FACTORS AFFECTING UNETHICAL CONSUMER
BEHAVIOR TOWARDS PIRACY IN INDONESIA
THESIS
RESEARCH PROJECT
By:
Kendro
1201005761
08THE
BINUS INTERNATIONAL
BINUS UNIVERSITY
JAKARTA
2012
Factors Affecting Unethical Consumer Behavior
Towards Piracy in Indonesia
THESIS
Proposed as the requirement for obtaining
Sarjana Degree at
Marketing Program
Education Level Strata 1 (Sarjana/Barchelor)
By:
Kendro
1201005761
BINUS INTERNATIONAL
BINUS UNIVERSITY
JAKARTA
2012
II
Certificate of Approval Page BINUS INTERNATIONAL BINUS UNIVERSITY Statement for readiness in attending defense examination
I , Kendro
Hereby state that thesis entitled:
Factors Affecting Unethical Consumer Behavior Towards Piracy in Indonesia
Is truly my original works and is never brought up as a scientific paper, partly or entirely
on my name or other parties
Kendro
Supervisor approval
I approve this thesis to be in defense examination
Evi Rinawati Simanjuntak
10 June 2012
Supervisor
III
Factors Affecting Unethical Consumer Behavior
Towards Piracy in Indonesia
THESIS Prepared by: Kendro (1201005761) Approved by: Supervisor Evi Rinawati Simanjuntak Lecture Code: D 4010 BINUS UNIVERSITY Jakarta 2012 IV
ACKNOWLEDGEMENT
First and foremost, the author would like to thank God, for providing strength,
concentration and guidance during the completion of this thesis, His blessing and grace
have made it possible for me to finish my study
This theses research project would not be possible without the assistance of my
respected supervisor, Ms. Evi Rinawati Simanjutnak who have nurtured me in every step
of the way and produce this wonderful piece of work to me, and for my panel supervisor
during the pre-defense, Ms. Dahlia Darmayanti, Mr Asnan Furinto for their valuable
suggestions and help.
The author would also want to dedicate this project to family, parents; Thomson Lim
and Tan Sung Chiok and family for supporting through out the making of this project.
For always being there when I needed and keep pushing me to do my best.
Thank you to my faithful and unconditional help from my friend Aryo Bismo for
spending time to tutor me on SPSS with patience. Also to all the people who have
helped filling in the questionnaires survey paper, enabling the author to be able to create
this research project.
VI
Table of Contents Cover Page ...................................................................................................................................... I Certificate of Approval .............................................................................................................. III Abstract ........................................................................................................................................... V Acknowledgement ...................................................................................................................... VI Table of Contents ........................................................................................................................ VII List of Figures ............................................................................................................................... XI List of Tables ................................................................................................................................. XII CHAPTER I – INTRODUCTION
1
1.1 Background: Overview of Piracy Activities and Products ............................... 1
1.1.1 The Risk of Digital Piracy ...................................................................... 6
1.2 Scope ................................................................................................................. 7
1.3 Aims and Benefits ............................................................................................. 8
1.4 Research Questions ........................................................................................... 9
1.5 Structures .......................................................................................................... 10
CHAPTER II - THEORETICAL FOUNDATION
12
2.1 Consumer Behavior ........................................................................................... 12
2.2 Elaboration on Research Construct ................................................................... 14
2.2.1 Moral Equity ........................................................................................... 14
2.2.1.1 Ethics and Morals ....................................................................... 15
2.2.2 Relativism ............................................................................................... 16
2.2.3 Attitudes to Act Unethical ...................................................................... 16
2.2.4 Purchase of Pirated Product .................................................................... 18
2.3 Model Development & Hyphotheses ................................................................ 18
2.3.1 Ethics and Morals Æ Purchase of Pirated Products................................ 22
VII
2.3.2 Ethics and Morals Æ Attitudes to Act Unethical .................................... 23
2.3.3 Attitudes Toward the Act Æ Purchase of Pirated Products .................... 24
CHAPTER III- RESEARCH METHODOLOGY
25
3.1 Research Objectives .......................................................................................... 25
3.2 Research Design ................................................................................................ 26
3.2.1 Unit Of Analysis ..................................................................................... 27
3.2.2 Sampling Method .................................................................................... 27
3.2.3 Scaling Techniques ................................................................................. 27
3.3 Data Collection Method .................................................................................... 30
3.3.1 Primary Data ........................................................................................... 30
3.3.2 Secondary Data ....................................................................................... 31
3.3.3 Questionnaires Development .................................................................. 31
3.4 Data Analysis Method ....................................................................................... 33
3.4.1 Reliability and Validity (Pre-test) ........................................................... 33
3.4.2 Descriptive Analysis ............................................................................... 35
3.5 Hypothesis Test ................................................................................................. 36
3.6 Remarks ............................................................................................................. 36
CHAPTER IV – RESEARCH FINDINGS
38
4.1 Pre-test ............................................................................................................
38
4.1.1 Distribution ............................................................................................ 38
4.1.2 Reliability and Validity Result ..............................................................
38
4.1.2.1 Cronbach’s Alpha ...................................................................... 39
4.1.2.2 Validity Pre-test Result .............................................................. 40
4.1.2.1 Confirmatory Factor Analysis of Moral Equity and Relativism... 41
4.1.2.2 Confirmatory Factor Analysis of Attitudes to Act Unethical …... 43
4.1.2.3 Confirmatory Factor Analysis of Purchase of Pirated Products. 45
VIII
4.2 Result Analysis ................................................................................................. 47
4.2.1 Distribution ............................................................................................. 47
4.2.2 Descriptive Analysis ............................................................................... 47
4.2.2.1 Demographic Information .......................................................... 48
4.2.2.1.1 Respondents Gender .................................................................. 48
4.2.2.1.2 Respondents Age Group ............................................................ 49
4.2.2.1.3 Respondents Last Education ...................................................... 50
4.2.2.1.4 Respondents Personal Expenses Per Month .............................. 51
4.2.2.1.5 Respondents Locations ............................................................... 52
4.2.2.2 Filter Information ....................................................................... 53
4.2.2.2.1 Experience in Buying Pirated Products ..................................... 53
4.2.2.2.2 Most Purchased Pirated Products ............................................. 54
4.2.2.2.3 The Last Purchased Pirated Products ....................................... 55
4.2.2.2.4 Where Do They Buy Pirated Products ....................................... 56
4.2.3 Pearson Correlation ................................................................................ 57
4.2.3.1 Correlation of Moral Equity ....................................................... 57
4.2.3.2 Correlation of Relativism ........................................................... 58
4.2.3.3 Correlation of Attitdues to Act Unethical .................................. 59
4.2.4 Multiple Regression Result .................................................................... 61
4.2.4.1 Regression to Attitude to Act Unethical .................................... 62
4.2.4.2 Regression to Purchase Pirated Products ................................... 65
4.2.5 Crosstab Analysis ................................................................................... 68
CHAPTER V – CONCLUSION AND RECOMMENDATION
70
5.1 Conclusion ........................................................................................................ 70
5.2 Managerial Implications ................................................................................... 72
5.3 Limitation of The Research .............................................................................. 74
5.4 Recommendation for Further Research ............................................................ 75
IX
References .............................................................................................................. 76
Appendices .............................................................................................................. 83
Appendix 1 .............................................................................................................. 83
Appendix 2 .............................................................................................................. 85
Appendix 3 .............................................................................................................. 88
Appendix 4 .............................................................................................................. 91
Appendix 5 .............................................................................................................. 93
Appendix 6 .............................................................................................................. 95
Questionnaire .......................................................................................................... 96
X
List of Figure
Figure 1.1 Top 20 Pirating Nations based on BSA ................................................. 5
Figure 1.2 Rate of Spam Occureces ....................................................................... 6
Figure 2.1 Framework of Consumer Behavior ........................................................ 12
Figure 2.2 Moral Beliefs, Ethical Decision Making and Behavior ......................... 14
Figure 2.3 Research Construct ................................................................................ 21
Figure 3.1 Multivariate Data Analysis .................................................................... 30
Figure 4.1 Gender ................................................................................................... 48
Figure 4.2 Age Group ............................................................................................. 49
Figure 4.3 Respondents Last Eductiaon ................................................................. 50
Figure 4.4 Respndents Monthly Expenses ............................................................. 51
Figure 4.5 Respondents Location ........................................................................... 52
Figure 4.6 Most Purchased Pirated Products .......................................................... 54
Figure 4.7 The Last Purchased Pirated Products .................................................... 55
Figure 4.8 Where Do They Buy Pirated Products .................................................. 56
XI
List of Table
Table 2.1 List of Related Journals Towards Empirical Study ................................. 19
Table 3.1 Comparison Between the Original Study with the Current Research ..... 37
Table 4.1 Reliability Pre-test Result......................................................................... 39
Table 4.2 Confirmatory Factor Abalysis – Moral Equity and Relativism .............. 41
Table 4.3 Confirmatory Factor Analysis – Attitudes to Act Unethical ................... 43
Table 4.4 Confirmatory Factor Analysis – Purchase of Pirated Products ............... 45
Table 4.5 Respondents Gender ................................................................................ 48
Table 4.6 Respondents Age Group .......................................................................... 49
Table 4.7 Respondents Last Education .................................................................... 50
Table 4.8 Respondents Personal Expenses/month ................................................... 51
Table 4.9 Respondents Locations ............................................................................ 52
Table 4.10 Experience in Buying Pirated Products ................................................. 53
Table 4.11 Most Purchased Pirated Products .......................................................... 54
Table 4.12 The Last Purchased Pirated Products .................................................... 55
Table 4.13 Where Do They Buy ............................................................................. 56
Table 4.14 Correlation – Moral Equity ................................................................... 57
Table 4.15 Correlation – Relativism ....................................................................... 58
Table 4.16 Correlation – Attitdes to Act Unethical ................................................ 59
Table 4.17 Correlation – Purchase of Pirated Products .......................................... 60
XII