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.     

The effect of distribution channel diversification of foreign luxury fashion brands on consumers’ brand value and loyalty in the Korean market

The purpose of this research is to examine South Korean consumers’ brand value and brand loyalty toward foreign luxury fashion brands and current distribution channels for those brands (i.e., Department stores/Specialty stores, Factory outlet, Internet retailing, TV home shopping). Furthermore, this research examines the impact of channel diversification on consumers’ brand value and brand loyalty toward foreign luxury fashion brands. This study employed a quantitative research method. Factor analysis, ANOVA, Duncan test, and multiple regression analysis were employed to test the hypotheses. When testing brand values for each channel diversification case, participants evaluated brand value differently depending on the type of distribution channel. Participants did not show significantly different brand loyalty depending on distribution diversification cases. When the influence of brand value on brand loyalty was tested, different brand values affected brand loyalty depending on the type of distribution channel. Also, this research could suggest possible distribution channel options for foreign luxury brands to be successful in the Korean market and values they need to put an importance depending on the retail types. In addition, foreign luxury brands could apply the results of this study to their own markets.     

Desire,need, and obligation: Examining commitment to luxury brands in emerging markets

The availability of a wide variety of luxury brands has resulted in declining commitment toward a single brand. Enhancing brand commitment has, therefore, become a significant challenge for international businesses and marketing managers. We develop a multi–dimensional brand commitment framework underpinned by marketing, organizational, and social psychology literature streams. The simultaneous examination of brand–commitment dimensions based on consumer desire, need, and obligation in our framework offers a novel perspective that advances research on brand commitment. Our findings demonstrate stability of the framework in important emerging markets for luxury brands, namely China, India, Russia, Turkey, and Thailand. The framework, incorporating affective, continuance, and normative brand commitment dimensions, offers a conceptually robust fit. We demonstrate that each brand commitment dimension is influenced by distinct antecedents, and we show the direct and interactional impact of consumers’ emotional attachment, economic motivations, and normative pressures on purchase intentions. Supported by well-established theories in organizational and social psychology, our study offers new insights on how consumers commit to brands. We provide international brand managers with a blueprint for strengthening brand commitment across countries.     

Enhancing brand coolness through perceived luxury values: Insight from luxury fashion brands

Consumers of luxury brands have been described as seekers of products that can offer a signaling value to present to others but also a value for their self-concepts in an existentialist spirit potentially linked to being “cool or not.” Prior studies have conceptualized brand coolness and evaluated its impact on consumer responses to brands. However, few studies have contextualized the construct of brand coolness concerning luxury brand realism. We assessed the semiotic tension that luxury brand consumers feel between self-concept and self-presentation to others via a theoretical consideration of four antecedents of brand coolness: individual, social, financial, and functional luxury values; and one intentional outcome such as consumers' passionate desire to use luxury fashion brands. Our findings indicated that luxury values positively influence brand coolness, and brand coolness positively influences passionate desire. We further confirmed that brand coolness plays a complementary mediating role between luxury values and passionate desire. A final contribution is to invite brand managers to consider how luxury values and brand coolness might be used proactively to drive consumers' passionate desires in the relationships with luxury fashion brands.     

The role of art infusion in enhancing pro-environmental luxury brand advertising

Underpinned by art infusion theory, this present research examines the effect of art infusion on brand attitudes under different brand conditions (i.e. pro-environmental luxury brands and luxury brands) in advertising. Across two experimental studies, this research offers empirical evidence to a moderated mediation model, such that when an advertisement features an artwork (vs. no-artwork), consumers will perceive lower levels of incompatibility between luxury and sustainability, leading to a more favorable brand attitude toward the pro-environmental luxury brand. However, such differences will not occur among consumers evaluating an ordinary luxury brand. The findings of this research broaden the current body of knowledge related to the art infusion effect and provide important implications for marketers in their advertising strategy. Furthermore, these findings suggest that art infusion may be the solution to the dilemma facing sustainable luxury brands since luxury and sustainability are often perceived as incongruent concepts.     

Drivers of Brand Extension Success: What Really Matters for Luxury Brands

The use of brand extensions has become fundamental to the business model of most luxury brands. Many traditional luxury brands such as Louis Vuitton or Chanel have expanded into traditional luxury sectors beyond their core business. Some brands such as Armani or Prada even crossed boundaries to nontraditional lifestyle segments to pursue new business opportunities. Given the high practical relevance of brand extensions for luxury brands and the importance to understand the success factors for their extendibility and potential backward effects on the parent brand, surprisingly little research has addressed these issues for luxury brands in comparison to nonluxury brands. The current research reveals extension‐related differences between luxury and nonluxury brands by simultaneously analyzing key dimensions of parent brand value, fit, and extension category involvement on the consumer's attitude toward the brand extension, which in turn influences the postextension image of the parent brand. Results of a structural equation model based on a survey among 492 participants show that the predominant driver of brand extension success for both luxury and nonluxury brands is overall extension fit, followed by the consumer's involvement in the extension category. The influence of functional value of the parent brand on the extension evaluation is more important for nonluxury brands. The hedonic value of the parent brand is found to be of relevance only in case of luxury brands. Moreover, a reciprocal spillover effect between the extension evaluation and the parent brand evaluation is observed. The degree of luxuriousness of the parent brand moderates this relationship. This effect is weaker for luxury brands.     

How consumption values and perceived brand authenticity inspire fashion masstige purchase? An investigation

Rising income and the aspirations of the middle-class have resulted in the emergence of a new category of luxury brands popularly known as “masstige brands”. Researchers have attempted to establish masstige branding and masstige marketing as a differentiated research domain from luxury marketing. As an attempt to this end, the current study, which is confined to women's fashion clothing brands, investigates whether various luxury consumption values are equally applicable in inspiring masstige purchase. In addition, this study investigates whether dimensions of perceived authenticity of a masstige brand moderate the association between various consumption values and masstige purchase intention. By employing an online survey, 462 useable responses were collected from middle-income female consumers in India and analysed using PLS-SEM and multi-group analysis. The findings show that functional, experiential and symbolic consumption values inspire masstige fashion purchase but the zero-moment-of-truth consumption value does not. Quality and sincerity (but not heritage) dimensions of perceived brand authenticity enhance the consumption value perceptions leading to masstige purchase. This study is the first of its kind to examine the applicability of various luxury consumption values in masstige consumption besides testing the moderating effect of perceived brand authenticity.     

Identifying antecedent conditions for luxury brand purchase

This research draws upon self-termination and complexity theories and aims to identify the antecedent recipes for Chinese consumers' intention to purchase Chinese- (referred to as domestic) or non-Chinese (referred to as foreign) luxury brands. Two studies were undertaken. First, an online survey was undertaken to examine the antecedent conditions of luxury brand purchase. The opted conditions in this study include value perceptions, special occasions, and demographic profiles. An asymmetrical method by employing fsQCA was used to identify the unique antecedent conditions of purchase intentions. Symmetrical testing was also performed prior to fsQCA as a comparison. The findings from symmetrical and asymmetrical methods share few similar, but nevertheless complementary findings, hence providing new insights into consumers' luxury brand choices. In the second study, interviews were conducted to deepen the understanding of Chinese consumers’ knowledge, perceptions of, and attitudes towards luxury brands. Discussion and implications for marketing luxury brands in the Chinese market conclude this paper.     

Crafting Extraordinary Stories: Decoding Luxury Brand Communications

Advertising is central to creating brand meaning by endowing brands with symbolic values and embedding them within their broader sociocultural context. This study analyzes how the symbolic meaning of luxury brands is constructed in print advertisements. In particular, the study shows how brand communications of luxury brands systematically differ from those of premium and mass-market brands. Through a comparative analysis of thematic and formal characteristics of 208 print advertising campaigns consisting of about 1,700 individual ads from the primary advertising campaigns of four luxury brands, four premium brands, and four mass-market brands, this study identifies three distinguishing factors of luxury brand communication: enrichment, distancing, and abstraction. First, luxury brand advertising enriches the communication content by using more complex campaign templates that make more frequent use of symbolism, rhetorical structures, and storytelling. Second, luxury brand advertising systematically uses distancing techniques, such as temporal, spatial, social, and hypothetical distancing. Third, luxury brand ads use higher-level discourses that allow for different interpretations of brand advertisements. Therefore, this study provides insights into the construction of brand identity in the luxury field, as well as the broader sociocultural construction of luxury and the evolution of its core symbolic constituencies.     

Brand addiction in the contexts of luxury and fast-fashion brands

Although research on consumer-brand relationship has gained increasing interest among scholars, little is known to date about its most intense form – brand addiction. This research explores the main motives and outcomes of this phenomenon in the two brand categories: luxury and fast-fashion brands. The authors conducted 21 in-depth interviews in the U.S. to tap into the respondents' addictive experiences with luxury and fast-fashion brands. Different themes emerged regarding the motivations for luxury and fast-fashion brand addiction. Self-expressiveness, status consumption and perceived quality are motivators for luxury fashion brand addiction while continuous update of fashion-led items, perceived value, and product assortments are motivators for fast-fashion brand addiction. As for the consequences, interpersonal relationships and financial issues emerged as common themes for addiction to certain luxury and fast-fashion brands while selectivity of style and motivation to work harder surfaced as themes for addiction to particular luxury brands. The results also show that brand addiction may cause both positive and negative effects on consumers’ well-being. This research provides important implications for consumer-brand relationships and ethical considerations for brand managers.     

Consumer‐Generated Representations: Muslim Women Recreating Western Luxury Fashion Brand Meaning through Consumption

The aim of this paper is to explore the influence of consumer‐generated representations on symbolic brand meaning. The term consumer‐generated representation is used in this research to refer to the image created for a brand based on the defining characteristics of a consumer or group of consumers. A preliminary qualitative study consisting of 12 in‐depth interviews was conducted in Kuwait, specifically exploring Muslim female consumers as consumers of western luxury fashion brands. The findings show that Muslim female consumers generate “Modestly Sexy” representations that recreate meaning for western luxury fashion brands in Kuwait. Thus, marketers need to recognize the importance of managing consumer‐generated representations on a global scale.     

The picture of luxury: A comprehensive examination of college student consumers' relationship with luxury brands

This study examines college student consumers' relationship with luxury brands through two studies. Study 1 analyzes collages to determine what represents luxury to them, how consumers perceive their relationships with luxury, and who they are as luxury consumers. Study 2 analyzes qualitative interviews to validate the findings of Study 1 and to add further insights. Results of Study 1 suggest that college student consumers represent a vibrant segment in the luxury market. These consumers perceive a wide variety of products and brands as meeting their luxury needs. They are currently interested in luxury and their potential will only increase as their incomes do. Results of Study 2 confirms their views of luxury and emphasizes the critical roles social media, peers, and family play in influencing college student consumers' luxury consumption and provide insights for how to build an emotional bond with them. Luxury marketers can build brand relationships with college student consumers by offering them entry-level products as they are current luxury consumers and see their consumption expanding in the future. Given that college student consumers are both vulnerable and savvy in recognizing when they are being manipulated, caution needs to be taken in approaching this segment in relationship-building efforts.     

The manifestation of luxury value dimensions in brand engagement in self-concept

This research investigates what consumers in democratized luxury markets value when purchasing luxury items. Nonetheless, these consumers have a limited budget and can not always buy luxury items, yet they are drawn back to these luxury brands. Thus, we use brand engagement in self-concept (BESC) to explain the relationship between these consumers and luxury brands within democratized luxury markets. A conceptualized model of three luxury value dimensions (experiential, symbolic, and functional) is proposed, and 488 cases were gathered through a phone survey. The data were analyzed using partial least squares structural equation modeling (PLS-SEM). The results show that the most critical drivers of consumers' luxury purchase intention (LPI) are hedonism, escapism, conspicuousness, quality, and usability in democratized luxury markets. Also, BESC can unify luxury value dimensions into an integrated whole and mediate the relationship between them and LPI.     

Dimensions of Luxury Brand Personality: Scale Development and Validation

Both the marketing industry and academia have been paying more attention to the growth and potential of the luxury market. This research developed a theoretical framework for understanding the dimensions of luxury brand personality and a reliable and valid scale that measures these dimensions. When 30 luxury brands, ranging from fashion to automobile and retail, were assessed on a set of diverse personality attributes, six dimensions representing luxury brand personality were identified: Excitement, Sincerity, Sophistication, Professionalism, Attractiveness, and Materialism. Findings indicate that while three dimensions, Sincerity, Excitement, and Sophistication, share similar qualities with those identified in Aaker's (1997) scale for general brand personality, the other three dimensions, Professionalism, Attractiveness, and Materialism, reflect meanings unique and specific to luxury brands. Altogether, the results of this research hold the notion that luxury brands serving as consumption symbols provide both utilitarian benefits and symbolic meanings to contemporary consumers.     

Legitimately luxurious: Creating authentic luxury brands

In recent years, greater disparities in incomes and growth in wealthy consumers have fueled new opportunities in luxury markets. As firms launched luxury brands, some have thrived as others stumbled. One important difference between those who succeed and those who struggle, we suggest, is brand authenticity. Scholars have studied authenticity extensively, and research has isolated different sources of authenticity. How firms draw on these sources to create legitimate luxury brands has, however, received surprisingly little attention. In this article, we discuss the research on the sources of brand authenticity, and we explore how brands rely on those sources to craft authentic luxury brands. Using the examples of Canada Goose and Shinola, we illustrate how one firm drew on multiple sources of authenticity and, through the symbolism of its actions, successfully created an authentic luxury brand. We conclude with a discussion of the implications for other firms seeking to enter the luxury market.     

The “little emperor” and the luxury brand: How overt and covert narcissism affect brand loyalty and proneness to buy counterfeits

The authors build on approach‐avoidance motivations theory to investigate the relationship between narcissism and luxury brand consumption. Narcissistic consumers, that is, those showing excessive conceit, are prone to consuming high‐prestige products and are thus attractive targets for luxury brands. Yet despite research in psychology distinguishing two types of narcissism, overt (or grandiose) and covert (or vulnerable) narcissism, little is known about how luxury consumption varies by these forms of narcissism. This paper focuses on Chinese Generation Y consumers to examine how overt and covert narcissism differ in their effects on luxury brand loyalty and proneness to purchase counterfeits as well as the moderating role of brand‐image self‐image congruity on the relationship between overt/covert narcissism and brand loyalty. Findings highlight the need for marketers to understand narcissistic targets more clearly in order to develop successful strategies to foster brand loyalty and diminish counterfeit consumption.     

Genuine brands or high quality counterfeits: An investigation of luxury consumption in China

This study examines the effects of different marketing and manufacturing factors on the perceived quality gap and willingness to pay (WTP) for genuine luxury brands. Using the survey data of 786 Chinese consumers, the results show that three marketing factors (product innovation, price promotion, and sales environment) and two manufacturing factors (production in country of brand origin and difficulty in producing the products) all indirectly influence WTP through a perceived quality gap between originals and counterfeits. These effects differ significantly among consumers with different counterfeit and genuine brand purchasing experiences. For consumers with counterfeit purchasing experience, it is important to emphasize the manufacturing factors in the marketing strategies; however, for consumers who only buy genuine brands, marketing factors play a more important role. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.     

How far can luxury brands travel? Avoiding the pitfalls of luxury brand extension

Brand extensions are always tempting to marketers, and in the case of luxury brands the allure is particularly strong. While the path to luxury brand success may be partly paved with extensions, there are even more examples of brand extension disasters that litter the way. Brand extensions continue to be among the most researched and studied phenomena in marketing. When it comes to luxury brands, however, the factors that lead to successful extension have received far less attention. In this article, we consider the notion of perceived premium degree of the brand as a function of its category, and what we term the degree of adjacency between its product categories. Building on our research, which found that a luxury brand's perceived premium degree has a different impact on profitability depending on whether or not the brand is spread across adjacent product categories, we demonstrate when luxury brand extensions work—and when they fail. Perhaps most importantly, we herein introduce the premium adjacency matrix as a tool for luxury brand managers to consider in formulating extension strategies.