The Effects of Counterfeiting on Consumers

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Hamelin, Nwankwo, and El Hadouchi (2013) explain the two different types of counterfeit transactions: deceptive and non-deceptive. Deceptive is occurred when consumers purchase a product believing that it is the genuine luxury, however, turning out to be a counterfeit product. Non-deceptive transaction is when consumers aware of the counterfeit products and are willing to purchase them. Consumers with less knowledge and awareness about a product more likely to have difficulties differentiating between the luxury brand and the counterfeit brand. It is also common that they are more likely to buy cheaper priced counterfeit products. On the other hand, if consumers are more aware of the genuineness of the products, they are more inclined to buy the original brand items (Maldonado and Hume, 2005; Grossman and Shapiro, 1988; Nia and Zaichkowsky, 2000).

Experiment results also show that fake brand clothing sells much more compared to counterfeit cosmetic products and mobile phones. In this case, factors such as product quality and price determines an individual's intention of purchase (Hamelin, Nwankwo, and El Hadouchi, 2013). With the increase of quality in these counterfeit products and the change of perceptions, 76 percent of Americans believe the fake brand and the original brand are similar in quality, as reported by Boumphrey (2007). Hamelin, Nwankwo, and El Hadouchi (2013) concludes that it is virtually impossible to fight counterfeit goods, and the consumer rate is likely to increase in the future, however, the government plays a role in protecting the luxury brand rights.

Through this research, I have come to a conclusion that I agree with the majority of the theories stated by previous researches. I highly believe that counterfeiting will grow in number rapidly, as more individuals seem to seek designer brand products. It is believable and also proven that some individuals perceive ownership of designer goods as a boost in their confidence. The developing technology provides counterfeiters with access to better quality production of items and I strongly agree that this will be a key role in the increased level of counterfeit goods consumption. Some authors have argued that personality traits, cultures, age, and previous experience in buying fake goods have effects on the behaviour of a consumer. I agree that if an individual has a history of buying a counterfeit goods in the past, then they may have a more positive perception and is likely to buying them again. I disagree that age is a cue of such behaviour, as people's interests differ. However, I agree that their social economic status affects their decisions in buying fake brand goods, to cover up their status to be seen as an upper-class individual. In contrary, I believe it is true that middle-upper class consumers search for the quality and are willing to pay the expensive price for the genuine luxury brand products.

In conclusion, counterfeiters will rise in number following the rise in number of consumers. Its consumers are very likely to re-purchase fake brand items, in which their social status plays a key role in their decisions. This is a result of extremely developed technology and the easy access for counterfeiters. It is suggested that the government steps in to take action to protect the property rights of the luxury brands, as many believe it to be devaluing the quality of the brands. However, those determined in buying fake brands or imitations will remain the same, as individuals who will never buy products other than genuine luxury brands.

References

Gentry, J.W., Putrevu, S., Shultz, C.J. (2006). The effect of counterfeiting on consumer search. Journal of Consumer Behaviour. 5, 245-256. DOI: 10.1002/cb.176

Hamelin, N., Nwankwo, S., El Hadouchi, R. (2013). 'Faking brands': Consumer responses to counterfeiting. Journal of Consumer Behaviour. 12, 159-170. DOI: 10.1002/cb.1406

Vagg, J., Harris, J. (2000). False profits: Why product counterfeiting is increasing. European Journal on Criminal Ppolicy and Research. 8, 107-115.

Wang, Y., Song, Y. (2013). Counterfeiting: Friend or foe of luxury brands? An examination of Chinese consumers' attitudes toward counterfeit luxury brands. Journal of Global Marketing. 26:4, 173-187. DOI: 10.1080/08911762.2013.804618

http://dx.doi.org/10.1080/08911762.2013.804618