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Ethical decision making in counterfeit purchase situations: the influence of moral awareness and moral
emotions on moral judgment and purchase intentions
Luis F. Martinez Dorothea S. Jaeger
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Luis F. Martinez Dorothea S. Jaeger , (2016),"Ethical decision making in counterfeit purchase situations: the influence of moral
awareness and moral emotions on moral judgment and purchase intentions ", Journal of Consumer Marketing, Vol. 33 Iss 3 pp.
213 - 223
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Abstract
Purpose Counterfeiting is an increasingly global phenomenon that threatens the economy as a whole and also presents a risk for the consumers.
The purpose of this study is to explore moral emotions along with moral awareness and moral judgment with respect to their influence in the
consumption of counterfeits.
Design/methodology/approach An online questionnaire was distributed among participants (n 225) who were asked to respond to a
counterfeit purchase scenario.
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Findings Results highlight the importance of moral awareness as an essential element of moral decision-making. Also, moral emotions were found
to influence moral judgment as well as purchase intention.
Research limitations/implications A limitation refers to the fact that a scenario was used to evoke participants emotional responses. Although
the situation was realistic and the majority of the people could very well imagine experiencing the reported scenario, results might change in an
actual purchase situation.
Practical Implications This studys findings may be particularly relevant for authorities and educators who design campaigns to curtail
counterfeit consumption, thus seeking to encourage consumers to recognize the several negative consequences that result from counterfeiting
behavior.
Originality/value This is one of the few studies that examine the impact of cognitive and emotional influences in a counterfeit purchase decision.
Fighting this problem requires an in-depth understanding of consumers motivations and how they feel about engaging in this morally questionable
behavior.
Keywords Ethics, Consumer behavior, Counterfeiting, Moral awareness, Moral emotions, Moral judgment
Paper type Research paper
The authors would like to thank the editor and the anonymous reviewers
for their helpful comments on earlier versions of this manuscript.
Journal of Consumer Marketing
33/3 (2016) 213223 Received 10 April 2015
Emerald Group Publishing Limited [ISSN 0736-3761] Revised 6 August 2015
[DOI 10.1108/JCM-04-2015-1394] Accepted 9 September 2015
213
Influence of moral awareness and moral emotions Journal of Consumer Marketing
Luis F. Martinez and Dorothea S. Jaeger Volume 33 Number 3 2016 213223
profile the typical counterfeit consumer (Bian and Moutinho, studies focused on examining the relation between
2011). consumer attitude and purchase intention and applied
Prior work has highlighted the ethical element of counterfeit attitude-behavioral models such as the theory of planned
purchases (Chiou et al., 2005; Hilton et al., 2004). Much of behavior (Ajzen, 1991) to explain consumers decision-
this work focused on cognitive aspects and applied ethical making (Jirotmontree, 2013; Peace et al., 2003; Penz and
decision-making models to explain consumer behavior Stttinger, 2005). Attitude has often been found to be a good
(Moores and Chang, 2006; Wagner and Sanders, 2001). indicator for counterfeit purchase intention (Ang et al., 2001;
However, few researchers (Kim et al., 2009; Zampetakis, Michaelidou and Christodoulides, 2011; Phau et al., 2009).
2014) have called for more investigations of emotional Based on extensive literature review, Eisend and
influences in moral decision-making concerning counterfeit Schuchert-Gler (2006) classified relevant antecedents of
products, providing first evidence that emotions can have an attitude and intention into four categories, namely: person
influence on consumers moral judgment and purchase characteristics, product aspects, social/cultural context and
intention. Considering that counterfeiting can be linked to purchase environment. Research involving demographic
poor labor and environmental conditions, the act of buying a variables has so far produced inconclusive results. For
counterfeit product represents an ethical dilemma that may instance, Bloch et al. (1993) found that neither age nor
indeed give rise to certain moral emotions, such as guilt, which household income were effective criteria in predicting US
in turn may deter the intention to engage in this morally consumers preference for counterfeits, whereas Tom et al.
questionable behavior. (1998) claimed that those who were younger and had lower
Given the lack of empirical research concerning the disposable income were more prone to buy counterfeit
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influence of emotional components in the context of products. Wee et al. (1995) were able to show that education
counterfeit goods, the purpose of this study is to explore moral as well as household income were negatively related to
emotions along with moral awareness and moral judgment counterfeit purchase intention for consumers in South East
with respect to their influence in the consumption process of Asia, but age did not have any explanatory power. Studies
counterfeits. Thus, our key research question is whether or not analyzing psychographic traits suggest that counterfeit
moral emotions influence individuals moral judgment and consumers are more materialistic, value-conscious,
purchase intention regarding counterfeits. Building on prior susceptible to opinions of others, but at the same time, they
research, this study contributes to a deeper understanding of lack ethical consideration (Ang et al., 2001; Fernandes, 2013;
both moral affect in ethical decision-making and consumers Kozar and Marcketti, 2011; Penz and Stttinger, 2005).
motivations to engage in counterfeit consumption. New When it comes to product features, price was found to be one
insights will be especially valuable for policymakers and of the most relevant factors (Albers-Miller, 1999; Cordell
consumer educators, helping them to design effective et al., 1996; Hamelin et al., 2013). The willingness to buy
campaigns to curtail counterfeit consumption. counterfeits increases if consumers perceive the product to be
similar to the original with respect to features such as quality,
1.1 Theoretical background and definition durability, look and functionality (Penz and Stttinger, 2008).
This study refers to counterfeits as reproduced copies that The social and cultural context surrounding an individual also
are identical to the legitimate articles including packaging, has an impact on whether he/she considers purchasing a
trademarks, and labeling (Ang et al., 2001, p. 219). They are counterfeit. Albers-Miller (1999) found that people are more
usually sold at a much lower price than the original and are likely to purchase counterfeits in the presence of friends who
often inferior in terms of quality (Lai and Zaichkowsky, 1999). had previously bought an illicit product. Also, people are
Counterfeiting appears in two different forms, as either susceptible to the opinions of others and will strongly be
deceptive or non-deceptive counterfeiting (Grossmann and influenced by the approval or rejection of their peers when it
Shapiro, 1988a, 1988b). Under deceptive counterfeiting, the comes to the purchase of counterfeit goods (De Matos et al.,
consumer does not know that the item that he/she is buying is 2007; Prendergast et al., 2002). Although counterfeiting is
not the original. Non-deceptive counterfeiting occurs when especially prominent in collectivistic cultures (e.g. China),
the consumer is fully aware that the product is not authentic results from studies examining the direct effects of
for instance, because of the low price, purchase location or collectivistic culture on individuals attitude toward
quality. This form of counterfeiting is said to be especially counterfeits are inconclusive. For example, Wang et al. (2005)
prevalent in the luxury sector (Nia and Zaichkowsky, 2000). found collectivism to be an important factor in influencing
From the original brand owners perspective, it is very attitude toward pirated software, whereas Phau and Teah
interesting to look at the group of non-deceptive consumers, (2009) did not find strong evidence among Chinese
as their demand remains one of the main reasons why the consumers.
counterfeit industry has been flourishing (Ang et al., 2001). Some researchers went beyond specific factors and persons
Accordingly, the present study will deal with the characteristics and investigated individuals underlying
non-deceptive form of counterfeiting. motives to buy counterfeits, such as the desire to create
identities and express themselves. Wilcox et al. (2009) found
1.2 Key determinants of counterfeit purchase intention that consumers propensity to buy counterfeits was linked to
and behavior social motivations underlying their attitudes toward luxury
Given the scope of the issue, prior research investigating the brands. Based on the reasoning that attitudes serve important
demand side of counterfeiting is very extensive (Eisend and social functions by enabling self-expression (value-expressive
Schuchert-Gler, 2006; Staake et al., 2009). Many of the past function) and allowing self-presentation (social-adjustment
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Influence of moral awareness and moral emotions Journal of Consumer Marketing
Luis F. Martinez and Dorothea S. Jaeger Volume 33 Number 3 2016 213223
function), they found that when consumers attitudes served a moral awareness (Jordan, 2007). This study will refer to moral
social-adjustment function rather than a value-expressive one, awareness as the cognitive ability to recognize the moral issue
their preference for counterfeits was higher. A qualitative within a situation and adopt Reynolds (2006, p. 233) broad
study by Perez et al. (2010) revealed that consumers attain definition of moral awareness as [. . .] a persons
certain inner benefits through the purchase of counterfeits, determination that a situation contains moral content and
namely, optimizing resources, having fun and deceiving others legitimately can be considered from a moral point of view.
while expecting not to be caught. Through the achievement of Scholars have recognized the importance of moral awareness,
these goals, consumers build an identity in which they see suggesting that without recognizing the ethical aspect of a
themselves as savvy individuals. This was also supported by situation it is impossible to solve any moral problem
another qualitative study by Penz and Stttinger (2012), (Clarkeburn, 2002, p. 439). If an individual is not aware that
which revealed that consumers see themselves as smart a situation contains a moral issue, then he/she is unlikely to
shoppers, while they are shopping for counterfeits. take it into account when making a decision and will instead
decide based on other schemata for example, based on
1.3 The role of consumer ethics in counterfeit economic rationality (Jones, 1991). Peoples ethic-related
consumption shortcomings can stem from any stage in the decision-making
Although the purchase of a counterfeit is not a criminal act, an process. Thus, it is worthwhile to explore moral awareness
individual who buys a counterfeit product indirectly supports along with moral judgment in the moral decision-making
an illegal activity. Hence, the purchase or intention to process (Jordan, 2007).
purchase a counterfeit product can be regarded as consumer To our knowledge, only one study has explored the
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misbehavior (Penz and Stttinger, 2005) [. . .] which violates relationship between moral awareness and moral judgment in
the generally accepted norms of conduct in exchange and is the context of counterfeit purchases. Moores and Chang
therefore held in disrepute by marketers and by most (2006) tested the entire four-component model by Rest in the
consumers (Fullerton and Punj, 1993, p. 570). Researchers context of software piracy in Hong Kong. Their findings
have highlighted the ethical dimension of counterfeit supported that Rests model can be seen as a sequential causal
purchases (Chiou et al., 2005; Hilton et al., 2004). In model, although they could not find evidence for a causal
particular, those interested in the ethical aspect of counterfeit relationship between moral awareness and judgment.
purchases have incorporated factors such as ethical obligation Interestingly, people were very aware of the moral issues in the
(Michaelidou and Christodoulides, 2011), ethical judgment situation. As a possible explanation, the authors suggest that
(Fernandes, 2013) and personal integrity (De Matos et al., when people perceive piracy as something normal, the illegal
2007) into their research models. Overall, research suggests aspect of the act does not evoke any moral outrage. Thus, the
that consumer ethics that is, the moral rules, principles and decision-making process starts with an individuals judgment
standards guiding the behavior of an individual (Norum and and not with the recognition of the ethicality of the act itself
Cuno, 2011, p. 29) influences consumers willingness to buy (Moores and Chang, 2006, p. 175). Given these ambiguous
counterfeits (Michaelidou and Christodoulides, 2011). results and the lack of empirical research of moral awareness
Consumers who attribute more integrity to themselves and within the context of counterfeiting, this study examines the
have higher levels of respect toward lawfulness are less likely to influence of moral awareness on moral judgment. Based on
engage in counterfeit buying (Cordell et al., 1996; De Matos this theoretical background, when people are aware of the
et al., 2007). moral issues involved in purchasing a counterfeit product,
Moreover, some researchers applied ethical theories to they will more likely perceive the act as morally wrong. Thus,
explain consumers moral decision-making (Moores and the following is hypothesized:
Chang, 2006; Wagner and Sanders, 2001). The
four-component model by Rest is one of the most frequently H1. The higher the individuals level of moral awareness,
referenced ethical decision-making models (Jordan, 2007). the higher her/his level of moral judgment concerning
Rest proposed a model where an individual first needs to: the purchase of a counterfeit product.
recognize the moral issue in the situation (moral
1.3.2 Moral judgment
awareness);
Moral judgment is defined as an individuals prescriptive
decide what is morally right or wrong (moral judgment);
assessment of what is right or wrong (Trevino, 1986, p. 604).
prioritize moral concerns over other concerns (moral
It involves evaluating which courses of action to a moral
intent); and
problem are morally justified (Lincoln and Holmes, 2011). In
engage in moral action (moral behavior) (as cited in Jones,
contrast to moral awareness, the construct of moral judgment
1991).
has received a lot of attention in academic research often
1.3.1 Moral awareness being used in ethical decision-making models to explain moral
Moral awareness is a critical first step in the moral behavior (Hunt and Vitell, 1986; Jones, 1991). Prior research
decision-making process and is defined as an individuals has shown that an individuals moral judgment influences an
ability to recognize that a situation contains a moral issue individuals moral behavior or moral intention in counterfeit
(Lincoln and Holmes, 2011, p. 56). It involves being aware of consumption situations: for example, Moores and Chang
different possible alternatives of action, as well as recognizing (2006), Tan (2002) and Wagner and Sanders (2001) all found
how each of these responses will affect others (Bebeau et al., that the higher the moral judgment of an individual, the lower
1999). As researchers have elaborated on Rests definition, their intention to purchase pirated software. The same
there are several different definitions and interpretations of conclusion was drawn from a study by Ha and Lennon
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Influence of moral awareness and moral emotions Journal of Consumer Marketing
Luis F. Martinez and Dorothea S. Jaeger Volume 33 Number 3 2016 213223
(2006), who investigated consumers ethical judgment 2007; Greene and Haidt, 2002). According to Haidt (2003),
regarding fashion counterfeit products. Accordingly, a person four different categories of moral emotions can be identified:
who assesses the act of buying a fake product as morally wrong shame, guilt, embarrassment and (to a lesser extent) pride, all
is unlikely to purchase that product. Based on these previous belonging to the category of self-conscious emotions
findings, the following is hypothesized: (Tangney et al., 2007), which are evoked by self-reflection or
self-evaluation. Anger, contempt and disgust are considered to
H2. The greater the individuals level of moral judgment, be other-condemning emotions, as they all imply negative
the lower his/her intent to purchase a counterfeit feelings about the actions or character of others (Haidt,
product. 2003, p. 856). Other-suffering moral emotions (i.e.
empathy) are evoked in response to the suffering of others.
Other-praising emotions (i.e. gratitude, awe, elevation)
1.4 Emotional aspects of buying counterfeits
function both as response and motivator of moral behavior, as
Emotions are important in their role as motivators of
they make people engage in socially respectful behavior
subsequent actions (Penz and Stttinger, 2012). Emotions
(Haidt, 2003; Tangney et al., 2007).
activate peoples goals and, thus, evoke certain behavioral
Haidt (2001) claims that when it comes to morality
responses that help them achieve these goals (Zeelenberg
emotions play a primary causal role. Also, moral judgments
et al., 2007). Although researchers have examined the role of
are made automatically and effortlessly as a result of moral
emotions in consumer decision-making in retail environments
intuition (i.e. peoples instant, unintentional and affect-laden
(Chang et al., 2014; Eroglu et al., 2003; Fiore et al., 2005; Kim
feelings of approval or disapproval). These instant feelings are
and Johnson, 2013), studies investigating emotional aspects
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Influence of moral awareness and moral emotions Journal of Consumer Marketing
Luis F. Martinez and Dorothea S. Jaeger Volume 33 Number 3 2016 213223
Penz and Stttinger (2005) included ethical predisposition experience of a moral dilemma (Moores and Chang, 2006;
(i.e. the awareness of ethical aspects of buying counterfeits) Kim and Johnson, 2013; Zeelenberg et al., 2007). We
into their research model to explain counterfeit purchase developed a scenario based on the study by Kim and Johnson
behavior. They found that if consumers have a stronger (2014), which described a situation where consumers had the
awareness of the ethical aspects related to counterfeit chance to buy a pair of counterfeit sunglasses. Sunglasses were
purchases, they will most likely feel embarrassed when selected as a stimulus product, as they are gender neutral and
detected buying counterfeits. Accordingly, one could suspect belong to one of the most popular counterfeit items among
that when an individual is not at all aware that the situation of consumers in Europe. Participants were asked to imagine
purchasing a counterfeit product contains moral issues and themselves in this scenario. Next, they were asked to indicate
thus believes he/she is doing the right thing negative how likely they would purchase the counterfeit sunglasses,
feelings are less likely to be associated with the purchase. how strongly they would feel each one of the moral emotions
Based on this logic, the following is hypothesized (Figure 1): listed and they responded to the listed measures for moral
awareness and moral judgment. Finally, participants provided
H5. Moral awareness will increase moral emotions. some demographic variables and were asked to indicate how
far the scenario described in the questionnaire seemed realistic
2. Method to them and if they could imagine themselves to be in that
situation. These last questions were used as a manipulation
2.1 Sample and procedure
check. Particularly, participants were able to identify
Data were collected from a convenience sample via an online
themselves with the purchase situation, indicating that the
survey created with Qualtrics Survey Software. Personal
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H1+ H2-
Moral awareness Moral judgment Purchase intention
H5+ H4+
H3-
Moral emotions
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Influence of moral awareness and moral emotions Journal of Consumer Marketing
Luis F. Martinez and Dorothea S. Jaeger Volume 33 Number 3 2016 213223
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Influence of moral awareness and moral emotions Journal of Consumer Marketing
Luis F. Martinez and Dorothea S. Jaeger Volume 33 Number 3 2016 213223
Control variable
Purchase experience 0.08 0.06
2. Purchase intention Moral judgment 0.13 0.06
Moral emotions
Anger 0.21 0.001
Guilt 0.09 0.24
Gratitude 0.38 0.001
Control variable
Purchase experience 0.21 0.001
Notes: Adjusted R2 0.65; F(5.219) 84.8; p 0.001;
adjusted R2 0.42; F(5,219) 33.6; p 0.001
examined cognitive and affective components influence in the piracy as an infringement of intellectual property rights, this
counterfeit consumption process. The research built on fact had no influence on their judgment of the morality of the
previous work from Kim et al. (2009), who called for more act itself. Nowadays, buying and using pirated software might
investigations into other types of moral emotions that might be perceived as a commonplace behavior thus, although
play a role in counterfeit purchase situations. In addition, the people recognize there is a moral issue involved, this does not
influence of moral awareness on moral judgment was affect whether they judge it as morally wrong. However, the
examined a very important but rarely studied component of findings of this study suggest that this process is different for
Rests ethical decision-making process (Jordan, 2007). counterfeit fashion products in this case, people who are very
First, this studys findings showed that the higher the aware of the diversity of moral issues involved in the
respondents level of moral awareness, the more likely they production and distribution of counterfeits are also more likely
were to judge the purchase of the counterfeit sunglasses in the to perceive these behaviors as morally wrong.
scenario as morally wrong (H1). This finding contradicts Moreover, it was found that moral judgment had a negative
Moores and Changs (2006) results, who found that moral effect on purchase intention (H2). Although significant only if
recognition did not have any effect on moral judgment. The p 0.1, this finding supported previous studies which found that
difference in this result might be explained by the fact that this individuals who perceived the act of buying counterfeits as
study focused on a fashion counterfeit product, whereas morally wrong were less likely to buy those products (Ha and
Moores and Chang (2006) investigated software piracy. Their Lennon, 2006; Kim et al., 2009). When confronted with an
study revealed that although participants recognized software ethical dilemma, consumers count on their cognitive moral
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Influence of moral awareness and moral emotions Journal of Consumer Marketing
Luis F. Martinez and Dorothea S. Jaeger Volume 33 Number 3 2016 213223
judgment to decide whether they should engage or not in a counterfeiting, especially as the knowledge of causing harm
certain behavior (Tan, 2002). Additionally, as hypothesized, makes people feel guilty. Also, this study revealed that anger
moral emotions influenced purchase intention (H3) and moral decreased the purchase intention of counterfeits. Anger could
judgment (H4). These findings are in line with other researchers be evoked in response to a certain event when moral standards
who found that moral emotions influenced purchase intention are violated. People who have very strong moral beliefs may
and moral judgment (Kim et al., 2009; Kim and Johnson, 2014). feel righteous anger toward those who sell fake products or
Gratitude was found to influence both purchase intention and even toward authorities that allow this to happen. Moreover,
moral judgment, although the effect on purchase intention was people who have a special attachment to certain brands might
higher ( 0.38). Guilt had a significant influence on moral feel this kind of anger because they want to defend the original
judgment but not on purchase intention. On the other hand, manufacturers from the illegal producers who destroy the
anger significantly influenced purchase intention, although it had exclusive image of the original brands. The reasons why anger
no impact on moral judgment. This finding is in line with that of can be felt are manifold and worth exploring. Given that anger
Kim (2009), who reported that for the counterfeit purchase has been identified as an important moral emotion that
scenario, gratitude and anger significantly influenced purchase directly influences purchase intention, policymakers should
intention. But when the dependent variable was moral judgment, aim more often at creating advertising campaigns which
guilt was found to have a significant influence on it. In line with provoke feelings of anger. For instance, this could be carried
findings from Kim (2009), it could thus be suggested that some out by showing who really benefits from this illegal business
emotions might differ in their impact, depending on the outcome and who are the people suffering from poor labor conditions
variable. that are prevalent in illegally run factories.
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Influence of moral awareness and moral emotions Journal of Consumer Marketing
Luis F. Martinez and Dorothea S. Jaeger Volume 33 Number 3 2016 213223
Future researchers are encouraged to further investigate whether De Matos, C.A., Trindade, C. and Vargas, C.A. (2007),
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post-purchase emotions that occur long after the purchase Marketing Science Review, Vol. 12 No. 1, pp. 1-22.
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Influence of moral awareness and moral emotions Journal of Consumer Marketing
Luis F. Martinez and Dorothea S. Jaeger Volume 33 Number 3 2016 213223
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Academy of Management Review, Vol. 11 No. 3, About the authors
pp. 601-617.
Luis F. Martinez is an Assistant Professor of Marketing at
Wagner, S.C. and Sanders, G.L. (2001), Considerations in
Nova School of Business and Economics (Lisboa, Portugal).
ethical decision making and software piracy, Journal of
He earned his PhD in Social and Behavioral Sciences from
Business Ethics, Vol. 29 Nos 1/2, pp. 161-167.
Tilburg University, and he held a Visiting Scholar position at
Wang, F., Zhang, H., Zang, H. and Ouyang, M. (2005),
the MIT Sloan School of Management. His research interests
Purchasing pirated software: an initial examination of
include emotion and decision-making, consumer behavior and
Chinese consumers, Journal of Consumer Marketing,
health at work. His research work has appeared in journals
Vol. 22 No. 6, pp. 340-351.
such as Decision, Harvard Business Review, Cognition and
Wee, C.H., Tan, S.J. and Cheok, K.H. (1995), Non-price
Emotion, Journal of Economic Psychology, The International
determinants of intention to purchase counterfeit goods: an
Journal of Human Resource Management, Journal of
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