25 CHAPTER III METHODOLOGY 3.1. Research Design Flowchart Figure 3. 1. Research Design Flowchart Figure 3.1 illustrates the research methodology employed in studying the impact of consumer perception of counterfeit goods on the reputation of luxury brands. The initial phase involves doing a preliminary investigation to confirm the existence of an issue and acquire valuable insights into the subject matter. The preliminary study provides valuable understanding of individuals' perceptions of counterfeit luxury brand products, specifically within the Indonesian market. This step helps establish a solid foundation for the detailed research that will follow. Subsequently, the issue was pinpointed as customers' concern regarding the impact of counterfeits on the authenticity and general image of luxury brands and their perceived quality. From the problem identified, the key research questions are formulated to guide the directions of the research and define the investigation of consumer perceptions, brand image, and perceived quality. Then, followed by a comprehensive examination of relevant literature from earlier studies. 26 Consequently, the hypotheses were formulated by combining information from a literature review. Therefore, data collection is the subsequent stage. The study employs a quantitative methodology to gather data through the dissemination of online surveys through distributing online questionnaires to collect quantitative data from a broader audience. This method allows for efficient data collection from a large number of respondents, facilitating the gathering of substantial data regarding consumer perceptions of counterfeit luxury goods. The collected data is analyzed using statistical tools and methods to provide conclusions and recommendations subsequently. Techniques might include descriptive statistics to summarize the data and inferential statistics to test the hypotheses. 3.2. Research Approach This study employs a quantitative methodology to gather the data. The quantitative research approach involves the measurement and analysis of variables to obtain outcomes. Data analysis is the process of employing statistical tools to examine numerical data in order to answer questions about who, how much, what, where, when, how many, and how (Apuke, 2017). Quantitative research is characterized by the collection of data in a manner that allows for quantification and statistical analysis. The purpose of this analysis is to either support or challenge alternative claims of knowledge (Apuke, 2017). Quantitative research is based on deductive reasoning (Sekaran & Bougie, 2010) and utilizes various quantitative analysis techniques. These techniques range from simple descriptive analysis of variables to complex statistical modeling, which establishes statistical relationships among variables (Saunders et al., 2009). Thus, this study utilizes a quantitative methodology to get robust and measurable outcomes that may effectively evaluate customer perceptions of counterfeit products in relation to the brand image of luxury brands. Apuke (2017) provides various classifications of quantitative research, one of which is surveys. This study employs the survey methodology to gather the data. 3.3. Preliminary Study The preliminary study is the initial research conducted to explore a concept or to test the feasibility of larger, more comprehensive studies. 27 3.3.1. Research Method The preliminary investigation of this research employs a survey methodology to gather the data. Survey research involves the application of scientific sampling techniques and a carefully developed questionnaire to assess the characteristics of a specific group using statistical methodologies (Apuke, 2017). Saunders et al. (2019) asserted that the survey method puts up arguments regarding variables by analyzing the responses of participants. Furthermore, the survey approach is effective when all respondents have a uniform understanding of the subject in question (Robson & McCartan, 2016). The preliminary survey collects data on customers' insights into how counterfeit luxury goods affect their brand perception. Furthermore, the initial study seeks to verify whether this problem also arises in Indonesia. The survey is being distributed through an online platform called Google Form. 3.3.2. Data Collection The data collection for this research involved choosing the population group, sample, and sampling technique, as well as designing a questionnaire in the preliminary research. 3.3.2.1. Population and Sample The preliminary study focuses on consumers and potential consumers of luxury brands in Indonesia who are already familiar with high-end brands such as Gucci, Louis Vuitton, and Chanel, and are aware of the existence of counterfeit goods. The potential consumers can be defined as individuals who have not yet accumulated as many product-related experiences but might do so in the future by showing interest in a product or service. Potential consumers weigh non-monetary factors (perceived risk) more heavily due to uncertainty and lack of experience with the vendor (Kim & Gupta, 2009). The preliminary investigation has a minimum sample size of 40 respondents, which is within the recommended range proposed by Perneger et al. (2014). Additionally, a study proposes a recommended subject to item ratio of 5 to 10 participants per item as a guideline for determining the minimum sample size for a preliminary study (Anthoine et al., 2014). Hence, the preliminary study for this research requires a minimum sample size of 125 to 250 respondents, corresponding to the 25 items posed in the preliminary questionnaire. 28 3.3.2.2. Sampling Technique To obtain suitable information for this study, a non-probability sampling strategy is used due to the enormous size of the population.