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Reference

Title: Consumer decisions in the black market for stolen or counterfeit goods
Author: Luca Casola, Simon Kemp and Alexander Mackenzie [University of Canterbury, Christchurch, New Zealand]
Source:

Journal of Economic Psychology 30, no. 2: 162-171
http://ir.canterbury.ac.nz/bitstream/10092/1472/1/thesis_fulltext.pdf

Year: 2009

Details

Subject/Type: Counterfeiting, Piracy
Focus: Apparel and Shoes, Brands (non-deceptive counterfeits), Film, Watches
Country/Territory: New Zealand
Objective: To investigate consumer willingness to buy stolen, pirated or counterfeit goods.
Sample: 80 participants recruited at the University of Canterbury (51 participants) and from the general population (29 participants); 53 participants recruited at the University of Canterbury; 60 participants recruited at the University of Canterbury
Methodology: Questionnaire (study 1); scenario questionnaires on laptop computer (studies 2 and 3)

Main Findings

Study 1 found that survey respondents think the acceptability of buying counterfeit and stolen goods from the black market depends on:

- nature of the victim of the crime (respondents saw participation in the black market as less acceptable when the victim was seen as an individual rather than as society or an organisation)

- motive of the purchaser (purchasing counterfeit/stolen goods was considered more acceptable when the motive was “survival” rather than “cannot afford the good otherwise” or “saving money”)

Overall, older respondents found purchasing from the black market less acceptable than younger ones. Similarly, those on higher incomes rated purchasing from the black market as less acceptable than those on lower incomes.



Study 2 found that the willingness of survey respondents to buy counterfeit and stolen goods from the black market depends on:

- nature of the victim of the crime (respondents saw participation in the black market as less acceptable when the victim was seen as an individual rather than as society or an organisation)

- price (on average, participants opted to buy from the black market when the price was no more than 34% to 37% of the legal price)

Just 5.2% refused to buy any goods from the black market. Older participants were more reluctant to buy from the black market, while income did not have any impact on purchase intention.



Study 3 found that consumer willingness to buy counterfeit and stolen goods from the black market is significantly lower when they are given information identifying the true victims of black markets as individuals. Furthermore, consumer willingness to buy stolen goods was lower than the willingness to buy counterfeit goods. Men needed less financial incentive to purchase from the black market than females. Just 3.3% refused to buy any goods from the black market.



According to the authors, the fact that the willingness to buy counterfeit and stolen goods decreases when consumers are given information about the real victims of counterfeiting and stealing shows that targeting the consumer can help reduce demand for counterfeits. They also recommend leveraging the greater reluctance to acquire stolen goods compared to counterfeit goods by framing counterfeiting as the theft of ideas.

[Date Added: Mar 31, 2009 ]