Social-cultural factors, attitude, knowledge and Purchase intention of counterfeits in Kenya

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.