**3. Research findings**

## **3.1. Description of sample**

A total of 1339 participants completed the questionnaire. There were 97 participants who did not qualify for the study because they did not meet the qualifying criteria (age range or city of residence). A total of 43 participants only partially finished the survey or provided the same response for all questions. As a result, a total of 1199 participants qualified for this study.

The participants resided in Guangzhou, Shanghai, Chengdu, and Wuhan, China, with a combined share of two-thirds of the total Chinese retail marketplace. The participants for this study were 61.92% (*n* = 741) females and 38.09% (*n* = 458) males with ages of all participants ranging from 18 to 64. Participants between the ages 18–29 years represented over half of the sample with 66.24% (*n* = 793); the second largest age group (30–39) represented 23.39% (*n* = 280) of participants. A quarter of the participants, 25.89% (*n* = 310), earned an income level of more than 900 USD (¥ = 6120) monthly. The second largest group of participants, (16.04%, *n* = 192) reportedly earned between 318 USD and 441 USD (¥ = 2000–3000`) monthly. The educational level of participants ranged from receiving a high school diploma to earning a Ph.D., with the majority of the participants, 80.25%, (*n* = 960), having either taken college courses or completed an undergraduate bachelor's degree. The monthly reported spending on new clothes and accessories among participants ranged from less than 50 USD (¥ = 300) to more than 160 USD (¥ = 1000).

#### **3.2. Research Question 1**

**Research Question 1**: Is there a difference of knowledge and attitudes of Chinese consumers toward apparel counterfeits?

To further examine this research question, a scale used to assess participants' knowledge of counterfeit apparel products, originally developed and tested by previous researchers [14, 39], was utilized. The scale included a total of seven statements, examples include: "I am very confident about my ability to tell the difference in quality among counterfeit apparel products versus non-counterfeit apparel products," "I am familiar with efforts to stop counterfeit apparel," and "I feel very knowledgeable about counterfeit apparel." The reliability of the computed variable to assess participants' knowledge of counterfeit apparel goods was acceptable (*a* = 0.89). The summed mean score for this measure was 2.28 (*n* = 1199, SD = 5.10), indicating that overall, participants held very low levels of knowledge of counterfeit apparel products.

The scale measuring Chinese consumers' attitudes toward counterfeit apparel products was also adopted by other researchers [14, 39, 40]. Three statements were used to analyze this variable, including: "I would buy a counterfeit apparel product if no one could tell it was a counterfeit," "I am a smart consumer because I own a counterfeit apparel product," and "I like counterfeit apparel." To test the reliability of the computed variable, the Cronbach's alpha was acceptable at 0.84. The computed mean score for the summed variable was 2.86 (*n* = 1199, SD = 3.47), meaning that participants were mostly unsure regarding their attitudes toward counterfeit apparel products.

Regression analysis was used to examine the difference of knowledge and attitudes of Chinese consumers toward apparel counterfeits. The analysis revealed a significant inverse relationship between knowledge and attitudes (F (1,199) = 206.53, *p* < 0.001, R<sup>2</sup> = 0.15). The unstandardized coefficient was −0.61, indicating that for every increase in knowledge about counterfeits, the mean of attitudes toward counterfeits decreased by 0.61. These results indicate that participants more knowledgeable about counterfeit apparel products held more negative attitudes toward the use and purchase of counterfeit apparel products.

#### **3.3. Research Question 2**

for more than 16,000 businesses and 1200 higher education institutions. SOJUMP distributed the questionnaire to the sample population by either a paper copy or through an online Qualtrics survey link. A total of 750 individuals without Internet access were mailed the paper version; another 750 received the link to the questionnaire. Prior to data collection, it was confirmed that SOJUMP had the capacity to distribute the questionnaire in Mandarin characters to participants. Only participants from Shanghai, Guangzhou, Wuhan, and Chengdu, between the ages of 18

A total of 1339 participants completed the questionnaire. There were 97 participants who did not qualify for the study because they did not meet the qualifying criteria (age range or city of residence). A total of 43 participants only partially finished the survey or provided the same response for all questions. As a result, a total of 1199 participants qualified for this

The participants resided in Guangzhou, Shanghai, Chengdu, and Wuhan, China, with a combined share of two-thirds of the total Chinese retail marketplace. The participants for this study were 61.92% (*n* = 741) females and 38.09% (*n* = 458) males with ages of all participants ranging from 18 to 64. Participants between the ages 18–29 years represented over half of the sample with 66.24% (*n* = 793); the second largest age group (30–39) represented 23.39% (*n* = 280) of participants. A quarter of the participants, 25.89% (*n* = 310), earned an income level of more than 900 USD (¥ = 6120) monthly. The second largest group of participants, (16.04%, *n* = 192) reportedly earned between 318 USD and 441 USD (¥ = 2000–3000`) monthly. The educational level of participants ranged from receiving a high school diploma to earning a Ph.D., with the majority of the participants, 80.25%, (*n* = 960), having either taken college courses or completed an undergraduate bachelor's degree. The monthly reported spending on new clothes and accessories among participants ranged from less than 50 USD (¥ = 300)

**Research Question 1**: Is there a difference of knowledge and attitudes of Chinese consumers

To further examine this research question, a scale used to assess participants' knowledge of counterfeit apparel products, originally developed and tested by previous researchers [14, 39], was utilized. The scale included a total of seven statements, examples include: "I am very confident about my ability to tell the difference in quality among counterfeit apparel products versus non-counterfeit apparel products," "I am familiar with efforts to stop counterfeit apparel," and "I feel very knowledgeable about counterfeit apparel." The reliability of

and 64, were sought.

132 Social Responsibility

study.

**3. Research findings**

**3.1. Description of sample**

to more than 160 USD (¥ = 1000).

**3.2. Research Question 1**

toward apparel counterfeits?

**Research Question 2:** What role do face-saving values play in Chinese consumers' relation to counterfeit apparel products?

The scale used to measure participants' face-saving values was originally developed and tested as a reliable measure [22]. A total of four statements were used in computing the combined variable; these included: "I am concerned with protecting my personal pride," "I am concerned with protecting my self-image," "I am concerned with not bringing shame to myself," and "I am concerned with not appearing weak in front of other people." The value of Cronbach's alpha for the computed variable measuring participants' levels of face-saving values was acceptable at 0.82. The computed mean score for the summed variable was 4.02 (*n* = 1199, SD = 2.60), meaning that participants, overall, held strong feelings related to their face-saving values.

Regression analysis was used to explore the role of face-saving values among Chinese consumers in relation to counterfeit apparel products. A significant positive regression equation was found (*F* (1199) = 150.60, *p* < 0.001, R<sup>2</sup> = 0.11), indicating that participants' levels of facesaving values and attitudes toward counterfeit apparel brands existed. The unstandardized coefficient value was 0.59, which showed that for every increase in the level of face-saving values, the mean of attitudes toward counterfeit apparel brands increased by 0.59, revealing that participants in this study who placed greater emphasis on their face-saving values held more positive attitudes of counterfeit apparel products.

#### **3.4. Research Question 3**

**Research Question 3:** What role do materialistic values play in Chinese consumers' relation to counterfeit apparel products?

which indicated that for every increase in the level of ethical values, the mean of attitudes toward counterfeit apparel products increased by 0.55. This revealed an interesting correlation between participants' levels of ethical values and their attitudes toward counterfeit apparel products. This finding contradicts previously reported results, such that consumers residing in other countries with higher ethical values hold lower attitudes regarding the purchase and consumption of counterfeit goods. This differing finding is further discussed in the

Examining Chinese Consumers' Knowledge, Face-Saving, Materialistic, and Ethical Values…

http://dx.doi.org/10.5772/intechopen.76714

135

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

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

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 val-

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

priority, including copyrights, trademarks, industrial designs, and patents.

counterfeits are also linked to global drug trafficking [10].

ues in relation to attitudes toward counterfeit apparel goods.

next section.

**4. Implications**

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, showed a high level of materialism.

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 materialism held stronger attitudes toward counterfeit goods.

#### **3.5. Research Question 4**

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

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, which indicated that for every increase in the level of ethical values, the mean of attitudes toward counterfeit apparel products increased by 0.55. This revealed an interesting correlation between participants' levels of ethical values and their attitudes toward counterfeit apparel products. This finding contradicts previously reported results, such that consumers residing in other countries with higher ethical values hold lower attitudes regarding the purchase and consumption of counterfeit goods. This differing finding is further discussed in the next section.
