Counterfeiting Consumer Motivations Emotions and Awareness of Consequences

Counterfeiting: Consumer Motivations, Emotions, and Awareness of Consequences ABIGAIL BRANNON

Counterfeit Products A COUNTERFEIT PRODUCT IS DEFINED AS AN IMITATION, USUALLY MADE WITH THE INTENT OF FRAUDULENTLY PASSING IT OFF AS GENUINE. THESE PRODUCTS ARE OFTEN PRODUCED WITH THE INTENT TO TAKE ADVANTAGE OF THE ESTABLISHED WORTH OF THE IMITATED PRODUCT. COUNTERFEIT PRODUCTS MAY CARRY EXACT LOGOS OR NAMES OF AN AUTHENTIC BRAND, BUT WAS NOT PRODUCED BY THE ORIGINAL BRAND.

Research Topic and Justification �Understand the global phenomenon of counterfeiting �Focus on those who purchase counterfeit textile products emotions, motivations, and awareness of consequences type brand price quantity � Consequences affect emotions and motivations behind purchases �Surveying will promote awareness of the illegality

Literature Review �Innovation is undermined, criminal networks gain financially, the environment can be negatively affected, workers are worse off by not receiving pay or medical benefits, foreign direct investment may be lower �The drivers associated with purchasing counterfeit products include: not being able to afford genuine is over-priced consumers simply do not know that the product was counterfeit

Literature Review Prioritizing Resources and Organization for Intellectual Property Act Class C felony, up to 12 years federal prison, fines up to $250, 000 Seven For All Mankind won a $4. 45 million settlement in 2006 against Josh Mohrer When a person purchases counterfeit products, they are more likely to commit dishonest acts in their everyday life Ex: cheating on an exam

Research Methodology Online survey distributed through Facebook: kwiksurveys Advantage: quick method Disadvantage: were not able to obtain a representative sample 62 participants aging from 15 -57, 82% were 18 -21 years old Gender Females: 77% Males: 23%

Results What is your work status? What is your monthly income?

Results Have you purchased a counterfeit product in your lifetime? What are the reasons you purchased a counterfeit product?

Results How many counterfeit products have you purchased in your lifetime? Product Profile Handbag Brands Chanel Louis Vuitton Hermes Coach Versace Dolce and Gabbana Prada Handbag Price Range Wallet Brands Chanel $20 -$66 Wallet Price Range $25 -$30 Prada

Results: Emotions Social Acceptance and Consciousness I feel my self-esteem is enhanced due to social acceptance of the product: 43% neither agree/disagree, 26% disagree I am afraid that my friends may find out that I am wearing a counterfeit: 30% neither agree/disagree, 30% disagree I feel guilty for a buying a counterfeit: 55% agree, 18% strongly agree 61% Social Image • I am concerned about my social image: 32% are strongly not concerned • I am concerned of how I am viewed by others: 41% not concerned • I consider myself fashion-conscious” 41% neither concerned nor not concerned • Price is an important factor of my shopping decision: 36% very concerned • Style is an important factor for my apparel purchase: 32% very concerned

Results: Moral vs. Legal Do believe it is moral to purchase counterfeit products? Yes No Depends on the price Takes away from the genuine brand If the genuine product is too expensive Takes away from the genuine product If sold on streets and no one stops them then nothing is immoral Takes away from those who work hard to make the genuine products Products should be affordable to everyone - Do you think it is illegal to purchase counterfeit products?

Results: Consequences and Prevention What are consequences you are aware of? What are some ways companies can prevent their products from being counterfeited? Consequences Prevention Confiscation of product Patents Fines Improve consumer awareness Jail Visible trademarks Misdemeanor Hurts genuine brand Creating unique designs and product features Promotes illegal production of goods Warn vendors of consequences Decreased quality Sure those who infringe IP infringement Lower prices Vendors shut down Make brands more available to public

Restrictions and Limitations • NARROW SET OF DEMOGRAPHICS • NOT EVERYONE USES THE INTERNET • DID NOT ACHIEVE A REPRESENTATIVE SAMPLE • FOCUSED ON AGES 18 -21 • SURVEYED ONLY THOSE ON FACEBOOK • NOT ALL PARTICIPANTS KNOW WHAT A COUNTERFEIT PRODUCT IS • GATHERING MORE PARTICIPANTS WOULD BENEFIT OUR CONCLUSIONS

Recommendations • DO NOT PURCHASE COUNTERFEIT PRODUCTS • BRANDS SHOULD TAKE THE LAW INTO THEIR OWN HANDS AND ESTABLISH STRICTER LAWS AND PENALTIES • Ex: Hermes sued EBay for allowing counterfeit products to be sold illegally without penalty to the seller. Any items put up for sale on EBay which hold the Hermes name are now inspected for authenticity. Any products that do not pass are pulled. • CONTINUATION OF SEIZING CAN REDUCE COUNTERFEIT ACTIVITY • Ex: A cargo ship arriving in Miami held $7 million worth of counterfeit Louis Vuitton and Gucci leather goods.

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