ABIGAIL BRANNON

Counterfeiting: Consumer Motivations, Emotions, and Awareness of Consequences

A C O U N T E R F E I T P R O D U C T I S D E F I N E D A S A N I M I TAT I O N,

U SUA L LY M A D E W I T H T H E I N T E N T O F F R A U D U L E N T LY PA SSI N G I T

O F F A S G E N U I N E . T H E S E P R O D U C T S A R E O F T E N P R O D U C E D

W I T H T H E I N T E N T T O TA K E A DVA N TA G E O F T H E E STA B L I S H E D

W O RT H O F T H E I M I TAT E D P R O D U C T. C O U N T E R F E I T

P R O D U C T S M AY C A R RY E XA C T L O G O S O R N A M E S O F A N

A U T H E N T I C B R A N D, B U T WA S N O T P R O D U C E D BY T H E O R I G I N A L

B R A N D.

Counterfeit Products

Research Topic and Justification

Understand the global phenomenon of counterfeiting

Focus on those who purchase counterfeit textile products emotions, motivations, and awareness of consequences type brand price quantity

Consequences affect emotions and motivations behind purchases

Surveying will promote awareness of the illegality

Literature Review

Innovation is undermined, criminal networks gain financially, the environment can be negatively affected, workers are worse off by not receiving pay or medical benefits, foreign direct investment may be lower

The drivers associated with purchasing counterfeit products include: not being able to afford genuine genuine is over-priced consumers simply do not know that the product was

counterfeit

Literature Review

Prioritizing Resources and Organization for Intellectual Property Act

Class C felony, up to 12 years federal prison, fines up to $250,000

Seven For All Mankind won a $4.45 million settlement in 2006 against Josh Mohrer

When a person purchases counterfeit products, they are more likely to commit dishonest acts in their everyday life Ex: cheating on an exam

Research Methodology

Online survey distributed through Facebook: kwiksurveys

Advantage: quick methodDisadvantage: were not able to obtain a

representative sample62 participants aging from 15-57, 82% were

18-21 years oldGender

Females: 77% Males: 23%

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

Results

Have you purchased a counterfeit product in your lifetime?

What are the reasons you purchased a counterfeit product?

Results

How many counterfeit products have you purchased in your lifetime?

Product Profile

Results

Handbag Brands

Chanel

Louis Vuitton

Hermes

Coach

Versace

Dolce and Gabbana

Prada

Handbag Price Range

$20-$66Wallet Brands

Chanel

Prada

Wallet Price Range

$25-$30

Social Acceptance and Consciousness Social Image

I feel my self-esteem is enhanced due to social acceptance of the product: 43% neither agree/disagree, 26% disagree

I am afraid that my friends may find out that I am wearing a counterfeit: 30% neither agree/disagree, 30% disagree

I feel guilty for a buying a counterfeit: 55% agree, 18% strongly agree

Results: Emotions

61%

• I am concerned about my social image: 32% are strongly not concerned

• I am concerned of how I am viewed by others: 41% not concerned

• I consider myself fashion-conscious” 41% neither concerned nor not concerned

• Price is an important factor of my shopping decision: 36% very concerned

• Style is an important factor for my apparel purchase: 32% very concerned

Do believe it is moral to purchase counterfeit products?

Do you think it is illegal to purchase counterfeit products?

Yes No

Depends on the price

Takes away from the genuine brand

If the genuine product is too expensive

Takes away from the genuine product

If sold on streets and no one stops them then nothing is immoral

Takes away from those who work hard to make the genuine products

Products should be affordable to everyone

-

Results: Moral vs. Legal

What are consequences you are aware of?

What are some ways companies can prevent their products from being counterfeited?

Consequences

Confiscation of product

Fines

Jail

Misdemeanor

Hurts genuine brand

Promotes illegal production of goods

Decreased quality

IP infringement

Vendors shut down

Prevention

Patents

Improve consumer awareness

Visible trademarks

Creating unique designs and product features

Warn vendors of consequences

Sure those who infringe

Lower prices

Make brands more available to public

Results: Consequences and Prevention

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

Restrictions and Limitations

•DO NOT PURCHASE COUNTERFEIT PRODUCTS• BRANDS SHOULD TAKE THE LAW INTO THEIR OWN HANDS AND ESTABLISH STRICTER LAWS AND PENALTIES

• Ex: Hermes sued EBay for allowing counterfeit products to be sold illegally without penalty to the seller. Any items put up for sale on EBay which hold the Hermes name are now inspected for authenticity. Any products that do not pass are pulled.

•CONTINUATION OF SEIZING CAN REDUCE COUNTERFEIT ACTIVITY

• Ex: A cargo ship arriving in Miami held $7 million worth of counterfeit Louis Vuitton and Gucci leather goods.

Recommendations

Works Cited

"About Counterfeiting | International AntiCounterfeiting Coalition." Homepage | International AntiCounterfeiting Coalition. International Anti-Counterfeiting Coalition, n.d. Web. 10 Nov. 2010. <http://www.iacc.org/about-counterfeiting/>."Anti-Counterfeiting Trade Agreement | Electronic Frontier Foundation." Electronic Frontier Foundation | Defending Freedom in the Digital World. N.p., n.d. Web. 10 Nov. 2010. <http://www.eff.org/issues/acta>.Casabona, Liza. "Seven for All Mankind Wins Counterfeit Suit." Womens Wear Daily 7 Mar. 2006: 2. Print."Counterfeiting: Laws, Penalties, and Sentencing | CriminalDefenseLawyer.com." Criminal Defense Lawyers - Find a Criminal Defense Attorney to Get Help and a Free Case Evaluation | CriminalDefenseLawyer.com. Experthub, n.d. Web. 10 Nov. 2010. <http://www.criminaldefenselawyer.com/crime-penalties/federal/counterfeiting.htm>."Fake and counterfeit goods promote unethical behaviour | Not Exactly Rocket Science | Discover Magazine." Discover Blogs | Discover Magazine. Kalmbach Publishing, n.d. Web. 10 Nov. 2010. <http://blogs.discovermagazine.com/notrocketscience/2010/04/09/fake-and-counterfeit-goods-promote-unethical-behaviour/>.Hardy, Jeffrey. “Research Report on consumer Attitudes and Perceptions on Counterfeiting and Piracy.” Business Action to Stop Counterfeitinf and Piracy. BASCAP, Nov. 2009. Web. 2 Oct. 2010. <http://www.netcasearbitration.net/uploadedFiles/BASCAP/Pages/ExecSummary_Reseach%20Report%20%on%20Consumer%20Attitudes%20and%20Perceptions_Final.pdf.> Kilaru, Naresh, and Mark Sommers. "Major Anti-Counterfeiting Legislation Passed in the U.S. House of Representatives | Articles | Finnegan ." Finnegan. Finnegan, Henderson, Farabow, Garrett & Dunner, LLP, n.d. Web. 10 Nov. 2010. <http://www.finnegan.com/resources/articles/articlesdetail.aspx?news=dc321a76-89f2-4852-b322-8a3c434ab069>.Ong, Ryan. ”Tackling Intellectual Property Infringement in China.” China Business Review. U.S. China Business Council, Apr. 2009. Web. 02 Oct. 2010. <http://web.ebscohost.com.www.lib.ncsu.edu:2048/ehost/pdfviewer/pdfviewer?vid=3&hid=106&sid=558fd3cc-6198-4a22-b8da-eaf53accbabe@sessionmgr113>.Unknown. “What Are the Economic and Social Consequences of Counterfeiting and Priacy?” WIPO – World Intellectual Property Organization. Web. 02 Oct. 2010. <http://www.wipo.int/enforcement/en/faq/counterfeiting/faq04.html>.Unknown. “The Economic Impact of Counterfeiting and Pirac.. OECD, 2007. Web. 27 Sept. 2010. <http://www.oecd.org/dataoecd/13/12/38707619.pdf>Wilcox, Keith, Hyeong Min Kim, and Sankar Sen. "Why Do Consumers Buy Counterfeit Luxury Brands?" American Advances in Consumer Research. Association for Consumer Research, Spring 2008. Web. 10 Nov. 2010. <http://www.acrwebsite.org/volumes/la/v2_pdf/laacr_vol2_36.pdf>.