Counterfeit Products

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How Do Consumers Make Their Purchase Decisions Between Genuine and Counterfeit Products?

A Thesis Presented to The Faculty of Graduate Studies of The University of Guelph by TATIANA VASILIEVA ASTRAY

In partial fulfilment of requirements for the degree of Master of Science July, 2011 © Tatiana Vasilieva Astray, 2011

ABSTRACT

HOW DO CONSUMERS MAKE THEIR PURCHASE DECISIONS BETWEEN GENUINE AND COUNTERFEIT PRODUCTS?

Tatiana Vasilieva Astray University of Guelph, 2011

Advisor: Dr. Towhidul Islam

This study sought to provide a theory driven model to explain how consumers make their purchasing decisions between genuine products and products they know are counterfeit. The influences of Goal-Driven Theory, Morality, and Prospect Theory were included as purchase decisions considerations. To measure their influence, while accounting for product attributes, purchasing decisions were assessed in choice sets as provided by Discrete Choice Experiment. Results found support for using Goal-Driven Theory and Prospect Theory to explain consumer purchasing decisions between genuine and counterfeit products. Morality was not a significant factor in the findings. Theoretical contributions and Managerial implications are discussed.

ACHNOWLEDGEMENTS This has been a great journey into my academic pursuits. I‟ve enjoyed learning and developing my skill sets. As this journey comes to an end, I must thank all those who have helped me along the way: I would like to thank John C. for all his love and support in this endeavour, especially during deadlines. I would like to thank my parents, Natalia and Santiago, for giving me an appreciation for knowledge and education. Now that I have my Masters too, our family tradition continues. Daniel, you‟re next! I would also like to thank Samantha T., Amanda P., and D.M. for helping me get my participant numbers up. I would like to thank all the great academic influences I‟ve meet along the way at my time in the University of Guelph. I‟ve had some wonderful discussions, and learnt much about what it means to be a great researcher, teacher, and mentor. I hope to apply the wisdom gained throughout my academic career. Lastly, but not least, I would like to thank my committee Dr. Towhidul Islam, Dr. Vinay Kanetkar, and Dr. Tanya Mark, as well as my defense chair Dr. Paulette Padanyi. Each have helped and challenged me to become a better researcher.

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TABLE OF CONTENTS TABLE OF CONTENTS................................................................................................... iv LIST OF TABLES ............................................................................................................ vii LIST OF FIGURES ......................................................................................................... viii 1.0 Introduction to the Study .............................................................................................. 1 2.0 Literature Review ......................................................................................................... 6 2.1 Counterfeit Consumption – Why the Concern? ........................................................ 6 2.2 Counterfeit Consumption .......................................................................................... 8 2.2.1 Socio-Demographics .......................................................................................... 8 2.2.2 Attitudinal Beliefs and Experience with Counterfeits ...................................... 10 2.3 The Theory of Goal-Driven Consumption .............................................................. 11 2.4 Applying the Theory of Goal-Driven Consumption to Counterfeit Consumption . 15 2.4.1 Symbolic Goals................................................................................................. 16 2.4.1.1 Value-Expressive Symbolic Goals ............................................................ 17 2.4.1.2 Brand...
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