Afraid to look fake?

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<ul><li> 1. </li></ul> <p> 2. </p> <ul><li> The Fake Nation Report </li></ul> <ul><li>Methodology:Questionnaires (over 2,000 people) and 9 focus-groups </li></ul> <ul><li>Counterfeit phenomena:</li></ul> <ul><li>34% indicated that they had purchased counterfeit goods once </li></ul> <ul><li>7% of those surveyed had never bought fake goods but</li></ul> <ul><li>thought they might in the future </li></ul> <ul><li>Counterfeit fashion goods:</li></ul> <ul><li>Consumer Demographics</li></ul> <ul><li>32% aged 16-20,</li></ul> <ul><li>27% aged 21-30,</li></ul> <ul><li>46% female </li></ul> <ul><li>32% with household income &lt; 15K </li></ul> <ul><li>Motivations and comments </li></ul> <ul><li>- Cost was the most frequently cited motivation </li></ul> <ul><li>- Low product quality of counterfeit fashion items was not generally perceived to be a common problem. </li></ul> <ul><li>Commonly, people judge whether a fashion item is counterfeit</li></ul> <ul><li>not by the product itself but by who is wearing it. </li></ul> <ul><li>Source : Anti-Counterfeiting Group (ACG) </li></ul> <ul><li>The Intellectual Property Theft and Organised Crime (IPTOC), Dr Jo Bryce and Dr Jason Rutter</li></ul> <ul><li>Source : Anti-Counterfeiting Group </li></ul> <p> 3. </p> <ul><li>ACG focus groups participants claimed that</li></ul> <ul><li>they recognise counterfeit fashion goods</li></ul> <ul><li>not by the product quality but bywho is wearing it. </li></ul> <ul><li>Social motivations (need of recognition, status seeking, personal gratification)</li></ul> <ul><li>has been found to hinge onpurchase( Wilcox K., Hyeong M. K., and Sen S. ,2009)</li></ul> <ul><li>Since counterfeit goods influence ones image,normative social influence </li></ul> <ul><li>may be a barrier to purchase( Oneto S. and Sundie J. M. ,2006 ; Phau I., and Teah M., 2009) </li></ul> <ul><li>We wanted to investigate whether purchase intentions of counterfeit luxury goods are driven more by social motivation or by social influence. </li></ul> <ul><li>RQ : Are purchase intentions of counterfeit luxury products more driven by social needs or by social influence? </li></ul> <p> 4. </p> <ul><li>Convenient sample of middle-income female university students</li></ul> <ul><li>aged 18-25 (according to ACG data). </li></ul> <ul><li>We will focusspecifically oncounterfeit fashion bagssince: </li></ul> <ul><li><ul><li>They are products familiar to the sample chosen </li></ul></li></ul> <ul><li><ul><li>They are non- functional goods </li></ul></li></ul> <p> 5. </p> <ul><li>5 Interviews</li></ul> <ul><li>Aims : </li></ul> <ul><li>To uncover the role of social needs and social influence in relation to counterfeit luxury products. </li></ul> <ul><li>To identify and understand the main components of each variable according to respondents. </li></ul> <ul><li><ul><li>To use responses to design the questionnaire</li></ul></li></ul> <ul><li><ul><li>Using personal depht interviews we aimed to avoid the rise of socially acceptable responses.</li></ul></li></ul> <p> 6. </p> <ul><li>Sex : Female </li></ul> <p>Age EthnicityEducation Annual Income Int 1 24 British Postgraduate Less than 20,000 Int 2 25 Polish Postgraduate 30,000 cca Int 3 23 Turkish Postgraduate 16,000- 30,000 Int 4 22 Asian Undergraduate More than 30,000 Int 5 22 Helvetian Undergraduate 25,000 cca 7. </p> <ul><li>Attitudes towards</li></ul> <ul><li>counterfeit luxury products </li></ul> <ul><li>Purchase Motivations </li></ul> <ul><li>Social Needs </li></ul> <ul><li>Social Susceptibility </li></ul> <ul><li>Social Influenceon</li></ul> <ul><li>Purchase Decisions </li></ul> <ul><li>(positive or negative?) </li></ul> <ul><li>Set according to theLiterature &amp;</li></ul> <ul><li>Research Question </li></ul> <p> 8. </p> <ul><li>What do you think about the phenomenon of counterfeit luxury products? </li></ul> <ul><li>Do you know anyone who has ever bought a counterfeit luxury bag? </li></ul> <ul><li>What do you think may be the motivations behind these purchases? </li></ul> <ul><li>Do you think there is any kind of social need behind the purchase? For example? </li></ul> <ul><li>In your opinion, before purchasing a counterfeit luxury bag, people take into account what others ( friends, colleagues ect.) may think of it? </li></ul> <ul><li>Do you think that owning , carrying or purchasing counterfeit luxury bags may affect the image other people have of you? How?</li></ul> <ul><li>Would this aspect be a barrier to purchasing this kind of products? </li></ul> <p> 9. </p> <ul><li>Critically Negative </li></ul> <ul><li> The quality of the original ones does not differ that much anymore. </li></ul> <ul><li>But its still afraud </li></ul> <ul><li>Interviewee 2 </li></ul> <ul><li> I may sometimes think to get one because they are convenient.</li></ul> <ul><li>But itsillegal </li></ul> <ul><li>Interviewee 4 </li></ul> <ul><li>Negative </li></ul> <ul><li> Theydamaged the industryand put at risk the work of many people</li></ul> <ul><li>Interviewee 1 </li></ul> <ul><li> It is shameful. Why you have to buy something you cannot afford?People would find you fake </li></ul> <ul><li>Interviewee 3 </li></ul> <ul><li> Its a shocking and harsh phenomenon that people thinkthey need to buy fake products </li></ul> <ul><li>Interviewee 5 </li></ul> <p> 10. 11. 12. </p> <ul><li>4/5 Participants addressed others opinions as a personal barrier to the purchase intention. </li></ul> <ul><li>However, it has been indicated that in certain social groups may be otherwise. </li></ul> <ul><li> My friends and collegueswould think that I am a tastelesschav , I wouldnt </li></ul> <ul><li>Interviewee 1 </li></ul> <ul><li> I would never buy a counterfeit luxury bag if I know</li></ul> <ul><li>that someone can discover it. But I knowfor certain people it looks clever </li></ul> <ul><li>Interviewee 2 </li></ul> <ul><li>I wouldnt want to buy a fake bag. If other would find out itd be shameful. </li></ul> <ul><li>They would think that I cannot afford anything and all I have its fake </li></ul> <ul><li>Interviewee 3 </li></ul> <ul><li> I wouldnt buy it. I dont wanna look like I need to seem richerthan I am. </li></ul> <ul><li>Interviewee 4 </li></ul> <ul><li> If I could afford original ones I wont careabout others opinions and go also for the fake one</li></ul> <ul><li>Interviewee 5 </li></ul> <p> 13. </p> <ul><li>Generally negative attitudestowards counterfeit luxury products.</li></ul> <ul><li>Some critical opinions on the phenomenon though.</li></ul> <ul><li>Half consider it negative for its legal aspects, half immediately mentioned the social ones. </li></ul> <ul><li>Most of the interviewee indicatedneed of recognition as the main social motivations of the purchase </li></ul> <ul><li>3/5 think thatnormative social influenceaffects the purchase intentions.</li></ul> <ul><li>4/5 participants think that thefear of others opinion /shame maybe a barrier to their purchase . </li></ul> <ul><li>Difference in different social classeshave been mentioned </li></ul> <p> 14. </p> <ul><li>50 Online Questionnaires </li></ul> <ul><li><ul><li>47 Responses </li></ul></li></ul> <ul><li>Aims :</li></ul> <ul><li>Quantitatively measure the influence, as emerged in the questionnaires, of : </li></ul> <ul><li>Need of Recognition</li></ul> <ul><li>Social Susceptibility</li></ul> <ul><li>Examine which indicator influence the most purchase intentions of counterfeit luxury products </li></ul> <ul><li>H1 :Purchase intention of counterfeit product is positively correlated to social recognition need </li></ul> <ul><li>H2 :Purchase intention of counterfeit product is negatively correlated to social influence </li></ul> <ul><li>H3 : Need of social recognition drives purchase of counterfeit luxury products more than social influence </li></ul> <ul><li>Adapted scales: </li></ul> <ul><li><ul><li>Beardens SocialSusceptibility </li></ul></li></ul> <ul><li><ul><li>Rockeach Need of Recognition </li></ul></li></ul> <p> 15. 16. 17. 18. 19. </p> <ul><li>1.Main: </li></ul> <ul><li>H1:Correlation of purchase intention and social recognition needs- Spearman's rho </li></ul> <ul><li>H2:Correlation of purchase intention and social influence- Spearman's rho </li></ul> <ul><li>H3:Linear Regression- influence of social recognition need and social susceptibility on purchase intention </li></ul> <ul><li>2. Additional: </li></ul> <ul><li>Correlation between annual income and social influence- Spearman's rho </li></ul> <ul><li>Correlation between annual income and need of social recognition- Spearman's rho </li></ul> <p> 20. </p> <ul><li>Correlation of purchase intention and social recognition needs- -0,02 ( not statistically significant ) </li></ul> <ul><li>Positive Correlation of purchase intention and social influence- 0,247 (statistically significant)H2 REJECTED! </li></ul> <ul><li>Linear Regression: influence of need of recognition and social influence on purchase intention- Y= -0,01x 1+ 0,51x 2+2,5</li></ul> <ul><li>(not statistically significant) </li></ul> <ul><li>Negative Correlation between annual income and Need of recognition -0,264 ( statistically significant ) </li></ul> <ul><li>In direct question- respondents indicated thatsocial recognition is more importantthan social influence for purchase intention </li></ul> <p> 21. </p> <ul><li>Our main limitation was to use aconvenient and very small sample </li></ul> <ul><li>No statistical significance to support our main hypothesis .</li></ul> <ul><li>We cannot state whether social recognition and social susceptibility drive purchase intentions and which one does more. </li></ul> <ul><li>H2 was rejected :</li></ul> <ul><li>Social Susceptibility is positively correlated to purchase intentions.</li></ul> <ul><li>A possible explanation may be thatsocial susceptibility is not necessarily a barrier . It maycause emulation. It can act as a sort of social pressure, either by reference or aspiration groups, as mentioned by interviewees. The purchase may be perceived as not bad by certain groups (eg. Students) </li></ul> <ul><li>The ambiguity of this variable is reflected in the fact thatquantitative and qualitative data here differ </li></ul> <ul><li>Ambiguos role of Social susceptability in positively and negatively influence the purchase of counterfeit luxury product should be investigated more accurately (testing this specific aspect). </li></ul> <ul><li>Need of recogniton has been indicated repetitevely as the main social motivationseither in interviewees and questionnaire responses. </li></ul> <ul><li>Need of recognition and income are negatively correlated as repetitevelymentioned in the interviewes. </li></ul> <ul><li>Need of further analysis on larger sample to investigate the contradictions emerged and run a more representative analysis of the two variables.</li></ul> <ul><li>Campaigns may stress the fake or negative recognition caused by the purchase of counterfeit products to disincentive purchases. </li></ul> <p> 22. </p> <ul><li>References</li></ul> <ul><li>Schiffman L.G., Kanuk L.L., Hansen H. (2008)Consumer behaviour, a European outlook,Harlow : Pearson Education. </li></ul> <ul><li>Bearden, W.O, Netemeyer R.G, Teel J. E. (1989) Measurements of Consumer Susceptibility to Interpersonal InfluenceJournal of Consumer Research , vol. 15 : 473- 481. </li></ul> <ul><li>Reports by the Anti- Counterfeiting Group (ACG) are available at: </li></ul> <ul><li>http://www.a-cg.org/guest/index.php </li></ul> <ul><li>Bryce, J. and Rutter, J.Fake Nation,The Intellectual Property Theft and Organised Crime (IPTOC) </li></ul> <ul><li>Wilcox, K., Min Kim, H. and Sen, S. (2009)Why do Consumers buy counterfeit luxury brands? Journal of Marketing Research, Vol. XLVI (April 2009), 247259 </li></ul> <ul><li>Oneto, S. and Sundie, J. (2006) Perceptions of Counterfeit Consumers Advances in Consumer Research, Vol. 33, p 341 </li></ul> <ul><li>Phau, I. and Teah, M. (2009)Devil wears (counterfeit) Prada: a study of antecedents and outcomes of attitudes towards counterfeits of luxury brands Journal of consumer marketing, Vol 26-1, pp 15-17 </li></ul>