Countering Counterfeit Branding: Implications for Public-Sector Marketing

Counterfeit products are a large and growing problem. Counterfeiting has negative effects from both an economic and a consumer perspective. The majority of the research on counterfeiting has focused its attention at the individual level regarding consumers’ motivation toward buying counterfeit brands, which did not consider the influence of copy culture or mimesis. This paper conceptualizes counterfeit or fake branding at a cultural process level to more clearly illuminate the persistent marketing problem. First, we discuss the counterfeit-brand issue, then introduce the theory of mimesis to illuminate consumers’ relationships with counterfeit brands and issues of cultural appropriation. Next a model with implications for action and consequent propositions for policy are discussed. The paper concludes with suggestions for future research.     

Consumer demand for counterfeit goods

Research on counterfeiting has focused on the supply side, with scant attention to consumer demand for counterfeit goods. Anticounterfeiting efforts would benefit from the identification of the segment(s) of consumer counterfeiting accomplices, consumers who knowingly purchase counterfeit products. This article reports on three studies, conducted at flea markets and malls, that attempted to identify consumer accomplices. Study 1 investigated prepurchase factors, Study 2 focused on factors active during purchasing, and Study 3 concentrated on postpurchase factors. The results suggest the existence of a typology of consumer accomplices, sly shoppers who purposely purchase counterfeit goods to demonstrate their consumer shrewdness and economically concerned shoppers whose intentional purchase of fake goods is driven by economic concerns. Implications for marketing practitioners are discussed. © 1998 John Wiley & Sons, Inc.     

Antecedents of attitude and intention towards counterfeit symbolic and experiential products

Abstract

This paper investigates the impact of price consciousness, perceived risk, and ethical obligation on attitude and intention towards counterfeit products. Data were collected from a sample of 200 respondents via an online questionnaire. A conceptual model was derived and tested via structural equation modelling in the contexts of symbolic and experiential counterfeit products. Findings show differences in the factors (and weight thereof) impacting attitude and purchase intention in the two product contexts. Specifically, ethical obligation and perceived risk are found to be significant predictors of attitude towards both symbolic and counterfeit products, while price consciousness is found to predict only attitude towards experiential products, but not purchase intention in either counterfeit product context.     

Coping with copies: The influence of risk perceptions in luxury counterfeit consumption in GCC countries

This research investigates counterfeit luxury consumption in the Gulf Cooperation Council (GCC) countries, where consumers are so affluent that their consumption of counterfeit goods is surprising. An exploratory quantitative survey conducted in the United Arab Emirates demonstrates that though GCC nationals do purchase counterfeit luxury products, the perceived performance, psychosocial, and moral risks might prevent them from the engagement in such consumption. Based on 19 in-depth interviews, a follow-up qualitative study identifies the strategies Emiratis use to cope with the cognitive dissonance that occurs from the perception of those risks. The findings are of major interest for public policy makers and luxury brand managers fighting counterfeiting.     

Counterfeiting: Friend or Foe of Luxury Brands? An Examination of Chinese Consumers’ Attitudes Toward Counterfeit Luxury Brands

ABSTRACT

While the Chinese luxury industry is enjoying rapid growth, the market for counterfeit luxury brands is growing equally fast. There are contradictory views regarding the role counterfeit luxury brands play in the marketplace. Luxury brand owners denounce counterfeit luxury products for harming the reputation of luxury brands and reducing their profitability. Others believe that the availability of counterfeit luxury products may help increase the brand awareness of luxury names and thereby make authentic products more sought after. In this study, we examine the impact of counterfeit luxury products from the consumers’ standpoint. Specifically, the authors investigate whether and how Chinese consumers with different luxury consumption experiences view counterfeit luxury products differently. The study contributes to a better understanding of Chinese consumers’ attitudes toward counterfeit luxury products and thus helps marketers and policy makers develop more effective strategies for dealing with the issue.     

Schadenfreude,attitude and the purchase intentions of a counterfeit luxury brand

Luxury brand counterfeiting is illegal and its harmful effects on genuine brands and on the wider society are well known. Nonetheless, it has not prevented consumers to buy copies. This study introduces a new variable, Schadenfreude – the pleasure felt in response to another's misfortune – and examines how this emotion relates to the intention to purchase a counterfeit, the attitude toward the original brand, and the attitude toward the counterfeit. An online questionnaire was completed by 420 respondents who were presented a scenario involving the Louis Vuitton brand and a counterfeit. Using structural equation modeling, four hypotheses were supported. Major findings show that Schadenfreude is positively correlated with the intention to buy and the attitude toward counterfeiting and negatively correlated with the attitude toward the original brand. Luxury goods firms should be aware of the potential negative effects of Schadenfreude.     

When counterfeits raise the appeal of luxury brands

Counterfeiting is a widespread practice throughout the world. The conventional wisdom is that it affects branded goods negatively. In this paper, however, we suggest that counterfeiting may actually benefit certain luxury brands. By means of two studies, we show how the market presence of luxury counterfeit items can increase consumers’ willingness to pay for original brands. In Study 1, we show that the presence of luxury counterfeits can increase consumers’ willingness to pay for well-known original brands, but not for lesser-known ones. Brand awareness plays a moderating role in the positive relationship between counterfeiting and willingness to pay (WTP). In Study 2, we address the psychological mechanisms that explain this increased willingness to pay. The results show that consumers’ (a) pleasure at being envied, (b) pleasure in distinguishing themselves, and (c) perception of the quality of the original goods fully mediate the relation between the presence of counterfeit in the market and consumers’ WTP for originals. We subsequently discuss the theoretical and managerial implications of the two study results.     

When less is more: the impact of macro and micro social media influencers’ disclosure

ABSTRACT

There are growing discussions of social media influencers and their effectiveness in endorsing products. Further, recent policy regulations are requiring social media influencers to disclose sponsored content when using a form of native advertising. This research examined the effect of macro-influencers (high likes) and micro-influencers (low likes) and their disclosure of native advertising sponsorship on consumer evaluations of products. Results from a 2 × 2 experiment first show that consumers exposed to the micro-influencer condition report higher levels of product knowledge, and consumers exposed to the disclosure condition reported the products endorsed by social media influencers to be more attractive. The results also show that when exposed to micro-influencers who disclose, consumers have higher levels of purchase intentions than when exposed to macro-influencers who do not disclose, as well as higher purchase intentions than for posts where sponsorship is not disclosed by influencers. The important findings of this research for theory, practice and policy are discussed.     

Purchase Attributes of Wine Consumers with Low Involvement

Abstract

The past decade has seen a dramatic increase in wine consumption. With this increase comes the need to understand how consumers choose wine. Wine consumers have different types of experiences and expectations, and a one bottle fits all method of catering to wine consumers is not an appropriate marketing strategy. Consumer segmentation based upon involvement with wine is critical to understanding buying behaviors. This study used factor analysis and logistic regression to identify the wine novice and what marketing cues they use to purchase wine. The results identified key marketing cues wine novices use to purchase wine and revealed yet another involvement category: the emerging wine learner.     

Determinants of purchase luxury counterfeit products in social commerce: The mediating role of compulsive internet use

Research on counterfeit purchase intention has attracted enough attention, and a number of studies have investigated various determinants of luxury counterfeit purchase intention in the offline context. However, less attention has focused on the underlying mechanism of the attitude toward luxury counterfeit purchase intention in the social commerce context. Moreover, extant literature has focused on the influence of compulsive internet use (CIU) on psychological well-being. Based on flow theory, this study examines the mediating role of CIU in the relationship between influencing factors (such as materialism, novelty-seeking behavior, and hedonic benefits) and consumers’ attitudes toward luxury counterfeit products. Additionally, the moderating role of product conspicuousness and positive online reviews also examined the direct effects. Data were collected from active online users of Taobao.com. Results show that materialism and novelty-seeking behavior are significantly related to CIU and subsequently influence the attitude toward luxury counterfeit goods. Furthermore, product conspicuousness and positive online reviews have moderated the direct effect of the conceptual framework. Therefore, the current research contributes to the existing literature by addressing the mediating CIU and moderating (product conspicuousness and positive online reviews) factors that played a significant role in promoting counterfeit purchase intention, comparing the direct effect to promote the counterfeit purchase intention. Theoretical and practical implications are discussed in detail.     

The phenomenon of purchasing second-hand products by the BOP consumers

This study explores the motivations and consequences of purchasing second-hand (SH) products by the rural and sub-urban (RSU) base of the pyramid (BOP) consumers using a qualitative phenomenological approach. This study has also examined the preferred purchase points for buying SH products by the RSU BOP consumers. Findings revealed that the RSU BOP consumers preferred their personal sources over offline and online retails while buying a SH product. The economic motivations, need for fulfilling aspirations, apathy towards cheap brands, need for social recognition, and pester power of school/college going children were found as the motivations behind the purchase of SH products by the RSU BOP consumers. This study has also identified that increasing consumption of branded SH products results in compensatory consumption, increased consumerism, and overwhelming recurring cost at the RSU BOP. This study has put forth a conceptual model leading to a comprehensive understanding of the purchase points, motivations, and consequences of SH purchase by the RSU BOP consumers. It has advanced the social comparison theory and the theory of compensatory consumption in the context of SH buying by BOP consumers. This study would fill the gap in the literature on consumer behaviour and BOP by examining such a novel issue. The practical and social implications of the study have been discussed.     

Analysis of free gift card program effectiveness

Retailers use various promotions, such as gift cards, to increase profits. When retailers give gift cards “free” to consumers who spend above specified thresholds in a single purchase, some consumers may buy more goods. We develop a model to derive the optimal purchase amount thresholds and gift card values. The model is developed for consumers without and then with a spending constraint. We find that the retailer's profit margin, the degree of forward buying and stockpiling, and use of gift cards in future purchases that would have been made with cash, are the most important factors in determining the profitability of gift cards. Gift cards may be very profitable for high-margin retailers who can limit the degree of forward buying and stockpiling, particularly when consumers use gift cards to buy goods they would not have bought from the retailer without gift cards. If this is how consumers use the gift cards, then consumers spending above the cards’ value at redemption can significantly increase their profitability. Without a consumer spending constraint, it is best for the retailer to offer at most one gift card at a large purchase amount. With a consumer spending constraint, it may be profitable to give gift cards at multiple purchase amount thresholds. We also show that the commonly observed policy of giving gift cards at equally spaced purchase amounts may be profitable when forward buying and stockpiling can be controlled. Moreover, we show that gift cards become more profitable when consumers are inconsistent, that is, they overestimate their probability of redeeming the gift card at purchase time. Finally, gift cards may have only a slight profit advantage over discounts if consumers are consistent. Consumer inconsistency and spending above the cards’ value increase this advantage.     

Ethical Beliefs of Chinese Consumers in Hong Kong

In recent years, there has been increased awareness of unethical consumer practices in Asian countries. Asian consumers have gained a bad reputation for buying counterfeit products, such as computer software, fashion clothing and watches. In 1993, the estimated losses to US software companies due to Chinese counterfeiting stood at US $322 million (Kohut, 1994). The present study uses a consumer ethics scale developed by Muncy and Vitell (1992) to investigate consumers' ethical judgments from a Chinese perspective. The result shows that consumers in different cultures utilize similar rules to assess the ethicality of a given situation. However, findings also show certain cultural elements that are unique in influencing Chinese consumers' ethical judgments. The results also indicate the need for the continued development of and investment in consumer education in Asia.     

Consumers’ Intent: In the Organic Food Market

ABSTRACT

This paper examines the determinants that influence consumers' intention to purchase organic products. Ajzen's theory of planned behaviour (TPB) provides the conceptual framework of the research and the appropriateness of the theory is tested. A survey of 144 consumers was used to determine the beliefs which determine consumers’ intent to purchase organic food. Furthermore, attitudes, subjective norm, and perceived behavioral control were examined to determine whether they affect consumers’ intention to make organic products purchases. The findings offer considerable support for the robustness of the TPB in explaining intention in the sample. In addition, empirical evidence suggest that price, availability of organic products, product information and the subjective opinions of others are important determinants of consumers intent to buy organic products. The results are consistent with previous research.     

Green Marketing and the Concern over the Environment: Measuring Environmental Consciousness of Jordanian Consumers

SUMMARY

The purpose of this article is to explore the attitudes of Jordanian consumers regarding both their current environmental consciousness and their willingness to adopt environmentally friendly consumption behavior. The article is based on an empirical investigation of consumer attitudes for a sample of 303 university students drawn from Jordanian universities, using a drop-off method. The article concludes that Jordanian consumers were, generally, concerned about the environment, as they demonstrated reasonably high levels of environmental consciousness relating to various environmental issues. However, this pro-environmental attitude was not sufficient to turn good intentions into actual buying actions, possibly due to several factors, such as loyalty to traditional products and weak credibility of “green” claims. The article stresses the need to link consumers' good intentions to actual buying behavior through a green marketing strategy, which focuses on the unique characteristics of green products and how they impact the environment, within the cultural context of the Jordanian consumer. Over time, we hope that these efforts can lead to a culture of green consumerism within a framework of environmental responsibility.     

CSR,Sustainability and the Meaning of Global Reporting for Latin American Corporations

Although the ethical judgment of consumers in the United States and other industrialized countries has received considerable attention, consumer ethics in Asian-market settings have seldom been explored. The purchase and making of counterfeit products are considered common, but disreputable, attributes of Southeast Asian consumers. According to the Association of South-East Asian Nations (ASEAN), Indonesia ranks third among the leading countries of counterfeit items in Asia. Retail revenue losses attributed to counterfeiting amounted to US $183 million in 2004. Therefore, elucidating the ethical perspectives of Indonesian consumers is an effective means of clarifying an important cultural influence on consumer behavior. This exploratory study of 230 Indonesians has many meaningful findings. First, certain personal attitudes apparently affect the ethical judgments of Indonesian consumers. Second, Indonesian consumers who exhibited high ethical concern over actively benefiting from illegal actions had high levels of materialism and idealism, as well as low levels of relativism. Third, materialism, idealism, and relativism significantly influenced whether benefits were created from actively engaging in some questionable activities (DELEGAL). Analytical results indicated that Indonesians with high materialism and relativism were more likely to engage in actions that were questionable but legal. Finally, consumer ethics were compared by applying demographic variables such as gender, age, education, religion, and occupation, indicating that all variables significantly varied except for religion.     

The moderating effect of need for belonging and communal-brand connection on counterfeit purchasing

Developing social-links among consumers can increase firm performance but does having a communal-brand connection impact counterfeit consumption? Two studies are implemented to explore this question. Study 1 finds that there is a positive relationship between moral beliefs towards counterfeits and willingness to purchase counterfeits. Study 1 also discovers that a weak to average communal-brand connection moderates this relationship. However, study 2 reveals that need for belonging is a stronger moderator. In particular, consumers with a low to average need for belonging are less willing to purchase counterfeits when they hold unfavorable moral beliefs towards counterfeits but are more willing when they hold favorable moral beliefs. The results suggest that need for belonging levels influences a consumer's willingness to purchase counterfeit products. Managers are encouraged to promote messages to their brand communities that decrease moral beliefs towards counterfeits, such as counterfeit consumers are inauthentic and immoral.     

Values,socially conscious behaviour and consumption emotions as predictors of Canadians’ intent to buy fair trade products

Over the last two decades, a growing concern about ethical behaviour has been observed among consumers. Ethically minded consumers are more inclined towards the consumption of ethical goods, such as green products and fair trade (hereafter, ‘FT’) products, organic products and local products. Establishing the motives that predict FT consumption behaviour provides ground for understanding how consumers make purchase decisions. This research postulates that the intention of buying FT products is influenced by socially conscious behaviour, consumers’ values and emotions. The study, conducted among 268 Canadian consumers, shows that the high intention of buying FT products is linked to high levels of pride, enthusiasm, satisfaction, happiness and joy related to FT product consumption. The FT consumption experience provides consumers with hedonic gratification. It shows that the higher the levels of self‐centred, equality and social justice values are, the higher the intention of buying FT products. An increase in socially conscious behaviour generates an increase in intention of purchasing FT products. The research contributes to a preliminary analysis of the role of emotions in this field and calls for the development of cognitive‐affective models of purchase and consumption behaviour. Understanding the dimensions of hedonic values and the significance of pleasure experience is essential to the development of the theory and practices of FT consumption.     

The Importance of Fashion: The Chinese and U.S. Gen Y Perspective

ABSTRACT

A cross-cultural study is conducted to examine the perceptions, needs, preferences, influences and fashion buying habits of Generation Y consumers in both China and the United States. Chinese consumers appear to be more fashion-conscious in that the majority of their luxury purchases are fashion products. In this increasingly globalized world, it is important for a fashion marketer to determine if one strategy can be used to reach all Generation Y consumers or if separate strategies are necessary. Specifically, this study examines fashion leadership, need for uniqueness, and attention to social comparison information to determine if there are differences between these two cohorts and how best to reach them.