MEDIA RELEASE: R00200 – 20 September 2016
When it comes to luxury goods, people don’t always know they’re buying a fake. Some differences are so inconspicuous even a seasoned shopper could miss them. But what about situations where people spot or even look for fake products and buy them on purpose?
Although it’s widely known that counterfeit purchases are unethical and in some cases illegal, the demand for cheaper, imitation products continues to skyrocket. In an industry filled with fakes and phonies, there’s nothing fabricated about the dollars it rakes in: it’s a $1.77-trillion industry with no indication of slowing down.
Research by Kai-Yu Wang, associate professor of marketing at Brock University’s Goodman School of Business, looks at the ethics surrounding this industry and what motivates people to intentionally purchase counterfeit products even when the act doesn’t align with their personal morals.
“The demand for counterfeit luxury brands is robust and growing, although the consumption of counterfeit goods is viewed as unethical. If saving money is the main reason for counterfeit goods consumption, why don’t consumers simply choose cheaper generic brands instead?” questions Wang.
The research shows that beyond the obvious money-saving tactic, people are motivated to buy counterfeit items by wanting to enhance their self-image and because they enjoy the “thrill of the hunt” or feeling as though they are part of a “secret society” of discerning shoppers who know just where and how to spot good deals on luxury brand knock-offs.
“We also wanted to find out how consumers cope with cognitive dissonance associated with their unethical counterfeit consumption behaviour,” says Wang.
Counterfeit luxury in hand, consumers may feel guilty after their purchase but deal with these feelings by denying responsibility or by identifying with loyalty to something else — for example, reasoning that they actually prefer the counterfeit design to the real thing.
The research also shows that people who buy counterfeit items do not get embarrassed or feel ashamed of their purchase, but instead can experience these feelings if their deception is exposed to their social circles.
Through in-depth interviews with counterfeit-savvy consumers, Wang and his co-authors discovered a range of personal morals — from recognizing the damage they were doing to the brand to rationalizing that the fakes were good for the brand, embodying the saying “imitation is the sincerest form of flattery.”
The study, co-authored with colleagues Xuemei Bian, University of Kent, Andrew Smith, Nottingham University Business School, and Natalia Yannopoulou, Newcastle University Business School, has been published online by the Journal of Business Research.
For more information or for assistance arranging interviews:
* Dan Dakin, Media Relations Officer, Brock University ddakin@brocku.ca, 905-688-5550 x5353 or 905-347-1970
* Kamila Karwowski, Communications Manager, Jan Kelley kkarwowski@jankelley.com, 905-631-3982 or 416-999-4966
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