Examining the Ability of Social Learning and Low Self-Control

232 Pages·2016·1.72 MB·English

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INVESTIGATING CONSUMER DEMAND FOR COUNTERFEIT GuOODS:
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EXAMINING THE ABILITY OF SOCIAL LEARNING AND LOW SELF-CONTROL
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TO EXPLAIN VOLITIONAL PURCHASE OF NON-DECEPTIVE COUNTERFEITh

PRODUCTS IN AN EASTERN EUROPEYAN COLLEGEi SAMPLE
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By P
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Zoltán Levente Fejes
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A DISSERTATION
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in partial fulfillment of the requirements

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Criminal Justice – Doctor of Philosophy
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ABSTRACT

INVESTIGATING CONSUMER DEMAND FOR COUNTERFEIT GOODS:

EXAMINING THE ABILITY OF SOCIAL LEARNING AND LOW SELF-CONeTROL
TO EXPLAIN VOLITIONAL PURCHASE OF NON-DECEPTIVE COUNTERFEIT
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PRODUCTS IN AN EASTERN EUROPEAN COLLEGE SAMPLE r
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Zoltán Levente Fejes r t
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Product counterfeiting is an interdisciplinary phenomenon thsat has relatively recently
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emerged as a field of interest for criminologists. Consequently, a clear understanding of product
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counterfeiting from a criminological perspective is lackinrg, as the applicahtion of criminological
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theory to this crime type as well as anRy guidance for the analyses of the phenomenon is limited at

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this time (Heinonen, Holt & WilOson, 2012). e o
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The examination of Hthe purchase ofi counterfeit goonds from a criminological perspective
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is appropriate and oppoTrtune not only due to its role as an ‘enabler’ of counterfeit trade (without
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demand there would be no or severely limited1 trade of counterfeit goods), but also due to the
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fact that, at least in some coountries2, the acqiuiring of fake goods has moved in the realm of
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criminalized activities. Furthermore, the lack of application of criminological theory to the
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phenomenon is a cotnsiderable gap ein the literature. The proposed dissertation aims to address
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this gap by tesnting core elements of two competing theoretical explanations: Akers’ Social

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Learning Theory (SLT) and Gottfriedson and Hirschi’s Low Self-Control Theory (LSC). The
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objective of the study is to test the principal propositions of both with respect to their ability of
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providing adequate explanations for the volitional purchase of non-deceptive counterfeit goods
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1 Although some scholars claim that a supply of counterfeit product will exist as long as there is a demand for such
goods (Bloch, Bush, & Campbell, 1993; Chakraborty, Allred, & Bristol, 1996; Chakraborty, Allred, Sukhdial, &
Bristol, 1997), this is only partially true: even if intentional purchase is nonexistent, highly deceptive counterfeit
goods (which may be virtually indistinguishable from genuine products) may still be produced and introduced into
legitimate supply chains.
2 E.g., France and Italy.
in physical market environments, and compare their ability of predicting levels of counterfeit

purchase in a Romanian student population. In addition, the study tests the ability of the two

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theories to provide explanations of deviant behaviors outside of the socio-economic and political
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context in (and for) which they have been developed. o
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The dissertation makes use of original data gathered via a cross-sectional survey design
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applied college students enrolled at Babeș-Bolyai UnPiversity (Cluj-Ntapoca), the largest urban
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settlement (and former capital) of one of the threOe major geograpihic, historical and cultural
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regions (Transylvania) of Romania. The theCoretical and po licy implications of the findings are
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also discussed
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ACKNOWLEDGEMENTS

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I would like to take this opportunity to acknowledge several people who have inspired and supported me
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throughout this journey, and for making the completion of this dissertation possible. First of all, my o
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dissertation chair, Dr. Jeremy M. Wilson deserves thanks not on ly for his guidance and patience h
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throughout my doctoral studies, but also for starting me down the path of studying the crime of product
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counterfeiting. Similarly, I would like to thank the other committee members, not only foar inspiring me to
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pursue this particular research topic, but also for their contribution throughout the elaboration of this
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dissertation, and to my overall professional development. r h
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In addition, several influential peRople deserve acknowledgment. Too many to mention them all, I

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would nevertheless like express myO thanks to Dr. Ede McGarrell and Dor. Mary Finn for their advice,
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encouragement and support during my tenure at MSU, Dr. Balogh Márton for his guidance and support
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over the years, Dr. Dan Lazăr, Gabriel Ciplea and Daniel Stuoparu from Babeș-Bolyai University for their
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invaluable assitance Uin implementing ythis research projsect, the entire Office Staff at the School of
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Criminal Justice, whose continous work made these achievements possible, and the Association for
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Community Relations for providing a home dumring fieldwork and data analysis.
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Last, but not le ast, I would like tro thank my friends and family. Robert Peacock, Tamara
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Dempsey, and Kimoberly Bender, thank you for your friendship, belief and moral support during graduate
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school. To my loving wife, Camelia, my mom and dad, thank you for your sacrifice, unconditional love,

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unrelentinog support and enucouragement, as well as your neverending patience throughout this arduous,
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yet fulfilling journey. You all made this journey possible, and for that I am eternally grateful.
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TABLE OF CONTENTS

LIST OF TABLES ..........................................................................................................e............. viii

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LIST OF FIGURES ........................................................................................................................ xr
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CHAPTER 1: INTRODUCTION .....................................................................b.............................. 1
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Choice of criminological theories ............................................................................................................. 6
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Focus on volitional purchase of non-deceptive counterfeits in physical markret settings ..........t............... 9
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CHAPTER 2: THEORETICAL BACKGROUND ...................................................a................... 11
The state of knowledge on product counterfeiting ..O...........................i..................................................... 11
The origins and evolution of product counterfeiting ....................d........................... ............................ 12
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A typology of product counterfeiting .................................................................................................. 13
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Magnitude of counterfeit trade ...........................................r...........................h...................................... 18
Economic and public health consequences ....................o..................................................................... 20

Consumption of counterfeit goods ..........................................................t............................................ 22
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Ability to differentiate between genuine and coun terfeit goods ...... ............................................... 24
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Factors influencing the purcOhase of counterfeeit goods ..............o..................................................... 26
Explanations of counterfeit purchase .............................................................................................. 29
Theories of crime and deviance .......................t............................ ........................................................... 31
Social Learning Theory. HKey concepts, priopositions. .........n............................................................... 31
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The appropriateness of SLT as an explanation of counterfeit purchase. ............................................ 34
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Low Self-Control TTheory. Key conce pts, propositions. ..................................................................... 37
The suitability of LSC to explain c,onsumption of coiunterfeit goods. ................................................ 40
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CHAPTER 3: THE ROMANIApN CONTEXT .s............................................................................ 43
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Rationale for study site selection ............................................................................................................ 43
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Romania, a culturally and ethnically diversem space: Concise overview of historical, cultural and
economic differences bectween historical/cultural regions in Romania ................................................... 45
Geographic and geo-political aspects ................................................................................................. 45
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The birth of modern day Romania. From the principalities of Wallachia, Moldavia and Transylvania,
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through the Goreat Unification of 1918, the interwar period and the communist regime, to an EU
member state: major historicapl events, people, society and economy ................................................ 47
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The importance of the study locale, and of the cultural differences between historical/cultural regions in

terms of the theoretical explanations of crime and deviance .................................................................. 55
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The coonsumption of couunterfeit goods in Romania ................................................................................ 57
Legislation, Anti-counterfeiting bodies, and research on consumption of counterfeit goods ............. 60
RDegional culturalo and economic differences and their effects on counterfeit consumption ............... 64

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CHAPTER 4: METHODS ............................................................................................................ 65
Choice of retsearch design ....................................................................................................................... 65
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Data collection method ........................................................................................................................... 66
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Sampling procedures ............................................................................................................................... 66
Sample size ......................................................................................................................................... 68
Measures ................................................................................................................................................. 73
Dependent variables ............................................................................................................................ 74
Independent variables ......................................................................................................................... 78
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Control variables ................................................................................................................................. 86
Survey implementation ........................................................................................................................... 92

CHAPTER 5: DATA ANALYSIS AND RESULTS ................................................................... 95
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Handling missing values. ........................................................................................................................ 96
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Missing value analysis ..................................................................................................t...................... 96
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Multiple imputation ..................................................................................................u..........................o 99
Scale reliability and validity ................................................................................................................. 103
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Social learning scales ............................................................ ........................................................h.... 103
Self-control scales ..............................................................Y...........................i.................................... 108
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ATC, ATCG and Social Desirability scales ...................................................................................... 110
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Descriptive statistics. .....................................................P....................................................................... 112
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Sample characteristics ...................................................................................................a.................... 112
Form of the distribution ......................................O...........................i................................................... 116
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Dependent variables ...................................................................................................................... 116
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Independent variables ............................C........................... ............................................................ 118
Control variables ............................................................r...........................h.................................... 118
Examining multivariate outliers ............. .............................o.................................................................. 120
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Bivariate analysis ................................R.................................................................................................. 122

Multicollinearity Diagnostics ....................................,............................f................................................ 133
Binary logistic regression modOel utilizing all vaeriables on imputeod data (n=348) ........................... 135
Binary logistic regression model with all the variables, using complete cases only (n=281) ........... 142
Binary logistic regression model without thet opportunity mea sure. ................................................. 144
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Imputed data. (n=348) ........................c........................................................................................... 144
Complete cases only (n=281) .....................................o................................................................... 147
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Interpretation of the binary logistic regression results .......................................................................... 149
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Evaluating meaUsures and logisticy regression modesls ........................................................................ 149
Results of the binary logistic regression model with all the variables, using complete cases only
(n=281) ..................................p...........................s................................................................................. 152
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CHAPTER 6: DISCUSSION AND CONCLUSIONS ............................................................... 155
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The effect of differential association, individual definitions, imitation and differential reinforcement on
counterfeit purchase . ...........................r.................................................................................................. 156
The effect of low stelf-control and oepportunity on volitional consumption of fakes. ............................ 157
The effect of demoographic and psychographic characteristics on counterfeit purchase ....................... 160
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Study strengths and limitations ............................................................................................................. 163
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Study design ...................................................................................................................................... 163

Data c ollection methodt ..................................................................................................................... 164
Samople and responseu rate .................................................................................................................. 164
Measurements ................................................................................................................................... 167
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Missing data and data imputation ..................................................................................................... 168
Interactive effhects .............................................................................................................................. 169
Contribution to theory and research. ................................................................................................. 170
Policy implitcations ................................................................................................................................ 172
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Suggestiwons for future research ............................................................................................................. 175

APPENDICES ............................................................................................................................ 177
APPENDIX A Research Participant Information and Consent Form ................................................... 178
APPENDIX B Variables excluded from analysis ................................................................................. 179
APPENDIX C Survey Instrument ......................................................................................................... 180
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APPENDIX D Technical appendix ....................................................................................................... 194

REFERENCES ..................................................................................................................... ...... 203

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LIST OF TABLES

Table 2.1. Genuine – Counterfeit continuum .............................................................................................. 17
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Table 4.1. Dependent variables ................................................................................................................... 77r
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Table 4.2. Constructs and measures: Independent variables .......................................b................................ 83
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Table 4.3. Control variables ................................................................................r...........................t............. 91
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Table 5.1. Descriptive statistics: Dependent and independent variables (n=348) ................a.................... 114
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Table 5.2. Descriptive statistics: Control variables (n=348) ........................................e............................. 115
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Table 5.3. Multivariate outliers ...............................................o.................................................................. 122

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Table 5.4. Bivariate analysis: Counterfeit purchase by ,region (n=348) ...f................................................ 124
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Table 5.5. Bivariate analysis: Counterfeit purchase by gender and education (n=348) ............................ 126
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Table 5.6. The level and structure of the total consumption expenditure of an average Romanian
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household expenditure (4Tth quarter 2015) . ................................................................................................ 127
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Table 5.7. Summary of bivariate analysis: Counterfeit purchase (n=348) ............................................... 131
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Table 5.8. Summary of bivariaote analysis: Couniterfeit purchase. Complete cases only (n=281)............. 132
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Table 5.9. Multicollinearity diagnostics (n=348) ...................................................................................... 133
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Table 5.10. Multicoollinearity diagnostics. Complete cases only (n=281). ................................................ 134
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Table 5.11. Binary logistic reg ression model. All variables, using imputed data (n=348). ...................... 137
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Table 5.12. Binary logistic regression model. All variables, on complete cases only (n=281). ............... 143
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Table 5.13. Binary regression model. Opportunity measure removed, using imputed data (n=348) ....... 146
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Table 5.14. Bintary regression model. Opportunity measure removed, on complete cases only (n=281) . 148
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Table A. 1. Variables excluded from analysis (n = 615) .......................................................................... 179

Table A. 2. Bootstrapping (n=281) ........................................................................................................... 195

Table A. 3. Pairwise comparison (n=281) ................................................................................................ 197
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Table A. 4. Blocked regression (n=281) ................................................................................................... 200

Table A. 5. Assessing non-response bias (n=612) .................................................................................... 202

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LIST OF FIGURES

Figure 2.1. USA consumers reporting having made a counterfeit purchase in 2006, by age. .................... 23
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Figure 3.1. Romania: current administrative-territorial organization and development regitons ................ 46
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Figure 3.2. Historical/cultural regions in Romania ..................................................................................... 53
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Figure 3.3. The ACIST report on categories of counterfeit gooYds detained at thei Romanian border
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between 2008–2016 .................................................................................................................................... 58
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Figure 3.4. The evolution of counterfeit goods detained at the Romanian border 2012–201a4 ................... 59
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Figure 4.1. The geographical distribution of Babeș-Bolyai students enrolled in their first year (for the
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2015-2016 academic year) based on student domCicile ................. .............................................................. 90
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Figure 5.1. Study population and study sample characteristicos ................................................................ 113

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