Consumer Perceptions of Counterfeit

Cosmetic Products Attributes with

Compulsive Internet Use as a Moderator

Submitted to: Prof. Dr Haroon Hafeez

Institute of Management Sciences

Bahauddin Zakariya University, Multan

Submitted By
• Ramsha Khalid MBBE-20-06
• Rameen Awais MBBE-20-13
• Sumayya Mustafai MBBE-20-16
• Angelina John MBBE-20-08
 CONSUMER PERCEPTIONS OF COUNTERFEIT COSMETIC
PRODUCTS ATTRIBUTES WITH COMPULSIVE INTERNET
USE AS A MODERATOR

INTRODUCTION:
Counterfeit cosmetics are replicas of original branded products that have the same color, design,
packaging, and hold the same logo, (Wilcox, Kim and Sen, 2009) causing the real businesses'
reputation to suffer and the economy to lose billions of dollars each year. Despite huge
investments in anti-counterfeiting initiatives at the administration, institutional, and original
producer levels, counterfeit items account for a large and growing proportion of global
consumers. It is critical to understand what motivates customers to purchase counterfeit cosmetic
products in order to understand the causes for this increase and to put a stop to counterfeit
consumption.
Existing research, particularly in luxury contexts, focuses on the significance of a cosmetics
brand's symbolic value in counterfeit consumption while disregarding the reality that brand
usage might build communal-brand ties. As a result, this paper adds to the body of knowledge on
counterfeit usage of cosmetics in a luxury environment. Organizations, marketing teams, and
policymakers have recognized the importance of counterfeit purchase intention of cosmetics as a
result of the internet in the digital revolution period (Statista, 2021). They have acquired
compulsive internet usage (CIU) and poor control over excessive use of social networking
services (SNSs) or other apps with obsessive characteristics. Furthermore, the sudden rise in
consumerism and impulsive purchases of premium goods of cosmetics has become the focal
point for millennials. Scholars have verified that material items or services constitute a distinct
personality feature of materialistic persons (Belk, 1988; Sirgy et al., 2021). Previous study has
demonstrated that CIU can enhance people's impulsiveness and discontent with life as a result of
upward comparison, and as a result, they may desire to satisfy their materialistic desires (Lee et
al. (2014). Personality is thought to be substantially connected with intents, which is a reasonable
predictor of purchase of cosmetics (Ajzen and Fishbein, 1980). Individual and interpersonal level
elements will influence behavioral intentions. In the context of this study, consumer evaluation
of counterfeits will be a significant predictor of his/her desire to purchase a cosmetics brand of
counterfeit, as well as how much agreement he/she obtains from his/her reference group about
this conduct.
LITERATURE REVIEW:
The value of "flow" has been highlighted in the literature (Lu et al., 2009). Huang (2016)
defined "flow" as an optimal experience in which people are so immersed in an activity that they
have lost interest in anything else. In the S-commerce context, "flow" refers to a temporary state
of total control, absorption, and enjoyment experienced by online users who participate in
impulsive online purchases via SNSs (Baron and Kenny, 1986; Calvo-Porral et al., 2017;
Ciarrochi et al., 2016; Liu et al., 2016).
The study confirmed that the flow of experience facilitates exploratory customer behavior,
causing online customers to spend more time searching for necessary goods or services on
certain SNSs or websites and various online media. People who have strong materialist and
novelty-seeking values are more addicted to SNSs than individuals who have lower levels of
these tendencies. The literature has extensively examined the influence of flow in s-commerce
(i.e., SNSs and web browsing) and concludes that it plays an important role in creating continued
purchase intention (Liu et al., 2016), user satisfaction (Thaichon and Quach, 2016; Zhou and
Lu, 2011), and SNS or website evaluation. As a result, previous study reveals that materialistic
people may be ready to purchase counterfeit goods because they regard material possession as a
source of pride as a manner of expressing their achievement (Davidson et al., 2017); as a result,
are more likely to buy counterfeit goods rather than pay the original brand's actual pricing.

The object and social psychological inputs that are most significant to counterfeit consumption
are identified using cue utilization theory (Olson and Jacoby, 1972). Consumers rely on
information that is readily available to them before making a purchase, according to the cue use
theory. By viewing this information as traits, they can make a judgement and try to overcome
their uncertainties (Moon et al., 2017). Social qualities are related to social psychological
stimuli, whereas cognitive and emotional attributes are related to object stimuli (Moon et al.,
2017). Cognitive qualities refer to a product's usefulness, and customers utilize them as cognitive
cues while making decisions. Cognitive qualities refer to a product's usefulness, and customers
utilize them as cognitive cues while making decisions. Consumer-oriented cognitive qualities of
a product include the consumer's prior experience with a brand/product or understanding about
the product and its functionality. As a result, experience and product knowledge are considered
cognitive qualities in the context of counterfeit consumption.
The organism is described by three emotional states in the first S-O-R model (Mehrabian and
Russell, 1974): pleasure, arousal, and dominance (PAD). Due of the limited scope of PAD
dimensions, literature has proposed a number of alternative constructs linked to internal states.
Due of the limited scope of PAD dimensions, literature has proposed several alternative
constructs linked to internal states. We only include two components of the organism: cognition
and affect, according to Eroglu et al(2001).'s categorization of internal states. As suggested by
the research, attitude scales are used to reflect and operationalize internal states of cognition and
affect (Fiore and Kim, 2007). We operationalize attitude using a bi-dimensional method,
categorizing it as either hedonic or utilitarian.
The current study intends to evaluate the impact of prior experience and product knowledge on
two aspects of attitude: utilitarian and hedonic, as well as intents to buy counterfeit products,
based on the theoretical considerations indicated above.
PROBLEM STTATEMENT:
Counterfeiting has become a significant economic threat that is pervasive and universal
(Zampetakis, 2014). Counterfeit products are the replica of original branded products, which
have same color, design, packaging and they contain the same logo and/or trademark (Wilcox,
Kim and Sen, 2009). Counterfeiting has dented almost all industries and product categories
worldwide with a net worth of $600bn (OECD/EUIPO, 2016). Apparel industry ranks No. 1
amongst these industries, resulting in loss of reputation to the original brands and billions of
dollars to the economy annually.
According to theory, when exposed to certain stimulus, one forms an attitude about a certain
thing. This attitude, along with other factors, directly shape the consumer’s intention towards a
certain action. These stimuli can either be internal or external. Internal stimulus result from one’s
internal motivation. A variety of factors, such as the personality traits and beliefs that one as
about a certain thing. External factors account for the motivational factors in the outside world
such as cultural values and external information that a person is exposed to.
With the imperativeness of counterfeiting buying intention being established. It is important to
understand the antecedents of counterfeiting purchase intention. It is imperative to account for
internal and external stimulus that play a decisive part in determining the consumer’s intention to
choose greener alternatives. Additionally, no prior research has focused on both the internal and
external stimulus in one single framework.
Research on counterfeit product’s purchase has a paucity of sound theoretical backing. The
theory of planned behavior (TPB) and theory of reasoned action (TRA) are two attitude-behavior
models, mostly employed in previous counterfeit products consumption studies (e.g. Amaral and
Loken, 2016; Bian et al., 2016). TRA states that consumer behavior is predicted by consumer
intentions that are functions of consumer’s attitude and subjective norms (Ajzen and Fishbein,
1980). TPB extends TRA by adding perceived behavioral control as a predictor of intentions and
behavior (Ajzen and Fishbein, 2005). Both these models only address the cognitive side of
consumer’s decision making, assuming that the consumers’ are rational in their decision-making
process.
Various researchers (e.g. Nejad et al. 2004) criticize these theories and suggest that affective and
social psychological variables should be used as an extension of these approaches. Researchers
(e.g. Moon et al., 2017) suggested that stimulus-organism-response (S-O-R) model (Mehrabian
and Russell, 1974) enables researchers to better scrutinize cognitive, affective and social
psychological influences on behavior. Furthermore, in counterfeit consumption research, there is
an inconsistency between the relationship of attitude and intentions of counterfeit purchase.
Consumers’ favorable or unfavorable attitude does not necessarily constitute positive or negative
counterfeit purchase intentions (Chiu and Leng, 2016). This gap is known as the attitude-
behavior gap in the literature (Boulstridge and Carrigan, 2000). To overcome this inconsistency,
in line with, we employ a bi-dimensional approach to attitude and operationalize attitude as
either utilitarian or hedonic. To date, no study has pampered the S-O-R model and bi-
dimensional attitudes to explain consumer’s intentions to purchase counterfeit products.
This study, therefore, has three prime objectives: first, to empirically test and validate modified
S-O-R model; second, to investigate consumer’s perception of attributes of counterfeit products
that influence their attitude and intentions to purchase; and third, to discover consumer’s
viewpoint about attributes of counterfeit products that are related to bi-dimensions of attitude.
The study contributes to the existing body of literature by testing and validating a new and
comprehensive model that not only explains the functional motivations, but also takes into
account emotional and social psychological motivations. This study also contributes to our
understanding of counterfeit consumption related to behaviors as it aims to overcome the
attitude-intentions inconsistency by employing bi-dimensional attitudes toward counterfeit
consumption. This study further contributes to our knowledge of counterfeit consumption by
empirically explaining the relative importance that consumers assign to different motivations to
purchase counterfeit products
PROPOSED FRAMEWORK:
Intentions can be defined as subjective evaluations of a person toward a particular object in order
to respond to a specific behavior (Ajzen, 2005). If we apply this concept in our study, we can say
that purchase intention is the subjective evaluation of the person that is willing to perform
particular counterfeit purchase behavior (Chiu, 2016). Counterfeit purchase intentions have been
extensively studied in consumer behavior literature (Moon et al., 2015). We use counterfeit
purchase intentions as a proxy along with the variable compulsive internet use to study cosmetic
counterfeit purchasing behaviors among Pakistani’s consumers.
UTILITARIAN ATTITUDES (UT):
Utilitarian attitudes are defined as the attitudes that deal with the consumers’ perception of utility
and functionality of an object (Burke, 1991) Utilitarian attitudes are directed toward achieving
goals, and they are referred to the efficient and rational decision making (Burke, 1991)
Likewise, we have used four proxies of utilitarian attitudes: product information, monetary
savings, convenience, and perceived ease of use. Product information deals with quality or
standard of information about goods and services available to the customers by the retailers
(Yang, 2005). Monetary savings is defined as spending the less amount of money in order to
save for the future time period (Moon, 2017). Convenience can be defined as the saving time and
money while purchasing online in flexible hours (Childers et al., 2001). Whereas perceived ease
of use is defined as the level of understanding of an individual who believes that there are no
efforts required to use a particular system (Davis, 1989).
Previous research illustrated that utilitarian motivations behind online shopping can significantly
influence consumers attitudes (Childers, 2002) Literature also specifies that consumers’
perception of instrumental values of online shopping websites are important determinants of
consumers’ attitudes (Childers et al., 2001; Mathwick, Malhotra, & Rigdon, 2001). In a recent
exploratory study, Martínez-López et al. (2014) identified several utilitarian drivers that may be
considered relevant in online shopping. Therefore, we deem it appropriate to assume that:
H1: Utilitarian attitudes has a positive influence on counterfeit purchase intention.
➢
Product Information:

Product Information is defined as consumer’s possession of specific information regarding the

particular product or category. Consumer’s perceptions about a product vary concerning the
consumer’s varying levels of product knowledge (Laroche, 2003).Based on previous research
works (Bian et al., 2016) that found a significant relationship between product knowledge and
attitude toward counterfeit products, we may hypothesize that:
H2: Product Information has a positive influence on utilitarian attitudes.
➢
Monetary Saving:
Consumers are generally concerned about the cost of purchasing a product or service. Monetary
savings have been a key draw for online buyers, as the internet makes it easier to compare prices
and therefore useful for buyers to get a product with a lower cost (Soscia et al., 2010). As an
economic incentive to attract online buyers to return, monetary savings should thus be a
component of utilitarian value. Therefore, we may hypothesize that:
H3: Monetary Saving has a positive influence on utilitarian attitudes
➢
Convenience:

Convenience is the backbone of e-commerce and a huge reason that online shopping has boomed
over the last few years. Shopping online offers the convenience of purchasing items when and
where it suits you, via a payment method of your choice while also having your item delivered
via a method that suits you. Likewise, consumers are looking for something that will really set
brands apart. Convenience could be the key with 83% of consumers saying that convenience
when shopping is more important now than it was five years ago (Chiu, 2016). Therefore, we
may hypothesize that:
H4: Convenience has a positive influence on utilitarian attitudes.
➢
Perceived Ease of use:

Perceived ease of use refers to how simple navigating Web pages, Internet features and the Web
interface is to the point of an individual becoming aware of a specific technology (Moon, 2017) .
It deals with the technical elements considered as important (Ashraf et al., 2016; Polas et al.,
2018. Likewise, the easier to use a product will increase the intention of purchasing that a
specific product. Therefore, we assume that:
H5: Convenience has a positive influence on utilitarian attitudes.

HEDONIC ATTITUDE (AT):

Hedonic attitudes are defined as the attitudes which deal with the experiences of sensory
appeals,which include emotion and gratification (Burke, 1991). The motivation behind hedonic
attitudes deals with the entertainmentseeking behaviors of consumer. Consumers’ perception of
hedonic attitudes can be defined as the individuals who are seeking for emotional needs with
interesting and entertaining shopping environment (Celebi, 2015; Escobar-Rodríguez & Bonsón-
Fernández, 2016). Hedonic attitudes are defined as the overall experience of an object that
consumer evaluate and seek benefits (i.e., entertainment and enjoyment). This concept is similar
to the concept identified by Babin, Darden, and Griffin (1994) who explain hedonic attitudes as
an appreciation of experience instead of task completion.Therefore, we deem it appropriate to
assume that:
H6: Hedonic Attitudes has a positive influence on counterfeit purchase intention
In other words, hedonic aspects of shopping entail the enjoyment an individual feel during online
shopping. We used three proxies of hedonic attitudes: role shopping, best deal, and social.

➢
Role Shopping:

Role shopping qualifies with the enjoyment that an individual feel while shopping for their loved
ones. In role shopping, when an individual purchases gifts for others, there is an intrinsic
enjoyment, emotions, and feelings associated with them. Therefore, we deem it appropriate to
assume that:
H7: Role Shopping has a positive influence on hedonic attitudes.
➢
Best Deals:

Best deal is defined as the joy an individual feel while negotiating and bargaining with the sales
people (Westbrook, 1985) Best deal shopping deals with discounts, sales, and bargains offered
by the retailer during the shopping process. Therefore, we deem it appropriate to assume that:
H8:Best Deals has a positive influence on hedonic attitudes.
➢
Social:
Social shopping is defined as the bonding experience with others or socializing with others while
purchasing online (Chiu et al., 2014). When an individual feels joy and pleasure while shopping
with friends and family is known as social shopping. Therefore, we deem it appropriate to
assume that:
H9: Social Factor has a positive influence on hedonic attitudes.
COMPULSIVE INTERNET USE (CIU):
Past research asserts that further academic investigation is needed better to understand the CIU
and attitudes toward counterfeit cosmetic products. Davidson et al. (2017) used mediator risk
embarrassment and moderators, such as detectability and product conspicuousness, to address
the inconsistencies in the association between materialism and counterfeit purchase intention.
Thus, in the e-commerce context, the present study examines the underlying mechanism and
extends the body of knowledge through which utilitarian and hydonic attitudes are associated
with counterfeit purchase intention. Moreover, the past literature examined the direct influence
of materialism and novelty-seeking on counterfeit brands’ purchase intention and illustrates how
every single construct affects counterfeit purchase intention. Past research suggests that
influencing factors are positively linked with CIU. However, in the digital environment, these
hypotheses have not been investigated the moderating effects of CIU among the various
determinants mentioned and how these determinants affect the attitude toward counterfeit
products. Therefore, we deem it appropriate to assume that:
H10: Compulsive Internet Use (CIU) positively moderates the relationship between
utilitarianattitudes and purchase intension toward the counterfeit cosmetic products.
 H11: Compulsive Internet Use (CIU) positively moderates the relationship between hedonic
attitudes and purchase intension toward the counterfeit cosmetic products.
Conceptual Framework:

CIU
UTILITARIAN
ATTRIBUTES

COUNTERFEIT
PURCHASE
INTENTION

HEDONIC
ATTRIBUTES

CIU

Counterfeit buying behavior is an emergent domain of research with the existing research
lacking strong theoretical underpinning and empirical support. Many researches on counterfeit
buying behavior are usually exploratory in nature (Yang, 2005) argue that counterfeit buying
intention particularly lacks attention in the marketing research. Hence, it is extremely imperative
to understand the utilitarian and hedonic attitudes as the stimulus to shape the attitude towards
counterfeit cosmetic products.Our research model is subjected to test the relationship between
utilitarian and hedonic attitudes of the consumers influences thecounterfeiting purchase intention
in cosmetic industry. Likewise, our study testifies the impact of compulsive internet usage and
how it is influencing the utilitarian and hedonic attitude of consumers against counterfeiting
purchase intention.
Research Gaps:
This study aims at enriching the literature on counterfeit cosmetic products purchasing by
addressing the following gap in the body of research.

• There are few, if any, study that studies the impact of utilitarian and hedonic attitudes of
counterfeiting and in turn the purchasing intention.

• Counterfeiting behavior has received very less attention in the marketing literature especially in
the context of cosmetic buying intention. Only a few studies focus on some aspects of
counterfeiting cosmetic products
 •Majority of the studies that test the counterfeiting cosmetic purchase behavior has restricted
their studies to a specific gender, particularly females, whereas this study expends the sample,
including both genders (male and female).

• There are very less studies, if any, that are focusing on the role of compulsive internet usage
in relationship with the counterfeiting purchase intention for cosmetic industry.
Model Development:

Product
Information
UTILITARIAN
ATTRIBUTES
Monetary Saving

CIU
Convivence

Perceived Ease
COUNTERFEIT
PURCHASE
INTENTION

Role Shopping

CIU
Best Deals
HEDONIC
ATTRIBUTES

Social

Research Questions:
The Study aims at answering the following research questions
✓
What is the impact of utilitarian attitudes on counterfeit cosmetic purchase intention within
the consumers of Pakistan?
✓
What is the effect of hedonic attitudes on counterfeit cosmetic purchase intention within the
consumers of Pakistan?
✓
How does compulsive internet usage impact the attitude towards counterfeit purchase
intention?
✓
How does compulsive internet usage affect utilitarian attitude towards counterfeit purchase
intention?
✓
How does compulsive internet usage impact hedonic attitude towards counterfeit purchase
intention?

Research Methodology:
The population of this study was the young consumers of Pakistan who were the purchaser of
cosmetic products. Youngsters are more attracted toward cosmetic products and because of their
lifetime value, understanding their consumption behavior is important (Moon and Attiq, 2018;
George and Yaoyuneyong, 2010).
In our study we will systematically selected (every third) shopper of the age bracket (18–30)
years, male or female, who were the purchaser of cosmetic products (clothing and accessories),
were the sample of this study. Young shoppers have strong desire to obtain benefits that are
associated with original branded products and have low income at their disposal (Bian et al.,
2016). Therefore, young shopper are the most appropriate sample to understand counterfeit
consumption related to behaviors (Moon et al., 2017).
Likewise, Data will be collected through a self-administered survey from systematically selected
shopping malls from Multan. We will be contacting 100 shoppers. We excluded individuals who:
first, were below 18 or above 30 years of age; second, did not know about the replicas of original
cosmetic brands; and third, had not purchased counterfeit cosmetic product over the past 30 days.

Theoretical and Practical Implications:

This proposed conceptualization has a number of theoretical and practical ramifications. For
starters, this empirical study fills a research vacuum concerning counterfeit purchasing intent in
e-commerce. Using flow theory, we are determining how materialism, novelty-seeking, and
underlying mechanisms (moderating) influence the attitude toward luxury counterfeit intents on
Taobao, the world's largest e-commerce platform. Despite the fact that the existing literature in
the offline scenario studied numerous aspects influencing luxury counterfeit purchase intention,
to the best of our knowledge, the mediating role of CIU and the moderating effect of product
conspicuousness has not been investigated in s-commerce. The current study gives theoretical
implications by examining the underlying mechanism by which numerous determinants
influence the counterfeit purchase mindset.

Because counterfeit is extensively investigated in the offline context, the current research results
add to the literature on counterfeit items in e-commerce. Furthermore, using the flow theory lens,
we included CIU and investigated the mediating role in the relationship between influencing
factors and the attitude of counterfeit luxury purchase items in s-commerce, which provides a
rational explanation for why luxury counterfeit item purchases have increased exponentially in
recent days. Furthermore, in the current study, product conspicuousness and positive online
evaluations were used as moderators in the association between influencing factors and
counterfeit purchasing intention. The moderating influence of online reviews in enhancing
purchase intention has received a lot of attention in the hospitality and e-commerce literature. In
addition to logic, the current study postulated that high product conspicuousness of counterfeit
items and positive ratings on the e-commerce platform could enhance readiness to acquire
counterfeit goods. This study's findings can assist legislators and brand managers in taking the
necessary steps to combat online luxury counterfeit merchandise.

Results and Findings:

1. Demographics

As previously stated, 200 questionnaires were issued in total, with 153 considered suitable for
advanced multivariate analysis. There were 49 men and 104 women among the 432 responders.
The majority of respondents had a monthly household income of Rs. 50,000, with 20%
(supposed) earning between Rs. 50001 and Rs. 100000. The majority of respondents are between
the ages of 15 and 25, with the fewest being between the ages of 26 and 35, indicating that they
are young consumers. Similarly, the majority of the responders had at least a bachelor's degree
and were students. Furthermore, about 90% of responders have a bachelor's degree as their
minimum educational level. As a result, the majority of respondents can be classified as youthful
and well-educated consumers.

According to previous studies, young and educated consumers are more likely to be attracted to
counterfeit goods and services than older and less educated consumers. Furthermore, when it
comes to purchasing things, young and educated consumers are compulsive internet users, and
they are more likely to be affected by online websites. As a result, rather than relying simply on
utilitarian and hedonic features, social websites or the internet are a more crucial component for
young and educated consumers. Furthermore, it is clear that the majority of consumers have
monthly family incomes in excess of 50,000 Rs., allowing them to spend money on counterfeit
luxury goods after covering their basic needs.

2. Measurement Model (Outer Model)

First, reliability was assessed using individual item reliabilities and composite reliability to
assess internal consistency reliability. Average variance extracted is used to assess convergent
validity (AVE). Composite reliability, which is the square of loadings, should be greater than
0.70, and convergent validity, which is average variance extracted (AVE), should be greater than
0.5, according to the rule of thumb for measurement model evaluation.
The evidence for consistent reliability and convergent validity is provided in the table below.
 Table 1: Outer loading
Compulsive Counterfeit Hedonic Utilitarian
Internet Use Purchase Attributes Attributes
Intention

BD1 0.762
BD2 0.617
BD3 0.615
CIU1 0.679
CIU2 0.785
CIU3 0.8
CIU4 0.791
CON1 0.803
CON2 0.653
CON3 0.661
CON4 0.621
CPI1 0.911

CPI2 0.878
CPI3 0.916
CPI4 0.885
MS1 0.723
MS2 0.787
MS3 0.734
PEU1 0.698
PEU2 0.721
PEU3 0.798
PI2 0.67
PI3 0.616
PI5 0.674
ROI1 0.808
ROI2 0.805
ROI3 0.799
SOC1 0.809
SOC2 0.795
SOC3 0.768
 Table 2: Convergent Reliability and Validity
Cronbach's rho_A Composite Average
Alpha Reliability Variance
(CR) Extracted
(AVE)

Compulsive Internet Use 0.766 0.782 0.84 0.586

Counterfeit Purchase Intention 0.92 0.932 0.943 0.806
Hedonic Attributes 0.905 0.91 0.923 0.573
Utilitarian Attributes 0.917 0.929 0.928 0.5

Similarly, discriminant validity is assessed, which is concerned with the degree to which one
construct differs from the other. The validity of each latent concept was checked using the
Fornell–Larcker criterion, which involves taking the square root of the AVE and comparing it to
correlations of distinct constructs in a construct matrix. In table 3, the square root of AVE is
shown in bold and compared to several structures. The Fornell–Larcker criteria of discriminant
validity is established on the data as the square root of AVE is higher than the correlations of
each concept. The results shown below;

Table 3: Discriminant Validity and Fornell-larker Criterion

1 2 3 4
Compulsive 0.765
Internet Use
Counterfeit 0.218 0.898
Purchase
Intension
Hedonic 0.473 0.471 0.757
Attributes
Utilitarian 0.342 0.403 0.741 0.707
Attributes

The relationships among the variables used in the study are shown in Table 3. It exposes the
links between hedonic, utilitarian, and compulsive internet use, as well as the intention to acquire
counterfeit goods. The SOR model, which has previously been addressed, supports these
correlations.
 3. Structural Model (Inner Model)
The second phase entails assessing the structural model estimates if the measurement model is
found to be accurate. Examining a direct link between the independent and dependent variables
is used to examine the structural or inner model. To obtain the structural model, the data was
bootstrapped for 50000 samples. Hypothesis testing is carried out using the structural model. The
significance of the association between hypotheses was tested using the bootstrapping technique,
and path coefficients were analyzed using the PLSSEM algorithm. The path coefficients of the
independent and dependent variables are calculated using this method.
Figure 1: Structural Model
Two independent variables and dependent variables have significant relationships at p 0.01 and 2
are not supported Figure 2 depicts the structural model in detail.

Figure 2: Structural Model

According to the findings, obsessive internet use has a favorable influence on counterfeit
purchasing intention (β.081; t=0.689; p>0.01), hence H1 is not supported. Similarly, H2 is
supported by the findings, which show that hedonic attributes have a significant impact on
counterfeit purchase intention (β.322; t=2.715; p<0.01). In the case of H3, the results show that
there is a moderating impact that we don't consider while hypothesis testing, that's why we aren't
supposed to evaluate the significance. However, H4 is not supported, as the findings demonstrate
that utilitarian attributes have no significant impact on counterfeit Purchase Intention (β.171;
t=1.326; p>0.01). In table 4, the details relevant to hypothesis testing findings are listed
 Table 4: Hypothesis Results

Hypothesis Relationship Std. Beta Std. t-Value P-Value Decision

Error
H1 Compulsive Internet Use ->
0.081 0.083 0.689 0.245 Not
Counterfeit Purchase Intention Supported
H2 Hedonic Attributes -> 0.322 0.125 2.715** 0.003 Supported
Counterfeit Purchase Intention
H3 Moderating Effect 1 -> 0.126 0.067 1.749** 0.04 Supported
Counterfeit Purchase Intention
H4 Utilitarian Attributes -> 0.171 0.112 1.326 0.092 Not
Counterfeit Purchase Intention Supported

**p<0.01, results are significant with 1 tail where;

t-values>1.645 (P values<0.01)

4. Assessment of Variance Explained in the Endogenous Latent Variable

(R Square)
According to Chin (1998), R-Square levels of 0.67, 0.33, and 0.19 are considered substantial,
moderate, and weak, respectively.

Table 5: Variance Explained in the Endogenous Latent Variable

Latent Variable Variance Explained

Counterfeit Purchase Intension 0.252

As a result, the endogenous latent variable (Counterfeit Purchase Intention) has an R-Squared
value of 25.2 percent, indicating a weak to moderate level of model fitness according to the
above criteria.

5. Assessment of Predictive Relevance (Q Square)

The Endogenous latent variable should have a Q-Square larger than zero, according to Chin
(1998) and Henseler, Ringle, and Sinkovics (2009).
Table 6: Construct Cross-validated Redundancy
Total SSO SSE Q Square (=1-
SSE/SSO)
Counterfeit Purchase 612 499.226 0.184
Intension

As a result, Q2 for the criterion variable (Counterfeit Purchase Intention) has an acceptable level
of relevance (0.184), suggesting that the model created for the research is predictive.

Conclusion:

The work adds to the current body of literature by testing and confirming a new and complete
model that not only covers functional incentives but also emotional and social psychological
motives. This study also contributes to our understanding of counterfeit consumption in relation
to actions, as it seeks to solve the attitude-intentions discrepancy by adopting bi-dimensional
attitudes toward counterfeit consumption. This study adds to our understanding of counterfeit
consumption by empirically explaining the relative importance that consumers place on various
incentives for purchasing counterfeit products. As there is a very intense situation of covid-19,
no one is willing to go outside; in this situation people are very inclined towards online shopping
where we can find many opportunities of counterfeit products. Social status and social groups
also have huge impact on buying counterfeit products. If we examine the previous searches, we
came to know that they are focusing, specifically female group but in this research we are
focusing on the both male and female. We have used quantitative method for survey through
which we will examine the impacts of variables. The current study has relevance since it
investigates the fundamental mechanism by which various features impact the counterfeit buying
attitude. The study adds to the existing body of literature by testing and confirming a new and
comprehensive model that encompasses not only functional but also emotional and social
psychological motives. Although counterfeit is extensively studied in the offline arena, the
current study results add to the literature on counterfeit products in e-commerce. Furthermore,
we included CIU and investigated the mediating role in the relationship between influencing
factors and the attitude of counterfeit luxury purchase items in s-commerce using the flow theory
lens, which provides a rational explanation for why luxury counterfeit item purchases have
increased exponentially in recent days.

The majority of studies that examine counterfeiting cosmetic buying behaviour have focused on
a single gender, primarily ladies, whereas this study broadens the sample to include both genders
(male and female). There are few, if any, studies focused on the function of obsessive internet
usage in relation to counterfeiting purchasing intention in the beauty business.
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