Modeling of Determinants’ Influence on Consumer Behavior Towards Counterfeit Products in Indonesia and Malaysia

Abstract

This study investigates customer behavior in the context of purchasing counterfeit products. Specifically, it seeks to assess consumer awareness regarding value consciousness, ethical considerations, and legal sensitivity, which are believed to impact their attitudes and behavior. The study was carried out in both Indonesia and Malaysia. This study uses Smart PLS as a quantitative method and includes a sample of 360 respondents from Indonesia (180) and Malaysia (180) who have bought different types of counterfeit products. This study provides evidence that there is no significant disparity in the consumption intentions of counterfeit products between Indonesians and Malaysians since both nations display a similar trend. The results from both countries are in agreement, indicating that value awareness has a favorable and substantial impact on attitudes, personal gratification has an unfavorable and significant effect on attitudes, ethical sensitivity has a favorable and substantial impact on attitudes, and legal sensitivity has a favorable and substantial effect on attitudes. The impact of attitudes on behavioral intentions is positive and essential, as are subjective norms, perceived behavioral control, and habits. Policymakers must acknowledge this conclusion, as business entities that become victims of counterfeit products will inevitably encounter significant challenges if this issue remains unattended. The issue of counterfeit goods in Indonesia and Malaysia has substantial financial implications for both the government and enterprises. Consequently, law enforcement agencies assume a crucial role in addressing this problem.