Effects of Counterfeit Goods on Customer Preferences

Effects of Counterfeit Goods on node PreferencesThe purpose of this seek is to observe the guest tastes of Pakistani people towards the counterfeit intersection points in regards of musical mode accessories and their purchase behavior and how does it affect the current discolourations. The people of Pakistan ar considered to seduce distinctively contrary views towards the international instigants as all of them want to practice those brands moreover cannot afford it. Therefore they shift towards the counterfeit proceeds of those brands. The primary(prenominal) purpose is to see which parts play substantial manipulation in mold the guest preference, how it resultant role their purchase behavior and find come in which factor helps the sea captain brand in combating against counterfeit product. This interrogation would help to run across the collaboration among counterfeit products and their respective master copy brand.BackgroundPeople of Pakistan be beco ming more and more aw ar of brands due to the globalization. People atomic number 18 exposed to many brands and that is leading towards a trend that everyone wants to use a branded product and if they cannot afford it they flip towards the counterfeit products of that brand. Fashion patience has boomed over the years which means many diametric brands ar innovate into the market. Pakistani youth is following modal value and brands argon there to go them. Our acres has a huge power distance in the sparing which means that not all of us can afford to amaze branded products to fulfill our expect to follow fashion, therefore due to this resole reason counterfeit diligence is increasing day by day.Pakistan is bedded as 44th country in total losses in net income due to counterfeit products. Total of $358 million losses in net income is recorded due to counterfeiting which shows that counterfeit persistence has grown in past few years. This indicate that the acquire behavio r of the customers has shifted towards the counterfeit products quite an than the genuine brand, but to which extend that cannot be determined. (Havoc scope, 2012)Pakistani fashion industry is rapidly grown industry with all of its commercial and cultural aspects. Interestingly, worry other industries in Pakistan, Pakistan fashion industry has never seen the fall in its history. The popularity, success and liking of this huge enterprise are because of the urge of hands and women to look stylish and up to dated. So it has been widely accepted, appreciated confessing the convinced(p) role of Pakistani fashion industry in raising knowingness about the latest fashion among people of all classes. Certainly, Pakistan fashion industry is touching its height, striving to get more and more appreciation on international level, but on the other hand, it has to counsel more on the marketing tactics (besides improving more and more) to occupy international market. (Fashion47pk, 2012)The o ntogenesis menace of counterfeit products has become a serious problem for clouders and producers of degenerate moving consumer goods, so the countrys law enforcement agencies must acquire the ability to inquire this white-collar crime, says an expert. According to an international report about 65% of the goods organism sold in the country are fake, which are harming the consumers, producers and the economy, said by a leading Intellectual Property Lawyer, who was appointed by knowledge domain Intellectual Property Organization (WIPO) to draft rules for intellectual property laws of Pakistan. (APP, 2012) essentially this inquiry is a tentative study of Pakistani customer preference towards counterfeit products, their purchase behavior and how does it affect the original brand, thus aid us to understand the descent between the counterfeit products and the original brand.Chapter 1IntroductionThe purpose of this research is to understand the consumer preference criteria of the co unterfeit products of the original brand. Pakistans fashion industry is growing and everyone is getting aware about the brands and the need is dictated to accessorize in the daily life. Due to the social media and social networking the consort pressure is increasing and the youngster would do anything to fit in. Economic conditions of Pakistan are fluctuating due to which everyone cannot afford to obtain branded accessories so they switch to counterfeit. Price is the major factor in the usage of counterfeit but the question rises that which factors contribute in developing the customer preference, customer purchase behavior and how does they affect the original brand.Our research would be the combination of different research methods. In correlational research method we would conduct a systematic investigation of the impact of counterfeit products on the preference of customer, their purchasing behavior therefore its moment the original brand and the survey lance exit be uti lise. Experimental research method would be used to conduct the quasi experiment and double blind testing as there result would provide a conclusive result of the interdependency of the variable include in the research.In general our research would be the mixture of twain qualitative and quantitative research therefore we will use the method of triangulation thus giving us a resistant spectrum for finding their absolute results. In triangulation approach we will use both the technique that is the data and methodological approach because by using different methods, data sources we can counterbalance bias characteristic in a specific data source.Now coming towards the industry in which our research would be conducted and that is Fashion industry. Fashion industry is very vast it includes cloth, feign up, shoes, accessories, furniture and body piercing. Fashion industry started booming in Pakistan and the mountainous advantage it gained was that it had the glimpse of various civil izations in it. The remarkable change in the Fashion Industry of Pakistan started with the beginning of 21st century, when the young designers tried to empower a new direction to fashion in Pakistan. Our research would focus on the accessories segment of the fashion industry. Due to globalization every country is bombarded with international brands and the level of competition has gone up. Now Pakistani designers are known in international markets and many international shows feel majestic to invite them, this not barely remedys the content of their runway, but also projects the cushy image of the country as a talented young generation. In Pakistan both the domestic and international brands of this segment has created a buzz which in result created a wave in the youth of our country. Everyone is accessorizing to fit in and using these different brands helps them to acquire a status co which would differently take time without these brands.Therefore our research would help us in determining the factor that drives the customer preference, the factors that control their purchasing behavior and would bring out their roles which would be a set of guidelines for the original brands that will not only provides them in functionation to combat with counterfeit but also how to avoid the mental process on the whole.ScopeOur research would be steered in accessories segment of fashion industry because in this segment counterfeiting is most common in our country. Our tribe would be the twin cities (Islamabad, Rawalpindi) because in both cities major markets the counterfeit products and original brands are coexisting. This research would be beneficial to major brands whose market pct is being damaged by these counterfeit products.ObjectiveOur research revolves close to the effect of counterfeit products on specific attributes and their impact on original brand so our objective would beGeneral objectives take on out the factors that affect the perception of a brand or counterfeit products.Find out reasons for a customer purchasing behavior towards a brand or counterfeit products.Notice external factors that may take role in the relationship among counterfeit products and their respected brands.Specific objectivesConduct a double blind testConduct a quasi-experiment (per and post design) fix up a focus groupResearch manikinThe homunculus that is press release to be used in this research would be a blend in of elements that are affecting the major attributes. The structure of the model would start form the counterfeit products factors or aspect that are going to influence the customer. Customer main perspective that would be looked upon is their preference and their buying behavior then(prenominal) their effect onto the original brand. The main model would be likeThis model can further be break down into smaller model explaining the processes and proving the assumed hypothesis.Definition of termsThe main terminologies used in this research can be defined asCounterfeit ProductThey are the fake replicas of the original brand it includes any product containing an unauthorized agency of a trade mark or logo. Counterfeit product tricks the customer in making them believe that they are purchasing a legalize product as it has similarities with the original brand and they are not easily differentiated. They are created to take advantage of the established worth of the original brand and grab their market share. In general it is the practice of manufacturing goods, often of wanting(p) quality, and selling them under a brand name without the brand owners authorization.Customer PreferenceIt can be define as the likeness or the choice of selecting product over the other product. If a customer broadly likes a product, it can stay around for years and sell millions of copies. However, if customer do not likes the product, it could disappear very quickly. Customer preference is no doubt dependent upon culture, education, and in dividual tastes and among a plethora of other factors. It permits the customer to rank products according to the levels of utility they give the consumer.Customer Purchasing sortIt can be assumed as the decision process by which customer search, select, purchase, use, and dispose of goods and services, in satisfaction of their needs and wants. This behavior is driven by the cultural, social, personal and psychological factors. Since every person in the humans is different, it is impossible to have simple rules that explain how purchasing decisions are made. So put it simply it comprise of how people buy, what they buy, when they buy and why they buy it.Research QuestionThis research would emphasis on these simple questions that areDo counterfeit products create such a habitual buying behavior that consumers dont revert back to original brands even if they are fling better features?Determine what factors play important role in establishment customer preference with respect to coun terfeit products?Determine which factors play important roles in influencing customer purchasing behavior with respect to counterfeit products?What are the factors shifting customer preference towards counterfeit goods?Effects of counterfeit product on customers who are used to buy original brands?What factors will improve the image of original brand and help in combating against counterfeit product used by different companies?HypothesisH0 Counterfeit products dont effect the customers who buys original brandH1 Counterfeit products does effect the costumers who buys original brandH0 Customers who are way conscious do not have a positive relationship with intensity to buy counterfeit productH1 Customers who are appearance conscious do have a positive relationship with intensity to buy counterfeit productH0 Counterfeit products appearance do not effect customers preference towards the original brandH1 Counterfeit products appearance do effect customers preference towards the origina l brandH0 The use of counterfeit product do not shift the customers preference of original brandH1 The use of counterfeit product do shift the customers preference of original brandH0 materialism towards counterfeit product has positive influence on customer purchasing behaviorH1 Materialism towards counterfeit product has negative influence on customer purchasing behavior