Fighting Counterfeits in Emerging Markets through the Demand Side: The Role of Product Domain in the Effect of Regulatory Fit on Persuasion

Abstract

Anti-counterfeiting strategies primarily target the supply-side. The majority of studies on demand side strategies focused on developed-country consumers. This paper aims to examine ways to reduce counterfeit drug consumption by analyzing emerging markets from the consumers’ demand side. In addition, this research is one of the first to provide empirical support for the notion that in persuasion, the product’s domain matters, when it comes to regulatory fit. Consumers frame product domains in terms of approach or avoidance. If the framing of the message fits the product domain, it becomes more effective, more persuasive and even reduces purchase intentions regardless of individual’s motivational regulatory state. We show that the most effective combination for advertisers and marketers, in emerging markets context, to reduce demand for counterfeit drugs, is to apply a fear/avoidance ad coupled with a prevention goal, regardless of individuals’ motivational regulatory state.