase of fashion products. -I buy counterfeit products if I cannot afford to buy designer products. •. the survey from Jinhwa Lee’s (2009) - 3 items. •. Constructed by the researcher - 3 items. ‧. y. Nat. sit. Self-Confidence. er. io. -I’m concerned about what other people think of me.. al. v i n Crealize -I feel socially inferior if people U counterfeits. h e nthatg Icown h ifashion n. -I’m usually aware of my appearance.. -I am highly confident to myself so using genuine luxury bag is not necessary to me. -Using genuine luxury bags can boost up my confidence. -It is helpful for me to gain more self-confidence while possessing genuine luxury bags. Moral Concern. •. the survey from Jinhwa Lee’s (2009) - 4 items. -I think of myself as someone who is concerned about ethical issues. -I feel that I have an ethical obligation with my purchase of fashion products. -I believe that fashion counterfeiting will hurt the original brand owner’s business. -I believe that buying counterfeit products is unethical. 24 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(32) Table 2. Measurement Scales of Research Variables…continued •. the Overall Luxury Value Perceptions Scale and the Luxury Purchase Intentions Scale (O’cass & McEwen,. Sociability. 2004; Shukla,2010) - 4 items •. Constructed by the researcher - 3 items. -I am willing to pay high price for genuine luxury bags because it gain/increase my social status. -The real/fake of luxury bags is an important index for me to participant social events. -I will purchase a genuine luxury bag just because it presents high social status.. 政 治 大 recognition in upper class society. 立 -Using genuine luxury bags can boost up my confidence while attending certain. -Genuine luxury bags are important to me because they make me feel more. ‧ 國. 學. social activities.. -Attending social events is one of purpose to purchase genuine luxury bags.. ‧. -If I rarely participate social events that genuine luxury bags will not be my priority. y. sit. the 17 Items Involvement Scale from Peter H. Bloch’s. er. •. io. Product. Nat. choice of consumption.. n. research - 6 items a(1981) iv l C n h a specific h i Uor brand of luxury bag. n g c design -It is worth to pay high price to owne Involvement. -I prefer to purchase bags with well-knowing brand or designer. -I generally feel a sentimental attachment to the bags I purchase. -I have little or no interest in fashion consciousness. -Bags are nothing more than appliance. -I will not consider counterfeit bags if I have high involvement in the product.. 25 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(33) In order to examine the feasibility of the measurement scales of the research variables, a pre-test was conducted in advance. The six independent variables of this study are, conspicuous consumption, self-gratification, self-confidence, moral concern, sociability and product involvement, which may be grouped into two categories, namely purchase motivation and individual difference.. Firstly, factor analysis and reliability test of purchase motivation and individual difference were conducted, the resulting factor loadings and Cronbach's α are presented in Table 3.. 立. 政 治 大. ‧ 國. 學. Researcher deleted the items which factor loading score did not reach validity. ‧. value 0.6, hence, the item 7D (self-satisfaction: Price is important factor to consider. sit. y. Nat. when purchasing genuine luxury bag.), 9B (product involvement: I will not purchase. n. al. er. io. counterfeit bags if I have high product involvement.), 11A (self-confidence: I think. i n U. v. purchase genuine luxury bags is not important because I am highly confidence to. Ch. engchi. myself.) and 13B (sociability: Genuine luxury bags will not be my priority choice of consumption if I rarely participate social events.) were deleted. Therefore, the factor loadings values for purchase motivation, including conspicuous consumption, selfsatisfaction and product involvement; and individual difference, including selfconfidence, moral concern and sociability were all found have high validity with scores between 0.6 and 1.. 26 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(34) The Cronbach's α for purchase motivation and individual difference scales are acceptable to good reliability where all the Alpha values are between 0.6 and 0.9.. Finally, as the measurement items resulted in exhibiting appropriate reliability, composite measures were constructed by computing the indicators of each research variable, and those will be further analyzed in following step to test hypotheses.. Table 3. Reliability Coefficients and Factor Loadings of Research Variables. .871 .911 .916. er. n. Ch. engchi. i n U. .810. y. ‧ 國. -I buy genuine luxury bag because I can become center of attraction -Buy genuine luxury bag is important because I like to possess really nice things -Buy genuine luxury bag gives me lots of pleasure -Buy genuine luxury bag is worthy even have to pay high price -I buy counterfeit bag when genuine one is too expensive -I buy counterfeit bag when I cannot afford genuine one. al. .873. ‧. io. Self-Satisfaction. Nat. -I buy genuine luxury bag because I want to show others I am wealthy -I buy genuine luxury bag because not many can afford -I buy counterfeit bag when it is difficult to distinguish between counterfeit and genuine -I buy counterfeit bag when quality is good and acceptable. Cronbach’s α. 學. Purchase Motivation Conspicuous Consumption. Factor Loading. sit. 立. Measurement Items. 政 治 大. v. .928 .756. .718. .675 .775 .897 .910. Product Involvement -I usually buy bags with well-knowing rand or designer -I usually feel sentimental attach to bags I purchase -I will not buy genuine luxury bags because it is nothing more than accessory. .736 .608. .833. .798. Individual Difference Self-Confidence -I think buy counterfeit bags make me feel socially inferior when people find out -I think buy genuine luxury bags can boost up confidence. .796. .807. .794. 27 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(35) Table. 3.. Reliability. Coefficients. and. Factor. Loadings. of. Research. Variables…continued -I think buy genuine luxury bags can increase social status even have to pay high price -I think buy genuine luxury bags is necessary because it presents high social status. .862 .827. Moral Concern -I think buy counterfeit bags will harm original brand owner’s business -I think buy counterfeit bags is an unethical behavior -When I buy fashion bags I will consider ethical obligation. .837. .766. .772 .714. Sociability -When I buy fashion bags I will consider frequency of social events I have to attend -When I attend social events the real/fake of fashion bags is an important index. 立. .802. 政 治 大. .737. .725. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 28 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(36) Chapter IV Data Analysis and Results. A total of 235 responses have completed surveys during the three weeks’ period of time. Among them 202 are females, however, this survey aims at collecting data from females only, therefore, the final sample size is 202 after deleting the 33 male respondents. The age of the respondents also distributed quite evenly, with 52.97% being of age between 20-35, and 47.03% ages 36-45, moreover, monthly disposable. 治 政 大data of respondents’ socioincome were represented in the sample. The detailing 立 ‧. ‧ 國. 學. demographics can be found in Table 4.. Table 4. Demographics of Respondents. 107 95 202. 52.97 47.03 100. 52.97 100. 6.93 56.44 34.15 2.48 100. 6.93 63.37 97.52 100. n. al. Ch. engchi. Monthly disposable income (NTD) Less than 15,000 15,000-40,000 40,000-65,000 Over 65,000 Total. y. Percent. sit. io. 20-35 years old 36-45 years old Total. Cumulative Percent. Frequency. 14 114 69 5 202. er. Age. Nat. Demographics. i n U. v. SPSS are used in analyzing the data, hence, simple regression analysis was applied to examine the significance of each variable and hypothesis, moreover, hierarchical multiple regressions were run to examine which variable has the most significant. 29 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(37) influence on consumers’ purchase intention to genuine and counterfeit luxury bags among all variables.. Table 5. Results of Hypothesis Testing Adjusted R2. Beta. Sig. (p). .424. .654. .000. Motivation Conspicuous Consumption for Genuine Luxury Bags. 政 治 大. H1a. Motivation of conspicuous consumption will enhance individual’s purchase intention of. 立. genuine luxury bag. (supported). .468. ‧ 國. 學. Conspicuous Consumption for Counterfeit Luxury Bags. .686. .000. H1b. Motivation of conspicuous consumption will enhance individual’s purchase intention of. ‧. counterfeit luxury bag when it is difficult to distinguish it from the genuine one. (supported). y. Nat. .456. io. sit. Self-Gratification for Genuine Luxury Bags. .678. .000. n. al. er. H2a. Motivation of self-gratification will enhance individual’s purchase intention of genuine luxury bag. (supported). Ch. engchi. Self-Gratification for Counterfeit Luxury Bags. i n U. v. .271. .524. .000. H2b. Motivation of self-gratification will enhance individual’s purchase intention of counterfeit luxury bag, while price is an essential concern. (supported) Individual Difference Self Confidence. .002. .084. .012. H3. Individual with lower self-confidence is more likely to purchase genuine luxury bag. (supported) Moral Concern. .142. .382. .000. 30 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(38) Table 5. Results of Hypothesis Testing …continued H4. Individual who has a high consideration of moral concern is less likely to purchase counterfeit luxury bag. (supported) Sociability. .130. .366. .000. H5. Individual who is more sociable is more likely to purchase genuine luxury bag. (supported) Product Involvement Product Involvement. .155. .398. .000. 政 治 大. H6. Individual who has a higher product involvement is more likely to purchase genuine luxury. 立. bag. (supported). ‧ 國. 學. According to the results in Table 5, we can find out all hypotheses are supported,. ‧. and all independents variables have significant contributions to the dependent. y. Nat. io. sit. variable—purchase intention. The two motivation related variables—conspicuous. n. al. er. consumption and self-gratification have strong impacts on the dependent variable, as. Ch. i n U. v. indicated by high beta coefficient and high adjusted R2. For example, conspicuous. engchi. consumption for genuine luxury bags (β=.654, p<.05), conspicuous consumption for counterfeit luxury bags (β=.686, p<.05), self-gratification for genuine luxury bags (β=.678, p<.05) and self-gratification for counterfeit luxury bags (β=.524, p<.05). Following are variables of moral concern (β=.382, p<.05), sociability (β=.366, p<.05) and product involvement (β=.398, p<.05), and the least significant explanatory variable is self-confidence (β=.084, p<.05), therefore, all hypothesis one to six are supported.. 31 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(39) In order to further examine the relative importance of all independent variables, two hierarchical multiple regression analyses were conducted. Hence, three groups of independent variables were included, namely conspicuous consumption, selfgratification, self-confidence, moral concern, sociability and product involvement, presented in Table 6 and Table 7 as below.. Table 6. Hierarchical Multiple Regression Analysis for Purchasing Genuine Luxury Bags Model. 立. Conspicuous Consumption (Genuine Bag). .421. Self-Gratification (Genuine Bag). Beta. Sig. (p). .665. .000. -.015. .853. y. Conspicuous Consumption (Genuine Bag). .000. .044. .677. -.081. .304. -.008. .897. -.013. .862. Conspicuous Consumption (Genuine Bag). .680. .000. Self-Gratification (Genuine Bag). .063. .560. -.080. .306. .001. .981. Sociability. .005. .954. Product Involvement. -.059. .429. Nat. .678. sit. ‧. 2. 2. 學. ‧ 國. 1. 政 治 大 Adjusted R. al. .416. n. Moral Concern. io. Self-Confidence. er. Self-Gratification (Genuine Bag). Sociability. Ch. engchi U. v ni. 3. Self-Confidence. .415. Moral Concern. . 32 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(40) Table 7. Hierarchical Multiple Regression Analysis for Purchasing Counterfeit Luxury Bags Adjusted R2. Model. Beta. Sig. (p). .617. .000. .080. .431. Conspicuous Consumption (Counterfeit Bag). .623. .000. Self-Gratification (Counterfeit Bag). .073. .485. -.022. .741. -.012. .839. .037. .579. .611. .000. .093. .389. -.014. .836. -.001. .986. .059. .419. -.055. .447. 1 Conspicuous Consumption (Counterfeit Bag) Self-Gratification (Counterfeit Bag). .467. 2. Self-Confidence. 立. Moral Concern. ‧ 國. 3. 學. Sociability. 政 治 大.460. ‧. Conspicuous Consumption (Counterfeit Bag) Self-Gratification (Counterfeit Bag). Product Involvement. sit. y. al. er. .459. n. Sociability. io. Moral Concern. Nat. Self-Confidence. Ch. engchi. i n U. v. The result of hierarchical multiple regression analysis for purchasing genuine luxury bags is present in Table 6, it shows that only conspicuous consumption stands out (p<.05) while all independent variables were considered at the same time, on the other hand, other independent variables’ p-value are not smaller than 0.05 and are not significant toward purchasing genuine luxury bags. However, the reason why selfgratification has high explanatory value in simple regression analysis but not here is because conspicuous consumption and self-gratification have high correlation 33 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(41) coefficient 0.746, hence, they will have conflict effect when they are considering at the same time.. Table 7 presents the result from hierarchical multiple regression analysis for purchasing counterfeit luxury bags, and the results have the similar conclusion to Table 6 that only conspicuous consumption (p<.05) can be explained in this case. Therefore, for purchasing either genuine or counterfeit luxury bags, only purchase motivation– conspicuous consumption is significant and can be proved while all variables are examined at the same time.. 立. 政 治 大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 34 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(42) Chapter V Conclusion and Suggestion. 5.1. Summary and Limitations of Research Results. To conclude overall research results that conspicuous consumption is the most influential explanatory variable of dependent variable for purchasing both genuine and counterfeit luxury bags. Though all the other independent variables show a significant. 治 政 大insignificant in the presence effect in simple regression analysis, however, they become 立 ‧ 國. 學. of purchase motivation of conspicuous consumption as indicated by the results from hierarchical multiple regression. Hence, I exhibited the limitation of the study and. ‧. proposed further research that will gain broaden knowledge about consumers' purchase. n. al. er. io. sit. y. Nat. behavior.. i n U. v. Table 8 summarizes the research hypotheses and outcomes of the analysis, the. Ch. engchi. results from data analysis indicate that all hypotheses are strongly supported, and all variables have valid p-value that smaller than 0.05 (see Table 8).. Table 8. Summary of Research Hypotheses and Outcomes of the Analysis Research Hypothesis. Outcome. H1a. Motivation of conspicuous consumption will enhance individual’s. Supported. purchase intention of genuine luxury bag.. P=.000, <.05. H1b. Motivation of conspicuous consumption will enhance individual’s purchase intention of counterfeit luxury bag when it is difficult to distinguish it from the genuine one.. Supported P=.000, <.05. 35 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(43) Table 8. Summary of Research Hypotheses and Outcomes of the Analyses … continued H2a. Motivation of self-gratification will enhance individual’s purchase intention of genuine luxury bag.. Supported P=.000, <.05. H2b. Motivation of self-gratification will enhance individual’s purchase intention of counterfeit luxury bag, while price is an essential concern. H3. Individual with lower self-confidence is more likely to purchase genuine luxury bag.. Supported P=.000, <.05 Supported P=.012, <.05. H4. Individual who has a high consideration of moral concern is less likely to purchase counterfeit luxury bag.. Supported P=.000, <.05. H5. Individual who is more sociable is more likely to purchase genuine. 政 治 大 H6. Individual who has a higher product involvement is more likely to 立 purchase genuine luxury bag. luxury bag.. Supported P=.000, <.05 Supported P=.000, <.05. ‧ 國. 學 ‧. From the result of simple regression analysis, for purchasing genuine luxury bag,. sit. y. Nat. 65% of respondents will purchase it because of conspicuous consumption, 68% will. io. al. er. buy it to gain self-satisfaction, 8% who recognize themselves as a low self-confidence. n. individual will more likely to purchase it for increasing self-confidence, 37% would. Ch. engchi. i n U. v. consider purchase genuine luxury bags because they have more social events to attend and it will help them build up their social identity, and 40% of survey respondents agree they are more willing to buy genuine luxury bags because they have high product involvement to specific items.. On the contrary, for purchasing counterfeit luxury bag that 69% of survey respondents will consider purchase it when the quality is difficult to distinguish from the genuine one, 52% agree when price is an essential and primary concern that. 36 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(44) purchase counterfeit luxury bags will gain more self-gratification than purchase genuine one, and 38% of respondents show they are less likely to purchase counterfeit luxury bags because they have higher concern of ethical issues. In conclusion, each variable has significant effect to support each hypothesis and the beta-value is high, however, only variable of self-confidence has beta-value 0.084, therefore, it is worth to discuss why self-confidence has such low beta-value in the future research.. Figure 3. Importance of Purchase Motivation among Female Consumer. 政 治 大. 立. Individual Difference. ‧. ‧ 國. 學. Purchase Motivation. Nat. sit. io. n. er. - Self-Gratification. al. y. - Conspicuous Consumption. Ch. engchi. i n U. v. Purchase genuine luxury bags and Purchase counterfeit luxury bags. Indeed, there are lots of factors which will influence consumers’ decision whether purchase genuine luxury bag or counterfeit one. Researcher had listed and examined various factors, including individual purchase motivation and characteristic difference, 37 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(45) nevertheless, from the data analysis (simple regression analysis) findings that there are two variables especially significant for both consumers to purchase genuine and counterfeit luxury bags, namely motivation of conspicuous consumption and psychological factor of self-gratification. However, researcher also conducted hierarchical multiple regression that found out these two variables—conspicuous consumption and self-gratification are highly correlated, hence, only conspicuous consumption has explanatory effect when they are considering in the same time.. 學. ‧ 國. 5.2. 治 政 大 Suggestion for Future Research 立 This research provides interesting results for marketers who work in luxury. ‧. industry, and the importance of purchase behavior of luxury product among Taiwanese. sit. y. Nat. female consumers. Moreover, the study proves that variety of factors, such as personal. n. al. er. io. purchase motivation and individual differences, but also age and disposable income are. i n U. v. essential predictors of the willingness on whether purchase genuine luxury bags or. Ch. engchi. counterfeit luxury bags. However, the study still exists few limitations and could be further discuss in future research.. Firstly, researcher examined the measurement scale after completed the survey results, and found out the items for self- gratification is not good enough to measure the efficiency of the research variable. Hence, it might be one of reasons which caused conspicuous consumption and self-gratification has high correlation, it should be aware in the procedure of questionnaire design to prevent this experimental error. 38 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(46) Secondly, the non-probability sample of respondents may not be representative of the entire consumer market of luxury bags, although the survey respondents have acquired the necessary characteristics and are actual or potential luxury products’ consumers. Some demographic factors, such as educational level was not included in the analysis because it failed to show significant correlation with the dependent variable. Meanwhile, the research only collected data 202 female respondents, a larger sample size is needed and could consider examine demographic factors for future study to assure the validity and reliability if the study.. 立. 政 治 大. ‧ 國. 學. Moreover, even though the research framework includes demographic factors and indeed researcher had run the pre-test, however, the pre-test results of demographic. ‧. factors, including age and disposable income both do not reach validity value of factor. sit. y. Nat. loading and Cronbach's α are not reliable. Hence, researcher found out might due to the. n. al. er. io. questionnaire distribution method that the platform was via internet and focus on luxury. i n U. v. bags related websites. The design is to include interested respondents initially, however,. Ch. engchi. it might cause the target people are too similar and make no difference between them.. Furthermore, although all the variables that researcher had examined are significantly supported, the variable of self-confidence has relatively low beta value (0.084), hence, I suggest conducting an experiment study in the future to narrow down on this variable, and find out the reason why self-confidence has little influence on consumers to purchase genuine and counterfeit luxury bags. And the researcher may have left out other meaningful psychological or sociological variables which may 39 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(47) contribute to the explanation of dependent variable, such as social network, advertising appeal, materialism, socioeconomic status and so on.. In conclusion, the foregoing suggestions might give scholar who has interested in consumer behavior of luxury industry an insight and gain more findings for future research.. 立. 政 治 大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 40 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

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(50) Grossman, G. M., & Shapiro, C. (1988). Foreign counterfeiting of status goods. Quarterly Journal of Economics, 103(1), 79-100. Ha, S., & Lennon, S. (2006). Fashion intent for fashion counterfeit products: Ethical ideologies, ethical judgments, and perceived risks. Clothing and Textiles Research Journal, 24(4), 297-315. International Marketing Review, 27 (1) (2010), pp. 108-129 Jonathan, G., & Mills, M. K. (1982). Fashion life cycle, self-concept, shopping orientation, and store patronage: An integrative analysis. Journal of Retailing, 58, 64-87 Kim, Y., Sullivan, P., & Forney, J. C. (2007). Experiential retailing: Concepts and. 政 治 大 College Students' Purchase. strategies that sell. New York: Fairchild.. 立 Fashion Consciousness,. Lee, J. (2009). Understanding. Public Self-Consciousness, Ethical. 學. ‧ 國. Counterfeits:. Behavior of Fashion. Obligation, Ethical Judgment, and the Theory of Planned Behavior (Doctoral dissertation, Ohio University).. ‧. Lichtenstein, D. R., Ridgway, N. M., & Netemeyer, R. G. (1993, May). Price. y. Nat. perceptions and consumer shopping behavior: A field study. Journal of Marketing. io. sit. Research, 30, 234-45.. er. Luxury Institute, 2007. The luxury consumer market: a wealth of opportunity.. al. n. v i n Ch The_Luxury_Consumer_Market.pdf⟩ 17.09.07). e n g(accessed chi U. Available online at: ⟨http://www.luxuryinstitute.com/pdfs/Luxury_Institute_. Mano, H., & Elliott, M. T. (1997). Smart shopping: The origins and consequences of price savings. Advances in Consumer Research, 24, 504-510. Mason, R S (1998) The Economics of Conspicuous Consumption: Theory and Thought Since 1700 Cheltenham, UK/Northampton, MA: Edward Elgar Mason, R S (2001) Conspicuous consumption: a literature review European Journal of Marketing, 18, 3, pp 26-39 Mellott, D. W. (1983) Fundamentals of Consumer Behaviour. Tulsa: Penn Well Publishing Company, p. 828.. 43 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

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(52) Sridhar, G. (2007) Countering Counterfeits, Proceedings of the International Conference on Marketing and Society, Indian Institute of Management, Kozhikode, pp. 737-742, http://dspace. iimk.ac.in/handle/2259/313. Summers, J. O. (1970). The identity of women’s clothing fashion opinion leaders. Journal of Marketing Research, 7, 178-185 Truong, Y, Simmons, G , McColl, R & Kitchen, P J (2008) Status and conspicuousnessare they related? Strategic marketing implications for luxury brands Journal of Strategic Marketing, 16,3, pp189-203 Truong, Y. (2010). Personal aspirations and the consumption of luxury goods. International Journal of Market Research, 52(5), 655-673.. 治 政 International Journal of Market Research, 47 (4) 大 (2005), pp. 177-206 立 U.S. Customs and Border Protection Office of International Trade. (2007). Department. Tsai, 2005 S.P. Tsai, Impact of personal orientation on luxury-brand purchase value. ‧ 國. 學. of Homeland Security U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement FY 2007 Top IPR Commodities Seized. Retrieved. ‧. November 1, 2009, from http://www.cbp.gov/linkhandler /cgov/trade/priority_ trade/ipr /seizure/trading/07_topirp_seizures.ctt/07_topirp_seizures.pdf. y. Nat. io. sit. Veblen, T B (1899) The Theory of the Leisure Class Boston, MA: Houghton Mifflin. n. al. er. Veblen, Thorstein. (1899). The theory of the leisure class: an economic study of. i n U. v. institutions. Unwin Books, reprinted, Dover Publications, New York, London, 1994.. Ch. engchi. Wang, F., Zhang, H., Zang, H. and Ouyang, M. (2005) Purchasing pirated software: An initial examination of Chinese consumers. Journal of Consumer Marketing 22(6): 340-351 Wee, C.-H., Tan, S.-J., & Cheok, K.-H. (1995). Non-price determinants of intention to purchase counterfeit goods. International Marketing Review, 12(6), 19. Wicklund, R. A., & Gollwitzer, P. M. (1981). Symbolic self-completion, attempted influence, and self-deprecation. Basic and Applied Social Psychology, 2, 89-114. Yoo, B., & Lee, S. H. (2009). Buy genuine luxury fashion products or counterfeits? ACR North American Advances. . (n.d.). Retrieved May 28, 2018, 45 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(53) Katy. , K. (2014, October 24). Retrieved May 28, 2018,. 立. 政 治 大. 學 ‧. ‧ 國 io. sit. y. Nat. n. al. er. &. Ch. engchi. i n U. v. 46 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(54) Appendix I English Version of the Questionnaire. Questionnaire. Hello! This survey is part of a research to complete master degree at the National Chengchi University. The aim is to understand the differences of consumers’ purchase behavior. 政 治 大. toward genuine luxury bag and counterfeit bag.. 立. ‧ 國. 學. If you are female age between 20 and 45, please help me complete the following survey, it will take around 10 minutes to complete. All your answers will only be used for. ‧. academic purposes and they are anonymous and confidential.. n. a. er. io. sit. y. Nat. Thank you!. Part A– DEMOGRAPHICS l. Ch. engchi. i n U. v. Q.1 Please indicate your gender a) Female b) Male Q.2 Please indicate your age a) Under 20 b) 20-35. 47 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(55) c) 36-45 d) Above 45 Q.3 Please indicate your education level a) High School and below b) Undergraduate c) Graduate and above. 政 治 大. Q.4 Please indicate your monthly disposable income (in New Taiwanese Dollars) a) Less than 15,000. 立. ‧ 國. 學. b) 15,000-40,000 c) 40,000-65,000. ‧. d) Over 65,000. io. n. al. Ch. engchi. er. sit. y. Nat. Part B– PURCHASE MOTIVATION. i n U. v. In this section, please indicate your purchase motivation toward the product.. Q.5 I buy genuine luxury bag… A. because I want to show others that I am wealthy a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree B. because not many can afford it a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree 48 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

(56) C. because it can make me become the center of attraction a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree. Q.6 I might consider purchase counterfeit bag (1:1 and super A level)… A. When it is difficult to distinguish between the counterfeit and the genuine luxury bags for me. a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree. 政 治 大. B. When the quality of counterfeit luxury bag is good and acceptable.. 立. a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree. ‧ 國. 學. C. When genuine luxury bag is too expensive for me. ‧. a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree. sit. y. Nat. n. al. er. io. D. When I cannot afford to buy genuine luxury bag. Ch. i n U. v. a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree. engchi. Q.7 Purchasing genuine luxury bag… to me A. is important, because I like to possess really nice things a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree B. gives me a lot of pleasure. a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree. 49 DOI:10.6814/THE.NCCU.IMICS.017.2018.F05.

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