So, why are counterfeit products such a big deal? I understand that many people might be thinking; “how different can products be if they look the same? People buy knock off Gucci bags and Goose jackets all the time. “So what if it isn’t the real deal, people save a lot of money, and the look and function just fine.” Sure, an unraveling stitch on a bag or jacket that you knew beforehand was counterfeit is one thing, but is that all of the dangers of a product such as that? What about the products or components that you DON’T know are counterfeit. Counterfeiting is a 700 billion dollar industry and is being recognized globally as a dangerous economic problem. There is a good chance that the counterfeit item you purchased is helping the production of other counterfeit products or even organized crime. Counterfeiting goes way beyond fashion, it is in every category of product, no matter how real and safe you may think they are. There are counterfeit products in electronics, architecture, motor vehicles, aviation, military, medicine, and the list doesn’t stop there. Counterfeit products can have major safety issues. Counterfeit electronics aren’t just that iPhone that you bought that broke in 1 month, or that high end PC, at a fraction of its original price that you just couldn’t resist, they are also components, electronic parts that you don’t know about. The rising numbers of counterfeit electronic parts in the supply chain costs the Canadian and US government billions of dollars each year, but the problem is not limited to government agencies. Consumer and Industrial businesses are losing approximately a quarter of a billion dollars each year because of counterfeit components. In addition, these counterfeit components are creating ... ... middle of paper ... ... brand name, and profit off the goodwill and recognition that the brand has built up. This can quickly cause irreparable damage to the brand and the brand’s reputation. The competition between the brand and the counterfeit product leads to more resources being spent on counterfeit detection methods that go directly to prices the consumer pays. Counterfeit products don’t only effect businesses. They affect everyone, robbing Governments, and even society, of tax revenue, income, and jobs. The flood of counterfeit and pirated products create drain on the economy that deprives the government of tax revenue for essential public services and puts a greater burden on the taxpayer. The competition between the authentic product and the counterfeited product means is killing the western manufacturing, and putting at risk the towns that rely on manufacturing jobs for income.
Wars, complete with spies and lawyers masquerading as foot soldiers, rage ceaselessly in American homes. Some are as foreign as Samsung and Apple’s technology infringements, making headlines with fines and court declarations. Others deliver mail warnings against infringement for tracked, pirated media. But a more widespread and unnoticed battle grips the fields, supermarkets, and kitchens of America.
On late August of 2007, Dana Thomas writes to the general public on the horrors made possible by the buying and selling of counterfeit fashion goods to persuade the end of the consumerism funding monstrous acts. Through the incorporation of ethos, logos, and pathos in her journalism, Thomas persuades her audience with the uncoverings of the sources behind the making of the counterfeit goods.
Companies realize what people need and they take it as sources to produce commodities. However, companies which have famous brands try to get people’s attention by developing their products. Because there are several options available of commodities, people might be in a dilemma to choose what product they looking for. In fact, that dilemma is not real, it is just what people want. That is what Steve McKevitt claims in his article “Everything Now”. When people go shopping there are limitless choices of one product made by different companies, all choices of this product basically do the same thing, but what makes them different is the brand’s name. Companies with brands are trying to get their consumers by presenting their commodities in ways which let people feel impressed, and that are some things they need to buy. This is what Anne Norton discussed in her article “The Signs of Shopping”. People are often deceived by some famous brands, which they will buy as useless commodities to feel they are distinctive.
Secondly luxury products are easy to counterfeit, some countries such as china, turkey, and other still have to improve their IPR policies
When products are “killing machines”, we should tighten measures to keep them away from criminals.
Consumer attitudes are influenced by social pressure which is inclusive of informative and normative susceptibility (Ang, et al., 2001; Bearden, Netemeyer, & Teel, 1989; Wang, Zhang, & Ouyang, 2005). Normative consumers are more concerned with impressing others and ensuring that their behaviors are based on the expectations of others. Since counterfeiting is an unethical and illegal activity and involvement in such an activity does not project a positive image, therefore normative consumers would have negative attitude towards counterfeit products (Ang, et al., 2001; Lord, Lee, & Choong, 2001; Penz
Hasbro faces a significant threat from counterfeits of its products. As the market for toys and games is increasing globally, the parallel market for counterfeit toys is also on the rise. Such activity rises especially during the festive months when toy sales are expected to be high. Counterfeits pose a threat to the toys and games market, not just in terms of lost business and brand dilution, but also by selling products that can be potentially dangerous to children of all ages. Low quality counterfeits reduce consumer confidence in branded products like Hasbro. Counterfeits not only deprive revenues for the company but also dilute its brand image.
Copyright infringement and fake products are causing both financial and brand recognition issues for big manufacturers, because of the low quality that makes the actual product look un useful.
2006). Burberry’s product line, especially the famous trademark plaid, unfortunately, is not difficult to imitate, the development of “fake Burberry” affects their revenue. In 2010, Burberry won $1.5 million in counterfeit case (Matthew 2010), but the counterfeit apparel and accessories is still the key issue for all major luxury brand (Maman 2012).
Political/Legal: A company’s brand image may be the single most important thing when it comes to the company. Each and everyday a lot of money is spent on making sure that image isn’t tarnished, infringed on by illegal activities. Every year it is estimated that there is 300 billion dollars in sales of counterfeit goods. Also as markets continue to grow, relationships can change effecting for example tariffs.
Are items created for profit physically any different from their “authentic” counterparts? At an atomic level, perhaps, but the untrained eyes of most tourists would probably not find any dissimilarities between a mass-produced mask and a more “authentic” one. Yet we as a society treat economically motivated primitive art as different from the primitive art actually used in rituals, which indicates that economic motivations can definitely influence our perceptions of art. This realization still brings us back to the question posed in the last paragraph, however: why would people treat Renaissance art as valuable and advertising as beneath their notice if both have economic motivations behind their
Even though the products are similar, quality and price is important to customers when choosing which brand to buy. In order to keep their loyal customers, they have to prove to them that they could provide inferior quality and come up with new ideas for designs that would keep them interested. Under The brand has to strive to be better than the other rivalries in order to successful in an industry like this.
When comparing prices, consumers can find the exact same style Nike boot in Adidas and pay a lower price. Essentially what the consumer is paying extra for is the Nike brand. Looking back at my journal you can see I wore the Adidas boots one time, then went out and bought Nike boots. “Brand loyalty is based on an emotional connection toward the brand and a conscious commitment to find this brand each time the consumer purchases from this category.” 112 Brand Promotion I could have worn the Adidas boots for free but I spent the time and money to go purchase the Nike brand. “brand loyalty and advertising work together to create another important economic effect related to pricing flexibility and profits. When consumers are brand loyal, they are generally less sensitive to price increases for the brand.” 45 Advertising and Integrated Brand Promotion Being able to raise prices but still keep the consumer market is very valuable. This is one of the main reasons brands strive to have brand loyal
Reviewing the existing literature on this topic, this essay attempts to look at the scale of counterfeiting, the reasons for its growth and the consumer’s attitudes towards counterfeited products. It also provides information about how the counterfeit market poses challenges for customer-brand relations and the strategies that brands can implement to overcome these challenges.
Not only do black markets damage the economic stability of the countries they operate in, they also hurt the legally acquired economic gains of competing marketplace sellers. Legal sellers cannot compete with the prices or products of black markets and thus they lose gains that could be made without the operation of the black market.... ... middle of paper ... ... Works Cited Gwartney, J. D. (2013).