Search results

1 – 10 of over 1000
To view the access options for this content please click here
Article
Publication date: 22 July 2019

Iolanda D’Amato, Valeria Belvedere and Thanos Papadimitriou

From a supply chain perspective, counterfeiting is only part of a wider phenomenon defined as “illegitimate trade,” which includes supply chain infiltrations, factory…

Abstract

Purpose

From a supply chain perspective, counterfeiting is only part of a wider phenomenon defined as “illegitimate trade,” which includes supply chain infiltrations, factory overruns, gray and parallel markets, retail service counterfeiting and shoplifting. Although different forms of illegitimate trade can be observed, companies address them mainly through legal action, overlooking other counterstrategies such as technology adoption, supply chain integration and communication campaigns. This paper aims to understand which illegitimate trade phenomena are the most common and damaging to high-end fashion firms, identifying the counterstrategies that companies leverage the most and assessing the effectiveness of the counterstrategies.

Design/methodology/approach

A survey was conducted to address the above-mentioned research goals. It was targeted at Italian high-end fashion companies and 112 usable questionnaires were collected.

Findings

Empirical evidence shows that the most common illegitimate trade events are pure counterfeiting and parallel/gray markets. Various forms of illegitimate trade can co-exist and are correlated, but each of them calls for a targeted bundle of countering strategies. A synergic relationship among strategies is also observed.

Originality/value

This paper addresses the issue of counterfeiting and illegitimate trade with a holistic approach, highlighting the necessity of an interfunctional approach within the company as a condition for effectively countering these problems.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 8
Type: Research Article
ISSN: 0885-8624

Keywords

To view the access options for this content please click here
Article
Publication date: 15 November 2013

Iolanda D'Amato and Thanos Papadimitriou

The increase in international trade, the advances in technology, the growing importance of the emerging markets are the main factors that have contributed to the explosion…

Downloads
2761

Abstract

Purpose

The increase in international trade, the advances in technology, the growing importance of the emerging markets are the main factors that have contributed to the explosion of counterfeiting experienced in recent years, estimated to be valued at about 5-7 per cent of the world trade. The luxury industry in Italy has been particularly hard hit and most brands nowadays are urgently looking for demand-side and supply-side strategies to track and control the phenomenon. The aim of this paper is to provide a supply chain view of counterfeiting and illegitimate trade phenomena, in a supply chain risk management perspective, to define and illuminate the interaction of the legitimate and the illegitimate supply chains.

Design/methodology/approach

The paper introduces the LISC model to represent and include all the illegitimate trade phenomena under analysis such as pure counterfeiting, factory overruns, grey and parallel market, supply chain infiltrations, product diversion and sale of stolen goods

Findings

The interrelations between legitimate and illegitimate supply chains are crucial to approach counterfeiting issue and define which illegitimate trade paths are more harmful to companies and customers.

Research limitations/implications

The first limitation of the work is that the illegitimate trade categories defined in this paper mainly rely on data and phenomena collected from secondary sources that have not yet been directly observed by the authors. The second one is that a specific focus on high-end fashion industry was employed throughout this work: further analysis for evaluating the applicability and the significance of the illegitimate trade in other industries is still pending. The final limitation stems from the fact that it will be necessary to investigate the implications and the applicability of the model to the illegitimate on-line trade.

Practical implications

During the course of the MI-FIDO project, the model and the selection rules identified for illegitimate trade family classification were used as a basis for defining the rules for anomalies detection to be included in a “track and trace” system developed the project team currently under with a major Italian fashion brand.

Originality/value

To the authors ' knowledge, this is the first work that attempts to present a concise and systematic approach to luxury illegitimate trade from a supply chain perspective. Understanding which legitimate-illegitimate supply chain interactions are the most damaging will help fashion luxury and other industries to battle the counterfeiting phenomenon more effectively

Details

International Journal of Retail & Distribution Management, vol. 41 no. 11/12
Type: Research Article
ISSN: 0959-0552

Keywords

To view the access options for this content please click here
Article
Publication date: 3 April 2009

Thorsten Staake, Frédéric Thiesse and Elgar Fleisch

Trade in counterfeit goods is perceived as a substantial threat to various industries. No longer is the emergence of imitation products confined to branded luxury goods…

Downloads
12125

Abstract

Purpose

Trade in counterfeit goods is perceived as a substantial threat to various industries. No longer is the emergence of imitation products confined to branded luxury goods and final markets. Counterfeit articles are increasingly finding their way into other sectors, including the fast‐moving consumer goods, pharmaceutical, and automotive industries – with, in part, severe negative consequences for consumers, licit manufacturers, and brand owners alike. This paper seeks to shed light on the economic principles of counterfeit trade and the underlying illicit supply chains.

Design/methodology/approach

An extensive literature review was conducted that comprised contributions from different strands of management research.

Findings

Though governments as well as management have clearly identified the problem, very little is known – both in practice and theory – about the mechanisms and structure of the illicit market, the tactics of counterfeit producers, consumer behavior with respect to imitation products and the financial impact on individual companies. The diversity of the counterfeit phenomenon underlines the need for further research in this area and the development of company‐specific measures for fighting product piracy.

Research limitations/implications

The clandestine nature of the counterfeit market limits direct accessibility to the phenomenon. Consequently, the existing body of literature does not necessarily cover all aspects of counterfeit activities. The review helps to highlight existing research gaps but may not be able to identify additional aspects of the phenomenon that, thus far, have not been deemed relevant.

Originality/value

The paper critically reviews the current state of research across different management‐related disciplines. From an academic perspective it may serve as a starting point for a future research agenda that addresses the current knowledge gaps. From a practitioner's perspective it is helpful for understanding the relevant influence factors and for developing appropriate, state‐of‐the‐art counterstrategies.

Details

European Journal of Marketing, vol. 43 no. 3/4
Type: Research Article
ISSN: 0309-0566

Keywords

To view the access options for this content please click here
Article
Publication date: 4 January 2011

David Reynolds

The purpose of this paper is to highlight the benefits of alternative, business‐based approaches to tackling the trade in counterfeit goods.

Downloads
1576

Abstract

Purpose

The purpose of this paper is to highlight the benefits of alternative, business‐based approaches to tackling the trade in counterfeit goods.

Design/methodology/approach

The findings in the paper are based on over six years of personal experience in the brand protection business, on top of over 20 years operational experience dealing with organized crime topics. The conclusions are also based on assessments drawing on a large body of intelligence on the operations, business practices, and vulnerabilities of counterfeiters and the relative impact of anti‐counterfeiting programs.

Findings

A careful understanding of the trade in counterfeits reveals a number of vulnerabilities in the business model that can be exploited to disrupt or deter the counterfeiters. In particular, sales brokers often see the smallest profit margins, survive hand to mouth, and put themselves at risk by directly touting sales of counterfeits to persons they do not know over the internet and in face‐to‐face meetings. They offer a natural entry point to the business for both intelligence collection and targeted seizures and influence campaigns. These campaigns can and should exploit both the lack of means to mitigate counter‐party risk and the natural distrust seen among participants in criminal businesses. Raising the perception of costs and risks only slightly can prompt counterfeiters to move away from certain brands and industries, sometimes permanently. A means to measure the effectiveness of such influence campaigns for a company is possible using a metric that takes into account the impact of disruption and targeted seizures leading to an estimate of recovered potential sales.

Originality/value

The approach detailed in the paper is unique and has not been successfully pursued and fully exploited by any firm or organization charged with tackling the trade in counterfeits.

Details

Journal of Financial Crime, vol. 18 no. 1
Type: Research Article
ISSN: 1359-0790

Keywords

To view the access options for this content please click here
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.

Downloads
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

Keywords

To view the access options for this content please click here
Article
Publication date: 22 March 2011

Peggy E. Chaudhry and Stephen A. Stumpf

The purpose of this paper is to guide marketing managers in their efforts to decrease consumer demand for counterfeits of their products by examining the consumer beliefs…

Downloads
8669

Abstract

Purpose

The purpose of this paper is to guide marketing managers in their efforts to decrease consumer demand for counterfeits of their products by examining the consumer beliefs and attitudes that have been found to support consumer complicity across multiple products, in virtual and physical shopping environments, using several criteria of complicity for each product.

Design/methodology/approach

A web‐based survey of 254 students explored two ethical ideologies (idealism and relativism), collectivism, and two attitudes toward counterfeits (ethical concern and perceived quality) with respect to two counterfeit products (movies and pharmaceuticals) and reported respondents' complicity in both a virtual and physical marketplace for each good.

Findings

Consumer complicity – a consumer's willingness to obtain, share, or use counterfeit products – was predicted by the consumers' hedonic shopping experience and lack of ethical concern with two different counterfeit products. The effects of ethical ideologies and collectivism on consumer complicity were observed to operate indirectly through hedonic shopping and ethical concern with using counterfeits.

Research limitations/implications

The primary limitation is the use of a convenience sample of US college students and future research should take the scale items developed in this study and test in multiple country markets.

Originality/value

The paper extends previous research by examining several identified predictors of complicity with different products, across virtual and physical markets, and with multiple criteria incorporating both acquisition, intent to acquire, and willingness to share.

Details

Journal of Consumer Marketing, vol. 28 no. 2
Type: Research Article
ISSN: 0736-3761

Keywords

To view the access options for this content please click here
Article
Publication date: 5 January 2015

Mark Stevenson and Jerry Busby

The purpose of this paper is to identify strategies employed by product counterfeiters in their exploitation of legitimate supply chains; to develop a theoretical…

Downloads
3465

Abstract

Purpose

The purpose of this paper is to identify strategies employed by product counterfeiters in their exploitation of legitimate supply chains; to develop a theoretical understanding of counterfeiting and its impact on competitive resources; and, to propose counter-measures for increasing the resilience of supply chains to the counterfeiting threat.

Design/methodology/approach

An inductive, qualitative analysis of secondary case data obtained from three sources.

Findings

Initial searching and coding identified four sets of strategies: extraction strategies, for obtaining products or materials from the legitimate economy; production strategies, for manufacturing counterfeit goods; distribution strategies; and, infiltration strategies, for introducing counterfeits into the legitimate economy. Secondary, focused coding revealed that much of what the counterfeiting strategies set out to achieve involves the generation, suppression or exploitation of signals. A theoretical account of counterfeiting and its impact on competitive resources (quality, reputation and trademark) is then developed based on signalling theory and the resource-based view.

Research limitations/implications

A set of counter-measures for dealing with the counterfeiting threat are proposed. There is scope for much further work on counterfeit resilience, including on establishing the effectiveness of these counter-measures.

Practical implications

Counterfeiting is an increasingly significant supply chain problem. It provides a direct economic challenge to legitimate producers, undermines the value of trademarks and threatens consumer welfare. It affects many industries, including automotives, aerospace and pharmaceuticals, where counterfeits have sometimes proven fatal. The paper adds to the understanding of how this phenomenon takes place and how it might be tackled.

Originality/value

Although many OM studies refer to the risks of patent and copyright infringements that arise in supply chains, the problem of product counterfeiting has received only limited attention, leaving a clear gap in the understanding.

Details

International Journal of Operations & Production Management, vol. 35 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

To view the access options for this content please click here
Article
Publication date: 13 February 2019

Bradley P. Evans, Richard G. Starr and Roderick J. Brodie

This paper aims to apply a broader perspective of branding to foster new insights and develop strategies to address product counterfeiting.

Downloads
1713

Abstract

Purpose

This paper aims to apply a broader perspective of branding to foster new insights and develop strategies to address product counterfeiting.

Design/methodology/approach

A review of the counterfeiting and branding literature leads to the development of a new conceptual framework that incorporates proactive, collaborative processes, in addition to the traditional product branding approach.

Findings

The integrative framework provides a basis to develop innovative, proactive strategies that complement traditional branding approaches to address product counterfeiting. The complexity of an integrative framework (or network) offers more opportunities for the firm to co-create robust meaning with multiple stakeholders. Identity elements are readily copied, whereas meanings are not. These strategies help to control counterfeiting by developing deep and inimitable relationships between managers and other stakeholders in a marketing network.

Research limitations/implications

A research agenda is proposed to structure future studies on counterfeiting.

Practical implications

The framework outlines how to leverage collaboration between managers and brand stakeholders to complement conventional approaches to control counterfeiting based on traditional product branding.

Originality/value

This paper contributes to the growing body of counterfeiting and brand protection literature by adapting and applying contemporary integrative branding concepts, leading to novel strategies to address the issue.

Details

Journal of Product & Brand Management, vol. 28 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

To view the access options for this content please click here
Article
Publication date: 16 October 2009

Ian Phau, Marishka Sequeira and Steve Dix

The purpose of this paper is to examine the effect of personality factors on consumers' attitudes toward counterfeits and their willingness to knowingly purchase…

Downloads
12436

Abstract

Purpose

The purpose of this paper is to examine the effect of personality factors on consumers' attitudes toward counterfeits and their willingness to knowingly purchase counterfeit luxury brands. Product performance and useful life are included to investigate their influence on consumers' willingness to purchase counterfeit luxury brands.

Design/methodology/approach

A self‐administered questionnaire is designed using established scales. Data are collected using a convenience sampling method from a large Australian university. Regression analyses are conducted using Statistical Package for the Social Sciences (SPSS).

Findings

Integrity is found to be the only factor influencing attitudes toward counterfeits. The useful life of a counterfeit luxury brand showed significant influence on consumers' willingness to purchase. Attitudinal factors and personality factors do not influence consumers' willingness to purchase counterfeit luxury brands.

Research limitations/implications

The findings are limited to an Australian context. Mall intercept method can be implemented for future studies. The paper has only examined a high involvement luxury brand. Other product categories or low involvement products can be further investigated.

Practical implications

It is recommended for government to implement educational programs that are not only limited to schools, but also to multinational companies and domestic businesses. Luxury brand owners are also encouraged to distinguish their products through emphasis on product attributes, such as their product's useful life.

Originality/value

A specific high‐involvement luxury brand is studied as opposed to previous studies only examining counterfeit luxury brands as a whole. Furthermore, this paper has also examined both personality factors and product attributes.

Details

Direct Marketing: An International Journal, vol. 3 no. 4
Type: Research Article
ISSN: 1750-5933

Keywords

To view the access options for this content please click here
Article
Publication date: 15 March 2019

Şahver Omeraki Çekirdekci and Fatma Ozge Baruonu Latif

This paper aims to examine how socio-economic status (SES) shapes consumers’ purchase behavior of genuine brands and counterfeits. It also forms a typology based on the…

Abstract

Purpose

This paper aims to examine how socio-economic status (SES) shapes consumers’ purchase behavior of genuine brands and counterfeits. It also forms a typology based on the decision-making processes of these two groups by exploring neutralization processes and emotional outcomes related to their behaviors.

Design/methodology/approach

Data are collected through in-depth, semi-structured interviews with 42 users and non-users of counterfeits from different SES groups.

Findings

This paper develops a consumer typology based on the customer behavior of counterfeit and genuine brand users, as well as emotional outcomes and neutralization strategies used to justify their actions according to their SES group. These categories are defined as the black chameleons, the counterfeit owners, the genuine brand owners and the authenticity seekers.

Originality/value

This paper contributes to the counterfeit literature by examining the consumption practices of each SES group of users and non-users of counterfeits by focusing on motivations, emotional outcomes and neutralization processes. The study shows how consumers’ end consumption practices and their SES group explains the mix findings on the counterfeit literature.

Details

Journal of Product & Brand Management, vol. 28 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

1 – 10 of over 1000