Asymmetrical effects of past experiences with genuine fashion luxury brands and their counterfeits on purchase intention of each

Abstract

As counterfeiting activity continues to thrive around the world, marketers of fashion luxury brands work hard to discourage counterfeiting and to protect their revenues. This research evaluates the business risk related to fashion counterfeit consumption behavior by examining the effect of past experiences with counterfeit luxury brands (CLBs) and genuine luxury brands (GLBs). Based on survey data from five designer fashion product categories, Study 1 finds an asymmetrical effect that past experiences with GLBs are negatively related to purchase intention of CLBs, whereas past experiences with CLBs do not relate to purchase intention of GLBs. Study 2, based on experimental data from two luxury handbag brands with realistic price information, confirms the results of Study 1. This study also discusses research and managerial implications.