The luxury goods market is incredibly lucrative. Most studies on counterfeiting have tended to focus on the supply side. In recent years, however, there has been greater interest in studies pertaining to the demand side of the counterfeit business. There are many different reasons why people are motivated to consume counterfeit products.

Clearly the status symbol created by the brand is one motivator. People want to buy into it even if they can’t afford to buy the brand itself. The second reason is related to the channel of distribution. Often these brands are simply not available in the local market or are only available in select stores. Perhaps the most important reason is the price. Consumers tend to buy fake goods in order to avoid paying what they perceive to be inflated prices.

9-1. Are customers victims of deception when they buy counterfeit goods or is it something different? Are they in some way complicit?

9-2. Would you knowingly buy counterfeit goods? Explain.

9-3. Consumers will buy counterfeit products purely for its visual attributes and functions, and not the quality. Do you think this would create a problem?