Skip to main content
SpringerLink
Log in

Counterfeit Luxuries: Does Moral Reasoning Strategy Influence Consumers’ Pursuit of Counterfeits?

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Morality, in the context of luxury counterfeit goods, has been widely discussed in existing literature as having a strong association with decreased purchase intention. However, drawing on moral disengagement theory, we argue that individuals are motivated to justify their immoral behaviors through guilt avoidance, thus increasing counterfeit purchase intention. This research demonstrates that consumers’ desire to purchase counterfeit luxuries hinges on (one of) two types of moral reasoning strategies: moral rationalization and moral decoupling. The empirical results show that each strategy increases purchase intention, but respectively through moral judgment and perceived benefit. Implications for researchers and managers are discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

Abbreviations

EFA:

Exploratory factor analysis

STATA:

(software)

CFA:

Confirmatory factor analysis

AVE:

Average variance extracted

CMV:

Common method variance

References

  • Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411–423.

    Article  Google Scholar 

  • Aquino, K., & Reed, A., II. (2002). The self-importance of moral identity. Journal of Personality and Social Psychology, 83(6), 1423–1440.

    Article  Google Scholar 

  • Aquino, K., Reed, A., II, Thau, S., & Freeman, D. (2007). A grotesque and dark beauty: How moral identity and mechanisms of moral disengagement influence cognitive and emotional reactions to war. Journal of Experimental Social Psychology, 43(3), 385–392.

    Article  Google Scholar 

  • Bandura, A. (1991). Social cognitive theory of moral thought and action. Handbook of Moral Behavior and Development, 1, 45–103.

    Google Scholar 

  • Bandura, A. (1999). Moral disengagement in the perpetration of inhumanities. Perspective of Social Psychological Review, 3(3), 193–209.

    Article  Google Scholar 

  • Bandura, A., Barbaranelli, C., Caprara, G. V., & Pastorelli, C. (1996). Mechanisms of moral disengagement in the exercise of moral agency. Journal of Personality and Social Psychology, 71(2), 364–374.

    Article  Google Scholar 

  • Bargh, J. A. (1994). The four horsemen of automaticity: Intention, awareness, efficiency, and control as separate issues. In R. S. Wyer Jr. & T. K. Srull (Eds.), Handbook of social cognition (2nd ed., pp. 1–40). Hillsdale, NJ: Erlbaum.

    Google Scholar 

  • Barnett, T., & Valentine, S. (2004). Issue contingencies and marketers’ recognition of ethical issues, ethical judgments and behavioral intentions. Journal of Business Research, 57(4), 338–346.

    Article  Google Scholar 

  • Baumeister, R. F., & Newman, L. S. (1994). Self-regulation of cognitive inference and decision processes. Personality and Social Psychology Bulletin, 20(1), 3–19.

    Article  Google Scholar 

  • Bhattacharjee, A., Berman, J. Z., & Reed, A., II. (2013). Tip of the hat, wag of the finger: How moral decoupling enables consumers to admire and admonish. Journal of Consumer Research, 39(6), 1167–1184.

    Article  Google Scholar 

  • Bian, X., & Moutinho, L. (2009). An investigation of determinants of counterfeit purchase consideration. Journal of Business Research, 62(3), 368–378.

    Article  Google Scholar 

  • Brass, D. J., Butterfield, K. D., & Skaggs, B. C. (1998). Relationships and unethical behavior: A social network perspective. Academy of Management Review, 23(1), 14–31.

    Article  Google Scholar 

  • Chakraborty, G., Allred, A., Sukhdial, A. S., & Bristol, T. (1997). Use of negative cues to reduce demand for counterfeit products. Advances in Consumer Research, 24, 345–349.

    Google Scholar 

  • Chang, S.-J., van Witteloostuijn, A., & Eden, L. (2010). From the editors: Common method variance in international business research. Journal of International Business Studies, 41(2), 178–184.

    Article  Google Scholar 

  • Chaudhry, P. E., & Walsh, M. G. (1996). An assessment of the impact of counterfeiting in international markets: The piracy paradox persists. The Columbia Journal of World Business, 31(3), 34–48.

    Article  Google Scholar 

  • Chen, J., Teng, L. F., Liu, S. X., & Zhu, H. H. (2015). Anticipating regret and consumers preferences for counterfeit luxury products. Journal of Business Research, 68(3), 507–515.

    Article  Google Scholar 

  • Chen, J., Teng, L., Yu, Y., & Yu, X. (2016). The effect of online information sources on purchase intentions between consumers with high and low susceptibility to informational influence. Journal of Business Research, 69(2), 467–475.

    Article  Google Scholar 

  • Cheung, W. L., & Prendergast, G. (2006). Buyers’ perceptions of pirated products in China. Marketing Intelligence & Planning, 24(5), 446–462.

    Article  Google Scholar 

  • Cordell, V. V., Wongtada, N., & Kieschnick, R. L., Jr. (1996). Counterfeit purchase intentions: Role of lawfulness attitudes and product traits as determinants. Journal of Business Research, 35(1), 41–53.

    Article  Google Scholar 

  • Cronan, T. P., & Al-Rafee, S. (2007). Factors that influence the intention to pirate software and media. Journal of Business Ethics, 78(4), 527–545.

    Article  Google Scholar 

  • Ditto, P. H., Pizarro, D. A., & Tannenbaum, D. (2009). Motivated moral reasoning. Psychology of Learning and Motivation, 50, 307–338.

    Article  Google Scholar 

  • Eisend, M., & Schuchert-Güler, P. (2006). Explaining counterfeit purchases: A review and preview. Academy of Marketing Science Review, 12, 1–26.

    Google Scholar 

  • Elkin, R. A., & Leippe, M. R. (1986). Physiological arousal, dissonance, and attitude change: Evidence for a dissonance-arousal link and a “Don’t remind me” effect. Journal of Personality and Social Psychology, 51(1), 55–65.

    Article  Google Scholar 

  • Elliot, A. J., & Devine, P. G. (1994). On the motivational nature of cognitive dissonance: Dissonance as psychological discomfort. Journal of Personality and Social Psychology, 67(3), 382–394.

    Article  Google Scholar 

  • Fernandes, C. (2013). Analysis of counterfeit fashion purchase behavior in UAE. Journal of Fashion Marketing and Management, 17(1), 85–97.

    Article  Google Scholar 

  • Festinger, L. (1962). A theory of cognitive dissonance (3rd ed.). Redwood, CA: Stanford University Press.

    Google Scholar 

  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.

    Article  Google Scholar 

  • Furnham, A., & Valgeirsson, H. (2007). The effect of life values and materialism on buying counterfeit products. Journal of Socio-Economics, 36(5), 677–685.

    Article  Google Scholar 

  • Galotti, K. M. (1989). Approaches to studying formal and everyday reasoning. Psychological Bulletin, 105(3), 331–351.

    Article  Google Scholar 

  • Gentry, J. W., Putrevu, S., Shultz, C., & Commuri, S. (2001). How now Ralph Lauren? The separation of brand and product in a counterfeit culture. Advances in Consumer Research, 28, 258–265.

    Google Scholar 

  • Gerbing, D. W., & Anderson, J. C. (1988). An updated paradigm for scale development incorporating unidimensionality and its assessment. Journal of Marketing Research, 25(2), 186–192.

    Article  Google Scholar 

  • Haidt, J. (2001). The emotional dog and its rational tail: A social intuitionist approach to moral judgment. Psychological Review, 108(4), 814–834.

    Article  Google Scholar 

  • Hanzaee, K. H., & Jalalian, S. (2012). Impact of non-price factors on purchase intention counterfeits. Research Journal of Applied Sciences, Engineering and Technology, 4(18), 3313–3322.

    Google Scholar 

  • Hatcher, L. (1994). A step-by-step approach to using the SAS system for factor analysis and structural equation modeling. Cary, NC: SAS Institute Press.

    Google Scholar 

  • Hennings, N., Wiedmann, K. P., & Jung, J. (2015). When the original is beyond reach consumer perception and demand for counterfeit luxury goods in Germany and South Korea. Luxury Research, 1(11), 58–75.

    Article  Google Scholar 

  • Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1–55.

    Article  Google Scholar 

  • Jones, T. M. (1991). Ethical decision making by individuals in organizations: An issue-contingent model. Academy of Management Review, 16(2), 366–395.

    Article  Google Scholar 

  • Kapferer, J. N. (1995). Brand confusion: empirical study of a legal concept. Psychology & Marketing, 12(6), 551–568.

    Article  Google Scholar 

  • Kim, J.-E., & Johnson, K. K. P. (2014). Shame or pride? The moderating role of self-construal on moral judgments concerning fashion counterfeits. European Journal of Marketing, 48(7/8), 1431–1450.

    Article  Google Scholar 

  • Kohlberg, L. (1969). Stage and sequence: The cognitive-developmental approach to socialization. In D. Goslin (Ed.), Handbook of socialization: Theory and research. New York: Rand McNally.

    Google Scholar 

  • Kwong, K. K., Yau, O. H., Lee, J. S., Sin, L. Y., & Alan, C. B. (2003). The effects of attitudinal and demographic factors on intention to buy pirated CDs: The case of Chinese consumers. Journal of Business Ethics, 47(3), 223–235.

    Article  Google Scholar 

  • Lee, J. S., & Kwak, D. H. (2015). Consumers’ responses to public figures’ transgression: Moral reasoning strategies and implications for endorsed brands. Journal of Business Ethics. doi:10.1007/s10551-015-2544-1.

    Google Scholar 

  • Lee, J. S., Kwak, D. H., & Moore, D. (2015). Athletes’ transgressions and sponsor evaluations: A focus on consumers’ moral reasoning strategies. Journal of Sport Management, 29(6), 672–687.

    Article  Google Scholar 

  • Liao, C.-H., & Hsieh, I.-Y. (2012). Determinants of consumer’s willingness to purchase gray-market smartphones. Journal of Business Ethics, 114(3), 409–424.

    Article  Google Scholar 

  • Lindell, M. K., & Whitney, D. J. (2001). Accounting for common method variance in cross-sectional research designs. Journal of Applied Psychology, 86(1), 114–121.

    Article  Google Scholar 

  • Loe, T. W., Ferrell, L., & Mansfield, P. (2000). A review of empirical studies assessing ethical decision making in business. Journal of Business Ethics, 25(3), 185–204.

    Article  Google Scholar 

  • Logsdon, J. M., Thompson, J. K., & Reid, R. A. (1994). Software piracy: Is it related to level of moral judgment? Journal of Business Ethics, 13(11), 849–857.

    Article  Google Scholar 

  • Malhotra, N. K., Kim, S. S., & Patil, A. (2006). Common method variance in IS research: A comparison of alternative approaches and a reanalysis of past research. Management Science, 52(12), 1865–1883.

    Article  Google Scholar 

  • Marcketti, S. B., & Shelley, M. C. (2009). Consumer concern, knowledge and attitude towards counterfeit apparel products. International Journal of Consumer Studies, 33(3), 327–337.

    Article  Google Scholar 

  • McAlister, A. L., Bandura, A., & Owen, S. V. (2006). Mechanisms of moral disengagement in support of military force: The impact of September 11. Journal of Social and Clinical Psychology, 25(2), 141–165.

    Article  Google Scholar 

  • Michaelidou, N., & Christodoulides, G. (2011). Antecedents of attitude and intention towards counterfeit symbolic and experiential products. Journal of Marketing Management, 27(9–10), 976–991.

    Article  Google Scholar 

  • Musschenga, A. W. (2008). Moral judgement and moral reasoning: A critique of Jonathan Haidt. In M. Düwell, C. Rehmann-Sutter, & D. Mieth (Eds.), The contingent nature of life (pp. 131–146). Dordrecht: Springer.

    Chapter  Google Scholar 

  • Penz, E., & Stottinger, B. (2005). Forget the “real” thing-take the copy! An explanatory model for the volitional purchase of counterfeit products. Advances in Consumer Research, 32, 568–575.

    Google Scholar 

  • Phau, I., Sequeira, M., & Dix, S. (2009). Consumers’ willingness to knowingly purchase counterfeit products. Direct Marketing: An International Journal, 3, 262–281.

    Article  Google Scholar 

  • Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903.

    Article  Google Scholar 

  • Podsakoff, P. M., & Organ, D. W. (1986). Self-reports in organizational research: Problems and prospects. Journal of Management, 12(4), 531–544.

    Article  Google Scholar 

  • Prendergast, G., Chuen, L. H., & Phau, I. (2002). Understanding consumer demand for non-deceptive pirated brands. Marketing Intelligence & Planning, 20(7), 405–416.

    Article  Google Scholar 

  • Reidenbach, R. E., & Robin, D. P. (1990). Toward the development of a multidimensional scale for improving evaluations of business ethics. Journal of Business Ethics, 9(8), 639–653.

    Article  Google Scholar 

  • Rest, J. R., & Narváez, D. (1994). Moral development in the professions: Psychology and applied ethics.  Hillsdale, NJ: Lawrence Erlbaum Associates.

    Google Scholar 

  • Rutland, A., Killen, M., & Abrams, D. (2010). A new social-cognitive developmental perspective on prejudice the interplay between morality and group identity. Perspectives on Psychological Science, 5(3), 279–291.

    Article  Google Scholar 

  • Selart, M., & Johansen, S. T. (2011). Ethical decision making in organizations: The role of leadership stress. Journal of Business Ethics, 99(2), 129–143.

    Article  Google Scholar 

  • Sharma, P., & Chan, R. Y. K. (2011). Counterfeit proneness: Conceptualisation and scale development. Journal of Marketing Management, 27(5–6), 602–626.

    Article  Google Scholar 

  • Shu, L. L., Gino, F., & Bazerman, M. H. (2011). Dishonest deed, clear conscience: When cheating leads to moral disengagement and motivated forgetting. Perspective of Social Psychology Bulletin, 37(3), 330–349.

    Article  Google Scholar 

  • Simpson, P. M., Banerjee, D., & Simpson, C. L, Jr. (1994). Softlifting: A model of motivating factors. Journal of Business Ethics, 13(6), 431–438.

    Article  Google Scholar 

  • Sparks, J. R., & Pan, Y. (2010). Ethical judgments in business ethics research: Definition, and research agenda. Journal of Business Ethics, 91(3), 405–418.

  • Swami, V., Chamorro-Premuzic, T., Bridges, S., & Furnham, A. (2009). Acceptance of cosmetic surgery: Personality and individual difference predictors. Body Image, 6(1), 7–13.

    Article  Google Scholar 

  • Swinyard, W. R., Rinne, H., & Kau, A. K. (1990). The morality of software piracy: A cross-cultural analysis. Journal of Business Ethics, 9(8), 655–664.

    Article  Google Scholar 

  • Tan, B. (2002). Understanding consumer ethical decision making with respect to purchase of pirated software. Journal of Consumer Marketing, 19(2), 96–111.

    Article  Google Scholar 

  • Teng, L., & Laroche, M. (2007). Building and testing models of consumer purchase intention in competitive and multicultural environments. Journal of Business Research, 60(3), 260–268.

    Article  Google Scholar 

  • Tom, G., Garibaldi, B., Zeng, Y., & Pilcher, J. (1998). Consumer demand for counterfeit goods. Psychology & Marketing, 15(5), 405–421.

  • Trevino, L. K. (1992). Moral reasoning and business ethics: Implications for research, education, and management. Journal of Business Ethics, 11(5), 445–459.

    Article  Google Scholar 

  • Tsalikis, J., Seaton, B., & Shepherd, P. (2008). Relative importance measurement of the moral intensity dimensions. Journal of Business Ethics, 80(3), 613–626.

    Article  Google Scholar 

  • Tsang, J.-A. (2002). Moral rationalization and the integration of situational factors and psychological processes in immoral behavior. Review of General Psychology, 6(1), 25–50.

    Article  Google Scholar 

  • Valentine, S., & Hollingworth, D. (2011). Moral intensity, issue importance, and ethical reasoning in operations situations. Journal of Business Ethics, 108(4), 509–523.

    Article  Google Scholar 

  • Velasquez, M. G., & Rostankowski, C. (1985). Ethics, theory and practice. Englewood Cliffs, NJ: Prentice Hall.

    Google Scholar 

  • Vigneron, F., & Johnson, L. W. (1999). A review and a conceptual framework of prestige-seeking consumer behavior. Academy of Marketing Science Review, 1, 1–15.

    Google Scholar 

  • Wang, F., Zhang, H., Zang, H., & Ouyang, M. (2005). Purchasing pirated software: An initial examination of Chinese consumers. Journal of Consumer Marketing, 22(6), 340–351.

    Article  Google Scholar 

  • Wang, Y., Stoner, J. L., & John, D. R. (2014). You’re not fooling anyone: How social feedback affects moral disengagement and the purchase of counterfeit luxury products. Advances in Consumer Research, 42, 205.

    Google Scholar 

  • Wanjau, K., & Muthiani, M. (2012). Factors influencing the influx of counterfeit medicines in Kenya: A survey of pharmaceutical importing small and medium enterprises within Nairobi. International Journal of Business and Public Management, 2(2), 23–29.

    Google Scholar 

  • Wee, C. H., Ta, S. J., & Cheok, K. H. (1995). Non-price determinants of intention to purchase counterfeit goods: An exploratory study. International Marketing Review, 12(6), 19–46.

  • Wiedmann, K. P., Hennigs, N., & Klarmann, C. (2012). Luxury consumption in the trade-off between genuine and counterfeit goods: What are the consumers’ underlying motives and value-based drivers? Journal of Brand Management, 19(7), 544–566.

  • Wilcox, K., Kim, H. M., & Sen, S. (2009). Why do consumers buy counterfeit luxury brands? Journal of Marketing Research, 46(2), 247–259.

    Article  Google Scholar 

  • Zhang, T. (2012). Luxury special: World Luxury Association names top brands in Beijing. Accessed November 24, 2013, from http://www.chinadaily.com.cn/cndy/2012-01/11/content_14418877.html.

Download references

Acknowledgments

This study is supported by research grants (71472124 and 71472076) from the National Natural Science Foundation of China and the Program for Changjiang Scholars and Innovative Research Team in University (IRT13030).

Author information

Authors and Affiliations

  1. Department of Marketing, Antai College of Economics and Management, Shanghai Jiao Tong University, 1954 Huashan Road, Shanghai, 200030, China

    Jie Chen & Yonghai Liao

  2. Department of Marketing, School of Business, Jiangnan University, 1800 Lihu Avenue, Wuxi, Jiangsu, 214122, China

    Lefa Teng

Authors
  1. Jie Chen
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Lefa Teng
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Yonghai Liao
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Lefa Teng.

Appendix

Appendix

Moral recognition measures (1 = “completely disagree”; 7 = “completely agree”)

  1. 1.

    Counterfeit purchasing actions involved a moral issue.

Moral rationalization measures (1 = “completely disagree”; 7 = “completely agree”)

  1. 1.

    It is alright to purchase counterfeits of luxury brands (moral justification).

  2. 2.

    It is not a bad thing to buy one or two counterfeits of luxury brands (euphemistic language).

  3. 3.

    Purchasing luxury brand counterfeits is not as bad as some of the other horrible things people do (advantageous comparison).

  4. 4.

    People should not be at fault for purchasing counterfeits of luxury brands because of the convenience of such behavior in recent society (displacement of responsibility).

  5. 5.

    People should not be at fault for purchasing counterfeits of luxury brands when so many other people do it (diffusion of responsibility).

  6. 6.

    It is unfair to blame such purchasing behaviors because it is probably the fault of business environments around us (displacement of responsibility).

  7. 7.

    It is okay to buy one or two counterfeits of luxury brands because it does not really do much harm (distortion of consequences).

  8. 8.

    It is not our fault to buy counterfeits of luxury brands because the price of authentic brands are too high (attribution of blame).

Moral decoupling measures (1 = “completely disagree”; 7 = “completely agree”)

  1. 1.

    The immoral actions of purchasing counterfeits of luxury brands do not change my assessment of benefits provided by counterfeits.

  2. 2.

    Perceived benefits should remain separate from judgments of morality towards purchasing counterfeits of luxury brands.

  3. 3.

    Reports of wrongdoing should not affect our view of buying counterfeits.

Moral judgment measures (1 = “completely disagree”; 7 = “completely agree”)

  1. 1.

    It is morally right to purchase counterfeits of luxury brands (moral equity).

  2. 2.

    It is acceptable for my family to purchase counterfeits of luxury brands (moral equity).

  3. 3.

    It is traditionally acceptable to purchase counterfeits of luxury brands (moral relativism).

  4. 4.

    It is culturally acceptable to purchase counterfeits of luxury brands (moral relativism).

  5. 5.

    It is tacitly promised to purchase counterfeits of luxury brands in recent business environments (moral contractualism).

Perceived benefit measures (1 = “completely disagree”; 7 = “completely agree”)

  1. 1.

    The quality and price of luxury counterfeit.

  2. 2.

    Luxury counterfeits can bring you prestige.

  3. 3.

    Luxury counterfeits may function well.

Counterfeit purchase intention measures (1 = “completely disagree”; 7 = “completely agree”)

  1. 1.

    I would definitely intend to buy counterfeits.

  2. 2.

    I would absolutely consider buying counterfeits.

  3. 3.

    I would definitely expect to buy counterfeits.

  4. 4.

    I would absolutely plan to buy counterfeits.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Chen, J., Teng, L. & Liao, Y. Counterfeit Luxuries: Does Moral Reasoning Strategy Influence Consumers’ Pursuit of Counterfeits?. J Bus Ethics 151, 249–264 (2018). https://doi.org/10.1007/s10551-016-3255-y

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-016-3255-y

Keywords

Search

Navigation