Enthusiasts of upscale fashion and luxury items often prioritise distinguishing between authentic and counterfeit products. However, the question remains: Does their perceived expertise influence their likelihood of engaging with counterfeit items? This query is paramount to marketing managers in the luxury sector, battling against the proliferation of counterfeit goods—a market projected to balloon to a staggering $1.79 trillion by the decade’s end.

“Lots of consumers recognise the ethical problems associated with counterfeits, yet continue to buy them despite knowing it’s wrong,” commented Ludovica Cesareo, an assistant professor of marketing at the Lehigh University College of Business. Understanding how an individual’s self-perceived knowledge about luxury items impacts their ethical stance on counterfeits could provide valuable insights for developing effective strategies to address this persistent issue. Cesareo, alongside her colleague Silvia Bellezza from Columbia University, delved into this topic in their recent research published in the Journal of the Association for Consumer Research.

The study posits that the luxury market thrives on consumer beliefs about the products’ quality, craftsmanship, and heritage. The researchers theorised that individuals with extensive “subjective knowledge”—how knowledgeable they perceive themselves in this field—would be less attracted to counterfeit goods. Conversely, those with limited knowledge might find such products more appealing. A series of four experiments that assessed participants’ subjective knowledge and attitudes towards counterfeits revealed that individuals with lesser knowledge were more prone to gravitate towards counterfeit goods.

“Those who are not particularly well-versed in high-end fashion and luxury goods tend to prefer counterfeits more than their more fashion-savvy counterparts and are likelier to promote the original brand on social media,” Cesareo explained. She attributed this tendency to the lesser-known consumers’ greater capacity to disconnect from ethical considerations concerning counterfeits. Individuals often resort to “moral disengagement” to justify actions they know are unethical. This psychological mechanism includes tactics such as ethical rationalisation, spreading responsibility, or minimising the repercussions.

According to Cesareo, consumers with limited knowledge may not fully grasp the origins of the items but remain attracted to the aesthetic and status associated with luxury brands and the social prestige they confer on platforms like Instagram and Facebook. In contrast, those with a profound understanding of luxury goods’ origins, processes, and details tend to maintain consistent ethical views regarding counterfeits. For low-knowledge individuals, it is easier to justify counterfeit purchases. Their rationalisations might range from beliefs that “everyone does it,” that major brands suffer no harm from these lower-market practices, or that their counterfeit purchase is merely “temporary,” until they can afford the real thing.

“Low-knowledge consumers not only overlook the moral aspects of counterfeits but also perceive a greater cost-benefit in purchasing them compared to those with more knowledge,” said Cesareo. The study also found that individuals with limited knowledge could be more readily swayed by messages about the relative morality of purchasing counterfeits. To enhance the robustness of their conclusions, the researchers interviewed leaders in anti-counterfeiting from prestigious luxury brands like Louis Vuitton, Moët Hennessy, Ralph Lauren, and Moncler.

“These managers confirmed that most of their clientele lacks deep knowledge about fashion and luxury goods, are primarily drawn by the brands’ prestige, and do not truly appreciate the brands’ historical, heritage, and craftsmanship nuances,” the researchers noted. The advice to anti-counterfeiting managers is clear: In markets dominated by low-knowledge consumers, efforts should focus on shifting perceptions about the immorality and illegality of buying counterfeits through educational initiatives. This could involve targeted advertising and communication campaigns by governments and other agencies. Conversely, in markets where consumers are more knowledgeable, there should be a push to further enhance their understanding through more informative advertising and communication highlighting the brand’s symbolic imagery and ephemeral qualities and educating about its history and craftsmanship. “Understanding how to tailor anti-counterfeiting strategies based on the knowledge level of the target market is crucial for marketers and brand managers,” Cesareo concluded.

More information: Ludovica Cesareo et al, Knowledge, Morality, and the Appeal of Counterfeit Luxury Goods, Journal of the Association for Consumer Research. DOI: 10.1086/733111

Journal information: Journal of the Association for Consumer Research Provided by Lehigh University