1.0 Introduction
1.1 Background:
Counterfeiting is an expanding field of business in which duplicates or copies that are identical to the actual goods, including their packaging, trademarks, and labeling, are bought and sold (Kay 1990, cited in Ang et al.2001, p. 219). The market of counterfeit products has its roots since 1970s when Levi’s Strauss found its logo on the unbranded jeans being sold to Asian markets (Walker 1981,cited in Phau et al. 2009, p.262-281). Since then, the selling of counterfeit products has become a flaunting business which is creating both problems and opportunities for new and existing sellers. There are numerous countries where counterfeit products with duplicate designs are commonly available and it is creating problems for original brand sellers to maintain exclusivity.
The availability and demand for counterfeit products has increased by more than 12 percent each year for the last decade (Chaudhry et al. 2009a, b). The consequences of this phenomenon result in heavy losses to the actual brand, in terms of the loss of brand reputation and goodwill, and decreased customer confidence and brand equity and also include job losses, tax avoidance and lost sales for company. The estimates by The International Anti-Counterfeiting Coalition show that counterfeiting is responsible for US$200 billion a year in lost jobs, unpaid taxes and lost sales (Furnham and Valgeirsson 2007). Moreover, the success of this market lies in the considerable percentage of consumers demanding the counterfeited products. As per a research the biggest buyer of these products around the world lies in 18-25 year age bracket (Phau and Teah 2009). According to another research, about one-third of the group interviewed responded th...
... middle of paper ...
...0 2011].
• The Economist Pakistan. 2011. 50 percent of the products in Pakistan are substandard, adulterated or counterfeit [online] Available from: http://www.economistpakistan.com/Page-Detail.php?id=485 [Accessed August 20 2011].
• Thurasamy, R., Mohamad, O., Jantan, M., Lee Wai Chow, J. and Nasirin, S. 2003. Counterfeit Music CDs: Social and Personality Influences, Demographics, Attitudes and Purchase Intention: Some Insights from Malaysia. The Proceedings of the 2nd European Conference on Research Methods in Business and Management [online].Available from: http://www.ramayah.com/journalarticlespdf/counterfeitmusic.pdf [Accessed Sept 20 2011].
• U.S. Immigration and Customs Enforcement and U.S. Customs and Border Protection.2011 [online] pp.1-20. Available from: http://www.ice.gov/doclib/news/releases/2011/110316washington.pdf [Accessed August 20 2011].
The one of main factors is that costumers are swayed by product itself. Where are we buying it? What is the trademark of the product? How much is it? What is the product’s appearance? How about product’s use? And, does the product have a good quality? All of these questions will appear in our mind when we are making decisions. Thus, every consumer will accord to analysis by synthesis product itself, and focus on the product that he or she most favorite. The ways of vendition and the environment of vendition impact the buying behaviors of the customers. The seller makes an attempt to choose the right way and sell the products in the right environment. Consumers will select a safe channel, and according to legal order trade with the marketer. So, having a good channel and place is very important. Usually, a well-known trademark can attract customers to buy the product, because of its influence, history, or another factors. In
The market lacks authentic artifacts but buyers want authentic artifacts which has become difficult to obtain because competitors are introducing replicas in to the market that decreases consumers trust. The company’s major competitor is government because they do limited exports of artifacts due to their importance (Kerin & Peterson, 2010).
Characteristics of our society reflect in the outcome of purchasing tendencies. How many of us can honestly say we make a valid effort to purchase goods made in our own country? In our face paced world where both parents are in the work force, raising children, social activities and everything else, who has time to make an effort? Most often, consumers only care about marking off the s...
Today, designer fashion is very popular amongst Americans’ in all age groups. Head out to the mall on any weekend and it’s sure to be packed with people shopping in upscale stores like Barney’s, Gucci, or Louis Vuitton. Because of peoples yearn for these designer fashions, counterfeiting is a major issue throughout the world. In Dana Thomas’s article, "Terror’s Purse Strings", Thomas discusses how counterfeiting has become a major problem throughout the world; She also points out that the majority of these counterfeit operations are run out of Chinese factories and how many of these factories employ young children who are sold or sent off by their families to go manufacturer these “luxury” counterfeit goods. I chose Thomas’s article because
Consumer attitudes are influenced by social pressure which is inclusive of informative and normative susceptibility (Ang, et al., 2001; Bearden, Netemeyer, & Teel, 1989; Wang, Zhang, & Ouyang, 2005). Normative consumers are more concerned with impressing others and ensuring that their behaviors are based on the expectations of others. Since counterfeiting is an unethical and illegal activity and involvement in such an activity does not project a positive image, therefore normative consumers would have negative attitude towards counterfeit products (Ang, et al., 2001; Lord, Lee, & Choong, 2001; Penz
Hasbro faces a significant threat from counterfeits of its products. As the market for toys and games is increasing globally, the parallel market for counterfeit toys is also on the rise. Such activity rises especially during the festive months when toy sales are expected to be high. Counterfeits pose a threat to the toys and games market, not just in terms of lost business and brand dilution, but also by selling products that can be potentially dangerous to children of all ages. Low quality counterfeits reduce consumer confidence in branded products like Hasbro. Counterfeits not only deprive revenues for the company but also dilute its brand image.
U.S. Customs and Border Protections (CBP). Department of Homeland Security, n.d. Web. 22 Apr, 2014.
2006). Burberry’s product line, especially the famous trademark plaid, unfortunately, is not difficult to imitate, the development of “fake Burberry” affects their revenue. In 2010, Burberry won $1.5 million in counterfeit case (Matthew 2010), but the counterfeit apparel and accessories is still the key issue for all major luxury brand (Maman 2012).
The sign of moving products promptly from a designer’s table to the retail sales floor has swayed the whole global retail commerce and enticed rivalry. Customers value a “new look” that can be worn for this instant and assess the goods as a monetary fortune; not something that you will keep
Counterfeiting and piracy has affected the economy worldwide and is continuously growing at a steady pace. Counterfeiting can be defined as the manufacturing of any product with the intentions of closely resembling the appearance of another product to mislead consumers into thinking that they have the authentic creation. Examples of counterfeiting include trademark infringement, copying of packaging, copyright infringement, or copying any other significant features in another product. Piracy can be defined as the production and distribution of products and materials that are copyright protected while making such materials available on online networks without the authorization of the right owner which is required by law. There are
Where there is rapid growth comes increased competition; similarities in products across manufacturers have reduced brand differentiation across the board. The problem now is the severe rise of copycat companies and manufacturers that copy designs and specifications of cars, and proceed to undercut the original manufacturer’s profit margins. So to improve their brand standing, every manufacturer’s individually have resort...
to use their money at a local Taco Bell. If teenagers are finding ways to
Reviewing the existing literature on this topic, this essay attempts to look at the scale of counterfeiting, the reasons for its growth and the consumer’s attitudes towards counterfeited products. It also provides information about how the counterfeit market poses challenges for customer-brand relations and the strategies that brands can implement to overcome these challenges.
When you purchase counterfeit software, you're supporting disreputable companies, not tax-paying, legitimate businesses that provide jobs and salaries to good citizens. The profits from these sales of counterfeit software don't help expand the economy by providing jobs, taxes, and wages, and there is a good chance the profits are funding additional illegitimate businesses. Legitimate companies never receive any funds from the sale of counterfeit software, and frequently this loss of revenue leads to layoffs for workers in all related industries, from manufacturers to resellers. So, as you can see, purchasing counterfeit software doesn't only impact software manufacturers, it impacts everyone.
Despite the facts that many of the most powerful markets on the planet operate within the capitalistic principle of free trade. Despite the fact that Western Europe is now border-free within its bounds and uses the same common currency. And despite the fact that the USSR s Iron Curtain has fallen more than a decade ago, the people of this world have never expressed their need to belong to a national identity as much as they do today. In response to international organized terrorism, mass media and political pressure, the average consumer today is looking for security, truth, and for a product tailored to his need. A product that reflects the international society we live in today but also carries the cultural identity of the consumer buying it. Or at least carries one that can be compatible with it.