The pursuit of counterfeited luxury: An examination of the negative side effects of close consumer–brand connections

Abstract

Over the past two decades, the counterfeiting industry has cost U.S. manufacturers over $200 billion. In this study, we extend current research on consumers' willingness to purchase counterfeit products by demonstrating that consumers' need to build their self-concept via selfbrand connection directly impact consumers' willingness to purchase counterfeits and these effects are moderated by value consciousness and openness to experience. As a result, our findings move beyond simple assessments of the impact of demographics and social norms to provide a deeper understanding of why and when consumers purchase counterfeit goods. The findings provide new insights that luxury brand managers could leverage to proactively combat counterfeiting and begin curtailing their losses due to the sale of fake goods.

Identifying moderators of brand attachment for driving customer purchase intention of original vs counterfeits of luxury brands

“…Raza et al (2014) hypothesize the effect of brand attachment on the purchase intentions of counterfeits, but found no significant relation, probably because the study was not focused on luxury products. In line with Randhawa et al (2015) a positive brand self-connection, an integral part of brand attachment, is positively linked to counterfeit purchasing. The following hypotheses are therefore proposed:…”

“…Brand attachment can have mixed effects on the purchase intentions of counterfeits. On the one hand, attachment to a luxury brand in the absence of affordability of originals can lead to greater willingness to buy counterfeits (Randhawa et al, 2015). On the other hand, brand attachment, particularly when emotional bonds are strong, may be also associated with lower intentions to buy counterfeits.…”

“…With some exceptions (Randhawa, Calantone, & Vorhees, 2015;Raza, Ahad, Shafqat, Aurangzaib, & Rizwan, 2014), there is sparse knowledge on the role of brand attachment on purchasing intentions of counterfeits. Thomson, MacInnis, and Park (2005) proposed a scale of consumer emotional attachment to brands but acknowledged a need to test the generalizability of the scale by using non-student samples.…”

Ingredient branding for a luxury brand: The role of brand and product fit

“…Supply and demand patterns for luxury brands have dynamically changed in recent years due to increased global competition and counterfeit luxury goods (Randhawa et al, 2015). Thus, luxury brands may need to adopt more fine-grained branding strategies in order to survive in this dynamic marketplace.…”

“…Current research on luxury brands has studied the nature and definition of luxury goods (e.g., Vigneron & Johnson, 2004), the online presence of luxury brand marketing (e.g., Kim & Ko, 2012), the perceived value of luxury brands by consumers (e.g., Shukla & Purani, 2012), the management of luxury brands (e.g., Albrecht et al, 2013), luxury consumer behavior (e.g., Bian & Forsythe, 2012), and counterfeiting of luxury brands (e.g., Randhawa, Calantone, & Voorhees, 2015). Despite the emerging literature on luxury brands, little research has examined the role of brand partnerships for luxury brands, even though real-world examples of ingredient brand partnerships exist for luxury brands (e.g., the currently available Apple and Hermes smart watch).…”