CHAPTER III RESEARCH METHODOLOGY

This chapter is aimed to give a valid and reliable basic in processing the data. It is important to be explained, because the data refer to respondents perception that is probably impacted on bias information because of their condition when they are surveyed. Therefore, this data must be tested to make assurance the validity and reliability aspect. So, the information can be trustworthy on methodological aspects. There are four topics that will be explained. There are study scope, sampling and data collection method, operational definition and research instrumental measurement, and data analysis method. The explanation of each topic will be explained below.

3.1

Study Scope This study is categorized as applied research. It is aimed to give an insight to

design the strategy to against counterfeit product. Therefore, this study is expected to give an understanding about the consumer attitudes toward counterfeit product. The data in this study is cross sectional. It means that the data is collected through direct interview on one point in time event. Consequently, the constructed model cannot accommodate the change of the phenomenon in the future because of the time progression. Therefore, to generalize this study into different context, it is important to redesign the model into new setting that will be observed. In this study, the data is collected through survey method that is guided by

22

23

questionnaire. This method is suppose to impact on the bias perception that is caused by various personal value and understanding. So, it needs reliability and validity tests to reduce this problem.

3.2

Data Collection and Sample Population of this study is consumer who has intention to buy a counterfeit

product. The data is collected by using purposive sampling method1. This method is used because the chosen sample must understand about the research problems. So, there are some requirements that must be fulfilled by applicant of respondents: 1. Respondents must have intention to buy the counterfeit bag product 2. Respondents never bought the counterfeit bag product yet These requirements are needed in this study to avoid the respond biases that may caused by respondent misunderstanding related to the questionnaire that must be answered. The data are collected through direct interview that is guided by questionnaire toward 200 respondents. This quota size is considered to represent of the counterfeit bag products consumer. Furthermore, it also fulfilled the minimum criteria of statistical tool that was used in this study.

Purposive sampling method is a kind of information collecting method that was collected from members of population group representatively (see Sekaran, 2006).

24

3.3 1.

Operational Definition and Research Instrumental Measurement Price Quality Inference Price quality inference is related to the consumer perception about the

relationship between price of product and the quality of product which the higher price of product, the higher quality of product (Tellis and Gaeth, 1990; Gelb, 2010). This indicators is measured by likert scale that ranged from 1= very disagree until 5= very agree. The indicators of this variable are : Comparison between price and quality Price as indicator of quality Spending more money for the best product You get what you pay for

2.

Perceived Risk The concept of perceived risk is related to the consumers perceptions of the

uncertainty and adverse consequences of buying a product or service (Dowling and Staelin, 1994). This indicators is measured by likert scale that ranged from 1= very disagree until 5= very agree. The indicators of this variable are : High risk of counterfeit product Counterfeit product has high probability of malfunction Spending money with counterfeit product is a bad decision

3.

Integrity

25

Integrity is related to the consumers who have lower ethical standards are expected to feel less guilty when buying a counterfeit (Ang et al., 2001). This indicators is measured by likert scale that ranged from 1= very disagree until 5= very agree. Following is the indicators of this variable : Value of honesty Value of politeness Value of responsibility Value of self control

4.

Personal Gratification Personal gratification concerns the need for a sense of accomplishment, social

recognition, and to enjoy the finer things in life (Ang et.al, 2001). This indicators is measured by likert scale that ranged from 1= very disagree until 5= very agree. Following is the indicators of this variable : Sense of accomplishment Comfortable life Exciting Life

5.

Subective Norm Regarding counterfeit, friends and relatives may act as inhibitors or contributors

to the consumption, depending on how much this behavior is approved by them (Matos et.al, 2007). This indicators is measured by likert scale that ranged from 1=

26

very disagree until 5= very agree. Following is the indicators of this variable : 6. Approval from relatives and friends about counterfeit product Recommendation from relatives and friends to use counterfeit product Status Consumption Status consumption is for consumers who are seeking self satisfaction as well as to display their prestige and status to surrounding others usually through visible evidence (Eastman et al., 1997). This indicators is measured by likert scale that ranged from 1= very disagree until 5= very agree. The indicators of this variable are : Interest of product with status Buying product just because it has status Pay more for product if it has status Snob appeal of product

7.

Consumer Attitudes Toward Counterfeit Product This mediator variable is related to the consumer who willing to pay for the

visual attributes and functions without paying for the associate quality (Grossman and Shapiro, 1988; Cordell et al., 1996). This indicators is measured by likert scale that ranged from 1= very disagree until 5= very agree. The indicators of this variable are : Preference to buy counterfeit product because the price Preference to buy counterfeit product Benefit of counterfeit product

27

Counterfeit product is not illegal Counterfeit product is a better choice

8.

Behavioral Intention This factor is an indication of an individual's readiness to perform a given

behavior. It is assumed to be an immediate antecedent of behavior (Ajzen, 2002b) This indicators is measured by likert scale that ranged from 1= very disagree until 5= very agree. Following is the indicators of this variable : Probability to prefer counterfeit product Probability to buy counterfeit product Probablity to recommend friends and relatives to buy counterfeit product Probability to say favorable things about counterfeited products

3.4

Data Analysis Method

1. Descriptive Analysis Descriptive analysis of sample is aimed to make a profile of respondents that is used
as background factor in this study. It used to generalize the result on population contact. So, to apply this study into different background factor, it is needed to look on the demographic factor that can influence the model.

2. Statistical Test Statistical test were first step to make assertion of the data. It is contained of three tests there are; (1) validity test, (2) reliability test, and (3) regression. The explanations of each paragraph are stated as follow.

28

a. Validity Test Validity test aimed to know the accuracy and precision of measurement tool in measuring the variable. In validity test each indicants were examined related to the relationship. So the indicants that have small loading, that cannot explain the construct, were eliminated to data result. In this study, validity test used confirmatory factor analysis that was processed by SPSS for Windows, when each question item require loading factor higher than 4,0. Validity test was analyzed by comparing the factor loading value in component matrix. The bigger value of component question items, the bigger correlation of total score construct. This decision was based on significant rate > 0.40 (see Hair et.al., 1998) b. Reliability Test In reliability test consistency of indicants were tested. So, the higher correlation the higher consistency of the indicants. It was considered as a relevant procedure to measure the instrument research. Reliability was measured by Cronbach Alpha that reliable at range higher than 0.7 (Ferdinand, 2002). Therefore, it was hoped that reliability procedure could make assurance of data accuracy and feasibility when it is being tested by another statistical analysis.

3.

Structural Equation Modelling Analysis

29

Structural Equation Model Analysis aimed to estimate the multiple regression equation separately, but each has ties simultaneously or concurrently. In this analysis it is possible there is more than one dependent variable, and this variable becomes possible independent variables for the other dependent variables. In principle, the structural model aims to test the causative relationship between variables, so if one of the variable changed will be changes in other variables as well. In this study, data were processed using Analysis of Moment Stucture software or AMOS version 16. In this study, the approach used to test the structural model is Multigroup Structural Equation Model (MSEM) considered by previous study measurement (Byrne, 2001; Matos et.al, 2007). This approach was used to test the structural model to different groups simultaneously. The difference between groups can be evaluated based on the goodness-of-fit model suggested on the following criteria: a. Chi Square: The purpose of this analysis is to develop and test a model that fits the data. X2 data test with low value and generate a greater level of significance than 0.05 would indicate no significant difference between the estimated covariance matrix. Chi square test is highly sensitive to the very small sample or very big sample. Therefore, these tests need to be equipped with the test equipment. b. Goodness of Fit Index (GFI)

30

This index reflects the level of overall model fit, calculated from the residual squares of the model that predicted compared to actual data. The value result that approaching 1 implies that the model tested had goodness of fit. c. Root Mean Square Error of Approximation (RMSEA) RMSEA is an index used to measure the model fit chi square statistic to replace the large number of samples. RMSEA values 0.08 indicate a good index to receive the fitness of a model. d. Adjusted Goodness of Fit Index (AGFI) This index is a development of GFI that adjusted for the ratio of the degree of freedom model proposed by degree of freedom from the null model (single construct model with all indicators of construct measurement.) The recommended value is AGFI 0.90. The greater the value of AGFI, the better fitness owned by the model. e. Trucker Lewis Index (TLI) TLI is an incremental fit index that compares the tested model with the null model. Recommended acceptance of the value is the value of TLI 0.95. f. Normed Fit Index (NFI) NFI is an incremental fit index that compares the tested model with the null model. Recommended acceptance of the value is the value of NFI 0.90. g. Comparative Fit Index (CFI) CFI is also an incremental fit index. The size of this index is in range 0 to 1, and values result that approaching 1 indicates the model has a good level of

31

fitness models. This index is highly recommended to be used for this index is relatively insensitive to sample size and less influenced by the complexity of the model. The recommended value of receipts is CFI 0.90. h. Normed chi square (CMIN/DF) Cmin / DF is a measure of the value of chi square divided by degree of freedom. This index is a parsimonious fit index that measures the relationship goodness of fit model and the amounts estimated coefficients that are expected to reach the level of fitness. Value result that recommended to receive the suitability model is Cmin / DF <2.0 / 3.0.