Using Structural Equation Modeling to Explore Saudi Consumers’ Intentions Regarding Counterfeit Goods

Abstract

Although the Saudi Customs Department attempts to prevent the import and/or export of counterfeit goods more than 62 million counterfeit products, with a value of approximately US$50 million, were confiscated at ports in Saudi Arabia over the past year in 2012. This paper focuses on the key antecedents of Saudi consumer attitudes toward counterfeit products, as well as the influence that these attitudes have on the Saudi behavioral intentions regarding these products. A 10 min pen and structured questionnaire was distributed to 520 subjects in Riyadh through a nonprobability, convenience-sampling approach to test the hypothesized relationships using structural equation model (SEM) test with maximum likelihood estimation. The empirical results from the structural model suggest that: Saudi consumer intentions to buy counterfeited products are influenced by perceived risk, subjective norm, price-quality inference, prior purchase of counterfeits, integrity, and personal gratification. The paper reinforces the mediator role that attitude plays in the relationship between these antecedents and behavioral intentions. Furthermore, a consumer’s previous experience with consumption of counterfeits does not have a direct effect on behavioral intentions; only an indirect effect through attitude. This paper informs policy makers and brand managers about the main predictors of consumer’s attitudes toward counterfeits. In this way, advertisements that are intended to discourage the consumption of counterfeits could use the perceived risk as their primary message.