Consumers Attitude toward Counterfeit Automotive Parts

Dimas Perdana Oskar PT Ultrajaya Milk Industry Tbk. April 2012

Background

Counterfeit and pirated goods are now produced on industrial scale and becoming a worldwide problem. In most cases, counterfeiters distribute high volume parts that automotive service centers install every day. Some of the most commonly counterfeited automotive parts are fast moving spare parts such as oil, spark plug, and air filters, or even the brake pads, shock absorbers, wheel covers, and batteries.

Background

Automotive counterfeiting is big business, where the total impact automotive parts counterfeiting have on the automotive industry is estimated to be $16 billions per year in global business by automotive parts suppliers (www.havocscope.com, 2010).

Background

According to GIAMM (Gabungan Industri Alat-alat Mobil dan Motor) data that are released in 2007, Indonesian automotive parts market values are US$ 4 billions and GIAMM members could supply around 40 % to the market. The rest are imported product from China, Thailand, South Korea, and even local suppliers that are not belonging to GIAMM members.

Background

As the automotive increase, the automotive parts demand will increase too. It creates space for the other supplier, including the counterfeiters, to fulfill the market demand. Moreover, the most of the consumers still have no knowledge about the products.

Counterfeiting

According to OECD in 1998 (OECD Report, 2007)

counterfeiting is manufacturing of a product which copies or imitates the physical appearance of an original product to mislead the consumers that this is the product of another.

Problem Formulation

This research was inspired by the numerous vendor or workshop in the street that supply some counterfeit automotive parts. The issue remains as to why consumers buy counterfeit automotive parts even though they are aware or not that these products are of lower quality. So the question addressed in this study is: how is the consumers attitude and the consumers behavioral intention toward counterfeit automotive parts?

Objectives of this study

1.

2.

To know the consumers attitude toward the counterfeit automotive parts products and, To identify the consumers behavior intention toward the counterfeit automotive parts.

Benefit of the Research

The supplier of the automotive parts. As an information for the store or workshop inventories in supplying automotive parts, whether more original parts or more counterfeit ones. Enhance the researchers insight about the consumers attitude and counterfeiting. The third parties in giving a broader understanding about the consumers attitude and the world of counterfeiting.

Scope of the Research

This research took the sample of the people in Jogjakarta. The participants were the people who have vehicle (motor bike or car) in unauthorized workshop and unauthorized automotive parts store The amount of samples taken in this research was 500. This research was held from August 1st, 2010 until August 10th, 2010.

Findings

The factor analysis suggests us several major reasons for the consumers attitude toward counterfeit automotive parts: 1. Influencer Spouse/close Seller - Mechanics Habit 2. Factor Price - Range of Quality Product guarantee Threatened life-safety - Beliefs

Findings

There are 94.5 percents of the respondents have negative attitude toward using or buying the counterfeit automotive parts. It is paradoxal with the fact that there are a lot of counterfeit automotive parts in the street.

Implication

For the marketers and manufacturers of genuine products, the findings can serve as a reference in developing better marketing strategies to entice the consumers to purchase genuine products and not the counterfeit version. Knowing that attitude plays a role in determining the purchase intention of a customer, manufacturers and marketers can work on finding ways to change consumers attitudes and beliefs.

Thank you