Abstract:
Counterfeit consumption has been on an upsurge globally aided by comparative
higher trade margins and increasing demand for renowned brands at lower prices.
Social cultural factors have been found to play a major role in the growth of the trade
as they influence the intention hence purchase of such goods although findings so far
are not conclusive, necessitating further examination. This study therefore aimed to
investigate the moderating effect of consumer knowledge on the relationship between
social cultural factors (SCF) and Purchase Intention (PI) through attitude. The study
specific objectives sought to establish the mediation effect of attitude (ATT) on the
relation between SCF and PI, the moderating effect of consumer knowledge (CK) on
the relationship between consumer attitude towards counterfeits and PI and the
moderated mediation effect of CK on the indirect relationship between SCF and PI
through attitude. The study was guided by the Theories of Planned Behavior,
Reasoned action, Moral competence and consumer theory. The study applied an
explanatory research design and adopted a positivism research paradigm to collect
data from the target population, university students by means of semi structured
questionnaires using purposive and convenience sampling. Excluding missing data
and outliers from the 500 students sampled, data collected from 450 respondents were
analyzed with Hierarchical and multiple regression models using Hayes Process
macro and the results used to test the hypotheses. The study findings showed a
positive and significant relationship between Social cultural factors (SCF) and
Purchase Intention (PI) (β1=0.579, P<0.05, r2=0.334), SCF and ATT (β2=0.415
P<0.05 r2=0.170), and ATT and PI (β3=0.427 P<0.05, r2 = 0.181). Further, the results
indicated that ATT had significant mediating effect on the relation between SCF and
PI (0.1080, [Lower limit confidence level (LLCI) 0.593,Upper limit confidence level
(ULCI) 0.167]), consumer knowledge(CK) had a significant moderation effect on the
relation between ATT and PI (.1431, [LLCI .2478, ULCI .534]) and that CK had a
positive (ΔR2=0.0042, [F=5.25, P<0.05]) moderated mediated effect (index 0.0668,[
LLCI 0.128, ULCI 0.1361]) on the relationship between SCF and PI through ATT.
Therefore the study concludes that Social Cultural Factors have an influence on
Purchase Intention while Attitude intervenes significantly in the relationship between
Social Cultural Factors and Purchase Intention with the relationship conditioned by
Consumer Knowledge at different levels of interaction. The study contributes to
knowledge by revealing a complimentary mediation effect of attitude in the
relationship between social cultural factors and purchase Intention and also new
knowledge on the moderation role of consumer knowledge on the relationship of
variables of the study. The study recommends that companies incorporate consumer
education in their growth strategies, invest in plans to influence consumer attitude
towards their brands but also join efforts with government agencies to formulate
policies and laws which discourage counterfeit trade, manufacturers put product
differentiating features and information on the packages and that future researchers
replicate this study using longitudinal survey methods and in different contexts.