Abstract
Counterfeiting of fashion brands is a multi-billion dollar industry with an increasing number of goods being counterfeited. This research takes a demand-side approach to measuring counterfeiting activity among tourists in Hong Kong. Non-deceptive counterfeit purchases by tourists in Hong Kong amount to US$761.32 million per year. Tourists’ decision of whether to purchase counterfeit goods depended on a mix of extrinsic and intrinsic factors including psychometric variables, trip-related characteristics, and sociodemographics. Lowering the prices of genuine goods and explaining the risks of purchasing counterfeit goods would be the most effective anti-counterfeit measures. However, lowering the price of genuine goods can diminish the brand image of these luxury items.
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