A Study to Show the Acceptance of Brand Imitation According to the Opinions of Multimedia University International Students In Malaysia

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1 A Study to Show the Acceptance of Brand Imitation According to the Opinions of Multimedia University International Students In Malaysia Hamed M.H. Mujahed MBA Finance & Banking Abstract Brand imitation is viewed as an infringement of the imitated original brand. (Zaichkowsky, 1995). Although brand managers and researchers have looked into ways to fight against imitation, these are still prevalent in today s market. Researchers have found that one of the major reasons for the growing volume of imitations has been consumer demand. Thus, rather than studying ways to reduce imitations, it is first important for brand managers and researchers to understand why consumers would knowingly but imitations. The major issue is to understand how consumers evaluate brand imitations. Imitations consumption has recently attracted significant attention. This study examines factors affecting consumer purchase intention for imitation products. as a research object. The results indicated that subjective norms exert the greatest impact on customer intention to purchase imitations, while additional factor of perceived financial control negatively affects intentions. This investigation can help marketers and policy makers understand the key influences on consumer behaviour towards imitations and thus to create effective marketing campaigns and anti-piracy strategies. KEYWORDS: Consumer behavioral intention, Imitation products, Influential factor, Brand protection, Decision factor. 1. INTRODUCTION Factors that influencing Multimedia University (MMU) international students on accepting brand imitation is the topic for this research. In this research, a brief definition and introduction for brand imitation are highlighted. Beside draw out the justification of the research Imitation products have been found to be a serious problem around the world indecent days. Counterfeiting is such a problem that causes havoc not only in economic activities but also affect social life as well. Being deceptive by buying counterfeit has some psychological effect, too. However, in short, the consequences of the counterfeit product, no matter consumers intend to buy or not, have some hostile effect on consumers welfare as a whole. Although globalization has resulted in the lowering of international barriers, it has also created new opportunities for illegal trade. This study offers insights into non-deceptive counterfeiting by focusing on consumers in an Islamic country-namely, Malaysia. Despite the efforts on the part of international trade organizations to deter counterfeiting practices, product imitation represents a growing problem for legitimate producers of global branded products ranging from pharmaceuticals to computer software and fashion merchandise. Within this paper, we attempt to take a fresh look at the demand side of imitation product. Therefore, this research is measures consumer s (focusing on international school student in University Multimedia only) perceptions of counterfeit branded products (CBP) as a product. Imitation products are those bearing a trademark that is identical to, or indistinguishable from, a trademark registered to another party and that infringe upon the rights of the holder of the trademark. Imitations are reproductions that appear identical to legitimate products in appearance, including packaging, trademarks, and labelling. This study used the following definition of a counterfeit product: products bearing a trademark that is identical to, or indistinguishable from, a trademark registered to another party and infringes on the rights of the holder of the trademark. IRJBM ( ) Volume No VII November Issue 11 Page 58

2 Imitations product are also defined as the production of goods that are identically packaged, with the trademarks and labelling included so as to seeming to a consumer to be the genuine article. Western researchers definitions of counterfeit products by western researchers are generally associated with the infringement of trademarks, copyright, brand, labelling, and features all of which concern the appearance of the product. Counterfeiting appears in different forms, primarily deceptive, non-deceptive and blurs counterfeiting. With deceptive or blur counterfeiting, the consumer is either not aware or unsure of the fact that he/she is purchasing a counterfeit rather than the original product and cannot be held accountable for this behaviour. Thus, the current study limits its scope to non-deceptive counterfeiting, where consumers intentionally procure counterfeits. The choice of the non-deceptive counterfeit context is considered as important, as only under this circumstance might consumers perceptions of counterfeits reflect their demand for these products. The limited number of studies exploring which searched for answers to why consumers knowingly purchase counterfeits focused primarily on variables such as perceived price sensitivity, goodness of imitation, presence of original brand, and store image. 2. RESEARCH METHOD 2.1 Theoretical Framework Theoretical framework is a conceptual model of how one theorises or makes logical sense of the relationship among the several factors that have been identified as important to the problem (Sekaran,2003). The author added that the theoretical framework integrate one s logical beliefs with published research which is- pivotal in developing a scientific basis for investigating the research. Macnee & McCabe (2008) have given a clearer definition by discriminating theoretical framework as an underlying structure that describes how abstract aspects of the research problem interrelate based on developed theories. Conceptual framework is also regarded as an underlying structure of a research but it comprises concepts and the relationship among them. The theoretical framework is an important component of every research project as it serves as a guide to review the literature. After the researcher has reviewed some part of the literature, a theoretical framework must be developed to further guide the researcher in organizing the rest of the literature he reads. Kumar(2005) stated that until you go through the literature, you cannot develop a theoretical framework and until you develop your theoretical framework, you cannot review your literature The purpose of the theoretical framework is to identify the relationship among variables, thus it is important to understand the meaning and types of variables (Sekaran,2003). There are two kinds of variable involved in this research namely dependent variable and independent variable. Sekaran (2003) defined dependent variable as the variable of primary interest of the researcher while independent variable is defined as the variable that influences the dependent variable. In the following figure 1 shows the theoretical framework for this research. It consists of one dependent variable and four independent variable. The dependent variable is acceptance of imitation while the independent variable are namely price sensitivity, goodness of imitation, presence of original brand, and store image. IRJBM ( ) Volume No VII November Issue 11 Page 59

3 Independent variable Dependent variable Price sensitivity Goodness of imitation Acceptance of imitation Presence of original brand Store image Figure 1: Theoretical Framework of variable influencing Multimedia University International students on accepting brand imitation. Source: Developed for this study 2.2 Hypotheses Hypothesis development is the process of formulating hypotheses or testable statements to the relationship among variables which were establish in the theoretical framework scientifically through appropriate statistical analysis or through negative case analysis in qualitative research (Sekaran,2003) Sekaran (2003) defined hypothesis as a logically conjectures relationship between two or more variable expressed in a form of a testable statement. The relationship between two or more variables expressed in a form of a testable statement. The hypothesizing style chosen by the researcher is directional. Directional hypothesis is a hypothesis that states the direction of the expected outcome in which the researcher feels confident enough to suggest which group would outperform the other groups) (Lodico et al, 2006). This section displays the hypotheses developed from the variables in this study. There are four independent variable and one dependent variable. The independent variables are the factors correlated to innovation through internet or web 2.0 whiles the dependent variable is the web 2.0. Hypotheses explain the relationship between independent variables and dependent variable. RQ1: To determine how factors of acceptance of imitation influencing Multimedia University international students on accepting brand imitation? H1 : Price sensitivity positively influence student acceptance of brand imitation. H2 : Student acceptance of brand imitation will be higher if the brand has more similar characteristic imbue to it. H3 : The presence of original brand will increase student acceptance of imitation product. H4: The better the store image is increasing student acceptance of brand imitations. RQ2 : What is the most significant factor influencing MMU international student s acceptance on brand imitations? IRJBM ( ) Volume No VII November Issue 11 Page 60

4 RQ3: What is the less significant factor that influencing MMU international student s acceptance on brand imitations? Population is defined as the complete set of units of analysis that are under investigation (Sekaran, 2003). In this study, the population is international students from Multimedia University (MMU). However, it is not possible to survey the whole population due to the time and cost constrains, therefore, a sample is chosen. Sample is the subset of units chosen for study from population (Sekaran, 2003). Sample must reflect an approximation of the characteristics in the population that supposed to represent (Sekaran, 2003). Therefore, a sampling procedure is needed to select a sufficient number of elements from the population. 2.3 Data Collection Primary Data Sekaran (2003) defined primary data as in information obtained firsthand by the researcher on the variables of interest for the specific purpose of the study The sources of primary data would be from questionnaire. [Appendix A] 3. Research Analysis The purpose of this research is to assess the implementation of factors that influencing MMU international students on accepting brand imitation, and to identify ways in which this factors can be effect student life, where the research population mainly focuses on men and women who are studying in the Multimedia University. The specific objectives of the research are stated as following: 1. To determine that price sensitivity is become one of the factors on student acceptance of brand imitation. 2. To determine that goodness of imitation is a part of student acceptance of brand imitation. 3. To determine the important of presence of original brand is a part of student acceptance of brand imitation. 4. To determine store image as the factor of student acceptance of brand imitation. According to the analysis, it can be concluded that not all of the four independent variables, the price sensitive, goodness of imitation, presence of original brand and the store image are deemed to be important and need to be included in the study of acceptance of brand imitation for Multimedia University international students. As the result from the test that has been conducted, the presence of original brand and store image determinants can be taken into acceptance of brand imitation, and the price sensitive and goodness of imitation products determinants to be taken into rejected of brand imitation. 3.1 Discussion on the Hypotheses The research hypotheses will be discussed in this part. There are four independent variable and one dependent variable. Hypotheses explain the relationship between independent variables and dependent variable and to determine how factors of acceptance of imitation influencing MMU international students on accepting brand imitation as following; H1 : Price sensitivity positively influence student acceptance of brand imitation. H2 : Student acceptance of brand imitation will be higher if the brand has more similar characteristic imbue to it. H3 : The presence of original brand will increase student acceptance of imitation product. H4: The better the store image is increasing student acceptance of brand imitations. IRJBM ( ) Volume No VII November Issue 11 Page 61

5 3.1.1Price Sensitivity In this study shown that price sensitivity don t not have a good relationship on acceptance of brand imitation on the international students, because the hypothesis and the results for price sensitivity were shown a weak relationship between the price sensitive and the acceptance of brand imitation. MMU international students are not sensitive to price difference between original and imitation brands because the price differences at both brand products. Price sensitivity is negatively affected student acceptance of brand imitation Goodness of Imitation In this study goodness of imitation is defined as a product that has a similarity with the original brand. Based on the research results, goodness of imitation has a weak relationship to student acceptance of brand imitation Presence of Original Brand Presence of original brand is one of the strongest factors that have highly influence on consumer acceptance of brand imitation, especially when original brand was present it will make brand imitation favourably accepted. Based on the results the presence of original brand is one of the factors that have the highest positively affecting student acceptance of brand imitation. Presence of original brand can increase the purchase of the imitation brands among the international student and assumption to compare it with an imitation brand. The similarities between original brand and imitations brand will transfer the goodwill of the original brand to the imitations brand. With the comparison between original brand and imitation brand it help student to image the goodness of imitation brand. Presence of original brand has the strongest positively to affect student to accept the brand imitation Store image Store image is one of the strongest factors that get high positive influence the international student acceptance of brand imitation. Store image played an important factor in student preference of brand imitation. The good image store will transfer the perceived risk of brand imitations. The finding from this study implies that student may think that brand imitations sold in the good image store are good and reliable products compare the imitations brand that sold in low image store. This finding also supported with the SPSS result for this study. As shown in the results, store image has a strong relationship for international student on acceptance the brand imitation. 4. Conclusion In conclusion, this research examined a set of factors that influence MMU international student s acceptance of brand imitations. The result and findings of this research provide an answer to three research questions: - What are the factors that influence MMU student on accepting brand imitation? - What is the most significant factor influencing MMU student acceptance on brand imitations? - What is the less significant factor that influencing MMU student acceptance on brand imitations? This research find that the factors that influence student acceptance of brand imitations is the presence of the original brand and the store image also answered the most significant factor and less significant factor that influence MMU international student acceptance of brand imitations. This research also recommend for future research to put more factors to analyze student behaviour towards the acceptance of brand imitation. This study is using a direct relationship between dependent and independent variable to describe the influence factors that impact the student s decision making to purchase imitation product. IRJBM ( ) Volume No VII November Issue 11 Page 62

6 5. References [1] Huang, J.-H., Lee, B. C. Y., & Ho, S. H. (2004). Consumer attitude toward gray market goods. International Marketing Review, 21(6). [2] Martin, I. M., & Stewart, D. W. (2001). The differential impact of goal congruency on attitudes, intentions, and the transfer of brand equity. Journal of Marketing Research, 38 November(4), [3] Munnukka, F. (2005). Dynamics of price sensitivity among mobile service customers. Journal of product & brand management, 14(1), [4] Prendergast, G., Chuen, L.H., & Phau, I. (2002). Understanding consumer demand for nondeceptive pirated brands. Marketing intelligence & planning, 20(7), [5] Yang, H. J. (2002). Counterfeit understanding. Journal of Hebei University of Economics and Trade, pp (in Chinese) [6] Wilke, R., & Zaichkowsky, J. L. (1999). Brand imitation and its effects on innovation, competition, and brand equity. Business Horizons, November-December (9-18). [7] Link, F. (1997). Diffusion dynamics and the pricing of innovations. Unpublished PhD Thesis, Lund University, Lund. [8] Lai, K. K.-Y., & Zaichkowsky, J. L. (1999). Brand imitation: Do the Chinese have different view? Asia Pacific Journal of Management, 16, IRJBM ( ) Volume No VII November Issue 11 Page 63