Counterfeit Products and the Role of the Consumer in Saudi Arabia

Abstract

The aim of this paper is to investigate the key antecedents of Saudi consumers' attitudes toward counterfeit products. The study is also set out to examine the relationship of consumers' attitude towards counterfeit product with purchase intention. The study adopted the self-administered survey methodology technique using a pre-validated pre-piloted questionnaire. The questionnaire was adapted from one previously used in Brazil. A survey of 520 respondents was selected in Riyadh market based on convenience-sampling method to test the hypothesized relationships using structural equation model (SEM) with maximum likelihood estimation. The empirical results from the structural model suggest that Saudi consumers' intentions to buy counterfeited products are influenced by perceived risk, subjective norm, price-quality inference, prior purchase of counterfeits, and integrity. The paper reinforces the mediator role that attitude plays in the relationship between these antecedents and behavioral intentions. By having a better understanding of the consumers' behavioral intentions of buying counterfeit products, the manufacturers and marketers of the genuine brand products can make better marketing strategies to entice the consumer to buy the original product and not the counterfeit version. Theoretical contribution of this study is an extension of knowledge of consumers' attitude with regards to counterfeit products.

Why do consumers buy counterfeit luxury products? A tale of two major cities in two different countries

“…Saudi Arabia, a country with a relatively higher per capita income compared to Malaysia, has been an attractive emerging market for pirates and counterfeiters hoping to take advantage of the marketing efforts of others in recent years (Paul, 2014). In Saudi Arabia, Albarq (2015) has found that Saudi consumers' intentions to purchase or not to purchase counterfeit luxury products were due to the influence of several factors including perceived risk, subjective norm, price-quality inference, prior purchase of counterfeits and integrity. The same author further reported that in 2012, the Saudi Customs Department has seized 62 million counterfeit products worth about $50m.…”

“…The same author further reported that in 2012, the Saudi Customs Department has seized 62 million counterfeit products worth about $50m. In combating piracy and counterfeiting of luxury goods, the department has introduced some programs aimed at seizing counterfeit goods at the country's borders before they could be distributed throughout the country (Albarq, 2015;Paul, 2014). Whilst the Saudi Customs Department continues to prevent the import and/or export of counterfeit goods, it does not have any formal and reliable recording system for counterfeit products entering the country (Albarq, 2015).…”

“…In combating piracy and counterfeiting of luxury goods, the department has introduced some programs aimed at seizing counterfeit goods at the country's borders before they could be distributed throughout the country (Albarq, 2015;Paul, 2014). Whilst the Saudi Customs Department continues to prevent the import and/or export of counterfeit goods, it does not have any formal and reliable recording system for counterfeit products entering the country (Albarq, 2015). However, it does have an effective and beneficial informal system, but unfortunately, this informal system has two disadvantages: (1) it is very difficult to organize centralized training programs for all the 32 customs posts located in the country and (2) there is quite a bit of delay in the destruction and disposal of seized goods (Paul, 2014).…”

Awareness of Counterfeit Medicine among Saudi University Students

“…It also wastes precious human and financial resources, and constitute an enormous problem facing global pharmaceutical industry [3,4]. The definition and classification of counterfeiting and/or substandard medicines (drugs) which become a worldwide phenomenon is still in continuous updating [3,[5][6][7][8].…”

“…Although, there is no official reports on the scale of counterfeit medicines distribution in the Saudi market, but in 2014 the number of counterfeit products (electronic, fashion, medicine, foods, cosmetics, etc..) exceeded US$ 62 million in ports [8].…”