Understanding Word-of-Mouth in Counterfeiting

Abstract

Counterfeiting is a significant and growing problem in both growing and well developed countries. Since the promotion of counterfeits cannot use public media, it is interesting to investigate how people exchange information and finally affect the sales of counterfeit. Although role of word-of-mouth (WOM) has been studied for many years for brand or well known products, limited attention has been given to explore its role in counterfeiting. To further the understanding of this issue, the present study developed a self-report scale measuring consumer motivations for opinion seeking and giving in counterfeiting. We surveyed Indian and Taiwanese customers and found the following results: 1) WOM has significant role in locating counterfeit products; 2) WOM cannot considered as best purchasing driver; 3) referral marketing does work and people share their opinion among strong tie; 4) the impact of PWOM is generally greater than NWOM; and 5) most consumer share opinion that it is unethical to purchase counterfeit products. The authors then discuss the implications of this research and offers recommendations for marketers of brand products.

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