Counterfeit Demand and the Role of the Consumer

Consumers can take many different roles in counterfeit trade. They may buy counterfeit goods knowingly or in the belief that they are purchasing genuine products, they may try to ensure obtaining only original articles or invest considerable effort in acquiring less expensive fakes, and they can even become actively engaged in selling illicit products themselves. In fact, understanding their multifaceted roles is essential for evaluating the implications of counterfeit trade and for developing effective consumer information programs.

The following chapter aims to provide the essential insights into consumer behavior in markets where counterfeit products are available. We investigate the awareness and the willingness to purchase such goods, and we analyze the motives of those who intentionally buy fakes. The survey-based findings enable licit manufacturers to assess counterfeit-related risks for specific product categories and help to identify those buyers who are likely to intentionally purchase illicit goods, thus showing where relying on the consumers’ help is or is not expedient. Furthermore, the investigation of consumers’ reasoning for and against intentional purchases of fakes helps to find arguments to effectively influence public opinion on counterfeit trade. The empirical data also allows conclusions to be drawn on whether counterfeit consumers and consumers who do not purchase illicit goods form two distinct groups, or whether and to what extent both groups overlap, thus helping to develop a better understanding of alternative buying behavior and substitution effects.