**4. Implications**

**3.4. Research Question 3**

134 Social Responsibility

to counterfeit apparel products?

showed a high level of materialism.

**3.5. Research Question 4**

counterfeit apparel products?

alism held stronger attitudes toward counterfeit goods.

**Research Question 3:** What role do materialistic values play in Chinese consumers' relation

Past researchers [36] utilizing the materialism scale included 18 statements with an acceptable Cronbach's alpha at 0.75. The following examples [36] were included in this research: "I would be happier if I could afford to buy more things," "Buying things gives me a lot of pleasure," "Some of the most important achievements in life include acquiring material possessions," and "I admire people who own expensive homes, cars, and clothes." The computed score for this scale was 3.46 (*n* = 1199, SD = 8.45). Given this finding, participants, overall,

A regression analysis was calculated to examine the role of materialistic values in Chinese consumers' relation to counterfeit apparel products. A significant positive regression equation was found (*F* = 1199) = 304.56, *p* < 0.001, R<sup>2</sup> = 0.20). The unstandardized coefficient value was 1.11, indicating that for every increase in the level of materialistic values, the mean of attitudes toward counterfeit apparel products increased by 1.11. This finding reveals that among the participants in this study, those who placed greater emphasis regarding values of materi-

**Research Question 4:** What role do ethical values play in Chinese consumers' relation to

To measure participants' ethical values, the consumer ethics scale [41] was utilized. The original scale included 16 statements; however, given the feedback from pretest participants, 5 of the 16 statements were removed. The remaining 11 statements used in this study included: "I think it is okay to change the price tags on merchandise in a retail store," "I think drinking a can of soda in a supermarket is okay without paying for it," "I think it is okay to report a lost item as stolen to an insurance company in order to collect the money," "I think it is okay to give misleading price information to a clerk for an un-priced item," "I think returning damaged merchandise when the damage is my own fault is okay," "I think it is fine to lie about a child's age in order to get a lower price," "I think it is okay to not say anything when the waitress miscalculates the bill in my favor," "I think it is okay to use an expired coupon for merchandise or for merchandise that I did not buy," "I think it is fine to use computer software or games that I did not buy," "I don't see any problem in spending over two hours trying on different clothes and not purchasing any," and "I think it's okay to download a movie off of the computer that I did not purchase." The Cronbach's alpha for the modified computed score was found acceptable at 0.94, ensuring the reliability of the combined scale. The computed mean score for the summed variable measuring participants' overall ethical values was 2.98 (*n* = 1199, SD = 11.71),

revealing that, overall, participants held a moderate level of ethical values.

To explore the role of ethical values in Chinese consumers' relation to counterfeit apparel products, a regression analysis was calculated. A significant positive regression equation was found (*F* = 1199) = 442.00, *p* < 0.001, R<sup>2</sup> = 0.27). The unstandardized coefficient value was 0.55, Individual and corporate social responsibility have come to the forefront as the sustainability movement has intensified in today's global apparel supply chain. As it pertains to the manufacturing and sale of counterfeits, it has been consistently reported that counterfeiting poses a global threat to worker and consumer health and safety and creates significant costs for corporations in the protection of intellectual property. Sweatshop-like conditions and the exploitation of workers are rampant in the production of counterfeits. Operations have poor working conditions, often use children as a means of cheap labor, subject workers to psychological and physical abuse, and withhold benefits and wages to workers. In addition to the funding of organized crime and terrorist activities, the revenues generated from the sale of counterfeits are also linked to global drug trafficking [10].

Attempts have been made to counter the supply of counterfeit goods in the global marketplace; examples include the Trademark Counterfeit Act [42], the Agreement on Trade-Related Aspects of Intellectual Property Rights [8, 43, 44], the Innovative Design Protection and Piracy Prevention Act [45], and the Anti-Counterfeiting Trade Agreement, an initiative consisting of member countries including Australia, Canada, member nations of the European Union, Japan, Korea, Mexico, Morocco, New Zealand, Singapore, Switzerland, and the United States [46]. As part of these movements, protecting corporate intellectual property is a significant priority, including copyrights, trademarks, industrial designs, and patents.

However, while industry efforts and legal policies attempt to curb the supply (production and sale) of counterfeits, researchers have reported that the success of these initiatives are compromised so long as the demand of counterfeits among consumers exists [47]. Given that China maintains the largest counterfeit market in the world, examining the societal and individual factors that contribute to the attitudes of counterfeit apparel goods among Chinese consumers is noteworthy. In this way, the purpose of this study was to investigate Chinese consumers' knowledge of apparel counterfeits and the roles of face-saving, materialistic, and ethical values in relation to attitudes toward counterfeit apparel goods.

This study revealed an inverse relationship between participants' knowledge of counterfeits and attitudes toward counterfeits. Simply put, those possessing a greater knowledge of counterfeits held stronger negative attitudes toward counterfeit goods. Up until now, there has been no existing research to indicate the level of Chinese consumers' knowledge of counterfeit apparel products. In this study, the summed mean variable of Chinese consumers' knowledge about counterfeited apparel was discovered to be quite low, meaning that many more actions are needed in further educating Chinese consumers on the negative impacts of producing and selling counterfeits. This, specifically, pertains to an individual's level of social responsibility. The findings of this study are similar to those previously reported [39], stating that Chinese students possessed minimal knowledge of intellectual property rights, which, again, is an important aspect in encouraging individual social responsibility among Chinese consumers. Overall, because participants in this study possessed minimal knowledge of counterfeit apparel goods, educational action on individual social responsibility that is aimed at expanding Chinese consumers' knowledge regarding the unintended social consequences of purchasing counterfeit apparel products has the potential to modify Chinese consumers' demands for and purchasing intentions of counterfeit apparel products.

That is, those who placed a greater importance on face-saving values also were more materialistic in nature. This result is consistent with other studies, which indicated that consumers with stronger face-saving values are more materialistic than those less preoccupied with this

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The data collected as part of this study also revealed that materialistic values do play a significant role in Chinese consumers' relation to counterfeit apparel goods. According to previous research, young adults in China have a very high level of materialism in comparison to other countries [49, 50]. With a concurrent level of strong face-saving values and materialistic values, Chinese consumers possess a greater importance and emphasis on obtaining material objects to showcase their success in life. Previous researchers [31] reported that due to strong materialistic values, Chinese consumers tend to obtain highly recognized Western brand and luxury products (mostly counterfeited) to display their wealth and social status. Existing research has also revealed that Chinese consumers are willing to purchase imitations of famous Western luxury brands that can boost their social status in public [51]. As part of the current project, the findings serve as another confirmation of the strong role and impact of

consumers' levels of materialism on their attitudes toward counterfeit apparel goods.

ethical standards while maintaining positive attitudes toward counterfeit products.

from Legalism, and mercy rooted in Buddhism.

In examining what role do ethical values play in Chinese consumers' relation to counterfeit apparel products, the data revealed a significant positive relationship between participants' ethical values and attitudes toward counterfeit products. This finding indicates that participants who held a moderate level of ethical values still maintained favorable attitudes toward counterfeit apparel goods. It seems that there is a distortion between ethical values and buying counterfeit apparel products among Chinese consumers. This finding is consistent with other research [52], which reported that Malaysian consumers also possessed a high level of

However, these findings are contradictory to previous research [53] that indicated that consumers have lower purchase intentions of counterfeit apparel goods when they hold stronger ethical values. In this study, ethical values did not inversely impact participants' attitudes toward counterfeits. Future research should further explore differences in cultural norms and their impact on the demand and sale of counterfeit apparel goods. In the Chinese cultural tradition, ethical values are a concept that comes from the five traditional conceptions of Confucianism, Maoism, Daoism, Legalism, and Chinese Buddhism. As a result of this, ethical values are not only about behaving legally or morally but also include the concepts of moderation based on Confucianism, social norms taught from Daoism, honesty and honor sourced

Based on the feedback collected from the pretest participants, the original scale measuring ethical values had to be modified before further data could be gathered. Given the results of the pretest, it is plausible that the model developed by previous researchers [30] may not adequately measure the ethical values of Chinese consumers. The original consumer ethics scale [43] included 16 statements. However, given the feedback from pretest participants, five of the 16 statements were removed. These statements included: "I don't see a problem in getting too much change and not saying anything," "I don't see a problem with returning merchandise to a store by claiming that it was a gift when it was not," "I think it is okay to stretch the truth

cultural norm [27, 30, 49].

These findings suggest that luxury and other popular Western apparel firms oftentimes copied and available in the Chinese marketplaces should work in tandem with researchers to enhance the education among Chinese consumers regarding how to discriminate between genuine products and counterfeit products. The most counterfeited fashion brands today include Louis Vuitton, Ray-Ban, Rolex, and Nike. To improve Chinese consumers' narrow understanding of counterfeit products, it is also worthwhile to test effective measures for educating consumers and developing marketing campaigns that include topics such as intellectual property rights, product and worker safety (corporate social responsibility), and individual socially responsible purchase behaviors (individual social responsibility).

Future research should also explore the effectiveness of strengthening digital platforms for Chinese consumers in informing them about counterfeits. This would not only provide supplementary information on social responsibility to consumers in general but also to the many who oftentimes mistakenly purchase counterfeit goods. In fact, such an online communication system already exists on Weibo (Chinese version of Facebook) [48]. As improvements to these websites and other blogs are made, the opportunities for consumers to anonymously report infringements of intellectual property rights and the magnitude of apparel counterfeits witnessed in the Chinese marketplace are reinforced and supported.

In examining what role do face-saving values play in Chinese consumers' relation to counterfeit apparel products, analysis of the data showed a significant positive relationship between participants' levels of face-saving values and their attitudes toward counterfeit apparel products; determining that the role of cultural norms and values may impact an individual's purchasing behavior of counterfeit goods, given lower price points than genuine luxury products. In order to negate the influence of face-saving values in counterfeit purchasing behavior, educating consumers should play a significant role as a cultural agent that promotes a more socially responsible alternative to success and happiness. However, given the history of this cultural norm in China, testing multiple methods for transforming this norm will have to be a focus of further research, which will not be an easy endeavor.

Existing research has shown that consumers with strong face-saving values tend to be more materialistic in nature and associate the ownership and acquisition of material objects and goods as a symbol of success [27, 22]. A post hoc analysis of data collected in this study did reveal a significant positive relationship between face-saving values and materialistic values. That is, those who placed a greater importance on face-saving values also were more materialistic in nature. This result is consistent with other studies, which indicated that consumers with stronger face-saving values are more materialistic than those less preoccupied with this cultural norm [27, 30, 49].

about counterfeited apparel was discovered to be quite low, meaning that many more actions are needed in further educating Chinese consumers on the negative impacts of producing and selling counterfeits. This, specifically, pertains to an individual's level of social responsibility. The findings of this study are similar to those previously reported [39], stating that Chinese students possessed minimal knowledge of intellectual property rights, which, again, is an important aspect in encouraging individual social responsibility among Chinese consumers. Overall, because participants in this study possessed minimal knowledge of counterfeit apparel goods, educational action on individual social responsibility that is aimed at expanding Chinese consumers' knowledge regarding the unintended social consequences of purchasing counterfeit apparel products has the potential to modify Chinese consumers'

These findings suggest that luxury and other popular Western apparel firms oftentimes copied and available in the Chinese marketplaces should work in tandem with researchers to enhance the education among Chinese consumers regarding how to discriminate between genuine products and counterfeit products. The most counterfeited fashion brands today include Louis Vuitton, Ray-Ban, Rolex, and Nike. To improve Chinese consumers' narrow understanding of counterfeit products, it is also worthwhile to test effective measures for educating consumers and developing marketing campaigns that include topics such as intellectual property rights, product and worker safety (corporate social responsibility), and indi-

Future research should also explore the effectiveness of strengthening digital platforms for Chinese consumers in informing them about counterfeits. This would not only provide supplementary information on social responsibility to consumers in general but also to the many who oftentimes mistakenly purchase counterfeit goods. In fact, such an online communication system already exists on Weibo (Chinese version of Facebook) [48]. As improvements to these websites and other blogs are made, the opportunities for consumers to anonymously report infringements of intellectual property rights and the magnitude of apparel counterfeits

In examining what role do face-saving values play in Chinese consumers' relation to counterfeit apparel products, analysis of the data showed a significant positive relationship between participants' levels of face-saving values and their attitudes toward counterfeit apparel products; determining that the role of cultural norms and values may impact an individual's purchasing behavior of counterfeit goods, given lower price points than genuine luxury products. In order to negate the influence of face-saving values in counterfeit purchasing behavior, educating consumers should play a significant role as a cultural agent that promotes a more socially responsible alternative to success and happiness. However, given the history of this cultural norm in China, testing multiple methods for transforming this norm will have to be

Existing research has shown that consumers with strong face-saving values tend to be more materialistic in nature and associate the ownership and acquisition of material objects and goods as a symbol of success [27, 22]. A post hoc analysis of data collected in this study did reveal a significant positive relationship between face-saving values and materialistic values.

demands for and purchasing intentions of counterfeit apparel products.

136 Social Responsibility

vidual socially responsible purchase behaviors (individual social responsibility).

witnessed in the Chinese marketplace are reinforced and supported.

a focus of further research, which will not be an easy endeavor.

The data collected as part of this study also revealed that materialistic values do play a significant role in Chinese consumers' relation to counterfeit apparel goods. According to previous research, young adults in China have a very high level of materialism in comparison to other countries [49, 50]. With a concurrent level of strong face-saving values and materialistic values, Chinese consumers possess a greater importance and emphasis on obtaining material objects to showcase their success in life. Previous researchers [31] reported that due to strong materialistic values, Chinese consumers tend to obtain highly recognized Western brand and luxury products (mostly counterfeited) to display their wealth and social status. Existing research has also revealed that Chinese consumers are willing to purchase imitations of famous Western luxury brands that can boost their social status in public [51]. As part of the current project, the findings serve as another confirmation of the strong role and impact of consumers' levels of materialism on their attitudes toward counterfeit apparel goods.

In examining what role do ethical values play in Chinese consumers' relation to counterfeit apparel products, the data revealed a significant positive relationship between participants' ethical values and attitudes toward counterfeit products. This finding indicates that participants who held a moderate level of ethical values still maintained favorable attitudes toward counterfeit apparel goods. It seems that there is a distortion between ethical values and buying counterfeit apparel products among Chinese consumers. This finding is consistent with other research [52], which reported that Malaysian consumers also possessed a high level of ethical standards while maintaining positive attitudes toward counterfeit products.

However, these findings are contradictory to previous research [53] that indicated that consumers have lower purchase intentions of counterfeit apparel goods when they hold stronger ethical values. In this study, ethical values did not inversely impact participants' attitudes toward counterfeits. Future research should further explore differences in cultural norms and their impact on the demand and sale of counterfeit apparel goods. In the Chinese cultural tradition, ethical values are a concept that comes from the five traditional conceptions of Confucianism, Maoism, Daoism, Legalism, and Chinese Buddhism. As a result of this, ethical values are not only about behaving legally or morally but also include the concepts of moderation based on Confucianism, social norms taught from Daoism, honesty and honor sourced from Legalism, and mercy rooted in Buddhism.

Based on the feedback collected from the pretest participants, the original scale measuring ethical values had to be modified before further data could be gathered. Given the results of the pretest, it is plausible that the model developed by previous researchers [30] may not adequately measure the ethical values of Chinese consumers. The original consumer ethics scale [43] included 16 statements. However, given the feedback from pretest participants, five of the 16 statements were removed. These statements included: "I don't see a problem in getting too much change and not saying anything," "I don't see a problem with returning merchandise to a store by claiming that it was a gift when it was not," "I think it is okay to stretch the truth on an income tax return," "I think it is okay to not tell the truth when negotiating the price of a new automobile," and "I think it is okay to download music that I did not actually purchase." These statements were deemed unsuitable and were difficult to understand among the pretest participants. Pretest participants stated that these statements were not relatable to the people of China. As such, in order to more effectively examine Chinese consumers' ethical values, future researchers should consider developing and testing the applicability and reliability of other scales measuring this variable which is more reflective of the Chinese culture. This research will involve the collection of both qualitative and quantitative data.

corporate responsibility in the fashion industry. The data analysis in this study contributes to academic and industry discussions on corporate social responsibility and remitting the commission to endorsing efforts in anti-counterfeit eradication. The findings of this study are crucial in serving as the foundation of authenticating the topics of socially and ethically responsible education of Chinese consumers, particularly given the current and continued

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[2] LADXMAY. The Scale of China's Clothing Brand Market [Internet]. 2016. Available from: http://www.yifu.net/wap/detail/news\_26497.htm [Accessed: Jul 14, 2016]

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[5] World Bank. GDP Data [Internet]. 2017. Available from: http://data.worldbank.org/indi-

[6] Teah M, Phau I, Huang Y. Devil continues to wear "counterfeit" Prada: A tale of two cit-

[7] United Nations Office on Drugs and Crime. Counterfeit Products [Internet]. 2015. Available from: https://www.unodc.org/documents/data-and-analysis/tocta/8.Counterfeit\_products.

[8] Ha S, Lennon SJ. Purchase intent for fashion counterfeit products: Ethical ideologies, ethical judgements, and perceived risks. Clothing and Textiles Research Journal. 2006;**24**:

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growth of the spending power of consumers in China.

\* and Shuyi Huang2 \*Address all correspondence to: jkozar@ksu.edu

1 Kansas State University, Manhattan, Kansas, USA 2 University of Missouri, Columbia, Missouri, USA

**Author details**

Joy M. Kozar<sup>1</sup>

**References**

2016]

pdf

297-315

Another possible reason for the finding that ethical values are positively related to attitudes of counterfeit goods is that participants, overall, lacked an understanding of the negative consequences of buying counterfeit goods. This result opens an opportunity for further research, investigating the reasons why Chinese consumers do not feel unethical when purchasing counterfeit apparel products. Is it simply because Chinese consumers lack a basic understanding of the negative impacts of the production, distribution, and consumption of counterfeits? An advanced understanding about this would also aid in fostering greater individual social responsibility among consumers in China as it relates to the demand of counterfeits in the marketplace. In order to emphasize individual social responsibility, more effective tools for educating consumers on the destructiveness of counterfeits are warranted. Previous studies have suggested anti-counterfeit education as a potential means in reversing the demand of counterfeit goods [8, 42, 47], but a lack of empirical evidence on this topic currently exists.
