An investigation into consumer motives in purchasing counterfeit luxury branded products at the China Town in Windhoek Namibia

Abstract

Counterfeiting has become an economic problem and has led to a variety of countermeasures based on lawful, political, administrative, or business techniques. In order to develop appropriate countermeasures, an understanding of the general phenomenon of counterfeiting as well as the specific reasons why people purchase counterfeit products seems expedient. The main objective of the study was to explore consumers’ motivations for purchasing counterfeited luxury branded products. This was a descriptive and quantitative study which consisted of customers who buy products at China Town and Customs and Excise officials in Windhoek. Using a questionnaire and web-based survey to collect the data, a thematic analysis was employed to analyse the data collected. The results showed that, counterfeit luxuries branded products do not infringe intellectual property of the designer of genuine products given the fact that counterfeit products are just as good as genuine designer products. The study also found that, trading in counterfeit of luxury branded products lowers the value of genuine products. Hence the study concluded that more awareness needs to be created on what counterfeits and intellectual property rights are by creating awareness of the ethics involved with the trade in counterfeits. Moreover, trading in counterfeit of luxury branded products have consequences on the Namibian market such that, it affects the willingness of able purchasers to buy genuine products, and in so doing affects the business and market share of businesses trading in genuine products. In conclusion the study therefore recommends that owners of luxury brands should use brand awareness/association as an effective weapon. Marketing activities that increase the exposure of genuine luxury brands and build connections between genuine luxury brands and consumers are likely to hamper counterfeit consumption. Furthermore, further research should consider various income level groups of consumers instead of only customers in general. Future research could examine thee effects of counterfeit ownership on consumer loyalty to counterfeits by testing more attitudinal loyalty characteristics.