Consumer Choice of Counterfeits or Generic Products: The Case of Egypt

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The counterfeiting market is increasing at an alarming rate because consumers are often unwilling to pay for brand names. This study investigates the factors that influence consumers’ preferences toward counterfeit and generic products by studying Egyptian consumers. By surveying a sample of 271 consumers, our study concluded that demographic variables, perceived risk, and prior experience are insignificant factors in choosing counterfeits or generics, while price, taste and preferences, quality, the price of related products, subjective norms, and expected prices are variables that significantly affect consumer preferences and demand. The research concludes that consumers who care about the quality, expected prices, and the price of related products are more likely to purchase generics, whereas consumers whose tastes and preferences are primarily influenced by others’ expectations, prestige, and acceptance are more likely to purchase counterfeits. These conclusions match the expected relationships between those who are influenced by external variables such as prestige and those who are not and their tendencies to prefer counterfeits or generics. Finally, price affects consumer demand negatively, and the price of related products and expected prices affect consumers’ preferences positively toward generics and negatively toward counterfeits.