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Article
Publication date: 1 March 2011

Stephen A. Stumpf, Peggy E. Chaudhry and Leeann Perretta

To identify ways for business managers to reduce consumer complicity with counterfeit products by better aligning their actions with consumer beliefs of complicity.

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3901

Abstract

Purpose

To identify ways for business managers to reduce consumer complicity with counterfeit products by better aligning their actions with consumer beliefs of complicity.

Design/methodology/approach

A mall intercept methodology was used to interview 54 US and 48 Brazilian business managers' understandings of consumer complicity with counterfeit products. A parallel web survey containing the questions in the interviews was used to assess 401 US and 390 Brazilian consumers' perceptions of what is important to them in determining that a product is counterfeit, the reasons why they were willing to acquire counterfeits, and the perceived effectiveness of anti‐counterfeiting actions.

Findings

Managers in both countries held beliefs that ran counter to those of the complicit consumer, particularly in the areas of understanding the reasons for consumer complicity and the perceived effectiveness of anti‐counterfeiting actions to reduce that complicity. Several anti‐counterfeiting actions considered to be of little use by managers were reported to be important by consumers regarding their intended complicity.

Practical implications

As the different motivations of consumer complicity with counterfeit products in different country markets become better known, managers can reduce their loss of business to counterfeiters by directly targeting those factors each country's consumers believe affect their complicity.

Originality/value

Comparing manager and consumer views of complicity with counterfeit products and the anti‐counterfeiting actions that can reduce that complicity in two country markets.

Details

Journal of Business Strategy, vol. 32 no. 2
Type: Research Article
ISSN: 0275-6668

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Article
Publication date: 12 October 2020

Norizan M. Kassim, Mohamed Zain, Naima Bogari and Khurram Sharif

The purpose of this paper is to examine customer attitudes toward purchasing counterfeit luxury products (ATPCLP) in two cities in two different countries (Saudi Arabia…

Abstract

Purpose

The purpose of this paper is to examine customer attitudes toward purchasing counterfeit luxury products (ATPCLP) in two cities in two different countries (Saudi Arabia and Malaysia) by testing the relationships between the various reasons for purchasing those products: social status insecurity, status consumption and value consciousness.

Design/methodology/approach

Questionnaires were distributed conveniently to urban customers in Kuala Lumpur, Malaysia and Jeddah, Saudi Arabia. Altogether 658 useable questionnaires were collected and analyzed using descriptive statistics, general linear model of univariate analysis of variance and structural equation modeling.

Findings

Quality, price, popularity and status signaling represent the main motivating factors for their brand choices of counterfeit luxury products among the two country groups of customers. As expected, customers' social status insecurity influences their ATPCLP, but not their status consumption. However, status consumption does positively moderates the relationship of their social status insecurity and their ATPCLP. Furthermore, customers' value consciousness influences their ATPCLP and moderates the relationship between status consumption and ATPCLP. The impact of status consumption on ATPCLP depends on the importance one places on the value of the products. However, the authors found no differences in social status insecurity, status consumption and value consciousness, on their ATPCLP among the customers. Some implications and limitations of the results are discussed.

Research limitations/implications

The use of convenience sampling and mainly college students (in Saudi Arabia) as respondents represent the main limitations of this study.

Practical implications

The practical implication of this study is to discourage the purchasing of counterfeit luxury products in their respective country Malaysian marketers need to stress that their genuine products are of top quality while Saudi marketers need to stress that their genuine products are of well-known brands that are sourced from well-known countries of origin. Besides, Malaysian marketers need to offer genuine products that are not overly priced or ones that indicate value-for-money while Saudi marketers need to convey the message that their genuine products could help enhance or uplift their customers' social status. In this study, the authors did not find any support for differences in ATPCLP between the two rather different Muslim-majority countries. This could be due to the fact that the majority of the respondents were females in their mid-20s and that both countries have a growing number of young customer base, which makes them particularly attractive target customers for branded/luxury products and, at the same time, easy preys to luxury products counterfeiters. This implies that there are still more opportunities for academics to study the topic or related topics in the future.

Originality/value

As far as the authors know, no one has undertaken a comparative study involving two very different Islamic majority countries (more conservative mono-cultural and mono-ethnicity Saudi Arabia versus less conservative multicultural and multi-ethnicity Malaysia) before.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 33 no. 2
Type: Research Article
ISSN: 1355-5855

Keywords

Content available
Article
Publication date: 6 October 2020

Wen-Yung Tseng, Weisheng Chiu and Ho Keat Leng

This study aims to compare the purchase intention of counterfeit outdoor products between Taiwan and Hong Kong consumers.

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1620

Abstract

Purpose

This study aims to compare the purchase intention of counterfeit outdoor products between Taiwan and Hong Kong consumers.

Design/methodology/approach

A total of 584 respondents from Hong Kong (n = 247, 42%) and Taiwan (n = 337, 58%) were recruited for the study. Data analysis was performed by using structural equation modelling techniques.

Findings

The results showed that consumers' perceived risk had a negative influence on attitude and intention to purchase counterfeit outdoor products. Moreover, attitude towards buying counterfeit outdoor products, perceived behavioural control and subjective norm had positive impacts on purchase intention. Brand consciousness, however, had a negative influence on purchase intention. The multi-group analysis identified significant differences between Hong Kong and Taiwanese respondents.

Originality/value

This study provides a better understanding of how these factors affect purchase intention of counterfeit outdoor products across different cultures.

Details

Journal of Asian Business and Economic Studies, vol. 28 no. 3
Type: Research Article
ISSN: 2515-964X

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Article
Publication date: 11 May 2012

Hernan E. Riquelme, Eman Mahdi Sayed Abbas and Rosa E. Rios

The purpose of this paper is to understand the factors that influence attitudes toward counterfeits, and the intention to purchase these illegal products in a Muslim country.

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3156

Abstract

Purpose

The purpose of this paper is to understand the factors that influence attitudes toward counterfeits, and the intention to purchase these illegal products in a Muslim country.

Design/methodology/approach

In total, 401 participants completed a questionnaire that contained 41 statements related to beliefs about counterfeited products such as risks, ethics and social norms. Confirmatory factor analysis and structural equation modelling were performed to test the measurement and structural models.

Findings

Value consciousness, performance risk (negative relationship), norms (subjective and descriptive) and ethical consciousness influence attitude. Previous purchase moderates attitude and intention. Attitude explains a considerable percentage of the variance of intention to purchase counterfeits. Beliefs explain attitude to a large extent.

Research limitations/implications

There is a lack of product specification; also respondents were more educated than the population (73.3 per cent have a university degree).

Practical implications

People do not see themselves as being unethical in buying counterfeits, even in a religious environment and do not perceive prosecution risks. Government enforcement is important to alter these perceptions. Finding the right price that preserves a premium price for the brand and a perceived “fair” price may be the answer to the problem.

Originality/value

The paper describes a study conducted in an Arab Muslim and rich Middle Eastern country. Previous studies in Asian countries, less economically advantaged and with Muslim populations, have not related their findings to religious beliefs or ethical consciousness.

Details

Education, Business and Society: Contemporary Middle Eastern Issues, vol. 5 no. 1
Type: Research Article
ISSN: 1753-7983

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Article
Publication date: 1 December 2000

Arghavan Nia and Judith Lynne Zaichkowsky

The purpose of this study was to explore the perceptions and attitudes of original luxury brand owners towards counterfeit luxury goods. The results indicated that all…

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25572

Abstract

The purpose of this study was to explore the perceptions and attitudes of original luxury brand owners towards counterfeit luxury goods. The results indicated that all respondents found luxury products fun and worth the price they paid for them, whether they were original or counterfeit. Almost 30 percent of respondents owned no counterfeits and only original goods. These respondents believed that counterfeits were inferior products and believed that ownership of original luxury products was more prestigious compared to counterfeit luxury goods. Conversely, those who owned more counterfeits had a positive image of them and did not believe these products were inferior. Overall, 70 percent of respondents indicated that the value, satisfaction, and status of original luxury brand names were not decreased by the wide availability of counterfeits. Further, the majority of respondents disagreed that the availability of counterfeits negatively affects their purchase intentions of original luxury brands.

Details

Journal of Product & Brand Management, vol. 9 no. 7
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 30 January 2007

P. Trott and A. Hoecht

To examine the literature on counterfeit products and explore whether imitation and counterfeit product activities can actually facilitate the development of new products.

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5090

Abstract

Purpose

To examine the literature on counterfeit products and explore whether imitation and counterfeit product activities can actually facilitate the development of new products.

Design/methodology/approach

The paper examines the dominant school of thought on counterfeit products that characterises it as a significant economic and social problem throughout the world, and develops an alternative school of thought, which focuses on the overlooked benefits of imitation and counterfeit activities. The paper suggests that the concepts of counterfeit and imitation are often misrepresented as powerful lobby groups present their cases.

Findings

This paper argues that while some counterfeit firms adopt short‐term profit motives other counterfeit firms demonstrate a longer‐term motive which manifests itself in an ability to reverse engineer, imitate and learn. Such firms may be suitable long‐term partners, in particular for multinational firms with operations in transition economies. Thus, firms face a difficult strategic choice when faced with product counterfeiters that of whether to fight or co‐operate.

Practical implications

Companies need to improve their risk management, in particular in their foreign market entry and collaborative strategies. Companies should seek to take a long‐term view and to protect their technology‐based competitive advantage. Furthermore, copyright and trademark holders need to positively identify collaborators and to offer sufficiently attractive prospects for these business partners to keep them “on the straight and narrow” and to benefit from the contribution they can make.

Originality/value

This paper brings together in a clear and coherent way an alternative perspective on counterfeiting products, which challenges the dominant perspective. This is based on recognising that reverse engineering (RE) and imitation form an essential part of the product innovation process.

Details

European Journal of Innovation Management, vol. 10 no. 1
Type: Research Article
ISSN: 1460-1060

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Article
Publication date: 29 May 2019

André Le Roux, Marinette Thébault and Yves Roy

The purpose of this study is to explore the impact of product category and consumers’ motivations profiles on the determinants of consumers’ preferences and purchase…

Abstract

Purpose

The purpose of this study is to explore the impact of product category and consumers’ motivations profiles on the determinants of consumers’ preferences and purchase intentions of counterfeits and genuine products, through manipulation of product attributes and purchase situations.

Design/methodology/approach

The study relies on an experimental design involving a questionnaire on a convenience sample with two parts: a tradeoff model manipulating three attributes, product type (genuine vs. counterfeit), price (high vs. low) and place of purchase (regular shop, Internet and market) in two product categories, and a scale measuring motivations to purchase counterfeits. Ranking and purchase intentions are analyzed using conjoint analysis and generalized linear mixed model (GLMM).

Findings

Ranking reveals a dominant pattern of consumer behavior regarding counterfeiting: product type, price and place of purchase. Product category has a moderating effect on choice criteria: relative importance of place of purchase and price varies according product category. Consumers’ motivations profiles have also a moderating effect on consumer behavior. Some profiles are more receptive to copies. Consumers’ profiles exhibit different hierarchies of purchase criteria and may change them depending upon product category.

Originality/value

Results challenge literature on the dominant role of price among choice criteria. Price alone cannot determine a counterfeit purchase. It is the interaction of price, place of purchase or product type that explains such a behavior. Product category matters: Price and place of purchase importance cannot be considered without accounting for product category. Consumers’ motivations profile matters. Consumers are not homogeneous face to counterfeits.

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Article
Publication date: 1 April 1987

Michael G. Harvey

Background to International Counterfeiting It has been estimated that counterfeiting, the unauthorized imitation of goods or services with intent to deceive (6), was…

Abstract

Background to International Counterfeiting It has been estimated that counterfeiting, the unauthorized imitation of goods or services with intent to deceive (6), was responsible for approximately $60 billion in lost sales of consumer and industrial products in the United States in 1985. In comparison, $3 billion in sales were lost in United States market in 1978 due to piracy of reputable merchandise. Currently, counterfeiting has been estimated as increasing at an incredible rate of thirty percent a year. One of the fastest growing product counterfeit segments is in industrial products. Close to five percent of the total world trade consumer industrial products is accounted for by the importation of fraudulent goods and services. The counterfeit market in the United States exists and continues to thrive due to the immense demand for copies of well‐known, reputable brands, but at a fraction of the cost of the real item. By forging goods, counterfeiters reduce their costs by denying the royalties that rightfully belong to the originator of the forged item. In another aspect, if existing technology is copied from another firm, the counterfeiting organization has virtually no research and development costs while the firm that produced the technology costs are significantly higher than those of the counterfeiter.

Details

Journal of Business & Industrial Marketing, vol. 2 no. 4
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 3 May 2018

Hashim Zameer, Ying Wang, Humaira Yasmeen, Amirhossein Akhavan Mofrad and Rashid Saeed

The purpose of this paper is to design a game theory based model that not only provide theoretical basis to control brand counterfeiting, but it also provide a mechanism…

Abstract

Purpose

The purpose of this paper is to design a game theory based model that not only provide theoretical basis to control brand counterfeiting, but it also provide a mechanism to enhance brand revenue.

Design/methodology/approach

This study used the dynamic game theory of incomplete information to understand and encounter the brand counterfeiting issues. The study analyzed the economic relationship of legitimate brand, counterfeiter and consumers using mixed strategy of the dynamic game theory of incomplete information.

Findings

The results have indicated that brands those take countermeasures to reduce counterfeiting earn maximum revenue, even when the legitimate brands and consumers are unaware from the actions of counterfeiting firms, the legitimate brands should take countermeasures to reduce counterfeiting to earn maximum revenue, and there exists optimal anti-counterfeiting cost for the legitimate brand. Further, this study provides theoretical basis where brand managers can decide to adopt or not to adopt anti-counterfeiting strategy, and also indicate the consequences of each decision.

Practical implications

Based upon the findings, the study put forward valuable managerial implications. The study revealed that the legitimate brand must emphasize on the significance of taking countermeasures against counterfeiter and also, brand managers should focus on making product traceable, empowering the consumer and ensuring coordination with government officials to control the counterfeiting issues.

Originality/value

This paper incorporates the role of legitimate brand, counterfeiter and a consumer to establish the dynamic game theory model using mixed strategy to understand and address the counterfeiting issues in the global market.

Details

Marketing Intelligence & Planning, vol. 36 no. 5
Type: Research Article
ISSN: 0263-4503

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Article
Publication date: 24 August 2010

S.K. Kwok, S.L. Ting, Albert H.C. Tsang and C.F. Cheung

The purpose of this paper is to focus on the design of a counterfeit network analyzer (CNA) for aggregating all the problematic product flows in order to discover any…

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1664

Abstract

Purpose

The purpose of this paper is to focus on the design of a counterfeit network analyzer (CNA) for aggregating all the problematic product flows in order to discover any counterfeit distribution source, and to control the spread of counterfeit goods. The analyzer leverages radio frequency identification (RFID) information stored within the electronic product code (EPC) network.

Design/methodology/approach

The system architecture of the proposed CNA is first discussed. A case study of the system application in a Hong Kong pharmaceutical manufacturing company then presents the adoption process and the challenges encountered in such technologies.

Findings

Compared with traditional approaches, the results show that the proposed RFID solution is reliable and is capable of discovering counterfeit distributions, as well as reducing the detection costs by means of higher product movement visibility within the supply chain.

Practical implications

A prototype system has been constructed and trial implemented in a pharmaceutical manufacturing company. It proved to be of benefit to the manufacturer who is able to deter product counterfeiting effectively and visualize real‐time supply chain data automatically.

Originality/value

The proposed CNA is designed to overcome issues of information invisibility, which is considered a huge cost lost in the identification of counterfeit products, loss of sales and reputation associated with the counterfeiting, and ineffective product authentication in the manufacturing industry. This paper contributes to the RFID research in the counterfeiting area by studying the feasibility and practicality of shifting the focus of product identification from the traditional package redesign solutions to the visualization of the movement of the product (i.e. product supply chain) via the use of RFID and EPC. Furthermore, a pharmaceutical manufacturing site provided a case study for discussing the advantages, critical issues for implementation of the RFID system, and lessons learned.

Details

Industrial Management & Data Systems, vol. 110 no. 7
Type: Research Article
ISSN: 0263-5577

Keywords

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