Analysis of the demand for counterfeit goods

Abstract

PurposeThe production, distribution and consumption of counterfeit goods have been increasing at an alarming rate. Current legislation addresses the supply side of the problem, but not the demand side of the problem. The purpose of this paper is to examine, empirically, factors affecting consumer demand for counterfeit goods were analyzed.Design/methodology/approachThe economic theory of consumer demand provided the theoretical framework. Data were collected from students enrolled at a major mid‐western university, and logistic regression was used to estimate demand functions for counterfeit goods.FindingsThe results indicated that student sensitivity to the counterfeit problem did not significantly deter the purchase of counterfeit goods.Research limitations/implicationsEducators in textiles and apparel should have a vested interest in providing education about counterfeiting, resulting in students with greater sensitivity to the issue.Originality/valueThe production, distribution and consumption of counterfeit goods have been increasing at an alarming rate. Current legislation addresses the supply side of the problem, but not the demand side of the problem. Consumer education may be a feasible approach for addressing the demand side of the problem.

Examination of Attitudinal and Intentional Drivers of Non-Deceptive Counterfeiting in a South Asian Context

“…In Asian countries both buyers and non-buyers of counterfeits irrespective of their income levels consider purchasing of counterfeits a normal buying behavior (Ang et al 2001). Similar situation prevails in the West particularly in USA (Norum, Cuno 2011). US consumers believe that consumption of counterfeits does not hurt US economy (Yoo, Lee 2009).…”

“…Past studies (e.g. Lee, Workman 2011;Norum, Cuno 2011;Stumpf et al 2011) identified most of these factors as demand drivers of counterfeits.…”

“…Some consumers treat counterfeiting as an illegal act and avoid buying counterfeits (Swami et al 2009). Conversely, some consumers consider consumption of counterfeits as a lawful act (Norum, Cuno 2011;). For instance; US counterfeit consumers believe that counterfeiting does not hurt the US economy (Yoo, Lee 2009).…”

“…Easy access to counterfeits makes them more attractive . Lee, Workman (2011) stated that counterfeit product buyers hold positive attitudes toward counterfeits and show little ethical and legal concerns than non-users (Norum and Cuno 2011). Word of mouth is a vibrant channel of marketing communication (Henricks 1998;Silverman 1997) but researchers have gained little insights of its effectiveness since it is difficult to study its impact (Hung, Li 2007).…”

Attitudes and Purchase Intention Towards Counterfeiting Luxurious Fashion Products in Vietnam

“…Leaders, managers, designers across the globe have recognized the rapid growth of this trend, and then they come to a decision to work with Union international anti-counterfeiting organizations (IACC) and the Institute of ownership international intellectual (IIPI) to protect their designs from being copied (Norum & Cuno, 2011). Matos (2007) indicated that 5% of the global transaction is a transaction of counterfeit products.…”