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Country matters: Executives weigh in on the causes and counter measures of counterfeit trade

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  • Stumpf, Stephen A.
  • Chaudhry, Peggy

Abstract

In this article, we present the findings of a study examining the exploding problem of counterfeit trade via the opinions of U.S. executives as compared to their counterparts from Australia, New Zealand, South Africa, and Tahiti. Their responses provide insight as to how companies in different countries are attacking piracy and consumer complicity with counterfeit products. Per our study, executives in Australia, Tahiti, and the U.S. had similar perspectives: they viewed the seller as the main driver of counterfeit trade for reasons of profit. These executives perceived the demand for counterfeits as being driven by desirable product attributes and the ease of obtaining them. Likewise, they cited two anti-counterfeiting actions--site licenses and reduced price/rebates--as being able to reduce the demand for illicit products. In contrast, South African executives observed the main reason for piracy as weak enforcement of intellectual property (IP) and the lure of exorbitant profits, with little value in any anti-counterfeiting actions other than special packaging. These executives put forth that South African consumers are complicit due to limited education and low disposable income, and the ready availability of counterfeits. Executives from New Zealand were the most optimistic, believing that piracy and complicity can be reduced by many anti-counterfeiting actions, including special packaging, reducing price, emphasizing product benefits/warranties, stressing the harmful effects of using fake products, offering site licenses, and listing of authorized sellers.

Suggested Citation

  • Stumpf, Stephen A. & Chaudhry, Peggy, 2010. "Country matters: Executives weigh in on the causes and counter measures of counterfeit trade," Business Horizons, Elsevier, vol. 53(3), pages 305-314, May.
  • Handle: RePEc:eee:bushor:v:53:y:2010:i:3:p:305-314
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    References listed on IDEAS

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    1. Yang, Deli, 2005. "Culture matters to multinationals' intellectual property businesses," Journal of World Business, Elsevier, vol. 40(3), pages 281-301, August.
    2. Nill, Alexander & Shultz II, Clifford J., 2009. "Global software piracy: Trends and strategic considerations," Business Horizons, Elsevier, vol. 52(3), pages 289-298, May.
    3. Chaudhry, Peggy E. & Zimmerman, Alan & Peters, Jonathan R. & Cordell, Victor V., 2009. "Preserving intellectual property rights: Managerial insight into the escalating counterfeit market quandary," Business Horizons, Elsevier, vol. 52(1), pages 57-66.
    4. Yang, Deli & Fryxell, Gerald E. & Sie, Agnes K.Y., 2008. "Anti-piracy effectiveness and managerial confidence: Insights from multinationals in China," Journal of World Business, Elsevier, vol. 43(3), pages 321-339, July.
    5. Chaudhry, Peggy E., 2006. "Changing levels of intellectual property rights protection for global firms: A synopsis of recent U.S. and EU trade enforcement strategies," Business Horizons, Elsevier, vol. 49(6), pages 463-472.
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    Cited by:

    1. Cesareo, Ludovica & Stöttinger, Barbara, 2015. "United we stand, divided we fall: How firms can engage consumers in their fight against counterfeits," Business Horizons, Elsevier, vol. 58(5), pages 527-537.
    2. Li, Ling, 2013. "Technology designed to combat fakes in the global supply chain," Business Horizons, Elsevier, vol. 56(2), pages 167-177.

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