Positive effects of counterfeiting on luxury goods: an empirical exploration with consumers

In this study we explore the positive effects that counterfeiting might have on the original luxury brands. Through an experiment, we study whether being aware that a fashion luxury brand has a counterfeited version in the market can increase 1) the purchase intention of the original brand and 2) the price that subjects would like to pay to get the original brand. We control for the notoriety of the brand, the need for status, and the luxury expertise of the respondents. A final sample of 235 subjects were analysed. Results show that counterfeiting presence increases the price intention, while the purchase intention is not affected. No differences are noticeable for known brands as compared to unknown brands