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CHAPTER III
RESEARCH METHODOLOGY

This chapter is aimed to give a valid and reliable basic in processing the data. It
is important to be explained, because the data reIer to respondents perception that is
probably impacted on bias inIormation because oI their condition when they are
surveyed. ThereIore, this data must be tested to make assurance the validity and
reliability aspect. So, the inIormation can be trustworthy on methodological aspects.
There are Iour topics that will be explained. There are study scope, sampling and data
collection method, operational deIinition and research instrumental measurement, and
data analysis method. The explanation oI each topic will be explained below.

3.1 Study Scope
This study is categorized as applied research. It is aimed to give an insight to
design the strategy to against counterIeit product. ThereIore, this study is expected to
give an understanding about the consumer attitudes toward counterIeit product.
The data in this study is cross sectional. It means that the data is collected
through direct interview on one point in time event. Consequently, the constructed
model cannot accommodate the change oI the phenomenon in the Iuture because oI the
time progression. ThereIore, to generalize this study into diIIerent context, it is
important to redesign the model into new setting that will be observed.
In this study, the data is collected through survey method that is guided by
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questionnaire. This method is suppose to impact on the bias perception that is caused by
various personal value and understanding. So, it needs reliability and validity tests to
reduce this problem.

3.2 Data Collection and Sample
Population oI this study is consumer who has intention to buy a counterIeit
product. The data is collected by using purposive sampling method
1
. This method is
used because the chosen sample must understand about the research problems. So, there
are some requirements that must be IulIilled by applicant oI respondents:
1. Respondents must have intention to buy the counterIeit bag product
2. Respondents never bought the counterIeit bag product yet
These requirements are needed in this study to avoid the respond biases that may
caused by respondent misunderstanding related to the questionnaire that must be
answered.
The data are collected through direct interview that is guided by questionnaire
toward 200 respondents. This quota size is considered to represent oI the counterIeit bag
product`s consumer. Furthermore, it also IulIilled the minimum criteria oI statistical tool
that was used in this study.




1
Purposive sampling method is a kind oI inIormation collecting method that was collected Irom members
oI population group representatively (see Sekaran, 2006).
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3.3 Operational Definition and Research Instrumental Measurement
1. Price Quality InIerence
Price quality inIerence is related to the consumer perception about the
relationship between price oI product and the quality oI product which the higher
price oI product, the higher quality oI product (Tellis and Gaeth, 1990; Gelb, 2010).
This indicators is measured by likert scale that ranged Irom 1 very disagree until 5
very agree. The indicators oI this variable are :
- Comparison between price and quality
- Price as indicator oI quality
- Spending more money Ior the best product
- You get what you pay Ior

2. Perceived Risk
The concept oI perceived risk is related to the consumer`s perceptions oI the
uncertainty and adverse consequences oI buying a product or service (Dowling and
Staelin, 1994). This indicators is measured by likert scale that ranged Irom 1 very
disagree until 5 very agree. The indicators oI this variable are :
- High risk oI counterIeit product
- CounterIeit product has high probability oI malIunction
- Spending money with counterIeit product is a bad decision

3. Integrity
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Integrity is related to the consumers who have lower ethical standards are
expected to Ieel less guilty when buying a counterIeit (Ang et al., 2001). This
indicators is measured by likert scale that ranged Irom 1 very disagree until 5 very
agree. Following is the indicators oI this variable :
- Value oI honesty
- Value oI politeness
- Value oI responsibility
- Value oI selI control

4. Personal GratiIication
Personal gratiIication concerns the need Ior a sense oI accomplishment, social
recognition, and to enjoy the Iiner things in liIe (Ang et.al, 2001). This indicators is
measured by likert scale that ranged Irom 1 very disagree until 5 very agree.
Following is the indicators oI this variable :
- Sense oI accomplishment
- ComIortable liIe
- Exciting LiIe

5. Subective Norm
Regarding counterIeit, Iriends and relatives may act as inhibitors or contributors
to the consumption, depending on how much this behavior is approved by them
(Matos et.al, 2007). This indicators is measured by likert scale that ranged Irom 1
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very disagree until 5 very agree. Following is the indicators oI this variable :
- Approval Irom relatives and Iriends about counterIeit product
- Recommendation Irom relatives and Iriends to use counterIeit product
6. Status Consumption
Status consumption is Ior consumers who are seeking selI satisIaction as well as
to display their prestige and status to surrounding others usually through visible
evidence (Eastman et al., 1997). This indicators is measured by likert scale that
ranged Irom 1 very disagree until 5 very agree. The indicators oI this variable are :
- Interest oI product with status
- Buying product just because it has status
- Pay more Ior product iI it has status
- Snob appeal oI product

7. Consumer Attitudes Toward CounterIeit Product
This mediator variable is related to the consumer who willing to pay Ior the
visual attributes and Iunctions without paying Ior the associate quality (Grossman
and Shapiro, 1988; Cordell et al., 1996). This indicators is measured by likert scale
that ranged Irom 1 very disagree until 5 very agree. The indicators oI this variable
are :
- PreIerence to buy counterIeit product because the price
- PreIerence to buy counterIeit product
- BeneIit oI counterIeit product
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- CounterIeit product is not illegal
- CounterIeit product is a better choice

8. Behavioral Intention
This Iactor is an indication oI an individual's readiness to perIorm a given
behavior. It is assumed to be an immediate antecedent oI behavior (Ajzen, 2002b)
This indicators is measured by likert scale that ranged Irom 1 very disagree until 5
very agree. Following is the indicators oI this variable :
- Probability to preIer counterIeit product
- Probability to buy counterIeit product
- Probablity to recommend Iriends and relatives to buy counterIeit product
- Probability to say Iavorable things about counterIeited products

3.4 Data Analysis Method
1. Descriptive Analysis
Descriptive analysis oI sample is aimed to make a proIile oI respondents that is used
as background Iactor in this study. It used to generalize the result on population contact. So,
to apply this study into diIIerent background Iactor, it is needed to look on the demographic
Iactor that can inIluence the model.
2. Statistical Test
Statistical test were Iirst step to make assertion oI the data. It is contained oI
three tests there are; (1) validity test, (2) reliability test, and (3) regression. The
explanations oI each paragraph are stated as Iollow.
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a. Validity Test
Validity test aimed to know the accuracy and precision oI measurement
tool in measuring the variable. In validity test each indicants were examined
related to the relationship. So the indicants that have small loading, that
cannot explain the construct, were eliminated to data result. In this study,
validity test used conIirmatory Iactor analysis that was processed by SPSS
Ior Windows, when each question item require loading Iactor higher than
4,0. Validity test was analyzed by comparing the Iactor loading value in
component matrix. The bigger value oI component question items, the
bigger correlation oI total score construct. This decision was based on
signiIicant rate ~ 0.40 (see Hair et.al., 1998)
b. Reliability Test
In reliability test consistency oI indicants were tested. So, the higher
correlation the higher consistency oI the indicants. It was considered as a
relevant procedure to measure the instrument research. Reliability was
measured by Cronbach Alpha that reliable at range higher than 0.7
(Ferdinand, 2002).
ThereIore, it was hoped that reliability procedure could make assurance oI
data accuracy and Ieasibility when it is being tested by another statistical
analysis.

3. Structural Equation Modelling Analysis
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Structural Equation Model Analysis aimed to estimate the multiple regression
equation separately, but each has ties simultaneously or concurrently. In this analysis
it is possible there is more than one dependent variable, and this variable becomes
possible independent variables Ior the other dependent variables.
In principle, the structural model aims to test the causative relationship between
variables, so iI one oI the variable changed will be changes in other variables as well.
In this study, data were processed using Analysis oI Moment Stucture soItware or
AMOS version 16.
In this study, the approach used to test the structural model is Multigroup
Structural Equation Model (MSEM) considered by previous study measurement
(Byrne, 2001; Matos et.al, 2007). This approach was used to test the structural model
to diIIerent groups simultaneously. The diIIerence between groups can be evaluated
based on the goodness-oI-Iit model suggested on the Iollowing criteria:
a. Chi Square:
The purpose oI this analysis is to develop and test a model that Iits the
data. X
2
data test with low value and generate a greater level oI signiIicance than
0.05 would indicate no signiIicant diIIerence between the estimated covariance
matrix. Chi square test is highly sensitive to the very small sample or very big
sample. ThereIore, these tests need to be equipped with the test equipment.
b. Goodness oI Fit Index (GFI)
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This index reIlects the level oI overall model Iit, calculated Irom the
residual squares oI the model that predicted compared to actual data. The value
result that approaching 1 implies that the model tested had goodness oI Iit.
c. Root Mean Square Error oI Approximation (RMSEA)
RMSEA is an index used to measure the model Iit chi square statistic to
replace the large number oI samples. RMSEA values _ 0.08 indicate a
good index to receive the Iitness oI a model.
d. Adjusted Goodness oI Fit Index (AGFI)
This index is a development oI GFI that adjusted Ior the ratio oI the
degree oI Ireedom model proposed by degree oI Ireedom Irom the null model
(single construct model with all indicators oI construct measurement.) The
recommended value is AGFI _ 0.90. The greater the value oI AGFI, the better
Iitness owned by the model.
e. Trucker Lewis Index (TLI)
TLI is an incremental Iit index that compares the tested model with the
null model. Recommended acceptance oI the value is the value oI TLI _ 0.95.
I. Normed Fit Index (NFI)
NFI is an incremental Iit index that compares the tested model with the
null model. Recommended acceptance oI the value is the value oI NFI _ 0.90.
g. Comparative Fit Index (CFI)
CFI is also an incremental Iit index. The size oI this index is in range 0 to
1, and values result that approaching 1 indicates the model has a good level oI
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Iitness models. This index is highly recommended to be used Ior this index is
relatively insensitive to sample size and less inIluenced by the complexity oI the
model. The recommended value oI receipts is CFI _ 0.90.
h. Normed chi square (CMIN/DF)
Cmin / DF is a measure oI the value oI chi square divided by degree oI
Ireedom. This index is a parsimonious Iit index that measures the relationship
goodness oI Iit model and the amounts estimated coeIIicients that are expected
to reach the level oI Iitness. Value result that recommended to receive the
suitability model is Cmin / DF 2.0 / 3.0.