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Consumers Attitude towardCounterfeit Automotive Parts

Dimas Perdana Oskar

PT Ultrajaya Milk Industry Tbk.

April 2012

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Background

Counterfeit and pirated goods are nowproduced on industrial scale and becoming aworldwide problem. In most cases,

counterfeiters distribute high volume partsthat automotive service centers install everyday.

Some of the most commonly counterfeitedautomotive parts are fast moving spare partssuch as oil, spark plug, and air filters, or eventhe brake pads, shock absorbers, wheel

covers, and batteries.

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Background

Automotive counterfeiting is bigbusiness, where the total impactautomotive parts counterfeiting haveon the automotive industry is estimatedto be $16 billions per year in globalbusiness by automotive parts suppliers

(www.havocscope.com, 2010).

http://www.havocscope.com/http://www.havocscope.com/http://www.havocscope.com/http://www.havocscope.com/http://www.havocscope.com/http://www.havocscope.com/

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Background

According to GIAMM (GabunganIndustri Alat-alat Mobil dan Motor) datathat are released in 2007, Indonesianautomotive parts market values areUS$ 4 billions and GIAMM memberscould supply around 40 % to themarket. The rest are imported product

from China, Thailand, South Korea, andeven local suppliers that are notbelonging to GIAMM members.

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Background

As the automotive increase, theautomotive parts demand will increasetoo. It creates space for the othersupplier, including the counterfeiters,to fulfill the market demand. Moreover,the most of the consumers still have no

knowledge about the products.

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Counterfeiting

According to OECD in 1998 (OECDReport, 2007)

counterfeiting is manufacturing of aproduct which copies or imitates the

physical appearance of an originalproduct to mislead the consumers thatthis is the product of another.

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Problem Formulation

This research was inspired by thenumerous vendor or workshop in thestreet that supply some counterfeitautomotive parts.

The issue remains as to why consumersbuy counterfeit automotive parts eventhough they are aware or not that theseproducts are of lower quality.

So the question addressed in this study is:how is the consumers attitude and theconsumers behavioral intention towardcounterfeit automotive parts?

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Objectives of this study

1. To know the consumers attitudetoward the counterfeit automotivepartsproducts and,

2. To identify the consumers behaviorintention toward the counterfeitautomotive parts.

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Benefit of the Research

The supplier of the automotive parts. Asan information for the store or workshopinventories in supplying automotive parts,whether more original parts or morecounterfeit ones.

Enhance the researchers insight aboutthe consumers attitude andcounterfeiting.

The third parties in giving a broaderunderstanding about the consumersattitude and the world of counterfeiting.

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Scope of the Research

This research took the sample of thepeople in Jogjakarta.

The participants were the people who

have vehicle (motor bike or car) inunauthorized workshop and unauthorizedautomotive partsstore

The amount of samples taken in thisresearch was 500.

This research was held from August 1st,2010 until August 10th, 2010.

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Findings

The factor analysis suggests us several majorreasons for the consumers attitude towardcounterfeit automotive parts:

1. Influencer

Spouse/close

Seller - Mechanics

Habit

2. Factor

Price - Range of Quality

Product guarantee

Threatened life-safety - Beliefs

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Findings

There are 94.5 percents of therespondents have negative attitudetoward using or buying the counterfeitautomotive parts. It is paradoxal withthe fact that there are a lot ofcounterfeit automotive parts in the

street.

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Implication

For the marketers and manufacturers ofgenuine products, the findings can serveas a reference in developing bettermarketing strategies to entice the

consumers to purchase genuine productsand not the counterfeit version.

Knowing that attitude plays a role in

determining the purchase intention of acustomer, manufacturers and marketerscan work on finding ways to changeconsumersattitudes and beliefs.

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Thank you