The Influence of Logo Exposure in Purchasing Counterfeit Luxury Goods Focusing on Consumer Values

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The Influence of Logo Exposure in Purchasing Counterfeit Luxury Goods Focusing on Consumer Values
Jung-Min Han, Hyeon-Jeong Suk, Kyung-Won Chung Department of Industrial Design, Korea Advanced Institute of Science and Technology Abstract: This study attempted to identify differences in consumer’s pursued values when purchasing counterfeit luxury products using questionnaire and interview data. As brand names and brand logos of luxury goods significantly influence to customer buying behavior, this study focused on logos, an important element of brand and design. The hypotheses concern four value factors pursued in purchasing luxury products: conspicuousness, aesthetic appeal, durablility, and conformity. Data were analyzed using both quantitative and qualitative methodological approaches. A Survey instrument was designed to discover how consumer’s values influence their preferences in terms of exposure of logo. Personal interviews were conducted first and a survey was followed. Based on a quantitative analysis of a questionnaire given to 127 university students, a statistical analysis was conducted. Specifically, it was found that people’s preferences in non logo-exposed products does not correlate with actual purchase. Furthermore, a comparison between female students of Ewha Woman’s University and KAIST revealed that, even though the participants’ education level is similar, environmental conditions affected the consumer’s values, attitude, and intention to purchase counterfeit products. Finally, 122 people were divided into 6 groups of different consumer value type. It was found that there exist statistical differences of attitude and intention to purchase counterfeit products between the groups. Keywords: Counterfeit luxury goods, Consumer values, Brand logo

Ⅰ. Introduction The size of the market for luxury brands has been expanding and is currently estimated to be more than thirty billion dollars in Korea, as reported by the Fashion channel in a program entitled “Imported luxury market is increasing”, in 2007. Accordingly, not only the number of people who are willing to purchase luxury goods, but also that of people who admit to buying counterfeit product is increasing. Despite that luxury brands, such as Laura Ashley, Louis Vuitton, Cartier, and Revlon use extensive networks of lawyers and private firms to protect their markets worldwide (McDonald & Roberts, 1994), counterfeit products are still actively traded in the gray market. Consequently, the characteristics of consumer behavior in choosing counterfeit products have attracted substantial critical attention. Consumer’s preference in the counterfeit market is a complex issue that has not yet been definitely clarified. With the growth of the counterfeit market, research on why consumers buy counterfeit products is needed. The present study compares several counterfeit luxury products with and without logo exposure based on consumer’s pursued values. In exploring the influence of logo exposure in purchasing counterfeit luxury goods, the scope of this paper is limited to consideration of the effect of logos. A logo has a significant effect on customers and is an important element of brand and design. As luxury goods are symbolic, brand logos are significantly influential on customers. Most previous studies about counterfeit goods have focused solely on brand image or brand name (Delener, 2000). Ⅱ. Literature Review

1. Definition of Luxury Goods and Counterfeit Goods Luxury goods are increasing in prevalence especially as consumers’ buying behavior is becoming more symbolized. Consumers purchase luxury products to set themselves apart and express their personality(Nia & Zaikowsky, 2000). Luxury goods or status goods have been defined as goods for which the mere use or display of a particular branded product brings prestige on the owner, apart from any functional utility (M.Grossman & Shapiro, 1988a; Nia & Zaikowsky, 2000). Luxury goods are expensive in...
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