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CHAPTER FOUR CONSUMING COUNTERFEIT GOODS

CHAPTER FOUR CONSUMING COUNTERFEIT GOODS. Fake Stuff. © 2011 Taylor and Francis. Key Ideas. The Supply and Distribution of Counterfeits Policing Counterfeiters Consuming Counterfeit Goods. © 2011 Taylor and Francis. The Supply and Distribution of Counterfeits.

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CHAPTER FOUR CONSUMING COUNTERFEIT GOODS

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  1. CHAPTER FOURCONSUMING COUNTERFEIT GOODS Fake Stuff © 2011 Taylor and Francis

  2. Key Ideas • The Supply and Distribution of Counterfeits • Policing Counterfeiters • Consuming Counterfeit Goods © 2011 Taylor and Francis

  3. The Supply and Distribution of Counterfeits • Means: fishing boats, cargos, operations conducted on the internet • Example: Regional Flows of Counterfeit Goods from Manufacturer to Taiwan (See the next page for illustration)

  4. Policing Counterfeiters • Regional Protectionism: the efforts of local government to protect local counterfeiting operations given their importance to local economic activity.

  5. Reasons to Consume Counterfeit Goods • Cultural Capital • Status Insecurity • Self Concept • Value Consciousness • Materialism • Conformity • Affordability • Fashion Consciousness • Ethics • A Quest for Otherness • Gift-Giving

  6. Cultural Capital • Cultural capital refers to institutionalized, or widely shared, high status cultural signals used for social and cultural exclusion. The list of the signals include attitudes, preferences, formal knowledge, behaviors, goals and credentials, while the exclusionary property of cultural capital makes it highly coveted. • A small number of these consumers with cultural capital expressed feelings of shame for buying fake products; most of them fingered the brand names as unethical.

  7. Status Insecurity • Status-seeking is a universal and often advantageous behavior for one to increase his power and influence in social relationships, gain access to future resources and demonstrate his competency and ability to others. • consumers may conspicuously consume goods simply to avoid the appearance of being low-class.

  8. Status Insecurity (cont’d) • The consumption of counterfeit goods potentially enhanced the perceived welfare of low-income consumers, depending on the extent to which the eye of the beholder can be deceived. (Luuk van Kempen 2003)

  9. Self Concept • Self-concept refers to how one defines himself by internalizing and integrating personal qualities and other characteristics. • Research shows that consumers who buy brand products are self-conscious and especially concerned about the impressions they make. • Consumers who buy counterfeits are similarly concerned about their impressions, although those images they project betray a tension between an original identity and a borrowed appearance.

  10. Value Consciousness • Value Consciousness refers to “a concern for price paid relative to the quality received.” • Some consumers of counterfeit products have described the fakes as providing “more bang for the buck.” Others may ignore counterfeit luxury labels and select non-luxury goods because they belief that the prestige of a label does not enhance quality and may increase price.

  11. Materialism • Materialism refers to a set of centrally held values, related traits and attitudes focusing on the importance of possessions in one’s life and guiding the selection of events and things. The materialists also prefer an authentic luxury label category over a counterfeit because of their strong association of self-esteem with purchase category. • Research shows that in Hong Kong and Shanghai, one’s tendencies of conformity and materialism do not affect the level of buying counterfeit goods.

  12. Conformity • Conformity refers to social pressures which encourage individuals to follow the norms and rules or, in some cases, to break them. Asians are prone to such conspicuous consumption in order to conform to the expectations of others regarding purchase decisions.

  13. Conformity (cont’d) • But a conflicting tendency of abasement coexists in the Chinese culture: paradoxically, being identified as a pirate buyer makes people lose face, and buying popular brands may not be considered modest. In Shanghai and Hong Kong, pirated products were mainly purchased for the buyers themselves or their family. If pirated gifts are given to friends, the giving of such a gift result in loss of face for the giver.

  14. Conformity (cont’d) • Research shows that Shanghai buyers have more conformity motivation than Hong Kong buyers. Consumers in Shanghai believe that brands and images are essential to the “good things in life.” To the contrary, Japanese consumers are prone to conform to the social norms that luxurious accessories became necessities to “fit in.” Some Japanese teenagers would even sleep with middle-aged salarymen just to get money together for that all-essential luxurious purse.

  15. Affordability • Previously, price was seen as the main motivator for consumers to buy pirated goods. • For the Chinese migrant workers who earn several hundred bucks a month, brand names are unaffordable luxuries. The functionality of consumer goods is almost always emphasized by consumers, due in part to the fact that these consumers are from lower income groups.

  16. Affordability (cont’d) • But for the middle class shoppers like my friend Claire, a Board Supervisor of a major profitable, public company in Taiwan, when she said “brand names are unaffordable” conveys her principle that being frugal is a virtue. Ironically, lowering prices of legitimate brands to comparable levels of the fakes mislead consumers to think the original products are pirated. • Price, instead of quality, became an indicator for distinguishing pirated goods from original goods for some consumers.

  17. Fashion Consciousness • Fashion consciousness refers to a person’s degree of involvement with the styles of fashion of clothing. • Research shows that young people tend to have a strong fashion consciousness to communicate their maturity and adultness. Young people also have desire to buy prestige fashion products to establish their identity and gaining prestige among the peers. This led to the frequent use of fake products among college students.

  18. Ethics • Affluence and past affiliation with ethical groups are better predictors of the consumer’s ethical stance. (Belk, Devinney and Eckhardt 2005)

  19. A Quest for Otherness • “Shopping for counterfeit goods is a relaxing activity for a getaway trip.” (one informant, Julie)

  20. Sociality • Counterfeit goods are popular gift-giving choices in Japan, U.S. and Taiwan.

  21. Shenzhen: Luohu Mall • The banner reads “Battle the fake sales until they disappear!”But many shoppers carry suitcases for fake shopping.

  22. Glances of Shenzhen

  23. Glances of Yiwu

  24. Glances of Yiwu

  25. Glances of Yiwu

  26. Glances of Yiwu

  27. Shanghai • Science and Technology Museum metrol station mall. The electronic bulletin reads” enforcing IPR and battle counterfeiting to build commercial trust.”

  28. Shanghai

  29. Taipei

  30. Taipei

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