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PURCHASING ILLEGAL COPIES OF MOVIESí VIDEOS AS AN UNETHICAL CONSUMER BEHAVIOR: AN ISRAELI STUDY pp. 249-259 $100.00
Authors:  Aviv Shoham, Ayalla Ruvio and Moshe Davidow, Univ. Graduate School of Management, Univ. of Hafia, Israel
Abstract:
Consumer piracy could include buying illegal copies of music CDs or movie videos
or brand-name knock-offs and its cost is estimated at billions of dollars. Piracy by
consumers is a severe problem to manufacturers. The annual global loss from
counterfeiting, such as pirated software and purchases of counterfeited brands (e.g.,
fashion), is $80 billion (Wee, Tan, and Choek, 1995). Moreover, sales of pirated music
exceed $4.0 billion (Mariano, 2002). Furthermore, the Global Software Piracy Report
(Smith, 2003) showed that software piracy had cost the USA 109,000 jobs, $4.5 billion in
lost wages, and $1.0 billion in lost taxes. We tested a model interrelating consumersí
ethics, their sentiments toward marketing, and their attitudes to piracy, and actual piracy
itself. Attitudes about piracy served as a partial mediator of the impacts of consumer
sentiments, morals, and ethics on actual piracy. Most hypothesized relationships,
including the role of piracy attitudes as partial mediators were supported by data from
Israeli consumers.
Piracy by consumers is a severe problem to manufacturers. The annual global loss
from counterfeiting, such as pirated software and purchases of counterfeited brands (e.g.,
fashion), is $80 billion (Wee, Tan, and Choek, 1995). The music industry exemplifies the
potential losses with sales of pirated music exceeding $4.0 billion (Mariano, 2002).
Furthermore, at the macro-country level, the Global Software Piracy Report (Smith,
2003) showed that software piracy had cost the USA 109,000 jobs, $4.5 billion in lost
wages, and $1.0 billion in lost taxes.
Previous research has studied piracy as a behavioral outcome of consumersí ethics
and morals, which impact the use of pirated software, shoplifting, shirts, and cameras (e.g., Babin and Griffin, 1995; Cordell, Wongtada, and Kieschnick, 1996). Our research
follows this approach and will be reviewed later. Here, we emphasize two contributions
of our study. First, we develop a nomological model with internal ethical/moral attitudes
and externally-based sentiments toward marketersí products and prices as antecedents
leading to attitudes about the act of piracy, which serves as a partial mediator of the
impact of these antecedents on actual piracy. Inclusion of consumersí sentiments is novel
to our model. Second, our study was conducted in Israel, a unique setting for testing the
model because most computer games, movie videos, and music CDs used in Israel are
illegal copies (Hecht, 2001; Kara and Dror, 2002). Thus, the reality of Israel being a
developed economy does not preclude consumers from piracy, which is a widespread
local phenomenon (Bergerfreund, 2002; Kara, 2002; Koren, 2002).
We first review the literature, develop a set of research hypotheses, and suggest a
nomological model. After describing the study the findings are discussed. An
implications section concludes the paper. 


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PURCHASING ILLEGAL COPIES OF MOVIESí VIDEOS AS AN UNETHICAL CONSUMER BEHAVIOR: AN ISRAELI STUDY pp. 249-259