Product characteristics is the first category. This category includes price, investment risk, product type (e.g. Albers-Miller, 1999), product scarcity, product attributes (e.g. Bloch et al., 1993), style/fashion ability etc.
Regarding the price, Poddar et al. (2012) found that consumers express greater intention to buy the counterfeit product as the price difference between the original and the fake product increases. Price is without a doubt the biggest advantage and main driver to buy a counterfeit. The consumer gets the prestige of the original brand, without paying for it (Bloch, 1993).
Cordell et al. (1996), determine a link between the likelihood of buying counterfeits and the investment-at-risk (financial risk and performance risk)
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In the literature, contradictory results have been found regarding the age of counterfeit consumers. Some researchers state that the most likely buyers of fakes are younger consumers (Tom et al., 1998; Kapferer, 2014), whereas other researchers argue that age has no impact on the intent to purchase counterfeits (Bloch et al., 1993; Wee et al., 1995).
Social status has an influence as well since consumers of counterfeit products often buy them in order to show that they belong to a particular social group or want to improve their social standing. They want to demonstrate that they can afford branded goods and often use the product for symbolic self-extension (Eisend & Schuchert-Güler, 2006).
However, Ting et al. (2016) have found that status consumption negatively influences consumer attitudes toward counterfeit luxury goods.
After all, status consumers are more status conscious to show accomplishments through possessions and have unfavorable attitudes toward counterfeit luxury goods (Harun et al., 2012; Phau & Teah, 2009; Phau et al., 2009).??? Nog
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These many other influencing factors are readily compatible with the five categories suggested. However, it also occurs that consumers are unwilling to purchase the original brand, and therefore choose to purchase fakes.
Consumers can deliberately purchase counterfeits in order to show their discontent with the way things are. For example, some individuals link the use of luxury goods with social inequality and have therefore a negative attitude towards the use of luxury goods. In this point of view purchasing counterfeits is a way to oppose the gap between the rich and poor. By this research conducted in Vietnam some respondents also said “they would rather buy counterfeits because they refuse to pay the premium for something produced in their own country and at a very low cost” (Thaichon et al., 2016).
This example shows that motivations and other determining factors can differ depending on the nationality of the consumer.
Others see nothing wrong with purchasing counterfeits because they perceive prices of designer products to be unfair to consumers (Tom et al.,
In her New York editorial Terror’s Purse Strings, Dana Thomas speaks on luxury items that are counterfeited and how they correlate to various issues around the world. Demonstrating quantitive evidence with a variety of statistics to raise awareness of the dangerous acts that are so closely related with forged components. Dana Thomas does not shy away from the real problems that are presented when expressing the research that she conducted in order to inform the reader accurately. For Dana Thomas’ debate she went all the way to Guangzhou and accompanied Chinese police officers to a factory that was an active participant in child labor.
Taking these two concepts into consideration would solidify the reason author, Renee Dye, produced a piece ("The Buzz on Buzz") encouraging and giving ideas to entrepreneurs on how to exploit customers to market their products better. People like Dye have realized the impact objects have on people and take advantage of it for their own benefit. This might be one of the biggest reasons why Hammerslough believes that material items are being personified with intangible values and that American consumers place in society is problematically linked to their purchases. While Lasn would agree with Hammerslough in terms of consumers place in society being problematically linked to purchases; Dye would most likely disagree that "what's changed" is negative and see it as positive economically. Hammerslough's belief is correct in the sense that purchases, objects and even brands consume too much of American lives by distracting them from what's going on in the world and influencing their opinions of others as well as themselves, which is the reason their place in society is
Many people in todays society think that in order to be considered “wealthy” they have to have the newest of everything so that people will think their family has money. People will spend fifty to one hundred dollars on something just to have the Buckle logo, or under armour logo, or Nike logo, or American Eagle logo. If you wear something that is not name brand, people think that one can not afford the nice new clothes. Teens today consider someone cool if they have nice clothes and have good fashion, if one does not have a certain logo they are considered to be lame and
“Cheapness and ignorance are mutually reinforcing. And it's a short way from not knowing who's at the other end of your food chain to not caring - to the carelessness of both producers and consumers” (Pollan 402). People are searching of the cheaper alternative and in doing so they are allowing producers to make inferior goods while meeting consumer
If a brand has a good reputation, customers and businesses, are more likely to purchase that brand. Examples include logos and packaging. (B2B and B2C Similarities and Differences , n.d.) These need to capture the attention of their customers because businesses have competition and therefore need to stand out.
In the essay, “Terror’s Purse Strings” written by Dana Thomas and published in New York Times. Thomas begins talking about expensive fashion bags produced around the world. She elaborates how easy it is to mimic fashion and sell it for a cheaper price. Thomas implies how purchasing a fake product leads to child labor, a getaway to terrorism, and how they are run by crime syndicates. She suggests a solution for this issue and how people should stop buying fakes to take counterfeiters out of business.
Notably a lot of are behavior for shiny new objects is fueled from what is seen in everyday existence. The extravagant life style of the upper class which is on constant display across many media broadcasting outlets around the world for everyone to see and desire. Prompting individuals impulsive reaction to make purchases for what they see; even though they know otherwise they can not afford it. The textbook gives numerous accounts to why America has become a nation of mass consumption and what triggers people impulse to spend in relation to material possession and the American Dream.
Indeed people prefer to buy branded products from non-branded products, also whit an increased price. Gladwell in the chapter 4th of his book explain the example of L’Oreal, an expensive but fashionable product. It give to the company a big profit. indeed Ilon Specht in one of his most famous thoughts says: “ I use the most expensive hair color in the world, but I don’t mind spending more for L’Oreal, because I’m worth it”(Gladwell pag. 98). This sentence was used to underline the importance and the quality of that particular brand.
In the article accepting or rejecting innovation, the author mentioned that some of the people will pay double price for the designer jeans. Although the jeans without designer have the same quality as the designer one and people will only need to pay half of the price compared to the designer jeans. As a result, many people will still choose to pay double price for the designer jeans. However, the people who bought the designer jeans are only because of social value. They might want to show off in front of other people.
Brand can be established on different basis. Maybe quality or status. Therefore, companies use price-skimming strategies to reach their target markets and successfully establish their brands. But quality also matters. • Attract Status Conscious Consumers
Besides that, product differentiation is one of the threats of new entrants. Starting a new business we need to use a lot of money for advertising to attract customer, but we have to create our new things that cannot found in others competitors. For non-traditional barriers to entry, we have unique business model. We created a business with a unique design and establish a network of relationships that makes the business model work so that no people can easily to copy our
Consumers may begin to doubt that maybe the product has not sold well, and the quality of the product is real compared with the price or the product is likely to be discontinued because they have become
The companies in today industry serve a huge competitiveness. Current competitors take advantage of the demands from consumers to earn high profit margins. Fendi is known as a rich brand heritage and is the first global group in luxury product. They are widely recognized for its leathers, furs, watches and bags.
The novel I have chosen is “Harry Potter and the Philosopher’s Stone” by J.K. Rowling. Which is one of the most well-known children’s novel in the world. It is about an 11 year old boy called Harry who before now has lived a very hard life with relatives who don’t like him. He suddenly discovers that he is, in fact, a wizard and is to be thought at the famous Hogwarts School of Witchcraft and Wizardry. This is where he finds out that he is famous in the wizarding community, for defeating Voldamort as a baby.
They are persuaded that he or she is getting a great deal, saving cash, or purchasing a good that will perform in a particular way. There are many different types of false and misleading advertising methods used by firms to lure consumers. Some of them