Consumer Behavior and Pirated Products: why people buy this kind of stuff?
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1 Consumer Behavior and Pirated Products: why people buy this kind of stuff? 1.INTRODUCTION The studies on behavior of the consumer have been interest of studious and marketing s professionals, approximately since the decade of 1950, because to understand the behavior of the consumer is one of the abilities more demanded for the academics and responsible professionals of marketing for working the factors that influence the demand for one determined product (Ang et al, 2001); therefore Kotler (1972) already considered that the concept of Marketing is centered in the social transactions and that the product of these interchanges if constitutes of values - economic, social, symbolic and moral; why the main object of study of the marketing science is appraised as exchanges (Bagozzi, 1975); in accordance with this vision, marketing is planned and implemented to facilitate the exchange of products for money (Gronröos, 2000). However, in Brazil, we can say that its conjuncture meets in matureness phase (Vieira, 2003). The behavior of the consumer encloses an ample area: it is the study of the involved processes when individuals or groups select, they buy, they use or they discard products, services ideas or experiences to satisfy necessities and desires (Solomon, 2008). For Blackwell, Miniard and Engel (2005), the behavior of the consumer is defined as activity with that the people if occupy when gets, they consume and they make use of products and service. Traditionally thinking as the study of why the people they buy. Although the field of the study of the behavior consumer s behavior including, the theoretical reference used in search to rescue the studies on the types of necessity of the consumer, the process of purchase decision and the segmentation of the market. With the technological advance occurrence in the last times, had appeared some consequences generated from this process of evolution, the sprouting of the piracy is one of the occurrences, facts that reflect effect for all the society. The Piracy of products generates economic and social problem, it harms the economy of the countries. With the great advance of the technology, the demand for pirated products The area of the consumer s behavior is very including and it awakes the interest of diverse professionals in the marketing area, and is one of them disciplines investigated academics of everybody more (Vieira, 2002). Although it is a vast field, this study it has as purpose to analyze the behavior of the consumer in relation to the consumption of pirated products. It was observed that in literature does not present many information on this subject specifies, therefore becomes excellent an exploration of this subject. The piracy is a social phenomenon and economic that occurs in Brazil and the world, being considered by the INTERPOL as the crime of the century and its practices as most lucrative of the world, working time that operates to the edge of the law, not happening on prices, tributes, incumbencies, costs of research and copyrights, that is, practically, only if of the incidence profits. The competitive environment in which the companies are inserted, where the changes happen continuously, is of utmost importance observes the factors that influence these modifications. Can be observed an increasing in the number of companies that are closing its doors caused by the piracy, and it s very important to the discover which reasons take the consumers to buy these, therefore thus, the companies will be able to identify the correct things to do to change this situation. This reality it isn t different in Caruaru city, therefore it is observed that the number of pirated products comes increasing each day, in result also of that in the city it meets Fair of Caruaru, incorporeal patrimony of Brazil, however the generated jobs are informal and the products offered in its majority are counterfeited.
2 The consequences of the piracy are for all the Brazilian society, because the musical producers lose, the singers, the governments and also lose all the population, why some jobs leave of being generated deal to feed it informal. The monetary collections that the government doesn t receive are estimated in a lot of ciphers of millions, ant this money probably would be invested in education, health, culture and other more. 2. PRESENTATION AND ANALYSES OF RESULTS In the data collection were interviewed 150 people who had bought pirated products, and 40.7% of the sample were male and 59.3% female. The sample was concentrated in the age group from 18 to 25 years (86.0%), from 26 to 35 years (10.7%) from 36 and 45 (2.7%) and (0.7 %). Regarding marital status showed that 89.0% of the sample were single, 8.7% were married and 2.0% other. As the educational level of the sample, 5.3% had completed high school, 92.0% have incomplete higher education, 1.3% had completed higher education and 1.3% had postgraduate education. With regard to family income was found that 5.3% reported having a family income less than minimum wage, 33.3% 2-3 salaries, 29.3% 4-5 salaries, 21.3% of the 5 10 wages and 10.7% more than 10 minimum wages. The results presented in Table 1 below indicates the product's characteristics, variety and quality, access to places for this type of product, and also refers to what are the most purchased pirate products. Table 1 - Refer to product characteristics, access and which product is best purchased. Variable Average S.D* 1.I buy pirated products because I need to usufruct the product. 3,24 1, I buy pirated products because they have a good quality 1,75 1, I buy pirated products because I have the free access to this kind of product in some places. 3,83 1, I buy pirated products because they come to market first than the originals. 3,05 1, The pirated products I always buy are CD and DVD. 4,08 1, I buy pirated products because in a CD or DVD has several attractions. Ex more than a Singer 2,89 1,431 *S.D. = standard deviation Although Solomon (2008), Schiffman and Kanuk (1997), and Samara and Morsch (2005) argue that consumers do consider some attributes in products such as the quality and quantity, product characteristics, the results showed that one in variable 2 large proportion of respondents did not attribute to a good quality pirated products, the lack of quality of these products is that the concern of sellers is offering a cheap product and not a quality product, that the variety on the purchase of pirated products not gets to be something essential (according to the average of the variable 6), this lack of consumer concern with these attributes is justified by the monetary value of pirated products, and the fact that essences are not considered by consumers. Respondents mostly said that pirated products are most purchased CDs and DVDs, variable results found in 4 and can be seen a situation of low involvement because it is a cheap product and the fact that the originals are much more expensive does not occur, so a detailed search for information about the product and can be seen in the mean value in variable 10 (see Table 3). In the studies of Huang, Lee and Ho (2004), it was observed that in the purchase of a pirated product, the compensatory model passes for the place of the purchase, being confirmed for the value of the average found in 0 variable 3, had the easiness with that if it finds these products, therefore the consumers look comfort in the hour of the purchase and these products are offered in diverse places. As Solomon when a person detects a necessity occurs the desire to satisfy it, affirmed on the part of the respondents this necessity can more quickly be satisfied for the pirated products because they arrive first that the originals to the market, even so the average also shows certain degree of indifference in
3 relation to the necessity to usufruct of the product pirate for the fact of not being an essential product (average found in 0 variable 1). The results presented in table 2 below in show the referring 0 variable to them to the familiar income, to the price and the index of purchase of the pirated products. In the studies of Huang, Lee and Ho (2004), it was observed that in the purchase of a pirated product, the compensatory model passes for the place of the purchase, being confirmed for the value of the average found in 0 variable 3, had the easiness with that if it finds these products, therefore the consumers look comfort in the hour of the purchase and these products are offered in diverse places. As Solomon when a person detects a necessity occurs the desire to satisfy it, affirmed on the part of the respondents this necessity can more quickly be satisfied for the pirated products because they arrive first that the originals to the market, even so the average also shows certain degree of indifference in relation to the necessity to usufruct of the product pirate for the fact of not being an essential product (average found in 0 variable 1). The results presented in table 2 below in show the referring 0 variable to them to the familiar income, to the price and the index of purchase of the pirated products. Table 2 - Concerning the price and purchase s index Variable Average S.D* 7. I buy pirated products because I have a small family income. 2,48 1, I buy pirated products at least once a week. 1,92 1, The main reason to buy pirated products is the price. 4,20 1, 248 *S.D. = standard deviation Although it is believed that the biggest consumers of pirated products are those with less purchasing power, the rate reported in the variable 7 is not enough to prove this result in a consistent way, being identified that family income does not interfere in the purchase of pirated products. The notion of the consumer says he is influenced by economic prospects, and are strongly corroborated by the high average of variable 9. The index of purchasing pirated products was not observed very sharp, although researches released recently show that the market of pirated products has increased sharply. The results presented in Table 3 below refer to the search for information about the product, analyses of the cons of the product and comparison with the original product. Table 3 - Refer to product information and comparison with the original Variable Average S.D* 10. Before purchasing any product pirate seeking information about the product. 2,36 1, Before purchasing any product piracy, I analyze the cons of the product to make a decision 12. Before purchasing any product pirate compare with the original product and then make the purchase. *S.D. = standard deviation 2,45 1, 374 2,66 1,528 Although the search for information is considered by Thaler (1985) and Schmitt et al (1988) as the main stage in the consumer's decision, this step was discarded by consumers of pirated products as we are shown the average variable 10, mainly by low risk involved with the expenditure in its acquisition of the low average variable 12 which compares with the original pirated products is strongly linked to the fact that the consumer believes that the economic factor is very important, so stop buying the original products by be more expensive.
4 The low average in 11 also confirms that low consumer involvement with this type of purchase and the monetary value of the product entails the lack of evaluation of cons found in the product. For a better understanding of the factors that are associated with the price, was made a series of analyses of correlation. Table 4 shows correlations for the characteristic of the product, access to places of the product, the most purchased items and other attractions. Table 4 The ANOVA from the variable household income concerning to the characteristics of the products, the easy access, the price, and the kind of the product. Variable From 2 to 3 (n=50) From 4 to 5 (n=44) From 5 to 10 (n=32) Average S.D Average S.D Average S.D The pirated product has a 1,60 0,904 1,89 1,166 1,69 0,965 good quality Easy Access to the product 3,90 1,266 3,59 1,335 4,00 1,107 pirate in diverse places The most purchased pirated 4,26 1,242 3,80 1,651 4,06 1,268 products are the CD and DVD The price is the main reason 4,02 1,348 4,20 1,340 4,50 0,803 of the purchase The purchase at least once a week 1,96 1,309 1,95 1,430 1,75 1,270 The results of the ANOVA indicate a significant difference between the averages for each category in what it says respect to The pirated product has a good quality (F=1,536, Sig=0,195), Easy Access to the product pirate in diverse places (F=0,812, Sig=0,520), The most purchased pirated products are the CD and DVD (F=0,795, Sig=0,430), The price is the main reason of the purchase (F=0,806, Sig=0,523), not observed significant difference in the category the purchase at least once in the week (F=0,169, Sig=0,954). Thus the subgroup that most emphasizes that the main reason for buying pirated products is the price is the group that presents high purchasing power, though they have income to buying original products they prefer the pirated product because the monetary value of the product. But the subgroup with minor purchasing power affirms that most of the products bought pirates is CDs and DVDs. All the subgroups had not classified the products pirates as products of good quality, but the frequently purchase is justified by the low monetary value of the product. The subgroups also classified as a major attraction of pirated products the availability of these products in various locations, the easy access that makes the shopping easier and convenient. 3. CONCLUSION Piracy in Brazil has grown considerably in recent years, causing catastrophic effects in the social, economic and cultural, being seemingly unsolvable problem, because it generates a stream of consumer products, and that just keeps growing. For these reasons the present study aimed to describe what are the main reasons that lead consumers to buy pirated products. Considering the data collected and its analysis from the respondents we can conclude that are several factors related to their purchase behaviors of pirated products, there is no single factor, but the item price prevailed over the others, being confirmed by some theories, Cobra (1997) states that the consumer is influenced by economic prospects, its cheaper cost is a considerable incentive to buy pirated products (Casola, Kemp and Mackenzie, 2009). Although the price be the main reason for purchasing, there are many other reasons to buy these products, the easy access of these products in several places, the speed which these
5 products reach the market, even before the original and the fact that CD and DVD pirated products are the most purchased and the respondents said that this products have many attractions in just a product, like more than just one singer or movie in each. In accordance to the respondents the price justifies the purchase, even if the product has not a good quality and that consumers do not seek information about the product and do not make comparisons with the originals, because the cost benefit becomes is great. With the identification of the main reasons that make consumers to buy pirated products is extremely important, and the companies need to rethink their policies and try to adequate, considering those reasons before going to the market and try to decrease the consumption of pirated products. It is necessary to adopt some measures, so, the music industry has to seek for the lowest cost to produce, with alternative sources of production and can sell their products at a cheaper price to the working class, one of the largest class of consumers in this kind of products and companies have to seek partnerships with government agencies, not just Public Safety, plus other bodies such as culture, developing an awareness of the illegality of pirated products and showing the harm they cause to the economic and social development of the nation. To highlight the limitations found in this study is very relevant because it can contribute to future researches to be conducted with the subject under study. In developing of this work were found some difficulties that were not limiting on the formulation of this study, but were successfully overcome obstacles, those obstacles, were about the application of the questionnaire because were detected some resistance on the respondents to answer the questionnaire because it was a questionnaire relating to the consumption of pirated products, however this process has served to learn and grow academically and personally. Another limitation was the fact that there is not many relevant references in the academic field relevant about the subject in study, but the study was not harmed because were adopted an exploratory research to obtain more information about the subject. But the results of this study was not affected by these factors mentioned above, these limitations do not hindered the development of this research and the results were collected within expectations provided and the challenges have been overcome. The purchase of pirated products is growing every day in Brazil, and the result of this research showed the main reasons that take the consumers to buy pirated products. Although this study has its relevance is extremely important that academics and professionals interested in deepening in this subject, to work with a clarification of the evils that buying these products can cause to society and they can show the benefits of acquiring original products. This research had most of its sample with people that have these characteristics: single, who were aged from 18 to 25 years old, who are attending college, because it was not possible to generalize to other subgroups in the survey. This research used the method of exploratory and descriptive in which aims to provide a broader view of the facts, and also approximate, describing characteristics of the study population or the establishment of associations between the variables. Therefore it is necessary to make a search like the explanation mode which has as a central concern to identify the factors that determine or contribute to the occurrence of phenomena, and a more detailed search of the subject under study. It is also necessary to make a search with a more diverse audience to obtain results more general.
6 References ANG, S. W.; CHENG, P. S.; LIM, E. A. C. & TAMBYAH, S. K. Spot the difference: consumer responses towards counterfeits. Journal of Consumer Marketing, v. 18, n. 3, p , BAGOZZI, R. Marketing as exchange. Journal of Marketing, New York, Iss. 4, v. 39, p , oct CASOLA, L.; KEMP, S. & MACKENZIE, Al. Consumer decisions in the black market for stolen or counterfeit goods. Journal of Economic Psychology, v. 30, Issue 2, p , COBRA, M. Basic Marketing: an Brazilian approach. 4. ed., São Paulo: Atlas HUANG, J-H.; LEE, B. C. Y. & HO, S. H. Consumer attitude toward gray market goods. International Marketing Review, v. 21, n. 6, p , KOTLER, P. A generic concept of Marketing. Journal of Marketing. Chicago: AMA, v.36, n.2, spring, 1972 p SCHMITT, B. H.; FRANCE, L & LAURETTE, D-R. Sex Typing and Consumer Behavior: A Test of Gender Schema Theory. Journal of Consumer Research, 15 (June): , SOLOMON, M. R. Consumer behavior: buying, having and being. 7 Ed. Porto Alegre: Bookman, THALER, R. Mental Accounting and Consumer Choice. Marketing Science, v. 4, no 3, p , VIEIRA, V. A. Consumer behavior. RAEeletrônica, v. 2, n. 1, june, 2003.
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