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XUEMEI BIAN
is a PhD student at the School of Business and Management of the University of Glasgow. She holds an MSc in
management research from the University of Glasgow. Prior to becoming a fully edged PhD student, she had
worked in organisations both in China and the UK. During her extensive managerial experience, she observed
a number of brand owners losing market shares to counterfeiters. She therefore developed a great interest in
investigating the counterfeiting phenomenon. Her current research interest is in consumer behaviour.
CLEOPATRA VELOUTSOU
is a senior lecturer in marketing in the School of Business and Management of the University of Glasgow. She holds
an MBA and was awarded a PhD from Athens University of Economics and Business in Greece. Her primary research
interest is on brand management and marketing organisation, focusing mostly on the brand management structure
and the brand support in general. She has also worked in relationship marketing and marketing communications. Her
papers on these subjects have been published in various academic journals, including the International Journal
of Advertising, the Journal of Brand Management, the Journal of Business and Industrial Marketing, the European Journal
of Marketing, the Journal of Marketing Management, the Journal of Product and Brand Management and the Journal of
Services Marketing.
Keywords Abstract
consumer behaviour ; Despite the wide spread of counterfeiting, very few studies have examined consumer behaviour
consumer attitudes; and attitudes regarding counterfeit products. This paper aims to profile the consumers who admit
counterfeiting; China; to purchasing nondeceptive counterfeit brands in the UK and China. Furthermore, it attempts to
UK investigate consumers’ views on counterfeit brands and to contrast them with the genuine brands
and the non-logo products. The demographic profile seems to be somewhat influential in the
intention to purchase counterfeit brands for British consumers, but not for Chinese. The findings
suggest that not all respondents have a very high opinion regarding counterfeit brands, while
Chinese value them even less. Consumers find it difficult to distinguish between the genuine and
the counterfeit brands, and when they are compared with the genuine, the British believe that
counterfeits are even less trustworthy.
Journal of Brand Management (2007) 14, 211–222. doi:10.1057/palgrave.bm.2550046
© 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 14, NO. 3, 211–222 FEBRUARY 2007 211
www.palgrave-journals.com/bm
BIAN AND VELOUTSOU
are not able to distinguish them from and reviews the existing research on
genuine products without the help of consumer behaviour with regard to coun-
laboratory tests, while others are very terfeit brands, then outlines the method-
poor and dangerous.7 ology and finally presents the results of
In general, counterfeiting is regarded as the study. It finally draws conclusions and
a serious economic, social and political suggests future research directions.
problem. Although it has been suggested
that most owners of brand products do
not really believe that the value, the satis- COUNTERFEITING IN THE UK AND
faction from and the status of genuine IN CHINA
luxury brand names are decreased by the Although counterfeiting is not a new
availability of counterfeits or that the concept, it was dramatically developed in
availability of the counterfeits negatively the 1970s.26 Nowadays, it is perceived as
affects purchase intentions of the original a major problem. It is regarded as civil
luxury brands,8 others draw different offence, and even considered as criminal
conclusions. It seems that counterfeits crime in some countries, such as the USA
affect consumers’ confidence in legitimate and the UK.27,28 As counterfeiting prac-
brands, destroy brand equity and compa- tice is illegal, explicit data on the volume
nies’ reputations,9 impose a negative of such trade are not available. It is esti-
impact on the consumer’s evaluation of mated that the value of counterfeit goods
genuine items,10 cause loss of revenues,11–13 in the world market has grown by 1,100
increase costs associated with trying to per cent between 1984 and 1994,29,30
contain infringement, impact on hundreds while the International Chamber of
of thousands of jobs14 and threaten Commerce states that it accounts for 8
consumer health and safety.15–18 Counter- per cent of world trade.31 No product
feiting has emerged as a major headache category is left unscathed32 and counter-
for global marketers for most product feiting has become a significant economy
categories,19,20 with the possible excep- phenomenon.
tion of software, where it could support Although the UK is not perceived
its ‘shadow diffusion’.21,22 as one of the main producers of counter-
Given the consequences of counter- feit brands, it has been suggested that it
feiting, it becomes important to analyse causes about 4,100 job losses per annum
why consumers actually purchase these in the country.33 Despite this, the UK
brands. This has been appreciated by is perceived to be one of the main recip-
academics and practitioners, and there is ients of counterfeits in the world.34 In
extensive call for further research in this 2001, the Anti-Counterfeiting Group
area, especially in issues related to the estimated the cost to the UK economy
customer’s attitudes and behaviour when alone due to counterfeit goods to be at
purchasing these products.23–25 This paper least £2.8bn per year.35 Within two years,
aims to give some insight on the reasons this figure increased to about £10bn in
behind the purchasing of counterfeit 2003.36 It is no longer just luxury brands
brands in two countries with very different that are at stake, but also a wide array of
cultures and different levels in the devel- consumer goods including such products
opment of the phenomenon. It first as washing powder, spirits, food, pharma-
outlines the current situation related to ceutical products,37 prints38 and soft-
counterfeit brands in the UK and China ware.39
212 © 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 14, NO. 3, 211–222 FEBRUARY 2007
CONSUMERS’ ATTITUDES REGARDING NON-DECEPTIVE COUNTERFEIT BRANDS
© 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 14, NO. 3, 211–222 FEBRUARY 2007 213
BIAN AND VELOUTSOU
214 © 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 14, NO. 3, 211–222 FEBRUARY 2007
CONSUMERS’ ATTITUDES REGARDING NON-DECEPTIVE COUNTERFEIT BRANDS
views on counterfeit brands, both on their sunglasses and counterfeit products meant
own and in contrast with the genuine to them.
brands and the non-logo brands. The questionnaire was originally devel-
Previous research examining consumers’ oped in English, then translated to Chinese
perceptions regarding counterfeit products and translated back to English.Two different
has focused only in one country or one people did the translation.The two versions
region. Most of the research has examined of the English questionnaire were then
perceptions in the so-called western examined by two academics, who felt that
world,90–92 while some research has exam- they both had the same meanings.
ined the situation in Asia.93–95 A compar- The subjects were randomly selected
ison of the views expressed by consumers from marketplaces (flea market and high
in the two regions is therefore interesting street) so as to yield a reasonably repre-
and is one of the aims of this paper. sentative sample in terms of demographic
characteristics (Table 1).
In addition to the descriptive statistics,
METHODOLOGY other statistical techniques were used. For
The study was conducted over a period most of the tests in the data analysis, the
of three months in Glasgow, UK and in perception of the different individuals
Tangshan, China. Three focus groups (Chinese and British respondents) across
involving five participants per group were the same measure was investigated. A t-test
first employed mainly to test the variables
studied and choose a product in the UK
and one in China. They led the design, Table 1 The sample
selection and modification of the study’s
questionnaire. During this process, it was UK China Total
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BIAN AND VELOUTSOU
was used to examine the similarity of the buy counterfeit brands (Table 3). Men in
perception related to the same items. For the UK confessed that they were willing
the data analysis, the perception of the to buy counterfeits for their own use and
same individuals was investigated. To as presents and that they did actually buy
examine the similarity of the perception them, more than did women. Gender
related to different views expressed by the does, however, not seem to have any
same individuals, paired samples t-tests impact on the intention to purchase
and one-way analysis of variance (ANOVA) counterfeit brands in China.
tests were performed when needed. Age is an influential factor in the inten-
tion and the actual purchasing frequency
FINDINGS of counterfeit products for British
Respondents did not generally admit that consumers (Table 4).The one-way ANOVA
they bought or were willing to buy coun- test revealed that the older consumers
terfeit brands for their own use or as were less likely to want to buy counterfeit
presents. Chinese respondents were even brands. Age does not, however, seem to
less willing to admit that they purchased affect the intention and the purchasing
them for any reason or that they bought frequency in China (Table 5).
them for their own use (Table 2). British As some of the education categories
respondents stated that they were more had very few respondents, these were
willing to buy counterfeit brands for their merged to three categories. The ANOVA
own use, rather than as presents (t = 10.39, results revealed that the influence of the
a ⭐ 0.001) and admitted that they did educational level on the intention to buy
purchase these brands more for their own counterfeit brands in both the UK and
use rather than for presents (t = 5.54, China is minimal (Table 6). The only
a ⭐ 0.001). They also stated that they were statistically significant difference was in
willing to purchase counterfeit brands the willingness of the British respondents
more than they admitted that they often to admit that they might purchase
bought them (t = 10.19, a ⭐ 0.001). The counterfeit brands for their own use. It
Chinese respondents, however, did not seems that more educated respondents
express any statistically significant differ- were more willing to admit that they were
ences in their views. willing to purchase these brands.
Gender seems to influence the degree All respondents appreciated that the
that the British consumers admit that they exchange of counterfeit brands is not
are willing to buy or that they actually really ethical or legal (Table 7).The British
Mean SD Mean SD t p
I am willing to buy counterfeit brands for my own use 2.93 1.25 1.94 0.99 10.18 0.00
I often buy counterfeit brands for my own use 2.31 1.18 1.92 0.88 4.44 0.00
I am willing to buy counterfeit brands as presents 2.20 1.10 1.88 0.91 3.65 0.00
I often buy counterfeit brands as presents 1.97 1.05 1.86 0.96 1.32 0.19
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CONSUMERS’ ATTITUDES REGARDING NON-DECEPTIVE COUNTERFEIT BRANDS
UK China
Female Male t p Female Male t p
I am willing to buy counterfeit 2.79 1.29 3.08 1.20 1.78 0.08 2.02 1.09 1.89 0.91 − 1.19 0.23
products for my own use
I often buy counterfeit products 2.05 0.97 2.54 1.29 3.22 0.00 1.98 1.01 1.87 0.78 − 1.11 0.27
for my own use
I am willing to buy counterfeit 1.98 0.98 2.38 1.17 2.79 0.01 1.82 0.89 1.90 0.91 0.79 0.43
products as presents
I often buy counterfeit products 1.80 0.94 2.14 1.12 2.45 0.02 1.86 0.99 1.86 0.94 − 0.03 0.98
as presents
Number of respondents 103 125 121 174
< 20 21–25 26–30 31–35 36–40 41–45 46–50 51–55 56–60 61–65 >66 F p
I am willing to buy 3.50 3.40 2.86 3.14 3.10 2.75 2.44 2.63 2.57 2.11 1.69 3.95 0.00
counterfeit products
for my own use
I often buy 2.92 2.57 1.95 2.48 2.29 1.90 2.00 2.58 1.71 2.11 1.54 2.60 0.01
counterfeit products
for my own use
I am willing to buy 2.73 2.45 2.33 2.03 2.10 1.90 1.89 2.53 1.57 1.44 1.77 2.40 0.01
counterfeit products
as presents
I often buy 2.38 2.21 2.00 1.79 2.00 1.50 1.56 2.42 1.29 1.78 1.77 2.25 0.02
counterfeit products
as presents
Number of 26 47 21 29 21 20 18 19 7 9 13
respondents
< 20 21–25 26–30 31–35 36–40 41–45 46–50 51–55 56–60 61–65 >66 F p
I am willing to buy 2.14 1.88 1.98 2.04 2.00 1.71 1.87 1.63 1.67 2.75 1.79 1.07 0.39
counterfeit products
for my own use
I often buy counterfeit 2.14 1.75 1.72 1.90 2.11 1.93 2.07 1.69 2.00 2.75 2.07 1.76 0.07
products for my own
use
I am willing to buy 1.86 1.81 1.74 1.94 1.87 2.00 1.73 1.63 2.25 2.50 2.14 1.07 0.39
counterfeit
products as presents
I often buy counterfeit 1.86 1.70 1.74 1.83 1.93 2.21 2.00 1.69 2.50 2.00 1.86 1.10 0.36
products as presents
Number of respondents 14 57 53 48 45 14 15 16 12 8 14
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BIAN AND VELOUTSOU
UK China
Primary or HND/ University F p Primary or HND/ University F p
high school HNC high school HNC
I am willing to buy counterfeit 2.59 3.02 3.17 4.91 0.01 1.87 1.95 2.07 0.83 0.83
products for my own use
I often buy counterfeit 2.16 2.40 2.37 0.90 0.41 1.94 1.77 2.10 0.23 0.23
products for my own use
I am willing to buy counterfeit 2.11 2.15 2.32 0.83 0.44 1.91 1.91 1.78 0.83 0.83
products as presents
I often buy counterfeit 1.92 1.98 2.03 0.23 0.79 1.93 1.85 1.82 0.23 0.23
products as presents
Number of respondents 75 60 92 98 117 73
Mean SD Mean SD t p
I believe that selling counterfeit products is ethical 2.30 1.14 1.99 1.06 3.19 0.00
I believe that selling counterfeit products is illegal 3.48 1.35 3.51 1.25 –0.21 0.83
I believe that buying counterfeit products is ethical 2.41 1.14 2.49 1.16 –0.76 0.45
I believe that buying counterfeit products is illegal 3.24 1.32 2.93 1.23 2.82 0.01
respondents suggested that selling coun- that their quality was less acceptable, they
terfeit brands is more illegal than buying were less value for money, they were not
them (t = 3.69, a ⭐ 0.001), while the as good as they expected and they fulfilled
respondents from China suggested that their needs less.
buying counterfeit brands is less ethical In general, consumers were not clear
than selling them (t = − 7.51, a ⭐ 0.001), on whether the counterfeit and the
but selling them is more illegal than genuine brands have clear differences, as
buying them (t = 7.06, a ⭐ 0.001). When the mean value for all questions was close
the responses from the two countries were to the middle of the scale (Table 9). The
compared, the Chinese respondents felt British respondents felt that the counter-
that selling counterfeit brands was less feit would have somewhat lesser quality
ethical and buying them less illegal than than the genuine, they did not expect
respondents from the UK. them to last as long as the genuine and
Although both the Chinese and British were going to be less upset if their friends
respondents did not appear to particularly realised that a product they used was not
value the counterfeit brands, they seem to genuine. This finding is interesting, as it
have somewhat different views towards had been established that the Chinese
them. In all the items developed to assess respondents valued counterfeit brands less
these brands, the Chinese respondents than the British consumers.
valued these brands less, with a statistically Respondents did not see a lot of differ-
significant difference (Table 8). They felt ence between counterfeit and non-logo
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CONSUMERS’ ATTITUDES REGARDING NON-DECEPTIVE COUNTERFEIT BRANDS
Mean SD Mean SD t p
I feel that counterfeits have acceptable quality for me 2.93 0.99 2.69 1.05 2.56 0.01
I feel that counterfeits worth the money I paid 2.99 1.02 2.73 1.03 2.95 0.00
Counterfeits are normally as good as I expect 2.95 0.96 2.74 1.03 2.38 0.02
Counterfeits entirely fulfils my needs 3.00 0.97 2.81 1.11 2.09 0.04
Counterfeits have not been as good as I thought it 3.03 0.92 3.29 1.05 –2.92 0.00
would be
Counterfeits usually meet my expectations 3.10 0.94 2.76 1.11 3.74 0.00
brands, as the mean value of all the items just because their product and brand
was very close to the middle of the scale attributes are recognised and accepted.
(Table 10). The British respondents, Certainly there are a number of parties
however, seemed slightly more confident, who want to put counterfeiting and piracy
and suggested that they could distinguish under control, or even totally terminate it.
between non-logo and counterfeit more Unless the problem is tackled, the implica-
easily. The Chinese respondents claimed tions for genuine brands are clearly far-
that the counterfeit had a somewhat better reaching; indeed, the authorities would like
style. All consumers were somewhat unsure to be able to deal with what has been char-
whether or not the counterfeit brands and acterised as the crime of the 21st century.
the non-logo brands had similar quality. But unless there is no demand for counter-
feit brands, then anti-counterfeiting meas-
DISCUSSION AND CONCLUSIONS ures will be of limited success. It is therefore
It is well established that counterfeiting is important to understand the consumers’
a complex phenomenon and can be char- perception of these kinds of brands.
acterised as a serious problem. Although This exploratory study attempted to
there are no official statistics, it seems that investigate whether the demographic
it is playing a significant role in world characteristics of the respondents influ-
trade. Products manufactured particularly ence their intention to buy counterfeit
in Asia are turning up in the USA and the brands. The results were somewhat incon-
EU with increasing frequency. Given the clusive. It seems that this is possibly the
structure of the word economy, it is naïve case in the UK, especially for gender and
to say with certainty that counterfeiting is age, but not in China. The various demo-
totally bad. The UK and China are not an graphic variables were, however not
exception, as in both countries there is a proven to be significant in the differen-
lot of trade in this category of products. tiation of the willingness to purchase or
Counterfeiting is a sign of success for the perceived frequency of purchasing
the counterfeited brand. Only well-estab- counterfeit brands.These differences could
lished brands that are well recognised, be related to the experience that the
liked and respected will be counterfeited. consumers in the two countries have. The
In a way, it could be seen as a price that fact that many counterfeit brands are
well-known brand names are asked to pay produced in China, could be one of the
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BIAN AND VELOUTSOU
Mean SD Mean SD t p
I can easily tell the differences between counterfeit and 2.91 1.03 2.81 1.03 1.08 0.28
genuine brands
Counterfeits have very similar physical appearance with the brands 3.34 0.92 3.35 1.02 -0.07 0.95
I expect that the quality of counterfeits is as good as the quality of the genuine brands 2.37 0.95 3.03 1.31 -6.46 0.00
I expect that counterfeit will last as long as the genuine brands 2.39 0.97 2.99 1.22 -6.08 0.00
I will be very upset if counterfeits do not last as long as long as genuine brands 2.87 1.05 2.91 1.09 -0.45 0.65
I will not use counterfeits as much as the genuine brands 2.77 1.02 3.32 0.99 -6.14 0.00
It is important to you that counterfeits will last as long as the genuine brands 2.83 1.02 2.84 1.05 -0.11 0.91
I will be very upset if my friends realise that the products are not genuine 2.33 0.97 2.98 1.12 -6.89 0.00
Mean SD Mean SD t p
I can easily tell the differences between non-logo and 3.08 1.01 2.75 1.11 3.54 0.00
genuine brands
Counterfeits better style compared with non-logo products 2.76 0.89 3.13 1.13 –4.09 0.00
Counterfeits have similar quality as the non-logo products 2.77 0.91 2.70 1.08 0.77 0.44
reasons the Chinese consumers have a a very low opinion on counterfeits, with
more uniform view regarding these Chinese consumers expressing an even
brands.These results were, however, in line lower view.They are perceived worse than
with the mixed findings reported in past the genuine brands but similar to the non-
research attempting to profile counterfeit- logo in terms of quality, with a better
prone customers. Some of the studies overall style. There is very limited, if any,
reported that demographics have no research focusing on differences in the
exploratory power in differentiating attitudes regarding the counterfeits in
between consumers who have more posi- different contexts. In this study, it was clear
tive attitudes and behaviour regarding that there are differences in the views
counterfeits both in the West96 and Asia,97 expressed about counterfeits and other
while others suggest that younger brands, a finding which was not always
consumers in Asia are lower spenders,98 reported in previous research.This supports
while in the so-called western world there that although counterfeits are of lesser
is a negative relationship between age and quality they are an acceptable choice
the attitude regarding counterfeits.99 because of their lower cost.100
Furthermore, in this paper the Despite the interesting findings, this
consumers’ views regarding counterfeit study has a number of limitations. It
brands in the UK and China were exam- focuses on one product category only.The
ined. In both countries, consumers have product category chosen could have influ-
220 © 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 14, NO. 3, 211–222 FEBRUARY 2007
CONSUMERS’ ATTITUDES REGARDING NON-DECEPTIVE COUNTERFEIT BRANDS
enced the findings of the study. It is also (14) Bamossy and Scammon, ref. 1 above.
(15) Grossman and Shapiro, ref. 1 above.
based on self-reports, which could be (16) Chakraborty, G., Allred, A. and Bristol, T. (1996)
influenced by the respondent’s attempt to ‘‘Exploring consumers’ evaluations of counter-
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