On one hand, Chinese consumers are well known for conspicuous consumption and the adoption of luxury products and named brands. On the other hand, they also have a bad reputation for buying counterfeit products. Their simultaneous preferences for two contrasting types of product present a paradox that has not been addressed in the literature. This study attempts to present an explanation of this paradox by examining the effects of traditional Chinese cultural values and consumer values on consumers’ deontological judgment of (...) pirated CDs and the amount of social benefits they perceive they gain from them. We interviewed 300 Hong Kong Chinese consumers, and found that face consciousness increased materialism and risk aversion, thereby producing a favorable deontological judgment of pirated CDs. Face consciousness also has a direct effect on the amount of social benefits perceived in pirated CDs. Both favorable deontological judgment and perceived social benefits contributed to a strong intention to buy pirated CDs. The results are discussed in a cultural perspective. (shrink)

Moral issues have been included in the studies of consumer misbehavior research, but little is known about the joint moderating effect of moral intensity and moral judgment on the consumer's use intention of pirated software. This study aims to understand the consumer's use intention of pirated software in Taiwan based on the theory of planned behavior proposed by Ajzen. In addition, moral intensity and moral judgment are adopted as a joint moderator to examine their combined influence on the proposed research (...) framework. The results obtained from this Taiwan case reveal that the antecedent constructs proposed in the TPB model–an individual's attitude and subjective norms toward using pirated software, and perceived behavioral control to use pirated software–indeed have positive impacts on the consumer's use intention of pirated software. In addition, the joint moderating effect of moral intensity and moral judgment is manifested in the consumer's use intention of pirated software. The results of this study not only could substantiate the results of consumer misbehavior research, but also could provide some managerial suggestions for Taiwanese government authorities concerned and the related software industries devoted to fighting pirated software. (shrink)

Software piracy is an instance of unauthorized duplication of information goods where laws and norms are not agreed-upon. This article presents a content analysis of articles from the five highest circulating U.S. newspapers 1989-2004 as evidence of the prevailing social environment surrounding software piracy. The rationales in the news articles are analyzed as evidence of the social and psychological underpinnings of attitudes toward software piracy. An expanded version of Sykes and Matza's (American Sociological Review 22, 664-670, 1957); Zamoon and Curley (...) (Working paper, Kuwait University, Kuwait, 2007) neutralization framework is applied to analyze the content of the articles. We found that rationales condoning piracy showed a more balanced use of neutralization approaches, and less moral intensity toward the behavior. In contrast, rationales condemning piracy mostly promoted the injury aspect of software piracy, and suggested higher moral intensity. The discrepancies have practical implications as a barrier to the ability to connect the two sides of the debate concerning software piracy. (shrink)

Digitized information and network have made an enormous impact on the music and movie industries. Internet piracy is popular and has greatly threatened the companies in these industries. This study tests Hunt-Vitell’s ethical decision model and attempts to understand why and how people share unauthorized music files with others in the peer-to-peer (P2P) network. The norm of anti-piracy, the ideology of free software, the norm of reciprocity, and the ideology of consumer rights are proposed as four deontological norms related to (...) using P2P systems. The model is tested using a scenario survey with four alternatives; the results indicate that the deontological norm of anti-piracy is not a main factor in affecting P2P users’ ethical considerations regarding sharing files with others. This finding suggests that to protect their property rights, record companies should try to realize the consumer benefits brought via new digital and network technology, instead of simply declaring their intellectual property and resisting the innovations resulting from new technologies. (shrink)

Piracy is the greatest threat facing the music industry worldwide today. This study developed and empirically tested a model examining the antecedents of consumer attitude and behavioral intention toward music piracy behavior. Two types of music piracy behavior, unauthorized duplication/download and pirated music product purchasing, were examined. Based on a field survey in Taiwan, the results showed that attributive satisfaction, perceived prosecution risk, magnitude of consequence, and social consensus are very important in influencing customers attitude and behavioral intention toward two (...) types of music piracy behavior. In addition, singer/band idolization can affect the attitude and behavioral intention in the case of pirated music product purchasing. Perceived proximity was found to affect the attitude and behavioral intention in the case of pirated music product purchasing. However, it only influenced behavioral intention in the case of unauthorized duplication/download. (shrink)

While business ethics has generated a great deal of research internationally over the last few decades, academic reviews of the business ethics literature remain limited. Moreover, there has been little attempt to date to analyze this literature specifically in the Greater China region, which has been experiencing rapid socioeconomic growth and dynamic evolution of business ethics in recent decades. This paper addresses this research gap by undertaking a comprehensive and critical appraisal of the business ethics literature on Greater China. In (...) particular, it maps out the existing research findings, identifies limitations in methodology, and suggests future directions for business ethics research in this region. The findings indicate that the scholarly interests cover 24 research themes, including corporate social responsibility and social performance; ethical beliefs, judgment, values, decision-making, and culture; workplace ethics and behavior; marketing ethics and consumer behavior; and sustainability. This review reveals a growing imbalance between empirical and conceptual/theoretical studies on business ethics. In addition, the published works covered in this review heavily rely on survey method and convenience sampling, with a predominant focus on a single individual level of analysis. Importantly, this study identifies four directions for future research: contextualized theoretical development, addressing multilevel research, developing research design tailored to the Chinese context, and ensuring more diversified and rigorous data collection. (shrink)

The purpose of this study is to investigate the salient factors influencing consumers’ attitudes and usage intentions towards pirated software. Using the Theory of Planned Behaviour, this study investigates the relationships between three sets of factors, i.e. personal, social and perceived behavioural control onto attitudes towards pirated software. Through a multiple regression, only personal factors have shown significant relationship with attitudes towards software piracy. Further results from this study have supported that favourable attitudes towards pirated software is likely to result (...) in stronger intentions to use pirated software. It was found that computer proficiency acts as a predictor for intentions towards pirated software, rather than a moderator as originally postulated. (shrink)

Prior research has examined consumer intentions to purchase fakes, branding strategies and anti-counterfeiting actions, but little attention seems to have been paid to the role of consumers’ ability to discern fakes and branding strategies against counterfeiting. This article, thus, based on a study of 128 multinational managers’ experience in China, examines these inter-relationships. As a result, we address how knowledgeable and experienced managers in branding, consumer consumption and anti-counterfeiting effort perceive consumers’ ability to discriminate fakes from originals interacts with branding (...) strategies, and how such relationship influences the effectiveness of anti-counterfeiting effort. Our findings suggest that consumer discrimination itself has no significant effect on anti-counterfeiting success. However, it significantly interacts with branding strategies to predict a means to mitigate brand damage. That is, consumers’ ability to discriminate fakes from originals appears to undermine efforts to mitigate brand damage from counterfeiting, at least in China when branding is based on improving product features or advertising and promotion. However, if branding emphasises after sales service, consumers’ ability to discriminate was found to enhance firms’ ability to limit counterfeiting damage to brands. Such interactions, however, did not help stop counterfeiting, except that branding based on reliability appears to have such a positive effect. (shrink)

Software piracy is a serious problem in the software industry. Software authors and publishing companies lose revenue when pirated software rather than legally purchased software is used. Policy developers are forced to invest time and money into restricting software piracy. Much of the published research literature focuses on software piracy by end-users. However, end-users are only able to copy software once the copy protection has been removed by a ‘cracker’. This research aims to explore why, if copy protection is so (...) difficult to remove, do crackers invest their skill and time in this activity instead of more lucrative and legal employment. This study develops a framework of neutralisation, justification and motivation and goes directly to the initial software crackers to determine what motivates their activities. The study first applies this framework in an anonymous online survey of crackers. The study then conducts cognitive interviews with eight crackers to explore and further validate the survey’s findings. The study finds the challenge of removing the copy protection from software as the strongest motivation for the actions of crackers. Desire for social participation, while found to be rewarding, was considered unnecessary for crackers to continue their actions. Higher social status was not a motivational factor but was a perceived by-product of cracking. The study also raises areas for future research. (shrink)

Purpose– The purpose of this paper is to review the digital piracy literature and present the positive impacts of digital piracy and its benefit to businesses. A great deal of the literature discusses the consequences of digital piracy, but, in most cases, the focus is on the negative consequences.Design/methodology/approach– The authors draw on both the theoretical and empirical academic literature on digital piracy so as to analyze the ways in which digital piracy positively contributes to digital businesses.Findings– The paper provides (...) information on the positive consequences of digital piracy and demonstrates that the benefits include product diffusion, network externality, innovation, cost reduction, an effective promotional and publicity vehicle, and technology standardization.Originality/value– This paper investigates potential benefits of digital piracy and provides insights which may offer a fuller picture of the consequences of digital piracy. (shrink)

Morality, in the context of luxury counterfeit goods, has been widely discussed in existing literature as having a strong association with decreased purchase intention. However, drawing on moral disengagement theory, we argue that individuals are motivated to justify their immoral behaviors through guilt avoidance, thus increasing counterfeit purchase intention. This research demonstrates that consumers’ desire to purchase counterfeit luxuries hinges on two types of moral reasoning strategies: moral rationalization and moral decoupling. The empirical results show that each strategy increases purchase (...) intention, but respectively through moral judgment and perceived benefit. Implications for researchers and managers are discussed. (shrink)

Software piracy, the illegal and unauthorized duplication, sale, or distribution of software, is a widespread and costly phenomenon. According to Business Software Alliance, over 41% of the PC software packages installed worldwide were unauthorized copies. Software piracy behavior has been investigated for more than 30 years. However, after a review of the relevant literature, there appears to be two voids in this literature: a lack of studies in non-Western countries and a scarcity of process studies. This study contributes to literature (...) by developing a software piracy model to better understand the decision-making process that underlies this unethical behavior. The model was tested using data collected from a sample of 323 undergraduate business students. Consistent with the Theory of Reasoned Action, attitudes toward software piracy and subjective norms were significant predictors of intention to pirate software. Also, the results suggested that ethical ideology, public self-consciousness, and low self-control moderated the effect of these variables on intention to pirate software. The results have important practical implications for the software industry and governments hoping to curtail software piracy. Limitations of the study and recommendations for future studies are discussed as well. (shrink)

The systematic measurement of consumers’ sentiments toward business ethical practices is expanded to two emerging economies in Asia (China and India). The Chinese were very optimistic about the future ethical behavior of businesses, while the Indians recorded the lowest BEI scores yet. Chinese consumers were very concerned with product issues, while Indians were concerned equally about low quality products and excessive prices.

This study intends to explore the effects of political, social and cultural values on consumers’ ethical beliefs regarding questionable consumption behaviors. The variables examined include status anxiety, social Darwinism perception, perceived trust of people, and cultural orientation. Based on a field survey in Taiwan, the results showed that consumers with low ethical beliefs have higher perception of social Darwinism and status anxiety than consumers possess neutral and high ethical beliefs. The result also showed that the neutral ethics group had higher (...) trust on people than the low ethics groups. Finally, the high ethics group expressed significantly higher perception of vertical collectivism than those consumers of the low and neutral ethics group. (shrink)

Piracy is the greatest threat facing the global music industry today. This study explores the effects of artist adoration and the perceived risk of being caught on the attitude and intention to engage in pirating a digital song among college students. The moderating effect of cultural environment factor is also examined. Experiments using between-group factorial designs were conducted in the United States and Taiwan. The results show that perceived risk of getting caught and cultural environment are important factors that can (...) significantly affect the attitude and intention toward downloading unauthorized music. In addition, a two-way (Perceived Risk ? Culture) and a three-way interaction in the model are also observed. (shrink)