ABINGTON, Pa. — Researchers discovered that counterfeit dominance decreases Anglo-American, however not Asian, customers’ high quality notion and buy intention of genuine manufacturers, in response to a crew of researchers.
“Counterfeit dominance is the notion that counterfeit merchandise possess greater than 50% of market share,” Lei Song, assistant professor of advertising and marketing at Penn State Abington, stated. “Counterfeit dominance is a phenomenon particularly regarding for the luxury trend business as counterfeit luxury trend manufacturers account for 60% to 70% of the $4.5 trillion in complete counterfeit commerce and one-quarter of complete gross sales in luxury trend goods.”
Lei and his crew performed 4 behavioral experiments with 149 contributors on Mturk to check their hypotheses. The outcomes present that counterfeit dominance negatively impacts the standard notion of genuine luxury trend manufacturers for Anglo-American, however not for Asian, customers.
The research finds that Anglo-Americans are weaker in social-adjustive angle, which means that they’re extra prone to depend on outgroups equivalent to folks on the road to type their opinions. This is the rationale for the unveiled cultural distinction in perceived high quality and buy intention.
“Being conscious of counterfeit dominance raises model homeowners’ concern that outgroups might think about their genuine manufacturers as low-quality counterfeits, thus decreasing their high quality notion of genuine manufacturers,” Song stated.
This analysis demonstrates that counterfeit dominance negatively impacts the perceived high quality and buy intention of luxury trend manufacturers across product classes for Anglo-American, however not for Asian, customers with a social-adjustive angle underlying this distinction. Therefore, counterfeit dominance has stronger unfavorable impacts on luxury trend model homeowners’ perceptions of their manufacturers for these with a weak (Anglo-Americans), however not for these with a robust (Asians), social-adjustive angle.
The crew discovered that Asian customers are stronger in social-adjustive angle, suggesting that they’re extra prone to type opinions based mostly on ingroups, equivalent to pals, somewhat than outgroups. As a end result, Asian model homeowners’ high quality notion of genuine manufacturers was much less affected by counterfeit dominance.
Because high quality notion strongly impacts buy intention, Song stated the researchers additionally discovered that counterfeit dominance negatively impacts the acquisition intention of genuine luxury trend manufacturers for Anglo-American, however not for Asian, customers.
“Luxury trend model managers ought to section their customers by tradition and develop totally different advertising and marketing methods to treatment the loss of gross sales from counterfeit dominance.”
— Lei Song, assistant professor of advertising and marketing, Penn State Abington
To study whether or not social-adjustive angle is certainly the rationale behind the unveiled cultural distinction, the authors included a research in regards to the moderating position of social-adjustive angle. They discovered that the affect of counterfeit dominance on buy intention was marginally vital among contributors with a low social-adjustive angle, however not for these with a excessive social-adjustive angle in direction of luxury trend manufacturers. This suggests {that a} social-adjustive angle underlies the impact of counterfeit dominance on totally different cultural teams’ luxury trend model homeowners’ buy intention.
Counterfeit dominance results spill over to different product classes of the identical model. The research not solely discovered that counterfeit dominance impacts high quality notion and buy intention for a similar product class — for instance, counterfeit Burberry sun shades have an effect on genuine Burberry sun shades — but in addition for a unique product class of the identical model — for instance, counterfeit Burberry sun shades have an effect on genuine Burberry scarves. This signifies that the detrimental impact of counterfeit dominance within the Anglo-American tradition is exponential.The researchers made a number of suggestions to help luxury goods producers together with lowering information of counterfeit dominance in Anglo-American tradition and adopting phrase of mouth in Asian tradition. Previous analysis signifies that acknowledgment of counterfeit dominance is extra adversarial for Anglo-American than Asian trend model homeowners.
“Luxury trend model producers ought to collaborate with information and social media web sites to cut back the quantity of data associated to counterfeiting of their luxury trend manufacturers and cooperate with authorities companies to forestall counterfeit dominance within the Anglo-American tradition. However, as a result of Asian model homeowners’ perceptions of luxury trend manufacturers are strongly affected by their friends, luxury trend model producers ought to focus more and more on methods equivalent to phrase of mouth to affect these customers’ friends to reinforce the acquisition of these manufacturers,” Song stated.
“Thus, luxury trend model managers ought to section their customers by tradition and develop totally different advertising and marketing methods to treatment the loss of gross sales from counterfeit dominance,” he continued.
Another space can be to concentrate on enhancing the standard of luxury merchandise in Anglo-American tradition and offering group reductions in Asian tradition. Group reductions or shopping for refers to providing services and products at considerably decreased costs on the situation {that a} minimal quantity of consumers would make the acquisition.
According to the researchers, luxury trend model producers ought to deploy methods equivalent to creating ads that particularly concentrate on high quality to keep up clients with an Anglo-American cultural identification. However, for patrons with an Asian cultural background, offering a gaggle low cost might improve affect from these customers’ friends to buy luxury trend manufacturers.
Song’s co-authors on the research embody Yan Meng, assistant professor of advertising and marketing, Grenoble Ecole de Management; Hua Chang, assistant professor of advertising and marketing, Towson University; Wenjing Li, assistant professor of advertising and marketing, Stephen F. Austin State University; and Kang “Frank” Tan, chair, ACIP Technology Ltd. Co.
Their analysis was revealed within the paper “How Counterfeit Dominance Affects Luxury Fashion Brand Owners’ Perceptions: A Cross-Cultural Examination” within the Journal of Business Research.
About Penn State Abington
Penn State Abington offers an inexpensive, accessible and high-impact schooling ensuing within the success of a various pupil physique. It is dedicated to pupil success by means of modern approaches to Twenty first-century public larger schooling inside a world-class analysis college. With about 3,700 college students, Penn State Abington is a residential campus that gives baccalaureate levels in 23 majors, undergraduate analysis, the Schreyer honors program, NCAA Division III athletics, and extra.
