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Effects of Counterfeit Goods on Customer Preferences

The purpose of this research is to see the Customer personal preferences of Pakistani people for the counterfeit products with regard of products and their purchase tendencies and how will it really affect the initial brands. The folks of Pakistan are believed to have distinctively different views for the international brands as all of them want to utilize those brands but cannot find the money for it. Therefore they alter on the counterfeit product of these brands. The main purpose is to see which factors play important role in shaping the client preference, how it influence their purchase tendencies and find out which factor helps the original brand in combating against counterfeit product. This research would help understand the collaboration among counterfeit products and their particular original brand.


People of Pakistan are becoming more and more aware of brands due to the globalization. People are exposed to many brands which is leading towards a style that everyone desires to employ a branded product and if indeed they cannot find the money for it they swap into the counterfeit products of that brand. Fashion industry has boomed over time which means a variety of brands are create in to the market. Pakistani junior is pursuing fashion and brands are there to guide them. Our country has an enormous power distance throughout the market meaning not all of us are able to get branded products to fulfill our need to follow fashion, therefore due to this single reason counterfeit industry is increasing day by day.

Pakistan is placed as 44th country in total losses in net gain scheduled to counterfeit products. Total of $358 million loss in net gain is recorded due to counterfeiting which shows that counterfeit industry has grown in past few years. This indicate that the purchasing habit of the clients has shifted into the counterfeit products rather than the original brand, but to which expand that cannot be determined. (Havoc range, 2012)

Pakistani fashion industry is swiftly produced industry with all of its commercial and cultural aspects. Oddly enough, like other business in Pakistan, Pakistan fashion industry hasn't seen the semester in its history. The acceptance, success and liking of the huge venture are due to urge of women and men to look stylish or more to dated. So that it has been widely accepted, liked confessing the positive role of Pakistani fashion industry in boosting understanding about the latest fashion among people of all classes. Certainly, Pakistan fashion industry is touching its height, striving to obtain additional and more appreciation on international level, but on the other hand, it must focus more on the marketing methods (besides improving increasingly more) to take up international market. (Fashion47pk, 2012)

The growing menace of counterfeit products has become a serious problem for customers and providers of fast paced consumer goods, therefore the country's police agencies must acquire the ability to investigate this white-collar criminal offense, says a specialist. According to a global record about 65% of the products for sale in the country are fake, which can be harming the consumers, producers and the market, said by a respected Intellectual Property Attorney, who was appointed by World Intellectual Property Corporation (WIPO) to draft rules for intellectual property regulations of Pakistan. (APP, 2012)

Basically this research is a tentative research of Pakistani customer inclination towards counterfeit products, their purchasing behavior and how does it affect the initial brand, thus aiding us to comprehend the relationship between the counterfeit products and the initial brand.

Chapter 1


The reason for this research is to understand the consumer inclination criteria of the counterfeit products of the initial brand. Pakistan's fashion industry keeps growing and many people are getting aware of the brands and the necessity is motivated to accessorize in the lifestyle. Because of the social multimedia and social marketing the peer pressure is increasing and the youngster would do anything to squeeze in. Fiscal conditions of Pakistan are fluctuating scheduled to which everyone cannot afford to buy branded accessories so they switch to counterfeit. Price is the major factor in the usage of counterfeit however the question rises whatever factors add in developing the customer preference, customer purchasing behavior and how does they affect the original brand.

Our research would be the mixture of different research methods. In correlational research method we'd conduct a organized exploration of the impact of counterfeit products on the choice of customer, their purchasing habit therefore its result the original brand and the survey tool will be used. Experimental research method would be utilized to perform the quasi test and twin blind trials as there end result would give a conclusive consequence of the interdependence of the variable include in the research.

In standard our research will be the combination of both qualitative and quantitative research therefore we will use the technique of triangulation this provides you with us a broad range for finding their absolute results. In triangulation way we will use both the strategy that is the data and methodological strategy because by using different methods, data sources we can counterbalance bias attribute in a particular databases.

Now coming to the industry where our research would be conducted which is Fashion industry. Fashion industry is very great; it includes towel, make up, shoes, accessories, furniture and body piercing. Fashion industry started booming in Pakistan and the top benefit it gained was that it possessed the glimpse of various civilizations in it. The amazing change in the Fashion Industry of Pakistan started out with the start of 21st century, when the young designers tried to give a new course to fashion in Pakistan. Our research would give attention to the accessories segment of the style industry. Because of globalization every country is bombarded with international brands and the amount of competition has truly gone up. Now Pakistani designers are known in international markets and many international shows feel very pleased to request them, this not only enhances the content of the runway, but also projects the gentle image of the country as a skilled young era. In Pakistan both the domestic and international brands of the segment has created a excitement; which in final result created a wave in the young ones of our country. Everyone is accessorizing to squeeze in and using these different brands helps them to acquire a status co which would normally take time without these brands.

Therefore our research would help us in determining the factor that drives the client choice, the factors that control their purchasing action and would identify their functions which would be a set of suggestions for the original brands that won't only provides them information to battle with counterfeit but also how to prevent the process overall.


Our research would be steered in accessories segment of fashion industry because in this portion counterfeiting is most common inside our country. Our society would be the twin cities (Islamabad, Rawalpindi) because in both locations major marketplaces the counterfeit products and original brands are coexisting. This research would be beneficial to major brands whose market show is being damaged by these counterfeit products.


Our research revolves around the effect of counterfeit products on specific traits and their effect on original brand so our goal would be:

General aims:

Find out the factors that have an impact on the perception of an brand or counterfeit products.

Find out reasons for a customer purchasing tendencies towards a brand or counterfeit products.

Notice external factors that might take role in the relationship among counterfeit products and their respectable brands.

Specific objectives:

Conduct a double blind test

Conduct a quasi-experiment (per and post design)

Arrange a target group

Research model:

The model that will be used in this research would be a mixture of elements that are impacting the major characteristics. The composition of the model would start form the counterfeit products factors or aspect that are going to influence the client. Customer main point of view that would be looked after is their choice and their buying habit then their effect onto the original brand. The main model would be like;

This model can further be break down into smaller model detailing the procedures and showing the assumed hypothesis.

Definition of terms:

The main terminologies used in this research can be explained as:

Counterfeit Product

They are the fake replicas of the original brand; it includes any product comprising an unauthorized representation of a trade draw or custom logo. Counterfeit product methods the customer in making them believe that they are investing in a genuine product as it offers similarities with the original brand and they're not easily differentiated. They are manufactured to take good thing about the established well worth of the original brand and grab their market talk about. In general it is the practice of making goods, often of second-rate quality, and providing them under a brand name without the brand owner's authorization.

Customer Preference

It can be define as the likeness or the choice of selecting product above the other product. If a person generally likes something, it can stay around for years and sell millions of copies. However, if customer do not likes the merchandise, it could vanish very quickly. Customer preference is without doubt dependent after culture, education, and specific tastes and among a plethora of other factors. It permits the customer to rank products based on the levels of tool they give the buyer.

Customer Purchasing Behavior

It can be assumed as your choice process where customer search, select, purchase, use, and dispose of goods and services, in satisfaction with their needs and would like. This habit is powered by the cultural, social, personal and emotional factors. Since every person on the globe is different, it is impossible to obtain simple rules that clarify how purchasing decisions are made. So said simply it include how people buy, what they buy, when they buy and why they buy it.

Research Question:

This research would emphasis on these simple questions that are:

Do counterfeit products create such a habitual buying habit that consumers don't revert back again to original brands even if they're offering better features?

Determine what factors play important role in shaping customer preference regarding counterfeit products?

Determine which factors play important jobs in influencing customer purchasing behavior with respect to counterfeit products?

What will be the factors shifting customer desire towards counterfeit goods?

Effects of counterfeit product on customers who are being used to buy original brands?

What factors will enhance the image of original brand and assist in combating against counterfeit product used by different companies?


H0: Counterfeit products don't effect the customers who buys original brand

H1: Counterfeit products does indeed impact the costumers who will buy original brand

H0: Customers who are appearance mindful do not have a positive romance with level to buy counterfeit product

H1: Customers who are appearance conscious do have a positive relationship with depth to buy counterfeit product

H0: Counterfeit products appearance do not influence customers preference towards the original brand

H1: Counterfeit products appearance do impact customers preference towards the initial brand

H0: The use of counterfeit product do not change the customers preference of original brand

H1: The usage of counterfeit product do move the customers preference of original brand

H0: Materialism towards counterfeit product has positive effect on customer purchasing behavior

H1: Materialism towards counterfeit product has negative impact on customer purchasing behavior

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