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Impact of Counterfeit Products on Luxury Brands : Research Proposal Assignment

   

Added on  2020-11-12

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DISSERTATION (LITERATURECHAPTER)(Impact of counterfeit products on luxury brands researchproposal)

TABLE OF CONTENTSCHAPTER: LITERATURE REVIEW............................................................................................1Introduction..................................................................................................................................1Theory of counterfeit product......................................................................................................1Perceived quality.........................................................................................................................2Personal status symbol.................................................................................................................3Demand of luxury goods.............................................................................................................4Market competition......................................................................................................................5Brand association.........................................................................................................................6Summary of key findings.............................................................................................................7REFERENCES................................................................................................................................8

CHAPTER: LITERATURE REVIEWIntroductionLiterature review is the session in which researcher reviews related articles. This helpsindividual in developing in-depth understanding about subject matter. It can also be defined asevaluation of peer articles (Fastoso, Bartikowski and Wang, 2018). This aids scholar indetermining nature of research. The main purpose of this study is to find out impact ofcounterfeit products on luxury brands. For that researcher will review articles based on fourmajor variables perceived quality, personal status symbol, demand of luxury goods and marketcompetition (Huynh and Wilson, 2014). Theory of counterfeit productAs per the view of Amaral and Loken, (2016) counterfeit products are everywhere inmarket. These are copies of actual product that look same as luxurious high valued item butactually has low quality. There are many small firms those which sell duplicate products toconsumers by taking name of big brands. Imitation of authentic goods adversely affects brandequity. Small retailers offer this fake artefact at broader market, which jeopardise the image ofluxury brand (Bian, Haque and Smith, 2015). Those who like to buy such imitated goods purchase it without any doubt. Demand ofsuch kind of items is increasing with rapid speed. The main reason of increasing sales is thatsuch products are available at lower price as compare to the original brand. These are valueexpressive items for consumers. Eisend, Hartmann and Apaolaza, (2017) argued that counterfeitproducts are 100% direct copy of material of high valued brand. There are two major kinds ofcounterfeit products available in market: deceptive and non- deceptive. Deceptive counterfeit areconditions in which consumer is unaware with the actual product and buy imitate item bythinking that it is actual goods. In such circumstance individual is treated as victim ofcounterfeiting. Ertekin, Sorescu and Houston, (2018) declared that non- deceptive counterfeitsare different, in such kind of purchase buyer is well aware with the item and knows thatindividual is buying copied item that has lower quality as compare to original high valued good.Handbags, wallets, jewellery, electronics, accessories are counterfeit products available inmarket. 1

Perceived qualityAccording to Chebat and et.al., (2015) perceived quality can be defined as perception ofcustomer regarding superiority of goods and services. This is subjective judgement of buyer thatinfluences their decision of buying particular item (Wilson and Kinghorn, 2016). However, it isintangible asset but it is evaluated with overall performance and reliability of item. There aremany buyers those who cannot afford buying such expensive branded items. In such condition,they are ready to pay money for lower quality items (Jung and Hwang, 2015). They have lowexpectation with such goods and services because they are cheaper than actual high valued item.Thus, consumers get satisfied with this counterfeit product without perceived quality. Gil,Dwivedi and Johnson, (2017) argued that perceived quality has potential to generate value forthe brand. This helps in creating unique brand image and differentiate the product from othercompetitors. It plays significant role in brand extensions. Many companies get chance to expandtheir operations across the world by offering consumers such kind of imitated items or originalbrand.Scheepers, (2018) stated that counterfeit product many times harm the actual image ofluxury brands. Most of the buyers like to purchase counterfeit goods if such item is able to fulfiltheir social-adjective purpose (Loureiro and de Araújo, 2014). Aspiration dimensions are notenough to be the luxury brand. It is also essential to consider perception of buyers towards theproducts and services. However, companies offer excellent quality items but due to exclusiveprices less people take interest in such kind of high valued brands. Sugimoto and Nagasawa,(2017) Reliability is another major aspect of perceived quality that affects overall performance ofluxury brand. Brand loyalty can get increased when people start buying particular goods andservices without looking at price, quality and other additional features. If individual pay morebranded item then person feels happy that leads to repeated purchasing (Arli, Tjiptono and Porto,2015). By this way, they become loyal and frequently buy goods of the company. But if thecompetition is high then companies have to make changes in its strategies in order to retainconsumers in firm for longer duration. They have to be less price sensitive. As per the view of Temperini, Gregori and Palanga, (2016) people have certain behaviourfor goods and services (Nabi, O’Cass and Siahtiri, 2017). If the person has used once brandeditem then individual, get to know about features and quality of that product. In such condition,any copied item would not be able to satisfy the person’s needs. Jain, Khan and Mishra, (2015)2

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