Brand Imitation - Consumer Attitude Toward Purchasing Imitated Brand Clothing in Thailand - Thesis Proposal Example

In partial fulfillment of the requirements for the degree of Bachelor of Science in (), under the supervision of (). Brand imitation: “Consumers' attitude toward purchasing imitated brand clothing in Thailand" TABLE OF CONTENTS CHAPTERS PAGE I. INTRODUCTION ……………………………………………………………………3 Background of the Study ………………………………………………………….3 Problem Statement ………………………………………………………………...3 Hypothesis of the Study …………………………………………………………...4 Significance of the Study ………………………………………………………….4 Purpose of the Study ………………………………………………………………4 II. LITERATURE REVIEW ……………………………………………………………..5 Integrity in terms of Lawfulness…………………………………………………….6 Attitudes towards Damaging Effect of Original Brand …………………………....6 Ethical Attitude and Consumer’s Perceived risk…………………………………..7 III. METHODOLOGY ……………………………………………………………………7 Subjects and Setting………………………………………………………………..7 Data Collection Technique …………………………………………………………8 Statistical Analysis …………………………………………………………………9 Limitation of the Study ………………………………………………………….....10 IV. RESULTS ………………………………………………………………………… V. DISCUSSION ……………………………………………………………………. LIST OF REFERENCES ……………………………………………………….11 APPENDICES …………………………………………………………………..13 INTRODUCTION Background of the Study As imitated goods, a multi dollar underground economy, flourish in almost all kinds of market, consumer tends to choose these kinds of good particularly in Thailand which according to most professionals is the “primary staging point” (Sheban, 2007) of imitated products coming from China, Taiwan and Hong Kong—the top producer of imitated products accounting to almost ninety percent of the said industry (Kay Ka-Yuk Lai, 1999, p. 179). This kind of patronage of consumer towards has been affected many economic aspect both local and international setting. In fact the Parliamentary Assembly of Council of Europe (2004) has been alarmed of its global impact and in 2004 the council drafted preventive measures in combating the growing brand imitation industry. Problem Statement In viewing the problem of existing imitated goods and products in Thailand’s marketplace, people oftentimes only recognize its producers as the primary liable for this illegal act. Hence, prior studies regarding imitation are mostly focus on understanding the producer side However, the prospering of imitated products does not only depend on its producer aspect but most importantly to the consumers’ behavior who patronize these kind of products. Without the patronage of consumer, producer of imitated products will not be able to exist. Furthermore, there are many factors involve why consumer decides to buy imitated products. In line with this, the essential question to pose the question: “What are the factors and its corresponding relationships to the consumer’s behavior in buying imitation products in the marketplace of Thailand?” Significance of the Study In view of the fact that this study will relate the aspect of consumer’s behavior towards imitated product in Thailand’s marketplace, it is will be significant in the sense that it can provide a comprehensible understanding of how consumers behave towards imitated products. Consequently, this study will be considered valuable information in making social, political/legislative, and economic policies in Thailand. Furthermore, this study will also be of great assistance for making international trade policies by various international organization particularly World Trade Organization since its policies have great impact to almost all countries. Hypothesis of the Problem The hypothesis for this study is that there exist certain factors regarding consumer’s behavior towards imitated products in the marketplace of Thailand. Also, this study theorizes that the factors involved have linear relationship to consumer’s preferences of buying imitated products. Purpose of the Study The general objective of the study is to investigate consumers’ attitude towards purchasing brand imitation in Thailand and against a background of increasing prevalence of brand imitation. The particular objectives of the study are: 1. To find out what influence consumers’ attitude to purchase the imitated brand clothing. 2. To analyze the factors that influence customers to purchase the imitated brand clothing. 3. To examine the influence of social, personality, and demographic factors on consumers’ attitude towards purchasing the imitated brand clothing. LITERATURE REVIEW In regards to preceding researches, there is no research that has been accomplished to examine consumers’ toward purchasing imitated brand clothing in Thailand. Nevertheless, this study will concentrate on other factors or variables which have an effect on consumers’ attitude towards the imitated products’ brand names following to studying in many past researches. In the context of the dissertation, consumers’ attitude of imitated products’ brand name will be an important predictor of his/her intention to buy the imitated product. As well as what factors influence consumer evaluation of a purchasing imitated product becomes the focus of the investigation. The significant factors basing existing literature and pertinent to this the study of imitated product-buying behavior are the following: integrity in terms of lawfulness, attitudes towards the damaging effect of original brands, ethical perspective and consumer's perceived risk, and price-quality correlation. Integrity in terms of Lawfulness Consumer's respect for lawfulness might explain how much engagement he/she will have in buying pirated product (Matos et al., 2007). This was also reflected in “Attitudes toward counterfeit products: an ethical perspective” studied by Maldonado and Hume (2005) in which consumer consider the lawfulness (aside from ethics) in making assessment of imitated products. In addition, they found out that the further the consumer assess the imitated products, the greater the probability that he/she willingness to purchase the imitated products. Although buying pirated product is not a criminal act but still supporting or participating illegal activities, for example pirated product sellers, are also less respective in lawfulness (Prendergast et al., 2002).. Attitudes towards Damaging Effect of Original Brand For the primary purpose of protecting the owner of a particular brand, the World Trade Organization established the “Intellectual Property Rights” (Fink, 2004); however, with the existence of imitated products, the reputation of original brands is being tarnished. This has been reflected in the study of Prendergast et al. in which they found out that the poor quality of fakes, suspicion of piracy luxury brands and confusion between the genuine and fake products will lead to a deterioration of brand image. In this regard, Cambodia work out this problem by creating an “Intellectual Property Division or IPD” that implements the necessary law and most importantly the actions towards informing the consumer, which was also the recommendation of Kay Ka-Yuk Lai (1999, p. 179) after studying the Chinese’ perceception towards imitated products; hence, IPD was able to achieve significant positive changes in consumer’s behavior (Ministry of Commerce, n.d). Ethical Attitude and Consumer’s Perceived risk There are both higher and lower levels of ethical concerned towards purchasing imitated products’ brand name. Tan (2002) examined the influence of key factors: moral intensity and moral judgment on the ethical decision process of the consumer. Ethical decision-making has an influence on consumer attitudes towards purchasing imitated products’ brand name. In the study conducted by Kay Ka-Yuk Lai (1999, p. 179), for instance, regarding perception of Chinese living in China, Taiwan, and Hong Kong; he found out that in spite of the fact that most of the imitated products are coming from these countries; still, Chinese consumer relates the purchase of goods to be ethical and only manner of making imitated products is unethical to their perspective. Tan (2002) also describes consumer’s perceived risk as there will be higher probability that there will be something wrong with a product or service purchased for the simple fact that imitated products do not have warrantee. As it turned out, consumers are performance risk whether imitated products will function as perfectly as the original item. METHODOLOGY Subjects and Setting The respondents for this study are specifically Thai consumers who are currently buying imitation products. In this manner, the results that will be derived would directly suitable to the problem of the study. Since most of Thailand’s marketplace offers imitated products, the residence are mostly consumer of imitated products; hence, there will be no difficulty in getting respondents. In addition, the number of respondents must belong to at least three marketplaces in Thailand to ensure the accuracy of the results and also its inferences. Data Collection Technique In order to have a much better cross-section of the population and higher precisions of estimate, a stratified sampling method will be used. In random sampling, the universe is divided into five mutually exclusive sub universes commonly known as sub-strata and independent simple random samples are obtained from every stratum. A total of 100 respondents will be considered from five different age groups and will be asked to answer a simple questionnaire (see Appendix II) either by hand or face-to-face interview in Thailand. After the survey, all data will be tabulated and will be segregated in a manner that every answer pertaining to one particular factor is in one form for further analysis. (Primary Data) L L Stratified Sampling: N = ∑ Nn n=∑ nn h=1 h=1 In order to reinforce the analysis of this problem, further socio-economic data will be collected from Thailand’s National Statistics Office. Also relevant information to the study of Thai’s consumer’s behavior towards imitated products can be acquired from social welfare department and ordinances of local government with regards to factors in consumer behavior particularly the integrity in terms of Lawfulness. Furthermore, local current news which pertains to imitated products will be gathered throughout the period of the study. (Secondary Data) Statistical Analysis To understand the relationship of the aforementioned factors to consumer, each independent variable will be subjected to correlation analysis to determine the existing linear relationship in at least interval scale. The statistical analysis to be employed in this study is “Pearson Correlation Coefficient ρX, Y” with expected values “μX and μY” together with “standard deviations σX and σY “(as shown below): Where “E = expected value” operative while the “cov = covariance”. In view of the fact that the Pearson Correlation Coefficient can be stated in this formula: Hence, Where and are the “sample means of X and Y”; and accordingly sx and sy can be considered sample X and Y standard deviations whereas the sum is from i = 1 to n. The values of ρ and r will be interpreted in qualitative measurement or the strength of linear relationship (0.0-0.2 = very weak, 0.2-0.4= weak, 0.4-0.6= moderate, 0.6-0.8= strong, 0.8-1.0= very strong). For the purpose of establish the validity and reliability, the test of hypothesis with regards to ρ would be: tc = r√n-2 √1-r2 one tailed t test for correlation analysis given: Ho: ρ =; It lacks “linear relationship” among X and Y Vs. ρ ≠ 0; It has “linear relationship” among X and Y Or Ha: ρ > 0; It has a “positive linear relationship” among X and Y Or Ha: ρ < 0; It has a “negative linear relationship” among X and Y. The decision rule would be given α level of significance: Alternative Hypothesis Decision Rule Ha: ρ ≠ 0 (two-tailed test) Reject Ho if /t c / > t tab = t α/2(n-2); Fail to reject Ho, otherwise. Ha: ρ > 0 (one-tailed test) Reject Ho if /t c / > t tab = t α/2(n-2); Fail to reject Ho, otherwise. Ha: ρ < 0 (one-tailed test) Reject Ho if /t c / < t tab = t α/2(n-2); Fail to reject Ho, otherwise. Based on the above theoretical statistical analysis, the data can be run using any statistical software. (Ex. STATA) Limitation of the Study With the statistical method of correlation analysis that will be employed in this study, there will be no causal relationship since correlation analysis only measure the strength of linear between the factors and consumer’s behavior towards imitated products. Also, in the event that the correlation coefficient is equal to zero, it only signifies the lack or linear relationship and does not mark down the plausibility that other forms of relationship could exist BIBLIOGRAPHY Bernheim, L., Simon B., Douglas, B. (1996). “Veblen Effects in a Theory of Conspicuous Consumption”. Electronic Journal of The American Economic Review, Vol. 86, No. 3, [Online] Available from http://www.jstor.org/stable/2118201[Accessed [05 May, 2008] Co, C.Y., List, J.A., Qui, L. D. (2004). “Intellectual Property Rights, Environmental Regulations, and Foreign Direct Investment”. Electronic Journal article from The American Economic Review, Vol. 80, No. 2, [Online] Available from http://www.jstor.org/stable/3654736 [05May 2008 ] Maldonado C., Hume, E. (2005) "Attitudes toward counterfeit products: an ethical perspective." Journal of Legal, Ethical and Regulatory Issues. [Online] Available from http://goliath.ecnext.com/coms2/gi_0198-416010/Attitudes-toward-counterfeit-products-an.html#abstract [05May 2008 ] Fink, C. (2004). “Intellectual Property and the WTO”. [Online] Available from http://siteresources.worldbank.org/INTRANETTRADE/Resources/Internal-Training/287823-1116536061368/IPR-WTO_Fink.doc [05 May, 2008] Kay Ka-Yuk Lai, J. L. Z. (1999)."Brand imitation: Do the Chinese have different views?" p. 179 Asia Pacific Journal of Management. [Online] Available from http://www.springerlink.com/content/bt30p84n7cwrv7xv/ [05 May, 2008] Komin, S. (1990). "Psychology of the Thai People : Values and Behavioral Patterns." National Character In The Thai Nine Values Orientation. [Online] Available from www.fulbrightthai.org/data/culture/NATIONAL%20CHARACTER%20IN%20THE%20THAI%20NINE%20VALUES%20CLUSTER.doc[05 May, 2008] Ministry of Commerce. (2008). “Interectual Property News:Recent Developments of IPD in Cambodia”. [Online] Available from http://www.moc.gov.kh/depts/ipd/recent_development.htm [05 May, 2008] Schreiner, B. (2004) "Counterfeiting: problems and solutions." Parliamentary Assembly. Council of Europe. [Online] Available from http://assembly.coe.int/Documents/AdoptedText/ta04/EREC1673.htm [05 May, 2008] Sheban, J. (2007). “Thailand's counterfeit pipeline”. [Online] Available from http://www.dispatch.com/live/content/local_news/stories/2007/11/26/Fake_2.ART_ART_11-26-07_A1_8E8IA5H.html?sid=101 [Accessed 05 May 2008] Simon, S. (2008). “What is a correlation? (Pearson correlation)” [Online] Available from http://www.childrensmercy.org/stats/definitions/correlation.htm [Accessed 05 May 2008] Yingsoonthornwattana, K. (n.d.) “At Bangkok where is the capital in Thailand: Soi Lalaysab.” [Online] Available from http://www.at-bangkok.com/place_soi-lalaysab [Accessed14 April 2008] APPENDICES Appendix 1 Time Table of Research Activities (Gantt Chart) Task List April May June July August Sep W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W 1 Study Research Method and create the topic Project Dissertation Proposal Do the research and collection data Questionnaire Survey Questionnaire Design Survey Period Collect data form survey Analysis of the Data Dissertation Paper Chapter 1: Introduction Chapter 2: Literature Review Chapter 3: Methodology Chapter 4: Result Chapter 5: Conclusion Tentative First Draft Adjust and finalize paper Appendix 2 Questionnaire General Details 1. Gender □ Male □ Female 2. Age □ 18 – 22 □ 22 – 25 □ 25 – 30 □ 30 – 40 □ Older than 40 3. Type of occupation: □ Employed □ Unemployed □ Student □ Retired Please be specific main occupation, (e.g. ‘student at Birmingham City university’, secretary and teacher, etc) ………………………………………………………………………………... 4. Personal Income (per month/Thai BATH) □ 5,000 - 10,000 □ 10,000 - £ 15,000 □ 15,000 - 20,000 □ 20,000 - 30,000 □ 30,000 – 35,000 □35,000 – 40,000 □40,000 – 45,000 □ 45,000 – 50,000 □ 50,000 + Awareness of Imitated Clothing Accessories 5. Are you aware that imitated brand clothing exist of the following YES or NO HANDBAG CLOTHES WATCHES 6. Would you be able to tell the difference between an original brand name and an imitated brand name? YES or NO HANDBAG CLOTHES WATCHES 7. What is influence consumers’ attitude toward the imitated five brand names? (Burberry, Gucci, Louis Vuitton, Prada, D&G ) More Negative Unchanged More Positive Purchasing of imitated clothing accessories 8. Have you ever bought any imitated clothing of the following YES or NO HANDBAG CLOTHES WATCHES 9. What kind of imitated clothing accessories that you would like to purchase the most? 10. How many imitated clothing accessories did you buy within the last 5 years? 11. What is your favorite imitated clothing brand name? 12. Where did you buy the imitated clothing brand names? Attitude and Purchasing Behaviour 13. What factors contribute your attitude towards the imitated clothing brand names purchase? (1 for least important; 5 for most important) - Low Price -Friends/Family Recommendation - Self-Satisfaction -Design is similar as original brands - Fascinating with original brands - Fashionable Read More