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Counterfeiting: Consumer Motivations, Emotions, and Awareness of Consequences

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

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Counterfeiting: Consumer Motivations, Emotions, and Awareness of Consequences

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

  2. Counterfeit Products A counterfeit product is defined as an imitation, usually made with the intent of fraudulently passing it off as genuine. These products are often produced with the intent to take advantage of the established worth of the imitated product. Counterfeit products may carry exact logos or names of an authentic brand, but was not produced by the original brand.

  3. 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

  4. 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

  5. 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

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

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

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

  9. Results How many counterfeit products have you purchased in your lifetime? Product Profile

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

  11. Results: Moral vs. Legal Do believe it is moral to purchase counterfeit products? Do you think it is illegal to purchase counterfeit products?

  12. Results: Consequences and Prevention What are consequences you are aware of? What are some ways companies can prevent their products from being counterfeited?

  13. Restrictions and Limitations Narrow set of demographics Not everyone uses the internet Did not achieve a representative sample Focused on ages 18-21 Surveyed only those on Facebook Not all participants know WHAT A COUNTERFEIT PRODUCT IS GATHERING MORE PARTICIPANTS WOULD BENEFIT OUR CONCLUSIONS

  14. Recommendations Do not purchase counterfeit products Brands should take the law into their own hands and establish stricter laws and penalties Ex: Hermes sued EBay for allowing counterfeit products to be sold illegally without penalty to the seller. Any items put up for sale on EBay which hold the Hermes name are now inspected for authenticity. Any products that do not pass are pulled. Continuation of seizing can reduce counterfeit activity Ex: A cargo ship arriving in Miami held $7 million worth of counterfeit Louis Vuitton and Gucci leather goods.

  15. 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>.

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