TO DETERMINE THE OUTCOMES OF THE COUNTERFEIT LUXURY BRANDS
ABSTRACT
In this research, different aspects relation with the research methodology such as approaches, methods techniques, etc are used in this research for completing the research on time and to produce the valid and effective outcomes of the research. Furthermore, in this research, in for collecting the data, researcher looked out the use of survey through questionnaire because of an effective way for the data collection. So, for this study,250 customers were targeted however, the response were received from only 100 customers. Therefore, out of 250, only 100 customers responses were analyzed by the researcher to produce the valid research outcomes. The use of survey through questionnaire as a primary source of data also overcomes the efforts of the researcher that increase the success ratio of the research.
At the same time, all collected data by the researcher is analyzed through SPSS method and the simple excel method. After using these ways all data is presented in a table and graph format. The reason in this is that it is quite appropriate way to present the findings in an organized manner and to arise the clear understanding of all research findings. Besides, from this, in this chapter, various ways such as brand image, price, attitude, etc that motivates the customers to buy the counterfeit luxury products are analyzed. In like manner, this paper also discussed the different factors like social influence; identical appearances, personal satisfaction, etc are the intentions behinds consumers purchasing counterfeit luxury brands. In the study, the researcher also analyzed that make strict rules and the regulations, increase the awareness of the people, etc are the major ways that can be used to overcome the issue of purchasing the counterfeit luxury products. Finally, the research provides for conclusion and recommendations.
Table of Contents
Chapter 1: Introduction 6
Research aim and the objectives 7
Research Aim 7
Research objectives are to: 7
Research questions 7
Research significance 8
Research structure 9
Chapter 2: Literature Review 12
Introduction 12
Concept of Counterfeit Products: 12
Theory of Counterfeit Products: 13
Customer-Based Brand Equity 16
Factors contributing for purchasing counterfeit products: 19
Understanding the Impact of Counterfeits Products: 24
Negative impact of counterfeiting products on the brands: 26
Chapter 3: Research Methodology 33
Introduction 33
Research Philosophy 33
Research Approach 34
Research Strategy 35
Research Methods 36
Time Horizon 37
Data collection methods 38
Data analysis method 39
Sampling method 40
Ethical Consideration 41
Limitation of the Research 43
Quality of data collection and measurements 43
Conclusion 44
Questionnaire 45
Chapter 4: Data Presentation and Analysis 49
4.1 Introduction 49
4.2 Analysis and Findings 49
Chapter 5: Conclusion and Recommendation 70
Managerial Implications 71
Theoretical implications 72
Methodological Limitations 74
Suggestions for future research 75
Personal reflection 76
References 78
Table of figures
Figure 1 Proposed Model of Consumer Attitudes toward Counterfeit Fashion Products 14
Figure 2 Brand elements 18
Figure 3 Original Vs Counterfeit 29
Figure 4 Brand image of the firm 55
Figure 5 Price 56
Figure 6 Attitudes 57
Figure 7 Psychographic factors 59
Figure 8 Personal satisfaction 60
Figure 9 Social influence 61
Figure 10 Identical appearances 62
Figure 11 Other 63
Figure 12 Make strict rules and regulations 65
Figure 13 Increase awareness of the people 66
Figure 14 Provide other benefits 67
Figure 15 Others 68
List of tables
Table 1 Gender 50
Table 2 Awareness of luxury products 51
Table 3 Awareness counterfeit products 51
Table 4 Time for shopping 52
Table 5 Luxury brand provides full satisfaction 53
Table 6 Different luxury products in the market 53
Table 7 Different counterfeit luxury products create issues 54
Table 8 Brand image of the firm 55
Table 9 Price 56
Table 10 Psychographic Factors 58
Table 11 Identical appearances 62
Table 12 Other 63
Table 13 Make strict rules and regulations 64
Table 14 Increase Awareness 66
Table 16 Provide other benefits 67
Table 17 Others 68
Chapter 1: Introduction
“Counterfeit is the process to imitate the original brand name, its logo, as well as the process of selling these products in the market for a much lower price has been compared to the original ones. Companies spend huge amounts as well as time to build up an attractive brand for occupying a significant position in the marketplace along with the aim of developing an effective image or reputation in the eyes of the customers. For the luxury brand owners their brands are the most valuable or essential thing. Brands have now a day’s facing various challenges in the form of counterfeit. The counterfeit of the various luxury brands have been increased immensely from last few years. The luxury brands are being targeted the most because of their popularity along with the ever-increasing demands of these brands by the customers in the market (Henry, and Fetters, 2012). This has also resulted in loss of sales for most of firms along with the loss of various jobs in the market. This counterfeit is one of the major issues which is been faced by the luxury brands globally. It is not a short issue instead, it is a longstanding problem in itself. The governments have also laid out some strategies to control the counterfeit markets along with it the World Trade Organization(WTO) has also tried to make the individuals, firms, to recognize the importance of patent and intellectual property.
One of the major and most popular brands is NIKE which is also facing severe issues in the marketplace because of counterfeit. The firm has shown a decrease in its sales by 20% in last few years(ABC News, 2016). The other popular brands which have faced the negative effects of counterfeiting are Gucci, Burberry, Chanel, Puma, there are various negative effects of counterfeit i.e. loss in consumer confidence level, affects the growth of the business firms, discourage the investments by the firms, increase the cost of conducting business operations (Hansen and Møller, 2017). The rise in these counterfeit acts will have an impact on the productivity of the business firms along with experiencing an increase in the costs. As per a research of Fink et al. (2015), if the acts of counterfeit will continue it will lead to increase the rate of unemployment in the world globally in the white market but supports employment in the fake markets or the black market (informal economy). Counterfeit creates a significant impact on the buying behavior of the customers. Customers start to lose faith and interest in the brands as they are getting exact replica for low costs in the market. Most of the companies are even trying to find out the most possible and effective ways to overcome the issues of counterfeit. This will help the luxury brands company to regain their image and to attract as well as to retain their loyal customers.
Research aim and the objectives
Research Aim
The aim of this research is to determine the outcomes of the counterfeit luxury brands.
Research objectives are to:
Determine the factors that contributes for purchasing counterfeit luxury products
To identify intentions to purchase counterfeiting luxury products
To determine the issues faced by the firms in the use of counterfeiting luxury products
To suggest ways that can be used to manage the use of counterfeiting luxury products
Research questions
1. What are the motivations behinds consumers purchasing counterfeit luxury brands?
2. What are the intentions behinds consumers purchasing counterfeit luxury brands?
3. Will a better customer – brand relation has an effect on consumers’ purchasing behavior toward an authentic brand loyalty?
Research significance
This research holds a vital significance in accomplishing the objectives of the research and to understand the research objectives. The outcomes of this research will help various businesses to understand the issues or challenges firms face because of counterfeit of the luxury brands. In order to increase the growth as well as to the number of customers, it is very important to decrease the counterfeit of the luxury products in the market. For managing the business strategies, it is essential that the firms have a clear and in-depth understanding about the issues of product risk, business risk and financial risk and other macro-environmental challenges that can be faced required by the firms. This research also helps to understand the impact counterfeit of luxury products have on the brand image of the firms. At the same time, this research also helps to analyze or evaluate the consumer’s intentions and motives that cause them to purchase fake brands (Flick, 2015). Moreover, the research will study the negative effect of counterfeit it imposes on the original brand image. This research shows the how Counterfeit of luxury brands is a hot issue to study and how the consumers who are not able to pay high price goods tend to go towards the fake brands. The customers are also having a perception that to carry their elite image in the society so they go for buying Counterfeit products as they are not able to purchase an expensive item.
In a similar manner, this research study has a wider scope as per the other researcher point of views. This study also helps to identify the various effects of counterfeit ownership on the loyalty of the customers to counterfeit luxury-branded products (Mackey, and Gass, 2015). It also helps to understand the various the intentions as well as the motivation behind consumers purchasing counterfeit luxury brands. Thus, this research study is justifying the research aim and objective by developing and identifying the outcomes of counterfeit of the luxury brand products which will help for future growth and development.
Research structure
Introduction: The introduction part is one of the most significant parts in the research. This part is very important as it helps as well as assists the researcher by providing the researcher with a thorough, clear and in-depth understanding regarding the various significant concepts or the important topics of the research. The various important topics includes the aim of the research, the objectives of the research, the research questions, the background of the research, the significance of the research, and the research structure. All these topics make it very easy for the researcher to accomplish the valid, accurate and reliable research outcomes along with successfully achieving the research aims (Converse, 2012). This is the reason why introduction is one of the most significant parts in the entire research study as it plays a vital role in the successful accomplishment of the research.
Literature Review-Literature review is that part of the research which holds its unique significance in the accomplishment of the research as well as to attain the objectives of the research effectively. This part is also holding a crucial place as this part helps the researcher to evaluate critically the various research objectives in a way to support the primary findings as well as to fulfill the gap in the research (Nahum-Shani et al., 2012). For evaluating objectives of the research, various secondary sources are also being used by the researcher. The various secondary sources include articles, journals, books. These primary as well as secondary resources also help the researcher to develop a better theoretical understanding in the regard of the issues of the research as well as help to develop the outcomes of the research effectively and accurately.
Research Methodology- Research methodology also plays a crucial role in attaining the valid research outcomes as well as to accomplish the objectives of the research on time. This part of the research defines the various sources of the data collection, the approaches of the research, the various research techniques, the different research methods, and the various research ethical issues. On the other hand, the research methodology also helps the researcher to attain the aims of the research on time without facing any kinds of issues or any sort of problems. This is the ultimate reason, why this part of the research is having due importance in the research study.
Data analysis and the findings- The data analysis and the findings art of the research help the researcher in a way that it defines the successful and the unsuccessfulness of the research. The data analysis and the data findings also help the researcher to define the issues of the research and that whether they are completely accomplished or not by the researcher at the time of the research (Noor, 2008). The reason behind it is that this part of the research assists the researcher in a way that he or she can analyze the data been gathered as well as can also at the same time evaluate the data of the research in the research study. This is the part of the research by which the researcher is able to present the data been gathered in the form of a table or in the form of graph which at the same time also makes it quite easy for the researcher as well as the other individual to gain a clear in-depth understanding about the research outcomes.
Conclusion and Recommendations- The conclusion and the recommendations part are also having its due importance in the research study. This part helps the researcher to summarize the various outcomes as well as the research findings. This part of the research also helps the researcher to identify various limitations in the research along with providing some recommendations that will be helpful in the further research by the researcher (Cooper et al., 2009). This is the reason why this part of the research is having an important role to play in the research study.
Chapter 2: Literature Review
Introduction
The aim of the research study is to analyze the consumer behavior towards the counterfeit brands in luxury retail industry. On the basis of research topic, certain questions will be answered such as motivation behind customers purchasing counterfeit, factor that contribute in purchasing the counterfeit products and impact of such products will also study. In addition to this, the study found that the counterfeit products as a serious threat to the manufacturers and retailers of authentic designer products (Mavlanova and Benbunan-Fich, 2010). As per the study, the handbags, clothes and sunglasses are used more as a focal product category rather than consumer electronic-related items. Thus, the market counterfeit luxury product is growing mainly because of youth which involves largely on such practices at global level. Thus, this chapter gives the detail understanding of the impact on luxury brand with the growing counterfeit activities.
Concept of Counterfeit Products:
Nowadays, there is increasing counterfeits practices especially in the areas of clothing, sunglasses and cosmetic brands (Bian et al., 2016). The youngster and teenagers prefer to buy more counterfeit luxury product rather than buy luxury brands. The reason of growing demand of counterfeit product is availability of product at lower price with the name of brand name. This practice allows to consumer showing the status to society. The trend of counterfeit brand is also rising due to the support of e-commerce business. The online markets give push to the counterfeit products in a way to sell the product online by using the name of famous brand. It is quite common trend as per the current scenario. Due to availability of such product at low cost, people ready to purchase it. Thus, these areas raise the purchase of counterfeit products.
Theory of Counterfeit Products:
The marketing literature considers counterfeit brands as linked with low price as well as low quality. As mentioned by Malholtra (2012), counterfeit brands are catered to bigger market in comparison to the targeted market of original luxury brand’s product or service, which endangers the exclusiveness of luxury brands.
As noticed by Aakeret et.al (2010), there is huge demand of counterfeited brands in market. The main reason behind people own such counterfeit brands of luxury products are less price in comparison to original luxury branded product and associated value offered by the brand.
Buyers of counterfeit products buy such products because of inherent status attached with it which make them feel as a member of prestigious society of which they wish to belong. Through using counterfeit luxury branded products, consumers might want to look similar to the people who wear or use original luxury branded products, until no person can tell them that they are having a counterfeit product and not original. Chen and Tseng (2010) mentioned one more reason as to why people own counterfeit luxury branded product is reduction of buying risk as the price of counterfeit product is far less than the price of genuine luxury branded product which saves their hard-earned money. In the view of Christensen et al (2010), counterfeit products of luxury brand might offer value for money instead of having low quality because of other values attached with it like social as well as personal status attached with the feeling of owing genuine luxury branded product. Similarly, Sharma and Chan (2011) explained that one more reason for purchasing counterfeit product is fun attached with it. For instance, counterfeit branded luxury products can be gifted to members of family or friends at the time of vacations as that product is imitation of costly branded product of the home nation, as the person gifting such thing might not afford to gift genuine luxury product in ordinary cases. As per Hieke (2010), the literature explained 8 different dimensions regarding perception of consumers for counterfeit product based on various researches. The 8 dimensions are – the countrified might be seen as a symbol of status, symbol of prestige, symbol of fun, symbol of value for money, symbol of quality, symbol of durability, symbol of exclusiveness, symbol of fun or symbol of commonness.
On the other side, Gino et al. (2010) defines that the decision-making regarding counterfeit goods can be explained through consumer behavior. Therefore, the proposed model focuses on different attributes of consumer behavior towards the counterfeit luxury products and intension to purchase the product knowingly.
Figure 1 Proposed Model of Consumer Attitudes toward Counterfeit Fashion Products
Source: Gino et al. (2010)
As per this model, value consciousness is the first and foremost area that impacts the consumer behavior. According to Aakeret et al. (2010), value consciousness is considered as a consumer concern for the price paid against the quality received. It is estimated that people opt for the counterfeit product when it is costing less as compare to luxury product. The price factor is the most crucial one which guides the individual action towards purchase any product. It is true that counterfeit consumers have more positive behavior for counterfeit goods over the fashionable items with the fear of losing the fame among the social groups.
In regards to social cost, Beckert and Wehinger, (2012) stated that counterfeit products have been made at the cost of society. In the OECD (2007) report of ‘The Economic Impact of Counterfeiting and Piracy’, it is identified that growing counterfeit products demand give rise to the illegal actions and support to the terrorism activity. The practice of counterfeit is also growing because of less awareness among individuals about the social issues that is associated with counterfeits. In a same concern, anti-big business components reflect the intension to purchase counterfeit fashion products. As per the USA report, people tend to purchase the counterfeit product intentionally and this creates unfair competition against the legitimate manufacturers and sellers (Gabrielli et al., 2012). It directly influences the sale of luxury brands. But, some consumers found the selling of counterfeit product justify as the user of counterfeit product believes that luxury firms exploit consumers by charging high prices. So according to them, to stay in the society as per the status, norms and interest, it becomes a necessity to use such fake products. Hence, anti-business attitude shows the positive effect on the intension of consumers towards the purchase of counterfeit fashion products.
Therefore, this model clearly shows the consumer attitude/ behavior towards the buying of counterfeit product rather than pursue towards the original luxurious product. It also indicates different consumer attitude such as individual who purchase with intension and people that buy unknowingly. But, both type of consumer boosts the sale of counterfeit products.
Customer-Based Brand Equity
As per a study of Turunen and Laaksonen (2011), counterfeit brands adversely affect the original luxury brand. For measuring such impact, the perception of consumes towards genuine brands requires to be assessed, for which there are various alternatives (Cian, 2011). One way of evaluating is measurement of brand equity (Schmidle, 2015), by concentrating on consumers behavior. The way consumer behavior approach can be utilized for measuring brand equity is explained by Humphries (2015), in his research. The brand equity included 2 different approaches i.e. customer centric approach and financial approach (Turunen and Laaksonen, 2011; Schmidle, 2015)
As per Brendon and Fung (2015), the financial approach for measuring brand equity is preferred by companies who wish to know the real brand value, for instance, in dollars. According to Esposito (2015), the financial approach measures brand equity by evaluating the incremental flow of cash which otherwise earned by genuine branded products above and over the cash flow form unbranded product sale. Wiedmann, Hennings and Klarmann (2012), explained a hybrid approach which clarified the benefit of brand equity for both consumers and companies. Brand equity can be referred to as a combination of brand liabilities and brand assets attached with the brand, its symbol and name, which reduced or added from the inherent value offered by the service or product to a company or customers of that company.
One more specific brand equity definition from the point of view of consumers is given by Malholtra (2012), which is popularly known as consumer-based brand equity is ‘the varied impact of brand knowledge on the responses of consumers against marketing efforts of that brand.’ According to him, examination of brand equity must be done from the point of view of consumers and not from the point of view of companies. According to Norum and Cuno (2011), Consideration of both brand equity definition i.e. by Nguyen and Tran (2013) and Hidayat and Diwasasri (2013) together can be called as CBBE (Customer based brand equity). For Consumer based brand equity Bian and Moutinho (2011) is a well-known researcher who is cited in may researches (likeNorumandCuno, 2011). As per Budiman (2012), brand liabilities and brand assets associated with a brand might differ in the sense of their context, and might be distributed under 5 differed groups namely, Brand Awareness, Brand Loyalty, Brand Associations, Perceived Quality and Proprietary Brand Assets. Out of these five, the first four could be considered from point of view of consumers while the last i.e. proprietary Brand Assets could not be considered with consumers brand equity perspective. According to Carrington, Neville and Whitwell (2010), the reason is because it includes trademarks and patents in relation to a brand, which has no relation with consumer orientation and hence rejected on the ground of no relation with consumers and not dealt in the detailed in that study. One more researcher in the field of CBBE is widely accepted and is well mentioned in other researches (Kathirvel and Nair, 2015; Carrington, Neville and Whitwell 2010; Bian and Moutinho, 2011). He is also affected by the concepts of Fingas (2015) and concentrates his concept on Brand Knowledge. According to Esposito (2015), the concept of Brand Knowledge is based on two elements which are also the basics for CBBE. These elements are Brand Image and Brand Awareness (Aaker, Kumar, Day and Leone, 2010), in which Brand Image is derived from Brand Associations. Considering the approach 4 new items of interest originates i.e. Brand Awareness, Brand Loyalty, Brand Images or Brand Associations and Perceived Quality (Chenand Tseng, 2010).
Figure 2 Brand elements
Source: Author (2018)
In support to this study, Ergin, (2010) analyzed that brand equity of the consumer could be identified with the help of qualitative and quantitative approaches and it also assist the collecting the brand equity data. In context to study, the brand equity can measure through focus group. Focus group allows to exploring customer perception and nature towards the counterfeit product. Thus, conjoint analysis reveals the consumer decision making processes. At the same time, considering the perception and behavior also help to evaluate the brand equity towards the counterfeit product. In this case, majority of people believes that luxury fashion firm exploits the middle-class consumer behavior by providing the product at high ranges. This condition forces the consumer to swift towards the counterfeit product. Furthermore, the counterfeit product comes in good quality with affordable price which makes people to attract. The loyalty more towards the counterfeit product clearly shows the people attitude.
Based on this study, it is identified that people perceives more value with the buying of counterfeit. The majority of people in the developing countries satisfy their social needs to buy the counterfeit products. This is because purchasing power of luxury brand is quite low among the population of developing countries. In that case, people prefer to buy the fake branded product so that they maintain their status and fulfill their self-esteem level. From this discussion, it is interpreted that mass number of people find the brand equity in the counterfeit products. The main cause of this is that forged product is come under the lower price which allows the different group members to purchase easily.
Factors contributing for purchasing counterfeit products:
There are different factors that motivate people to purchase the counterfeit products. Here are the following factors which push the individual to take action for purchase the counterfeit products rather than buy the actual luxury brand product.
The Attitudes toward Counterfeiting
As defined by Humphries (2015) “attitude can be regarded as a predisposition to response in a repeated unfavorable or favorable way in relation to a specific object.” In addition, as per Kathirveland Nair (2015), “Attitude is a psychological state which is an outcome of experience held by an entity resulting in a favorable or unfavorable decision, based on that experience. In the opinion of Budiman (2012), attitude denotes the intention of an individual and is a reasonable element for estimating the behavior of that individual. Hence, consumer’s attitude towards the counterfeited branded products would affect their buying decision.
Intention to Purchase Counterfeiting
As per Hidayat and Diwasasri (2013), consume buying denotes the psychological status or decision to respond showing the particular behavior as well as awareness of that individual. As per the TPB ( Theory of Planned Behavior given by Norum and Cuno (2011), the measurement of consumer buying behavior is done through measurement of buying intention while, the buying intension is assessed through the measurement of consumer’s attitude as explained in the theory of Reasoned Action given by Wiedmann, Hennings and Klarmann (2012). Though executing a purchase also requires consideration of other factors like resources or opportunities available like access to goods, availability of money, but intention is probably a major factor behind the buying behavior among consumers (Bian and Moutinho, 2011; Nguyen and Tran, 2013; Norum and Cuno, 2011).
Brand Image
As mentioned by Turunen and Laaksonen (2011) “Brand Image is perception of consumer for brand”. In other words, Brand image denotes the way brand present in the minds of consumers. Brandimage majorly contributes towards the buying decision for a brand personally (Bian and Moutinho, 2011; Nguyen and Tran, 2013; Norum and Cuno, 2011). As indicated by Malholtra (2012), if consumers are aware about the brand reputation ofthe luxuries products then they might favor counterfeiting products of that brand. As per a study done by Hieke (2010), in relation to fashion industry, the higher the image ofthe brand will arouse more feeling of buying counterfeiting product for people who find it hard to own that genuine brand.
Social Influence
The buying behavior of consumers is also affected with the society they belong. People often refer their family or friends prior to reaching buying decision (Schmidle, 2015; Humphries, 2015; Esposito, 2015; Brendon, 2015). Reference entities have huge potential in making and transforming behavior or attitude towards a brand (Schmidle, 2015; Humphries, 2015; Esposito, 2015; Brendon, 2015). As per Aakeret al., (2010), the choice of a person is affected by others, whether noticed or not, and on the contrary, people have desire to influence and impress others. According to Sharma and Chan (2011) people have supportive attitude if they receive the same from others. There has been a positive relationship found by Turunen and Laaksonen (2011), towards the impact of social grounds on the fashion trend in the market.
Price-Quality Inference
Consumers make inferences from price-quality (Chen, C-F. and Tseng, 2010; Malholtra, 2012; Wiedmann, Hennings and Klarmann,, 2012; Hidayat and Diwasasri, 2013), they regard price of the product as light as they perceive that more the price better will bethe material or better skills, hence, price plays a vital role in deciding the intention of buying. But, when consumer feel that the quality provided is not matching with the high price paid by the consumer then they shift to other cheaper alternatives. In the opinion of Harun et al. (2012), consumer have a belief that “low price= low quality” while “high price= high quality) which make the price quality inference among consumers. As mentioned by Carrington, Neville and Whitwell (2010), when consumers understand the theory deeply they pay for what they get, and thus becomes less supportive for counterfeit products. As per a research performed by Brendon and Fung (2015), there is strong effect of inference from price-quality and the buying behavior of consumer which is adverse against the favorite attitude of consumers for counterfeiting brands (Chen, C-F. and Tseng, 2010; Malholtra, 2012; Wiedmann, Hennings and Klarmann,, 2012; Hidayat and Diwasasri, 2013).
Integrity and Attitudes
Based on the study of Christensen et al. (2010), the purchase intention of consumer is widely affected by the integrity. Integrity is composed of obedience of law as well as personal and social ethical standards. For instance, as per Hieke (2010), if customers consider integrity as important, then are very less chances of such person favoring countrified branded products. On the contrary, consumers who have less concern for law or integrity reflects greater intention of buying counterfeited product (Chen, C-F. and Tseng, 2010; Malholtra, 2012; Wiedmann, Hennings and Klarmann,, 2012; Hidayat and Diwasasri, 2013). More precisely, integrity is a major factor behind payment of paying extra for genuine products (Schmidle, 2015; Humphries, 2015; Esposito, 2015; Brendon, 2015). As observed by Turunen and Laaksonen (2011), there is adverse relationship between integrity and attitude for counterfeits. More integrity results in low favorable attitude for counterfeit products and low the integrity in a buyer more will be the probability of that person favoring usage of countrified products.
Novelty Seeking
Curiosity for difference and diversity is favorite for many (Schmidle, 2015; Humphries, 2015; Esposito, 2015; Brendon, 2015). Consumers look for novelty (new products, features tec.) which creates favorable attitude for buying new product. Novelty is also a major factor after price which promotes sales of both genuine product and its counterfeit. According to Norum and Cuno (2011), launch of new branded products offers new features as novelty lovers seeks to buy those products with curiosity like iPhone. Nonetheless, after the launch of the product its features are copied in counterfeited product which although provided less quality but fulfills the desire of novelty for people who find it hard to afford such genuine product. As per Hidayat, and Diwasasri (2013), in fashion industry, novelty is a major factor for luxury branded products. Norum and Cuno (2011) found that, there is favorable association between the attitude for pro fakes and new favorite.
Status Consumption
Customers purchase highly luxurious products to show their class as well as their individual image to the people around them. They want to show “others see me in this way”. Status of the consumers can be defined as people to show prestige and inspire others by consuming particular luxurious brands. If an individual has status, it means that person has a particular position in the community or might be jealous. Consumer, who has lower position, has idea to purchase counterfeit products just to show a high position in the society. In the view of Nguyen, and Tran (2013), there is a positive impact of status of customers and intention to buy the brand towards counterfeiting goods.
Attitudes and Intention to Purchase
With respect to luxurious products attitude is one of the main factors in order to forecast behavior as well as intentions of the consumers. Though attitude against behavior is considered as an interpreter of customers’ behavior instead of attitude for the product; on the other hand, Sharma and Chan (2011) commented, attitude towards products which are counterfeit is also a key element which has excellent impact on the mindset and idea of purchasing counterfeit products. Actually, counterfeit products come under financial risks, but, if the purchased counterfeit product satisfied the requirements and comes across the expectations of the customers, it is a satisfactory product and can be repurchased (Chen, C-F. and Tseng, 2010; Malholtra, 2012; Wiedmann, Hennings and Klarmann, 2012; Hidayat and Diwasasri, 2013). Specially regarding to luxurious brands and industry the attitudes for counterfeit products are an important factor to anticipate the intention of purchasing products which are counterfeit. Humphries (2015) has shown strongly positive relationship between intention for purchasing and favorable attitude for counterfeit products.
Psychographic Factors
Psychographic Factors are the crucial factors that motivate the consumer behavior towards the use of counterfeit products. However, the individual perception is the main activity which guides its action towards the purchasing decision (Penz and Stöttinger, 2012). At the same time, perception is largely influences by the society and culture in which individual lives. In regards to counterfeit product, the people develop their perception in a way that these products are quite affordable and it is meant for the middle level group. This perception is generally found in the developing country.
Identical Appearances
Identical appearances of the counterfeit product with the original product are also considered as a factor that pushes the people to purchase the counterfeit product. It means that people find out that fake product will be exactly identical to other brand product and if it is available at low price then it easily impresses the people attitude. Then they tend to make buying decision (Norum and Cuno, 2011). Thus, the identical look with the branded product is the most appealing factor that motivates the people.
Therefore, these factors become the cause of growing demand of counterfeit product in the global market.
Understanding the Impact of Counterfeits Products:
The list of branded products that have been or could be counterfeited is wide. The list of counterfeited products covers shirts, music CDs, pants, sandals, shoes, jewelry, clothing accessories, televisions, auto parts, bags, cameras, watches, purses, leather accessories, perfumes, sunglasses, pain relievers, software and many more. However, as per Cian (2011), the counterfeit product’s quality has been a matter of concern as some of those products might possess many safety and health related risks to the users of such products. Some of the counterfeit products like shampoo, heart pumps, birth control pills etc. have proven to be highly dangerous and severe effect on the health of consumers. As per Hieke (2010), some of the counterfeit products are made available in the market even before the launch of original branded product. According to Malholtra (2012), counterfeiting products which could be hazardous to the health f consumers was commenced almost 90 years ago. According to him, in 1930, at the time of prohibition, around fifteen thousand consumers of fake alcohol have suffered from paralysis of feet and hands. Again, in the year 1950 due to fake polio vaccine were sold in the market (Aaker et al. 2010; Chen and Tseng, 2010; Christensen et al. 2010)
In the opinion of Kathirvel and Nair (2015), because of wide list of products which could be counterfeited, and their adverse effect on the users and manufacturers of genuine product as well as overall market, there is requirement of understanding the buying behavior as well as buying attitudes of consumers (Fingas, 2013; Budiman, 2012; Bian and Moutinho, 2011).
According to Carrington, Neville and Whitwell (2010), counterfeiting can be done in two ways, non-deceptive counterfeiting and deceptive counterfeiting. Counterfeited products that are offered in the market as genuine are deceptive counterfeited product. Such products are provided with the intention of deception (Esposito, 2015). While non-deceptive counterfeited products, are those counterfeited products where there is no intention of deceiving the buyer and their selling is just intentional. As per Brendon and Fung (2015), counterfeited products can be defined as items that involve unauthorized manufacturing of products, whereas the original rights of such products like trademarks, copyrights, patents are held with the authorized manufacturers.
In the research of (Chiu et al., 2014), it is identified that counterfeit product proves to be more harmful for the developed countries like UK and USA as it gives large range of brand product to different consumers of developing economy. But, this concept is considered as quite relevant for the under developed and developing countries where the majority of consumer having a lower purchasing power. The counterfeit product tends to come at average quality with low price which helps to fulfill their social needs. In that case, maximum consumer shows the positive behavior towards the forged products. In concern to this study, Elliot and Maier, (2014) illustrated that the use of identical product is suitable till the clothing, sunglasses and shoe brand instead on medical, cosmetic, software and many more which can harm the human health. In oppose to study, Ebbinghaus (2013) argued that the using of counterfeit product is totally has negative effects and it has to be banned. For instance, American businesses and companies lose around $200 billion revenues due to counterfeits. It is because forged market employs approximately trillion dollars each year and mainly it impacted the electronic market. In regards to this affects, it also impact the big American companies like Apple.
Negative impact of counterfeiting products on the brands:
As per Budiman (2012), any product can be counterfeited like what we wear, what we eat, what we watch anything. In such scenario, every brand has a question as to why invest heavy amount in countering counterfeit products. The scope of ill impact of counterfeiting is broad, much behind the expectation of original brand owners. Not just DVD’s, purses etc. is counterfeited but even eatables and medicines are counterfeited (Schmidle, 2015; Humphries, 2015; Esposito, 2015; Brendon, 2015). The list if further expanded to baby formula, medicine, beverage items, food items, shampoo, soaps, toothpaste, conditioner, clothing, perfume, footwear etc.
Apart from negative sales volume, negative publicity, negative reputations, counterfeiting greatly affects the rates of employment around the globe. Following are the negative impacts of counterfeiting of brands on the rights of legal brand owners.
• Discourages and undermines investments
• Enhance cost involved in doing business
• Leads to violation of intellectual property rights (copyrights, patents)
• One of the largest unfair competitors.
• In long term reduces government revenue by way of low tax yield.
• Reduces confidence o consumers
• Affect the growth of companies and raises question on their survival.
• Increase in the availability of counterfeited products increases production cost of companies as well as reduction their productivity. Apart from that, counterfeits adversely affect the reputation of brands and cost million or billions in terms of loss of revenue (BianandMoutinho, 2011; Nguyen and Tran, 2013; NorumandCuno, 2011).
• As per a study, around 2.5 million people have lost their jobs indirectly because of counterfeit product black markets. The report states that, if the trend continuous that bug industries would find it hard to even touch the breakeven point (a no profit no loss situation), due to involvement of huge intellectual property rights costs. The best example of such activity is the America. It is recorded that counterfeiters’ influence largely on the employment rates in the United States and in many other countries. There are around 2.5 million jobs have been taken apart because of counterfeit market and approx 300,000 European lost their jobs each year Bian and Moutinho, (2011). However, if counterfeiting grows rapidly then it will predict that unemployment rate will continue and it makes lots of people unemployed which will not prove better for the economic growth.
• The forged product also affects adversely the goodwill of brands. It is done through complaints of dissatisfied customers. The un-satisfaction mainly occurs in the area of quality. This is because fake product can become identical in the features but it mostly failing to copy the quality of original product. This makes the consumer unhappy.
Ways that are used to manage the use of counterfeiting luxury products
In the research findings of Bian, andMoutinho (2011), it is illustrated that although the use of counterfeit luxury products is a big issue for the luxury firms and the customers but at the same time, there are also different ways that can also be used to manage this issue to increase the value of the luxury products in the market. In the same concern of this, from the research findings of Carrington et al., (2010), it is illustrated that make strict rules and regulations regarding the use and selling the counterfeit luxury products can be the best way for managing this issue and to perform better by the luxury firms in the market. The reason in this is that of there is strict rules and the regulations then it will create the issue and the trouble for the customers and the other firms that make the counterfeit luxury products to sell it in the market. Because of this, it can be determined that in order to overcome the issue and to manage the use of luxury products, make the strict rules and the regulations is quite necessary.
For example, Nike is one of the most popular brands in the market and this brand is quite effective and famous in the market just because of its quality in the products and the market value. Nevertheless, due to the use of counterfeit luxury products, there are different local counterfeit products of Nike is available and that is a big issue for the firms and the customers of the firm as well. The use of counterfeit luxury products of Nike in the market has been affected the market value and the finance position of the firm.
Figure 3 Original Vs Counterfeit
Source: Chen, and Tseng (2010)
On the other hand, in the research of Chen, and Tseng (2010), it is illustrated that Nike is not only the brand that is facing the issue of counterfeit luxury products in the market because there are also different brands such as Reebok, Puma, Titan, that all are facing the issue of availability of counterfeit luxury products in the market. Therefore, in regard to this, from the research of Elliot, and Maier (2014), it is illustrated that government rules and the regulations is not only the way or the effective way because it is not possible for each and every country to make the strict rules and the regulations regarding the use of counterfeit luxury products. So, in order to overcome these issues and to manage the product value in the market, it is needed to increase the knowledge and the understanding of the people regarding the use of counterfeit luxury products. It will be helpful to aware the people regarding the negative consequence of using the counterfeit luxury products and it is also time and cost-effective way. Because of this, it can be determined that increase the knowledge and the understanding of the people regarding not using the counterfeit luxury products.
According to the research findings of Ergin (2010), it is analyzed that the issues of counterfeit luxury products can be managed by making strict rules and regulations. These rules and regulations will restrict the organizations that make the counterfeit products for selling in the market. At the same time, it can also be said that the counterfeit organizations will also not affect the business of the luxury brands. Additionally, the government can also increase the awareness among the public so that they do not prefer the counterfeit products. This awareness will also increase the sale of luxury brands products because the customer can easily understand the difference between counterfeit products and luxury brand product.
Furthermore, from the findings of Gabrielli et al., (2012), it is illustrated that there are different reasons that can be used to manage the issue regarding the use of counterfeit luxury products. In this, they stated that due to use the counterfeit luxury products, most of the luxury firms have been closed and they are not performing well in the market. They stated that three are different firms such as Coca-Cola, KitKat, and that have faced the issues due to the use of counterfeit luxury products. So, in the same concern, they determined that provide other benefits for the firms is the effective easy that can be sued to overcome the use of counterfeit luxury products. It is because they can overcome the impact of financial loss and the market loss for the firms. That is why’ provide the other benefits for the firms can be the better way for managing the use of counterfeit luxury products in the market.
But at the same time, from the research of Ergin (2010), it is illustrated that it is the fault of the firms because they have to take a hard action against this and also have some changes and the modification in this. It helps the firm to have some uniqueness in the products and also overcome the use of counterfeit products in the market. But, there are not any proper actions that are taken by these firms and it made the cause of increasing use of the counterfeit luxury products. In support of this, Chen, and Tseng (2010), illustrated that there is no change in the strategy of the firms and not increase the awareness of the people regarding the use of counterfeit luxury products that made the cause of arising issue for these firms and affect the market value of the firm in the market. So, it can be determined that increasing use of counterfeit luxury products is reason only because of not taking any actions by the luxury firms.
In like manner, from the research of Elliot, and Maier (2014), it is determined that there are different ways that can also be used to manage the use of counterfeiting luxury products. In this, make some unique logo and the design are also the major ways that can also be used by the firms to manage the business and the use of counterfeit luxury products. But at the same time, in the research findings of Gabrielli et al., (2012), it is determined that although the use of these ways are the effective for the firms but at the same time, there are also different issues that are also faced by the firms. In this, cost and the time are the major issues because in the successful accomplishment of these ways there is high cost occurred and also take so much time. It is a big issue for the firms that can affect the successful accomplishment of these ways. Because of this, it can be determined that there are different issues and the challenges that are faced by the firms in the use of these ways.
In oppose of this, from the research of Ergin (2010), it is illustrated that police your products and pursue counterfeiters is one of the major ways that can also be used by the firms for managing issue of using the counterfeiters’ luxury products. It will help the firm to keep safe the products from the local and duplicate producers. It will also help the firm to keep safe the cost of the firms and helps to keep safe the brand name and the market value also. Because of this, it can be determined that police your products and pursue counterfeiters is one of the major ways that can be used by the firms to manage the cost of the firms. In the same concern of this, in the research findings of Chen, and Tseng (2010),it is illustrated that the use of counterfeit luxury products is also affecting the trust of the customers on the firms because due to the lots of use of counterfeit luxury products, the trust of the customers on the luxury brands is down. It directly affects the working of the firm and the customer base as well. Because of this, it can be determined that use of counterfeit luxury products in the market affects the trust and the customer base. In the research of Bian and Moutinho, (2011), it can be determined that the use of counterfeit luxury products affects the brand awareness and the brand importance in the market because lots of amount is invested by the firms on the brand development and the brand awareness. So, if the use of counterfeit luxury products is high then it affects the all money of the firms that is occurred due to the investment on the brand. Because of this, it can be determined that the high and increasing use of the counterfeit luxury products affects the brand awareness of the firm.
Chapter 3: Research Methodology
Introduction
Research methodology included different procedure, schemes and techniques to systematically solve the research problems. According to the findings of Blumberg et al. (2014), it is identified that methodology is the scientific study to carry out the research in a successful manner. Consequently, the research methodology is a systemic procedure to explain and describe own work by the researcher and provide successful way to solve the problems. The concept of research methodology also defines that it is a study of methods where the researcher helps others to gain the knowledge about the research topic (Cooper, et al., 2009). The main aim of the research methodology is to provide work plan of the research.
In this chapter of the study, there are various methods provided by the research as a guide on how it was conducted. In addition to this, it is also helpful to select most effective method for resolving the issues of the research. In this part, the researcher discuses different techniques like data collection techniques, research strategy, research analysis, research philosophy, research design, etc. On the other hand, in this part, the researcher also discusses about the limitation of the research and ethical consideration to make it reliable.
Research Philosophy
Research philosophy is an important part of the study that helps the researcher to complete the research timely and generate valid and reliable research outcomes. In a research, the research philosophy helps the researcher to develop the attractive ideas and comprehension regarding the research topic. In order to develop thoughts regarding to the research matter, a researcher can apply a number of concepts, assumptions, and statements (Crowther and Lancaster, 2012). Positivism and interpretivism are two major types of philosophy which can be used by a researcher to build up the research in an orderly manner. In this research study, the interpretivism research philosophy is used by the researcher to finish the research in valuable manner. It is because there are different concepts related to the nature of science in the interpretivism philosophy. The nature of science includes different logics and reasons which develops in-depth understanding about the research ideas. The subjective understanding about the research topic can be developed by interpretivism research philosophy (Marshall and Rossman, 2010). It is because the subjective comprehension facilitates the researcher to provide effective conclusions of about the counterfeit luxury brands. The researcher has developed the understanding about the consumer perceptions regarding counterfeit luxury brands by the use of interpretivism philosophy.
Research Approach
The research approaches are helpful to present a specific plan and procedure with steps of major assumptions from data collection, data analysis and interpretation (Noor, 2008). This part of the research is supportive to provide justification of the study by the use of reliable information. The research approaches have two types inductive and deductive. In the inductive research approach, the researcher observes several figures to design the theory. For this, the researcher uses the collected information or qualitative data to demonstrate the plan and procedure. On the other side, the researcher can also use deductive approach to design the plan and procedure in the research (Qu and Dumay, 2011). In the deductive approach, the researcher uses a lot of theories concepts, and formulas to observe the study. In this, the researcher uses qualitative data that are collected from various sources.
In this research, the inductive research design / approach is more preferable for the researcher because it will help to effectively complete the research by the use of subjective or qualitative data about the research subject. For the interpretation of the data, the inductive research approach provides the flexibility that is necessary for effective outcomes. In addition to this, there is no need to apply any hypothesis or theory to offer the outcome of the research. Therefore, in the primary stage of the research, the researcher can also modify any part to provide an effective result. The inductive approach is used in a qualitative research in order to achieve research objectives. In this research, the researcher is identifying the customer perception about the luxury brands of counterfeits that what factor motivates the customers to purchase these products.
Research Strategy
The research strategy is helpful to conduct the research according to the proper guideline with quality. In this, the research also makes different arrangements to present solutions and answers of the research issues. In a good research strategy, the researcher provides aim, objectives, methods, data collection resources, questions and applicable data (Flick, 2015). In order to accomplish the research in an effective manner, the researcher can use different kind of research strategies such as interview, survey, cash study, and literature reviews. Additionally, the researcher also analyzes the research by the use of different ways of planning, implementation, and observation among others.
According to this study, the researcher has developed the idea about research topic with the use of literature review and survey through questionnaire. Both research strategy literature review and survey through questionnaire are helpful for the researcher to analyze the study with high quality (Silverman, 2016). The literature review includes different items like books, websites, articles, magazines, textbooks, newsletter, annual report of the company etc. On the other hand, the survey through questionnaire also provided fresh information about the counterfeit brands in luxury retail industry.
Research Methods
Taylor et al., (2015) states that the success of collecting authentic data depends on the research methods selected. Majorly, two methods can be selected, quantitative or qualitative methods. When both are used in the research, it is referred to as mixed methodology (Vaismoradi et al., 2013). Quantitative methods gives arise to quantitative data while qualitative methods provide qualitative data. In this study, only quantitative method was adopted. In studies that use qualitative data, it is collected using interviews. Quantitative data for this study was collected using structured questionnaires. The questionnaire composed questions covering all aspects of the research objectives. Additionally, the questionnaire contained demographics for the research respondents. Quantitative data was preferred because of the ease in analysis and presentation, and interpretation. Furthermore, quantitative data was selected for the present study because it enhances the generalization of results and involves a huge number of subjects. For instance, in the present study, approximately 250 research participants were selected for initial involvement. A qualitative method such as interview cannot be able to involve such a large number of respondents. Quantitative methods were further selected for the present study was because they allow greater objectivity as well as improved accuracy of the outcomes. Apart from this, through quantitative methods personal bias was avoided which is a critical component of ensuring that original data is gathered in a timely manner. Nonetheless, it was important to be cautious when utilizing quantitative methods because of various shortcomings. First, the outcomes of this method produced only numerical descriptions instead of narratives. As a result, a less account of human perception has been provided. At the same time, there is a possibility of bias in particular, the respondents might have provided false information. Thus, the answers sometimes might fail to reflect the real perceptions of people. To avoid such a scenario, the researcher ensured that customers engaged had knowledge of the topic by the virtue of previously purchasing luxury items.
Time Horizon
According to Hammersley and Traianou (2012), time horizon is a framework that is provided by the researcher to achieve the research objectives in a timely and accurate manner. In particular, the two types of time horizon methods that can be used by the researcher to conduct the research are longitudinal time and the cross-sectional time horizon method (Connelly, 2013). For this study, the cross-sectional time horizon method was chosen for collecting the quantitative data. The data is collected from signal point of time by the use of literature review and survey. Information related with the behavior of customer about the counterfeits luxury brand products are found in this study by the use of survey thorough questionnaire. One of the reasons the cross-sectional time horizon was adopted was because it is less costly and less time consuming. Importantly, all the data and information are collected in specific point of time. Cross-sectional studies are considered to be types of observational studies. Therefore, the information recorded in this research was done without manipulating the environment. Additionally, using this time horizon ensured that variables in the study were compared for analysis. Importantly, the schedule provided by the university concurred with utilizing the cross-sectional time horizon considering it is efficient and fast.
Data collection methods
Collection of accurate data is critical to achieving valid and reliable research outcomes. According to Koul (2009), the main sources of data collection are primary and secondary methods. In this study, both methods were utilized but in different sections of the dissertation. Primary data collection method was used to gather the fresh or first-hand data that has not been used previously. Primary data was collected using a survey questionnaire. Researcher focused on customers in UK, who prefer to buy luxury products to know their views and opinions regarding the counterfeit products. The research participants were randomly selected and questionnaires sent to them through the internet. Specifically, the researcher sent the questionnaires through email because of ease of accessibility (Sharkey and Sharkey, 2012). The questionnaire consisted of structured questions in a proper order with close ended questions having Likert Scale like strongly agree to strongly disagree. This questionnaire was developed into two parts namely demographic information and questions related to topic. Overall, this questionnaire helped the researcher to collect the required data and information to present the findings and achieve the research objectives. The use of primary data in collecting data for analysis was vital for several reasons. First, the data was collected by the researcher and hence emphasis was given in gathering the appropriate data that could answer the research questions. Secondly, primary data is considered to be more trustworthy in that compared to secondary data, it has more validity. The credibility of primary data is high particularly when the methodology chosen coincides with the aim of the research. Objectivity in primary data collection allowed gathering of information which reflected the opinion of the respondents. Nonetheless, primary data was limited to place, time and the number of research participants. Thus, primary methods do not provide an opportunity of assessing matters outside the scope of the study. At the same time, gathering data through primary methods is expensive and thus adequate financial resources were needed.
On the other hand, secondary data collection method was used to collect data which is already developed by other researchers in past. Secondary data collection method is cost effective and less time consuming, but it may be less valid and reliable as compared to primary data collection method. Thus, secondary data was sourced from journal articles, books, statistical reports, and the internet. This data was used in compiling the literature review which is critical in providing an overview of what past researchers concluded in their research projects. Additionally, literature review was used as a guiding component in regard to the research objectives and purpose. The gap that the study seeks to fill was derived from assessment of what previous studies had examined and concluded. Specifically, the study sought to determine the outcomes of counterfeit luxury products in relation to customers and organizations. Previously, while studies have been conducted on the existence of counterfeit products, few or none examined luxury products and what motivates employees to purchase them as well as how the impact manufacturing companies. A combination of secondary and primary data was critical in making conclusions after the analysis. Using secondary information increases the authenticity of the research outcomes having that relevant source are cited and added in a reference list.
Data analysis method
Data analysis method plays considerable role in providing outcome to the research (Wieland et al., 2012; Vaioleti, 2016). The study used statistical data analysis method that is helpful in describing the data statistically. In addition, the use of this type of analysis enabled presentation of data using line chart, table, graph, frequencies, and percentages. Presentation of data using these components help in making the collected becomes meaningful. The researcher selected the method because it helps the study to achieve an effective conclusion of the issues at hand (Nahum-Shani et al., 2012). In utilizing this method, different views and opinions of the customers of counterfeits luxury brand are analyzed statistically. Importantly, this method allowed for correlation of loyalty of customers with counterfeits luxury brand industry. Quantitative data is more meaningful when the statistical method for analysis is used as in this case. The use of presenting tools such as graphs and charts allows adoption of descriptive analysis. Descriptive analysis is appropriate when the results from the graphs or charts are given meaning through interpretation. In this study, each of the charts or graphs has been described using percentages or frequencies. The analysis has been provided in chapter four of this study report. One of the benefits of using this type of analysis is in the ability to identify trends in the topic under investigation. For instance, it was possible to examine the trend in counterfeit goods in the luxury industry. The five discrete steps that were followed in statistical analysis included describing the nature of the data to be analyzed, explore how the data relates to the population underlying, design a model for summarizing, proving or disproving the model’s validity, and employment of predictive analytics. Following the process was critical in making informed conclusions on the effect of counterfeit luxury products.
Sampling method
According to Katz (2015), sampling can be categorized into probability and non-probability. The use of probability sampling allows the researcher to provide equal chance to every individual to participate in the study by selecting him or her randomly. However, non-probability sampling method allows the researcher to select the sample based on judgments and purpose of the research. In the study, undertaken, probability-sampling method was used to select respondents through the simple random technique (Menemenlis et al., 2012). Initially, 250 customers were randomly identified for involvement in the study. Questionnaires were sent to all through their respective emails. The researcher followed up to have the respondents fill the questionnaires and the ones sent back within the timelines set were 100. Others were eliminated because of being incomplete. The random sampling technique was preferred because it gives every respondent in the population an equal chance of being selected as the sample. The simple random technique allowed selection of a large number of respondents. When using this technique, each person is given the same probability of being part of the sampling group. The technique is unbiased and important in the selection of the population so that when a large sample is drawn, the average selected accurately represents the entire population. Nonetheless, it is vital to take note that the technique does not guarantee the selection of a perfect representation. On the other hand, it is the simplest form of sampling which exists and hence appropriate for the present study. Some of the benefits that lead to choosing this technique include being free from classification error, and using it requires minimum knowledge. Additionally, the simplicity of the method ensured that interpreting data is easy.
Ethical Consideration
The ethics are the norms which is helpful to differentiate the right behavior and wrong behavior (Henry and Fetters, 2012). The ethical consideration is very important part for the research to provide an acceptable ethical standard to the study. In this research, the ethical framework is adopted by the researcher during the collection of the data related with the counterfeit brands in luxury retail industry. In order to maintain the privacy of respondent’s information, this study provided confidentiality of the collected information. For this, the information of the respondents is not disclosed to outside the research team to main the ethical consideration in effectual system (Converse, 2012). This ethical consideration will help the respondents to save the personal and professional life of the respondents by maintaining confidentiality. Confidentiality and privacy are critical in any study. In this case, the questionnaires did not require the respondents to fill in their personal information such as names or places of work. Moreover, their designation was not needed for the research. At the same time, the data collecting instruments were preserved by the researcher in a file that was not accessible by other people. Importantly, as a sign of ethics was the researcher sending a consent form to the respondents before being part of the sample. Obtaining consent was vital for the researcher. Respondents were sent the consent form together with the questionnaire. The consent form contained an explanation of the purpose of the study and why it was necessary for them to answer the questionnaires truthfully. Emphasis was given that the findings would only be used for academic purposes and no third parties other than the supervisor and examiners will access the information. However, if they needed a copy of the findings, it would be emailed to them. Apart from the consent, it was vital to explain to the respondents that they had the right to withdraw from the research before final analysis. At the same time, the researcher took responsibility by following the universities laid out structure on conducting a research project. It was important to conduct the study in the right manner for credible acceptable results.
In addition to this, the collected data or information from different secondary sources is also considered in the ethical framework to remove the ethical issues related with plagiarism and copyright. For this, the researcher has given proper referencing to maintain the data sources and resolving the issue of copyright. Moreover, the plagiarism is major issue that is eliminated by the researcher by writing the things in own words. It helped the researcher to provide reliable data for the research study. Through citing any information from different authors, the researcher avoided the plagiarism issue. In research, giving credit to information from another author is critical. Avoidance of academic theft through plagiarism was a high priority in the present research project.
Limitation of the Research
Time, financial resources, and inaccurate / incomplete information from the respondents limited the research. Completing the research project was guided by specific timelines in regard to dates of submission. Secondly, financial resources were a constraint and hence choosing a quantitative methodology. Finally, some of the questionnaires not included the analysis contained incomplete information and the possibility of false data aspects that can affect the validity of the research. Often, this emanates from misinterpretation of the questions or lack of interest in the particular topic subject.
Quality of data collection and measurements
The researcher through a structured questionnaire collected the primary data that has been used in the analysis section. A questionnaire is a research instrument vital for collection of quantitative data. 250 questionnaires were randomly distributed to potential customers who had a likelihood of purchasing counterfeit brands in luxury retail industry. Nonetheless, only 100 questionnaires were fully filled to meet the requirements of the analysis. The questionnaire was created based on the research objectives/ questions. The research deemed it important to ensure that the questionnaire had all aspects of the study objectives in such a way that the respondents would provide the necessary answers regarding the various aspects of product counterfeit. Additionally, the demographics of the respondents was taken into consideration. The research administered the questionnaires through the internet. Specifically, researcher had upon inquiry accessed the participants emails and forwarded a link to the questionnaire for further action. The questionnaires that had been returned within the estimated period and those which were completely filled were identified for analysis.
Conclusion
From the above discussion, it is concluded that this research is conducted for identifying the consumer perceptions about the counterfeit products of luxury brands. Additionally, it is also included that the interpretivism philosophy, inductive approach and survey and literature review research strategy is applied for conduct the research. In addition to this, it is also concluded that both primary and secondary source of data collection have been used to provide high reliability to the research. In this research, the researcher also focused on the ethical consideration in order to acquire different information collected from the respondents.
DATA ANALYSIS
Questionnaire
Demographic Questions
1. Age
Below 25
26-35
36-50
Above 50
2. Gender
Male
Female
3. Do you know about the luxury products?
Yes
No
4. Are you aware about the counterfeit luxury products?
Yes
No
5. from how many years, you are going to purchase the luxury products?
From Last one month
2-5 years
6-9 years
More than 9 years
Professional Questions
6. Do you think that luxury brands provide the full satisfaction for the customers as compared to the other normal products?
Yes
No
7. do you agreed on that there are different luxury products in the market that can be used by the customers
• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree
8. Do you agree on that there are different counterfeit luxury brands that create the issue for the firms to manage the customer base and the market value?
• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree
9 Provide your concern about what are the main factors that provides the motivation for the customers for purchasing counterfeit luxury brands? List the below mention importance:
(1. Strongly Agree 2 Agree 3. Neutral 4. Disagree 5. Strongly disagree)
Brand Image of the firm
Price
Status
Attitudes and Intention to Purchase
Psychographic Factors
10.Provide your concern about the intentions behinds consumers purchasing counterfeit luxury brands?? List the below mention factors:
(1. Strongly Agree 2 Agree 3.Neutral 4. Disagree 5. Strongly disagree)
Personal satisfaction
Social Influence
Identical Appearances
Other
11. Provide your concern about issues and the challenges that are faced by the firms and the individuals? List the below mention factors:
(1. Strongly Agree 2 Agree 3.Neutral 4. Disagree 5. Strongly disagree)
Affect the brand image of the firm
Discourages and undermines investments of the firm
Reduces confidence to consumers
Affect the growth of the firm
Pricing of the luxury products
12. Provide your concern about the ways that can also be used to manage the issue of counterfeit luxury products? List the below mention ways:
Makes strict rules and regulations
Increase the awareness of the people regarding the use of counterfeit luxury brands
Provide other benefits for the luxury firm
Others
Chapter 4: Data Presentation and Analysis
4.1 Introduction
In order to successful accomplishment of this project, there is a vital role of this part of the research. It is because from this part of the research, researcher shows the all valid and reliable outcomes of the research that helps to complete the research aim successfully. The researcher has adopted primary methods in the collection of data for analysis. All findings and the outcomes of the research are presented in the table and the graph format and for better representation of the findings, the SPSS and the simple excel method are used by the researcher. The reason in this is that the use of SPSS and the excel makes easy the researcher to show the findings of the research and for other persons to get the clear understanding about the findings of the research.
4.2 Analysis and Findings
In the concern of this research, researcher targeted the 100 customers who like to purchase the luxury products in UK in order to produce the effective outcomes of the research. The UK was preferred due to familiarity with the place and customers were easily accessible.
At the same time, in the starting of the research, researcher approached 250 customers to convince them to be part of the study however, due to some reasons others declined to be part of the sample. Finally, 100 customers were included in the sample after fully completing the questionnaires without providing false information. In like manner, for getting the response from the customers, researcher used the email method. The reason in the use of email is that it is quite effective way to target the customers in less time and the cost. As well as, it also overcome the physical and the mentally pressure of the researcher that is raised in the data collection. Additionally, the all findings of the researcher are presented in the table and graph format. It is because it is easy to understand and present.
Age
Age
Frequency Percent Valid Percent Cumulative Percent
Valid Below 25 27 27.0 27.0 27.0
26-35 47 47.0 47.0 74.0
36-50 17 17.0 17.0 91.0
Above 50 9 9.0 9.0 100.0
Total 100 100.0 100.0
Table 1 Age
From the above table, it can be determined that in order to produce the valid research outcomes, researcher targeted the different age’s group of people. But at the same time, it can also be stated that most of the respondents that are targeted by the researcher were between the 26-35 ages group. The reason in this is that in this stage of the age, people are in job and they like to use the luxury products.
Gender
Gender
Frequency Percent Valid Percent Cumulative Percent
Valid Male 54 54.0 54.0 54.0
Female 46 46.0 46.0 100.0
Total 100 100.0 100.0
Table 2 Gender
Source: Author (2018)
From the above table 1, it can be stated that in order to overcome the issue of biasness and to complete the research on time, both male and female were targeted by the researcher. In the same concern of this, from the above table, it can also be represented that most of the customers that are targeted by the researcher were male. It is because they are quickly available to give the response of the all research questions that helped the researcher to generate the valid and reliable outcomes of the research.
Aware about luxury products
Frequency Percent Valid Percent Cumulative Percent
Valid Yes 62 62.0 62.0 62.0
No 38 38.0 38.0 100.0
Total 100 100.0 100.0
Table 3 Awareness of luxury products
Source: Author (2018)
The above table 2 shows that most of the respondents stated that they are well aware about the use of luxury products and they knew that the use of luxury products provides the different feeling for the customers as compared to the other usual products. It makes easy the researcher to generate the valid outcomes of the research and to have the research on the right track. The reason in this is that if most of the customers denied that they are not ware about the use of luxury products then it created the issue for the researcher in the successful accomplishment of the research.
Aware about counterfeit products
Frequency Percent Valid Percent Cumulative Percent
Valid Yes 65 65.0 65.0 65.0
No 35 35.0 35.0 100.0
Total 100 100.0 100.0
Table 4 Awareness counterfeit products
Source: Author (2018)
From the above table 3, it can be defined that there were highest response of the customers or the respondents regarding the awareness of the counterfeit products. It made easy to the researcher to successfully ask the all research question and to complete the aim of the research. But at the same time, from the above table, it can also be determined that some of the respondents denied and they stated that they don’t have the sufficient information and the knowledge about the counterfeit products that sometime created the issue for the researcher to complete the research and to generate the valid outcomes of the research.
Time for Shopping
Frequency Percent Valid Percent Cumulative Percent
Valid From last 1 month 25 25.0 25.0 25.0
2-5 years 52 52.0 52.0 77.0
6-9 years 14 14.0 14.0 91.0
More than 9 years 9 9.0 9.0 100.0
Total 100 100.0 100.0
Table 5 Time for shopping
Source: Author (2018)
The table represents that there are different customers that like to go for purchasing but at the same time, the above table also shows that most of the customers were going to shopping from last 2-5 years that was quite effective for the researchers to get the maximum responses and the results in the limited time. So, from these findings it can be determined that most of the respondents such as 52 out of 100 were purchasing the products from last approx 5 years and they have effective and adequate information about the luxury and counterfeit products.
Luxury brand provides full satisfaction
Frequency Percent Valid Percent Cumulative Percent
Valid 1 59 59.0 59.0 59.0
2 41 41.0 41.0 100.0
Total 100 100.0 100.0
Table 6 Luxury brand provides full satisfaction
Source: Author (2018)
From the above findings that are given in the table 5, it can be represented that from the all respondents, most of the respondents stated that they are agreed with this statement that the luxury products provide the full customers satisfaction due to different reasons. It helped the researcher to successfully ask the remaining questions of the research. At the same time, the above table also shows that some of the respondents denied to be agreeing on that luxury products provide the full customers satisfaction. It is because they think that there are different ways that can also be used by the customers to get the satisfaction from the products. Because of this, it can be stated that there were some controversial views of the respondents regarding providing the full satisfaction of the luxury brand.
Different luxury products in the market
Frequency Percent Valid Percent Cumulative Percent
Valid 1 53 53.0 53.0 53.0
2 14 14.0 14.0 67.0
3 6 6.0 6.0 73.0
4 11 11.0 11.0 84.0
5 16 16.0 16.0 100.0
Total 100 100.0 100.0
Table 7 Different luxury products in the market
Source: Author (2018)
From the above table 6, it can be stated that there are different luxury products availability in the market. In the same concern of this, from the above table, it can also be defined that most of the respondents have strong perception on that there are different luxury products in the market that provide the customer satisfaction for the customers. In the same this, it is also stated that some of the respondents were not agreed on that and they stated that although there is an availability of the luxury products in the market but it is limited and due to the high use of counterfeit products, the availability of the luxury products is limited.
Different counterfeit luxury products create issues
Frequency Percent Valid Percent Cumulative Percent
Valid 1 51 51.0 51.0 51.0
2 14 14.0 14.0 65.0
3 8 8.0 8.0 73.0
4 13 13.0 13.0 86.0
5 14 14.0 14.0 100.0
Total 100 100.0 100.0
Table 8 Different counterfeit luxury products create issues
Source: Author (2018)
The above table 7 represents that availability of the counterfeit products in the market is a big issue and with the concern of this, the above table states that most of the responded were agreed on that the availability of the counterfeit products in the market is a serious challenge for the luxury firms in the market. On the other hand, some of the respondents were not agreed on this that there is any issue for the luxury firms in the market due to the availability of the counterfeit products. It is because they thought that luxury products already have a strong brand name and the market value and the availability of the counterfeit products doesn’t create the issue for the luxury products in the market. Eventually, it can be determined that there were some controversial views of the respondents regarding creating the issue in the use of counterfeit luxury products in the market.
Brand image of the firm
Strongly Agree 52
Agree 12
Neutral 4
Disagree 28
Strongly Disagree 4
Table 9 Brand image of the firm
Figure 4 Brand image of the firm
Source: Author (2018)
From the above graph 4, it can be determined that there are different factors that motivate the people to use the counterfeit luxury products but at the same time, from the above graph, it can also be determined that brad image of the firm is also major factor factors that motivate the customers to use the counterfeit products. The reason in this is that brand image of the firms provides the strong reputation of the customers in the market. Because of this, most of the respondents agreed on that brand image of the firm motivate the customers to use the counterfeit products. With the favor of these findings of Norum and Cuno, 2011) stated that if consumers are aware about the brand reputation of the luxuries products then they might favor counterfeiting products of that brand.
Price
Strongly Agree 48
Agree 14
Neutral 2
Disagree 24
Strongly Disagree 12
Table 10 Price
Source: Author (2018)
Figure 5 Price
Source: Author (2018)
From the above graph 5, it can be illustrated that there are various factors that are also considered by the customers at the time of buying the counterfeit products. The reason in this is that the price of luxury products is quite high that creates the issue for the customers to buy the luxury products. Because of this, people look for the counterfeit products that are available in les prices in same brand. Because of this, it can be determined that price is one of the major factors that motivates the customers to buy the counterfeit products.
In support of this, from the findings of Brendon and Fung (2015) stated that there is sturdy effect of inference from buying behavior of consumer and price-quality which is adverse against the favorite attitude of consumers for counterfeiting brands. So, because of price factors people like to buy thecounterfeiting luxury products. In oppose of this, some of the respondents also determined that price is not only the factor that motivate the customers to buy the counterfeit luxury products. It is because they thought that here are also different reasons behind purchase the counterfeit products except of price. Because of this, from the above findings, it can be stated that there is a controversial view of the respondents regarding the use of price is only the factor that motivate the employees regarding the use of counterfeit luxury products.
Attitudes
Figure 6 Attitudes
Source: Author (2018)
The above graph 6 shows that attitude is also the crucial factors that also motivate the customers to buy the counterfeit luxury products. Most of the respondents have their positive view on that and they stated that attitude is one of the major and highly considered factors that motivate the customers to use the counterfeit luxury products. The reason in this is that the use of luxury brands increases the living standard of the people and the attitudes of the individuals also. Because of this, they stated that the attitude is the major aspect that is used by the customers to get motivation for purchasing the counterfeit products. In the findings of Kathirveland Nair (2015), defined that attitude is a psychological state which is an outcome of experience held by an entity resulting in a favorable or unfavorable decision, based on that experience.” In the opinion of Budiman (2012), attitude denotes the intention of an individual and is a reasonable element for estimating the behavior of that individual. In like manner, the above graph also stated that some of the respondents were not agreed on that and they stated that some other factors are also available that also motivate the customers to purchase the counterfeit luxury products.
Psychographic Factors
Strongly Agree 38
Agree 12
Neutral 2
Disagree 34
Strongly Disagree 14
Table 11 Psychographic Factors
Source: Author (2018)
Figure 7 Psychographic factors
Source: Author (2018)
From the above graph 7, it can be determined that there are various ways that motivate the employees to buy the counterfeit luxury products. Additionally, from the above graph, it can also be determined that psychographic factors that also motivate the customers to buy the counterfeit luxury products. The reason in this is that sometime people like and think that the use of counterfeit luxury products enhance the standards of the people and also increase the living standards of the people. Because of this, it can be determined that psychographic factors that motivates the customers to purchase the counterfeit luxury products.
Intentions behinds consumers purchasing counterfeit luxury brands
Personal Satisfaction
Figure 8 Personal satisfaction
Source: Author (2018)
From the above graph 8, it can be stated that there are different intensions behind to purchase the counterfeit luxury brands. So, in the same concern of this, from the above graph, it can also be determined that personal satisfaction is one of the major intentions of the people or the customers to purchase the counterfeit luxury brands. At the same time, from the above graph, it can also be stated that some of the respondents denied to consider this personal satisfaction is not a major reason behind to purchase the counterfeit luxury brands. The reason in this is that they thought that there are also some other reasons instead of personal satisfaction. In regard to this, as per a study of Turunen and Laaksonen (2011), counterfeit brands unfavorably affect the luxury brands that are original. For measuring such impact, the consumers perception towards genuine brands is need to be assessed, for which there are various alternatives So, it can be stated that there were some controversial views of the respondents on the personal satisfaction is the intention behinds consumers purchasing counterfeit luxury brands.
Social Influence
Strongly Agree 38
Agree 12
Neutral 10
Disagree 20
Strongly Disagree 20
Figure 9 Social influence
Source: Author (2018)
From the above graph 9, it can be determined that social influence is the major intention of the people behind to purchase the counterfeit luxury brands. In this statement, there were a positive response of the different respondents and they stated that every people want to develop its image in the market and that is why they prefer to buy the costly and the luxury products. In the support of these findings of Sharma and Chan (2011) illustrated that People have supportive attitude if they receive the same from others. There has been a positive relationship found by Turunen and Laaksonen (2011), towards the impact of social grounds on the fashion trend in the market. Furthermore, in the same concern of this, some of the respondents also stated that social influence is not a major factor that makes the intention to buy the counterfeit luxury brands. The reason in this is that they were stating that there are some other reasons behind to purchase the counterfeit luxury brands. Therefore, it can be finalized that instead of social influence, there are some other factors behinds the intention of the consumers for purchasing counterfeit luxury brands.
Identical Appearances
Strongly Agree 28
Agree 14
Neutral 5
Disagree 21
Strongly Disagree 32
Table 12 Identical appearances
Source: Author (2018)
Figure 10 Identical appearances
Source: Author (2018)
From the above graph 10, it can be illustrated that there are different things that make the intention behind to purchasing the luxury products by the customers. But, the above graph also states that identical appearances are the major intention of the people behind to purchase the counterfeit luxury brands. In like manner, some of the respondents denied considering this and they stated that an identical appearance is not the reason behind purchasing the counterfeit luxury brands. It is because some time identical appearance affects the life of the people that is why they avoid using the counterfeit luxury brands due to the identical appearances.
Other
Strongly Agree 40
Agree 10
Neutral 5
Disagree 14
Strongly Disagree 31
Table 13 Other
Source: Author (2018)
Figure 11 Other
Source: Author (2018)
The above graph 11 represents that there are also some other intentions behind to purchase the counterfeit luxury brands and for this, there were controversial result of the respondents. It is because some of the respondents were agreed on that some other factors influence the people to buy the counterfeit luxury brands but some of them were not agreed on that and they stated that social influence, identical appearance, and only the major intensions behind to purchase the counterfeit luxury brands. So, finally, it can be interpreted that on the other factors, there were controversial views of the respondents.
Ways that can be used to overcome the use of counterfeit products
Make Strict Rules and regulations
Strongly Agree 52
Agree 8
Neutral 5
Disagree 10
Strongly Disagree 25
Table 14 Make strict rules and regulations
Source: Author (2018)
Figure 12 Make strict rules and regulations
Source: Author (2018)
Increase the awareness of the people regarding the use of counterfeit luxury brands is also an effective way that can be used for managing the issue. In the same concern, most of the people have their positive concern and they were strongly agreed on that if there are strict rules and the regulations then it will help to overcome the use of counterfeit luxury brands. It is because the strict rules and the regulations will overcome the production of the counterfeit luxury products then the use of counterfeit luxury products will be down that will provide the additional advantage for the luxury brands. In the same concern of this, from the research of Carrington et al., (2010), it is illustrated that develop the strict rules and the regulations will create the issue and the trouble for the customers and the other firms that make the counterfeit luxury products to sell it in the market. But, from the above graph, it can be stated that some of the respondents were not agreed on that and they stated that there are also some other ways despite of making strict rules and the regulations that can be used for managing the use of counterfeit luxury brands.
Increase awareness of the People
Strongly Agree 60
Agree 5
Neutral 2
Disagree 8
Strongly Disagree 25
Table 15 Increase Awareness
Figure 13 Increase awareness of the people
Source: Author (2018)
From the above graph 13, it can be stated that there is increasing use of the counterfeit products in the market and the major reason behind this is the lack of knowledge of the people regarding the impact of using the counterfeit luxury products. In the same concern, most of the respondents were strongly agreed on that and they stated that if there is an increasing use of the luxury products then it affects the reputation of the firm and also affect the customer base. Because of this, it can be determined that increasing awareness of the people regarding the use of counterfeit luxury products then it will be effective to overcome the use of counterfeit luxury brands. Additionally, some of the respondents stated that they were not agreed on that because as per their views, increase awareness of the people regarding the use of counterfeit luxury products will increase the cost of the firm and also it is very time consuming. That is why; it is not an effective way for overcoming the use of counterfeit luxury products.
Provide other benefits for the luxury firms
Strongly Agree 34
Agree 20
Neutral 2
Disagree 12
Strongly Disagree 32
Table 16 Provide other benefits
Figure 14 Provide other benefits
Source: Author (2018)
The above graph 14 represents that there is a controversial view regarding providing the other benefits for the luxury firms to overcome the issues of using the counterfeit luxury products. It is because some of the respondents stated that it is effective and some of them denied for this way. It is because some of the respondents stated provide other benefits for the luxury firms cannot control the use of counterfeit luxury products from the market and it will also not provide any strong benefits for the luxury firms as well. Because of this, it can be determined that there are controversial views of the respondents on that provide other benefits for the luxury firms are helpful for managing the use of counterfeit luxury products.
Other
Strongly Agree 58
Agree 14
Neutral 2
Disagree 5
Strongly Disagree 21
Table 17 Others
Figure 15 Others
Source: Author (2018)
From the above graph, it can be illustrated that some of the respondents were strongly agreed on that there are different other factors that also be used to manage the use of counterfeit luxury products and in this decrease the price of the luxury products, limited production of the luxury products, etc. In like manner, some of the respondents also defined that use other ways are not appropriate because these are not effective and affect the other works of the firm. So, from the overall discussion, it can be stated that there were some contradictive views of the respondents on the other factors that can be used to overcome the use of counterfeit luxury products.
Chapter 5: Conclusion and Recommendation
From the above discussion, it can be concluded that counterfeiting luxury products are the major issues that create the issue for the luxury firms. It is because the use of counterfeiting luxury products affects the market value and the brand name of the firms. Because of this, it can be concluded that counterfeiting luxury products are the major issues for the luxury firms to operate the business successfully. At the same time, it can also be concluded that there are different factors such as brand image, price, and attitude that motivate the people to buy the counterfeiting luxury products. The reason in this is that price of the branded product is quite high and it provides the motivation for the customers and increases the reputation of the customers in the market. Because of this, it can be stated that price is one of the major motivation tools that is used by the customers as a motivation tools. As well as, brand image of the firm also influences the customers to buy the luxury products. It is because there is a bug name of the film in the market that influences the customers to buy the luxury products. The use of luxury products increases the living standard of the people and makes a unique image of the people in the market. Because of this, it can be determined that there are different factors that motivate the employees to buy the counterfeit luxury products in the market. At the same time, from the above discussion, it can also be determined that along with price and high market value, the brand image of the firm provides the full satisfaction for the customers regarding the use of the luxury products and also increases the value of the customers as well.
On the other hand, from the above discussion, it can be concluded that there are different factors such as identical appearances, personal satisfaction, and social influence that can also make the cause of indent for the people to buy the luxury products. The identical appearance helps create some change in the life of the people and helps the customers to have a great and effective life. Because of this, it can be determined that there are different factors and in this, identical appearance is also one of the major factors that influence the people to buy the luxury brand products. Along with this, it can also be concluded that sometime people like to show off themselves in front of others that is why they like to buy the counterfeit luxury products. Sometime, people also like to buy the luxury products but due to the high price of the branded products, they cannot afford that products and affect their motivation level and personal satisfaction. Therefore, in order to overcome these issues and to have a personal satisfaction, people like to buy the counterfeit luxury products. Therefore, eventually, from the overall findings, it can be concluded that there are different factors that indents the people to buy the counterfeit luxury products from the market. Apart from this, it can also be concluded that there are different issues and the challenges that are also faced by the luxury firms due to the high use of the counterfeit luxury products. In this, affect the customer base, brand name in the market, price of the products are the major factor that creates the issue for the firms in the use of counterfeit luxury products by the customers.
Managerial Implications
There are various ways including increase the awareness of the people, make strict rules and regulations that can be used to manage the use of counterfeiting luxury products. In addition, from the above research, it is also recommended that if there are some strict rules and the regulations in the market towards the use of counterfeit luxury products then it will help the luxury firms to overcome the use of counterfeit luxury products and increase the use of original use of the luxury products. Because of this, it can be determined that to make the strict rules and the regulations can be the best way to overcome the use of counterfeit luxury products in the market. At the same time, it is also recommended that increase awareness of the people is also one of the most effective ways for managing the increasing use of the counterfeit luxury products. In this, there are many people those are not aware about the consequence of the counterfeit luxury products on the market and the firm use the counterfeit luxury products. Therefore, awareness of the people is increased regarding the use of counterfeit luxury products then it will be effective to control the use of counterfeit luxury products. It will also be helpful for the luxury branded firms to perform better and to increase the original demand of the luxury products. Along with this, there are also some other ways like provide other benefits for the luxury firms can also be a good way for the them to get successful in the market and to overcome the use of counterfeit luxury product. It is because due to the high use of the counterfeit luxury products in the market, there is direct impact of luxury firms on the profit of the firms. Due to this, it can be stated that there are different issues that can be used by the firms to manage this issue. Thus, eventually, it can be determined that there are some ways that can be used by the firms and the government to manage the issue of using the counterfeit luxury products.
Theoretical implications
The findings and conclusions made above have a direct contribution to the existing literature on consumption of counterfeit products by consumers in the retail industry. The topic has been rarely researched and the present results provides an opportunity for further studies. The gap that the study sought to fill was on the outcome of counterfeit luxury products on both the consumer and the organizations in the retail industry. The findings depict or confirm details from past literature.
In addition, the contribution of the study to the literature on counterfeit products has been threefold. The study first contributes to having an understanding of what motivates consumers purchasing counterfeit luxury brands. Secondly, the research contributes to the intentions behind consumers purchasing counterfeit luxury brands and finally to whether having a better relationship between the customer and the brand impact on the consumers purchasing behavior toward an authentic brand loyalty. The research provided empirical evidence of the outcome of counterfeit luxury brands from the viewpoint of the consumers. To date, there exists less literature that seeks to determine the intentions or what influences consumers from seeking to buy counterfeit rather than original products. Moreover, few studies had explored if having better relationship between the customers and the brands will change the former buying behavior in relation to luxury items. Through the findings presented in this study, a closure of the above gap has been achieved. In detail, it is possible for luxury brands to change the mindset of the consumers by having them buy authentic products. Nonetheless, it requires creation of awareness and building strategies that become easy for the customer to differentiate between original and counterfeit. Overall, the findings depict that the many similarities between the counterfeit and the original products lure some customers into deception. In particular, according to the quantitative study done, some customers purchase counterfeit without their intent. In other words, some seek to purchase the original product but because of the high resemblance with the counterfeit, and considering they lack differentiation facts, they make purchasing judgment based on price. Generally, the findings and discussions provided in this study report constitute critical contributions to the already available literature. Future researchers can build on this project when carrying out their individual studies. The impact of counterfeit products to brand companies is immense. Counterfeits reduce the amount of business in terms of sale numbers, revenues and the total profitability. Having a loyal customer base that has knowledge on the existence of counterfeits and how to avoid purchasing them guarantees luxury brands improved sales.
Methodological Limitations
While the study is helpful for the researcher to get the clear and in-depth understanding of the use of counterfeit luxury products, there are also some limitations. In the concern of the research methodology used, there were two major limitations which are; cost and the time. The reason for this is that in completing the study, there was need for the researcher to have adequate time which was limited by the schedule from the university. On the other hand, the project was not commercial which means no external organizations funded it. Thus, the needed funds were sourced by the researcher privately. Secondly, only quantitative data was used. The methodology adopted failed to allow for using qualitative data collected through interviews. Utilizing both quantitative and qualitative data could have improved the results achieved in terms of depth and scope. Importantly, using a mixed methodology ensures that the weaknesses of a single method are minimized by the strengths of the other. For instance, the weaknesses of qualitative can be overshadowed by the strengths of quantitative method and vice versa.
The methodology was also limited by the sample size. The number of units included the study are dictated by the scope of the research problem that is being investigated. In this case, considering that a quantitative study was done, the sample size was important. Initially, 250 questionnaires were distributed. The initial plan was to involve all the 250 research participants. However, only 100 questionnaires after evaluation were considered valid to be used for finding analysis. As a result, the actual sample was reduced by 150 customers. The other methodological limitation was lack of enough prior research studies on this topic. Many of the studies that have been conducted and are available dwell with drug counterfeit. Few materials are available on counterfeit luxury products. Nonetheless, the researcher worked with the available data to establish success in the study. Due to this limitation, more researches should be conducted on this particular issue. The methodology in the study was also limited by the measure applied in the data gathering. After completing the research and findings interpretation, the researcher realized that some more pertinent questions could have been included in the survey as it would have enabled explanation of a certain phenomenon further. As earlier implied, the use of qualitative methods that allows collection of data through interviews could have reduced the effects of this limitation. An interview provides the researchers with an opportunity to ask further questions that could have been missed in the questionnaire or to make a follow-up on a certain question. Finally, the methodology was limited by the use of self-reported data. This is data where the researcher as in the present case collects quantitative data individually making it limited because of the fact that verifying it becomes difficult. What this means is that the researcher had to take what the research respondents say in the questionnaires at face value. Nevertheless, self-reported data can have potential bias sources and hence the need to be alert to avoid collecting data in a certain pattern.
Suggestions for future research
In future, studies can be conducted to examine effective strategies that luxury organizations use to increase awareness of consumers in differentiating between original and counterfeit products in the market. In such a study, a researcher can collect data from the quality department within organizations. Secondly, further study can be conducted on the same topic using a mixed methodology where both questionnaires and interviews are used in data gathering. A research could also be conducted to examine the impact counterfeit luxury products have on the revenues and profits of organizations. Additionally, a similar study can be conducted in different regions of the world for purposes of comparisons and making valid conclusions for implementation consideration. Other researchers can conduct research on specific products such as watches or jewelry to examine what drives consumers in purchasing counterfeit rather than the original products. In addition, a study can be conducted to determine appropriate interventions that could be undertaken to prevent or compact drug counterfeiting or the effect counterfeit drugs have on the human health. Drugs counterfeit is a global problem and considering the dangers involved are more than just lost business opportunities, some researchers can seek to examine the trends in drug counterfeit and how consumers and other stakeholders can be involved to mitigate the problem. Finally, other researches on similar topics can be done by involving a large sample size that contains the views of both the consumers and the employees particularly those in the quality department. Widening the scope of the research project could lead to better and improved outcomes compared to the present findings.
Personal reflection
While the study was completed as scheduled, there are the benefits that I gained amid facing several challenges. One of the challenges experienced before commencing the project was during the process of choosing the appropriate research topic. Due to the importance and magnitude of the project, selecting a topic that I had more knowledge or could quickly familiarize with was critical. Doing a study project requires having an understanding of various aspects of the chosen topic. For instance, ensuring there is enough past study materials on the particular topic should be a priority before working on the proposal. This guarantees formulation of research objectives that are valid and at the same time facilitates identification of a research gap to fill. After choosing the topic, when doing the proposal rigid decisions were made especially on the methodology to be adopted during the actual research. Methodology is a vital aspect of the research. Choosing a poor methodology leads to inability of gathering data that is relevant and suitable for making valid conclusions and recommendations. As a result, much time was spent before selecting quantitative method as the preferred methodology in this research. Other challenges encountered were during the stage of sample selection and recruitment. Considering the internet was used when sending the questionnaires to the respondents, looking for 250 customers and their emails was a challenging task that consumed time. Convincing consumers to be part of the study was an uphill task as many declined the request. Additionally, after receiving the questionnaires upon completion, an assessment had to be done to determine the questionnaires that were duly complete. Evaluation of the questionnaires was a long process. Consequently, a major weakness of the research project was using only one methodology. The use of a mixed methodology allows both qualitative and quantitative methods and hence interviews and questionnaires could have helped in improving the data collected and consequently the results.
Despite the challenges, my determination to have the research complete on schedule was not deterred. In the process of doing the research project, I gained some skills that will be useful in future project undertakings. One of the skills gained is internet research. The secondary sources used in the study were from the internet. I was patient in examining the sources to use and the ones to avoid because of bias. Some sources are appropriate for academic use while others are not. Another skill achieved was statistical analysis. Individually, without the involvement of other personalities did the analysis in this study report. To succeed, I sought to learn some basic skills from Microsoft Excel. In future, conducting a similar study will be much easier and take less time. Additionally, time management skills were gained in the process of doing this project. To have the research on schedule required strict following of a project timetable from beginning to end.
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