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Business strategies in the counterfeit market

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  • Staake, Thorsten
  • Thiesse, Frédéric
  • Fleisch, Elgar
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    Abstract

    Counterfeit trade is a multi-billion dollar industry affecting an ever-wider range of goods and markets. Despite the diversity of counterfeit products in terms of complexity, manufacturing techniques, investments in production facilities, potential dangers or value for the users, and degrees of conflict for the counterfeit producers with the local authorities, current academic literature still refers to counterfeit producers as one homogeneous group. Against this background, the present study investigates the existence of strategic groups among counterfeiters based on an empirical examination of counterfeited products using cluster analysis. The results indicate that brand owners are confronted with five different groups of counterfeiters: (1) disaggregators, (2) imitators, (3) fraudsters, (4) desperados, and (5) smugglers. The findings of this study contribute to a more differentiated understanding of each group's learning and growth strategies and help practitioners to better position their companies with respect to the counterfeit market.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0148296311001032
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 65 (2012)
    Issue (Month): 5 ()
    Pages: 658-665

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    Handle: RePEc:eee:jbrese:v:65:y:2012:i:5:p:658-665

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    Web page: http://www.elsevier.com/locate/jbusres

    Related research

    Keywords: Counterfeit trade; Strategic groups; Anti-counterfeiting; Brand protection;

    References

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    1. Gene M. Grossman & Carl Shapiro, 1988. "Counterfeit-Product Trade," NBER Working Papers 1876, National Bureau of Economic Research, Inc.
    2. Grossman, Gene M & Shapiro, Carl, 1988. "Foreign Counterfeiting of Status Goods," The Quarterly Journal of Economics, MIT Press, vol. 103(1), pages 79-100, February.
    3. Cordell, Victor V. & Wongtada, Nittaya & Kieschnick, Robert Jr., 1996. "Counterfeit purchase intentions: Role of lawfulness attitudes and product traits as determinants," Journal of Business Research, Elsevier, vol. 35(1), pages 41-53, January.
    4. Harvey, Michael, 1988. "A new way to combat product counterfeiting," Business Horizons, Elsevier, vol. 31(4), pages 19-28.
    5. Olsen, Janeen E. & Granzin, Kent L., 1993. "Using channels constructs to explain dealers' willingness to help manufactures combat counterfeiting," Journal of Business Research, Elsevier, vol. 27(2), pages 147-170, June.
    6. Higgins, Richard S & Rubin, Paul H, 1986. "Counterfeit Goods," Journal of Law and Economics, University of Chicago Press, vol. 29(2), pages 211-30, October.
    7. Jen-Te Yao, 2005. "Counterfeiting and an Optimal Monitoring Policy," European Journal of Law and Economics, Springer, vol. 19(1), pages 95-114, January.
    8. Wilke, Ricky & Zaichkowsky, Judith Lynne, 1999. "Brand imitation and its effects on innovation, competition, and brand equity," Business Horizons, Elsevier, vol. 42(6), pages 9-18.
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