Counterfeiting: Consumer Motivations, Emotions, and Awareness of Consequences
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Transcript of Counterfeiting: Consumer Motivations, Emotions, and Awareness of Consequences
ABIGAIL BRANNON
Counterfeiting: Consumer Motivations, Emotions, and Awareness of Consequences
A C O U N T ER F E I T P R O D U C T I S D EF I N E D A S A N I M I TAT I O N,
U S UA L LY M A D E W I T H T H E I N T EN T O F F R A U D U L E N T LY PA SS I 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 ED
W I T H T H E I N T EN T T O TA K E A DVA N TA G E O F T H E E STA B L I SH ED
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 EN 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?
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 NoDepends 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
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Results: Moral vs. Legal
What are consequences you are aware of?
What are some ways companies can prevent their products from being counterfeited?
ConsequencesConfiscation of productFinesJailMisdemeanorHurts genuine brandPromotes illegal production of goodsDecreased qualityIP infringementVendors shut down
PreventionPatentsImprove consumer awarenessVisible trademarksCreating unique designs and product featuresWarn vendors of consequencesSure those who infringeLower pricesMake 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>.