PART 3

2.0 RESEARCH FRAMEWORK OF THE STUDY

Based on the article, the researcher concentrates on research framework that can be identified
consumers purchasing behaviour of pirated products. This framework emphasizes those
independent variables like Personality/Believe, Social Influences, Economic and Pricing.
These are the factor that could influence consumers perception on pirated product which is
supported for dependent variable. The detailed diagram framework is given below:

1. Social Influence
Social influences have a major influence on consumers decision making. Pirated
products provide great cost saving to consumers although some compromise in quality
and the perceived high value. The moral was included magnitude of consequences, social
consensus and moral judgment of consumer which will affect consumers ethical
decision in purchasing pirated product.
The study viewed that the social factors as the roles, standards and values of the society
that influences an individuals intention to pirate software. The standards and values can
be conveyed from comments, suggestions or indications by friends, colleagues, and
family members who are all examples of social factors.
Malaysia government had implemented the regulations and imposed about continuous
effect for these harmful activities but the demands of pirated are still in the welcome
trend and can be found at everywhere such as night market and shopping complex. This

could be a red alarm to the manufacturer of the genuine product and the government.
There is a curious on why the consumers still prefer in purchase the counterfeit good
even it bring lots of negative impacts.
2. Personality or Believe
Personality can be defined who has psychological characteristic that can be determine
and reflect how he or she responds towards the environment. Among the factors that
influence personality are value consciousness, personal gratification and enjoy the thing
in life.
The study also shows that consumers who buy pirated version product do not buy the
products for its quality but its functionality. Most consumers want to know the best things
about a product before making any purchase. The solution is to buy a pirated version before
buying the original product. Due to this, manufacturer should consider this situation where
consumers actually want to experience the products before making any purchases.
Manufacturers can consider producing a trial version which is originally authorized by
manufacturer.

The most popular pirated goods are entertainment products. This would include selling of
the pirated copies of video CDs (VCDs) and CDs and they have been the most targeted
in police since piracy is intellectual property rights (IPR) infringement and this was a
legal issue where the musicians have also embarked to solve this problem. Music and
video recordings has been rated the highest pirated products sold. Musicians complain
that they spend so much money to do the recording of their songs but in return they get
little or nothing. Piracy of musical CD is so bad that about 25 songs of a musician can be
compiled in one CD and sold at a very cheap rate since consumers are price sensitive
they go for the pirated copy and in most cases consumers are aware that they are
purchasing pirated musical CD as piracy but doesnt bother in the case of counterfeiting.

3. Economic Influence

According to the article, economic influence has a positive relationship in the buying
behavior of piracy products. This is because the economy situation affects consumer
purchasing power. It further explained that when piracy is not severe, a developer's
trustworthiness decreases the optimal quality and increases price and profit, but where
piracy is prevalent; it no longer provides any advantage in pricing or profitability, even
though trustworthiness continues to allow the company to lower the product quality.
Hence, it stated that the economy from the marketers and country perspective are
associated with countries and companies economy. This study showed that product
economy has a significant impact on consumer perception about piracy and pirated
product. Besides, piracy activities also destroy the potential of genuine local industries
and local performers. This is because each successful products or recording are more
open to the threats of piracy. Furthermore, this is not only a lost to genuine sale by an
individual but also a loss of investment and a loss to the home countrys economy.
4. Pricing
The article also stated that pricing has a positive relationship in consumer perception
about pirated products since selling and buying of pirated products not only depends on
sales, purchase price, but also on availability and morality. The choice of the pirated
product is often connected with purchasing a new end-user, for example, consumers
consider the cheaper price with similar function of the pirated product. Moreover, the
positive relationship also might due to consumer prefer the pirated product because of the
monetary value of the product. Although they might not classified the products pirates as
products of good quality, but it frequently justified by the monetary value of the
product. The consumer also might be attracted to the availability of these pirated products
in various locations, the easy access that makes the shopping easier and convenient.
Hence, it can conclude that price has significant positive impact on consumer perception
about the piracy.