Counterfeiting is a large business involving the manufacturing or distribution of imitation goods. The purpose of this paper is to develop an integrated research model that combines neutralisation theory and perceived risk theory to explain consumers’ purchase intention towards counterfeit luxury goods.
Of the 280 distributed questionnaires, 230 were returned. Rigorous data filtering was performed to remove problematic data, leaving 213 usable questionnaires for analysis. To validate the proposed hypotheses, PLS analysis (a variance-based structural equation modelling technique) was conducted using Smart-PLS.
The results showed that denial of responsibility, denial of victim, performance risk and social risk are significant predictors of consumers’ purchase intention towards counterfeit luxury goods. However, denial of injury, appeal to higher loyalties, condemnation of the condemners, as well as psychological risk and prosecution risks, were found to have no significant relationships with purchase intention towards counterfeit luxury goods.
The integrated model is useful in predicting consumers’ purchase intention towards counterfeit luxury goods. This study discusses the research findings and concludes with managerial implications and limitations.
