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

Abstract

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.