MASTER THESIS

REPORT ON

A STUDY ON UNDERSTANDING CONSUMER RESPONSE TO COUNTERFEIT

PRODUCTS AND THE FACTORS INFLUENCING PURCHASE DECISION OF
COUNTERFEIT PRODUCTS

BY

SHWETA KULKARNI

21MBAR0257

UNDER THE GUIDANCE OF

Prof. Krishna Koppa

Assistant Professor

CMS BUSINESS SCHOOL

BANGALORE – 560009, INDIA
DECEMBER 2022

1
 CERTIFICATE

This is to certify that this Research Project submitted to CMS Business School, Jain (Deemed-
to-be University), Bangalore, by SHWETA KULKARNI USN No. 21MBAR0257 is a record
of research done on the topic “A STUDY ON UNDERSTANDING CONSUMER
RESPONSE TO COUNTERFEIT PRODUCTS AND THE FACTORS INFLUENCING
PURCHASE DECISION OF COUNTERFEIT PRODUCTS” This work was done by her
during the academic year 2022, under my guidance and supervision in partial fulfilments of the
requirements for the award of Master in Business Administration (MBA).

This research report has not been submitted for the award of any Degree, Diploma,
Associateship Fellowship or any other title in this University or any other University.

Place – Bangalore

Prof. Krishna Koppa

Assistant Professor

Date – 10-12-2022

2
 ACKNOWLEDGEMENT

I would like to express my gratitude to my mentor, Prof. Krishna Koppa as well as our Dean,
Dr Harold Andrew Patrick for giving me this golden opportunity to do this wonderful project
on the topic - A STUDY ON UNDERSTANDING CONSUMER RESPONSE TO
COUNTERFEIT PRODUCTS AND THE FACTORS INFLUENCING PURCHASE
DECISION OF COUNTERFEIT PRODUCTS, which also helped me in gaining a lot of in-
depth knowledge on the topic by reading multiple research papers and gathering a lot of data
evaluation techniques. I’m very thankful to them for their support throughout the completion
of this research.
Secondly, I would like to thank my parents for helping me in finalizing the research topic and
giving me honest feedback at each step.
Thirdly, I would like to thank my friends for proving their support in mind-block situations and
helping me in taking the research forward in a smooth manner in a limited time frame.

Lastly, I would like to express my gratitude towards members of CMS BUSINESS

SCHOOL for their kind cooperation and encouragement which help me in the completion
of this project.

PLACE – BANGALORE
DATE – 12-10-2022

3
TABLE OF CONTENTS

Abstract……………………………………………………………5

Chapter 1 Introduction and Review of Literature………………… 6-18

1.1. Rationale for the Study and Motivation ……………. 7

1.2. Statement of the Research Problem ………………… 13

1.3. Review of Literature …………………………………15

1.4. Identification of Research Gaps …………………….. 18

Chapter 2 Research Methodology ……………………………….19-25

2.1 Scope of the Study …………………………………. 20

2.2 Research Objectives ………………………………… 21

2.3 Framing of Research Hypotheses …………………..22

2.4 Research Design …………………………………… 23

2.5 Methods for Data Collection ……………………....25

Chapter 3 Data Analysis and Interpretation ……………………..27-46

3.1 Techniques for Data Analysis ………………………28

3.2 Hypotheses Testing and Methods Data Interpretation 33

3.3 Data Interpretation…………………………………..38

Chapter 4 Findings and Recommendations ……………………47-52

4.1 Research Outcome and Findings …………………48

4.2 Recommendations ………………………………..48

4.3 Limitations of the Study ………………………….50

4.4 Conclusions ………………………………………..51

4.5 Scope for Future Research …………………………52

References………………………………………………………53

4
ABSTRACT

Counterfeiting has now become a serious economic and social problem for industry and the
world market. Many brands both in India and overseas are unable to record growth due to
counterfeiting. Due to clients' positive attitudes and the nation's ineffective legal system,
counterfeiting is on the rise globally. Therefore, research is required to identify the problem
and create a solid legislative framework and effective corporate tactics to combat
counterfeiting. This study is an attempt to explore the literature related to counterfeit brands,
the attitude of consumers towards the purchase of counterfeit brands, and how various
demographic factors such as age and gender play a role in the purchase of counterfeit products.
The result of the research helps to understand what leads to high purchases of counterfeit
products. We have used primary data and secondary data as part of the research, out of which
a questionnaire was used to collect primary data which consisted of multiple questions
associated with the buying behaviour and psychographics of the individual for purchasing
counterfeit products. By having a better understanding of the consumer's behavioural intentions
of buying counterfeit products, the manufacturers and marketers of genuine brand products can
make better marketing strategies to entice the customer to purchase the genuine item rather
than a knockoff.

5
 CHAPTER 1
INTRODUCTION AND REVIEW OF
LITERATURE

6
1.1 RATIONALE FOR STUDY AND MOTIVATION

Counterfeits exist in the industry since the 1900s. Counterfeits have been rising ever since and
catering to multiple socio-economic groups. Counterfeits cause over 1 Lac Crore worth of loss
in the Indian economy. Therefore, it is important to understand the reason behind the high level
of purchases of counterfeit products and the benefits that it brings to consumers.

According to a few articles, Indian consumers buy counterfeit goods and pay little attention to
the quality of the goods. Consumers' purchase intentions for counterfeited luxury goods are
heavily influenced by previous purchasing experiences. Whereas it goes on to say that people
who buy counterfeit luxury goods intend to buy original goods, and people who buy original
products from luxurious companies do not intend to buy counterfeits of them. This suggests
that consumers who buy counterfeits will eventually switch to buying originals and will not
buy counterfeits again (Yoo and Lee, 2009). Whether people choose to buy original products
or counterfeits is determined by a variety of factors that affect consumer attitude towards
counterfeits but purchase intention is a vital factor to know consumer-buying behaviour.

After reviewing the literature and researching the extensive background and history of
counterfeit products, I examine the attitudes and beliefs of men and women, as well as
university students. Through this survey, I am now able to infer attitudes toward counterfeit
brands among a small group of Bangalore residents. This research includes fundamental
definitions for the vocabulary used in the study as well as the objectives of my research. The
survey questions cover facts and opinions about counterfeit products, as well as five questions
about the sample's demographics and geography.

7
INTRODUCTION TO COUNTERFEIT PRODUCTS

People faced many financial and economic crises in the 1960s, following World War II. They
did not have enough money to select the best fashion items for themselves. That was the time
when marketers began producing the same types and sizes of clothes and other fashion products
for people to purchase. People became economically distressed and began purchasing whatever
was available to them.

After a while, the era of marketers arrived, when marketers began manufacturing various
products but focused on selling what they had produced, or in other words, the era of marketers.
People were initially concerned with meeting their basic needs, so there was little awareness
of brands and branded products.

People became more aware of various brands and luxury fashion products as time passed. Even
at the time, some consumers' income was sufficient to purchase luxury brands, but those whose
income had declined began looking for counterfeit products. Counterfeit products are also
referred to as knockoffs, replicas, copies, or fakes. As a result, the demand for counterfeit
products increased, and manufacturers began developing such products to increase their profit.
Such products are a replica of the original product with a minor difference that normal people
(those who do not have experience with the original brand) cannot detect. As a result,
counterfeit products are those that have the same features as or are slightly different from the
original or branded products. Luxury or prestigious goods are those that provide a sense of
uniqueness. According to published authors, these products can be distinguished by dimensions
such as uniqueness, exclusivity, expression, and quality.

The question is; if people have low incomes and cannot afford luxury brands, why do they want
to buy them? Human desires are limitless, and branded products appeal to everyone, whether
they are young or old. Everyone wants to be an upper-class member, and they are drawn to it
through their peer groups and other social classes. Marketers and manufacturers recognized
this consumer weakness and began producing counterfeit goods. If we search the market these
days, we will find counterfeit in almost every area, not just a single counterfeit, but also
categories such as first and second copies.

8
We believe that counterfeit products only appeal to low-income consumers, but this is not
entirely correct. Even wealthy customers find it more cost-effective to purchase counterfeit
goods. The main reason for this is that when people who buy original products see replicas of
their brands in every second shop, they become frustrated and start buying counterfeit goods.
This asserts that price is the main determinant responsible for the purchase of counterfeit
products, but those who are not associated with low income are also motivated to purchase
counterfeit products because it is economically advantageous.
And this is the main reason that counterfeits are widely spread in countries which are developed
economies such as India.

Another important role is played by counterfeit product manufacturers, who are constantly
working to improve the quality of these products due to advanced technology. These
manufacturers are also using social networks like Facebook, as well as other networks like
WhatsApp groups, to familiarize consumers with their products. As brands become more well-
known, it becomes easier to produce counterfeits.

As we all know, counterfeit products have existed for a long time, but they were not a problem
for manufacturers until the 1970s when they became a serious problem for original brand
manufacturers. Consumers, society, and even counterfeit product manufacturers are well aware
that manufacturing such products is illegal and unethical, but consumers continue to encourage
them to do so.

Even though numerous studies have been conducted in the context of fake products and the
impact these products have on consumer purchasing behaviour, no researcher has been able to
create a clear picture of these products. According to the literature, consumers purchase
counterfeit products to gain economic benefits.
A few key aspects which are associated with consumer decision-making include -

1) Consumer Decision Model –

Many well-studied models in marketing are proposed by various scholars such as Howard
and Sheth (1969), and Engel et al (1968). These models determine a consumer's
psychological state, in which consumers attempt to satisfy themselves by purchasing goods
and services after a thorough evaluation of alternatives. Festinger (1957) developed another
study in the theory of cognitive dissonance of the end consumer, in which he proposed that

9
 future purchases have a significant influence on the decision process. Engel and Blackwell
(1982) recommended that the environmental influence, which may also affect the final
decision of the consumer in terms of intention and motivation to buy goods and services,
be considered. However, they suggested that certain uncontrollable factors, such as a lack
of funds and the absence of the desired brand in the market, could have an impact on this
process. This model took into account intrapersonal psychological events and states ranging
from intention to attitude.

2) Stimulus-Response Model –
Buyers enter the "Black Box" in marketing and develop a few options for purchasing goods
and services. Marketers must comprehend the "Black Box" and devise responses to stimuli.
"How a consumer responds to stimuli in terms of the decision process, consumer
characteristics, and consumer responses interact," according to the black box model
(Sandhusen, 2000). The black box model is associated with the theory of behaviourism,
which states that the consumer's insight process and relationship with stimuli are not
related. Environmental stimuli are primarily influenced by social, economic, and cultural
factors in a given society.

3) Tripartite Model –
Blackwell et al. (2001) developed a model known as the tripartite model, which explains
attitudes. According to this model, attitude consists of three important components:
cognitive (known as beliefs), affective (known as feelings or emotions), and conative
(known as behavioural intention). The relationship between attitude and behaviour appears
to be stronger when the time interval is shorter, and attitudes may be expressions of
behaviour in other situations. In these situations, consumers adopt a behaviour-based
attitude.

PURCHASE INTENTION:
An individual's attitude refers to their proclivity to behave in a likely or unlikely manner when
it comes to purchasing. Attitude is a persistent behaviour that describes how a person reacts in
a given situation, whether positively or negatively. Attitude is a psychological state in which
people perceive their surroundings. Purchase intention, according to Wu et al. (2011), refers to
a consumer's likelihood to purchase specific products or services in the future. As a result,
people's attitudes toward counterfeit goods are important. Nordin (2009) investigated price

10
consciousness, normative susceptibility, perceived risk, and novelty seeking as determinants
of consumer behaviour when purchasing counterfeits. Based on the findings, Nordin concluded
that consumers are most likely to purchase counterfeit goods. Consumer behaviour is directly
related to their attitude. As a result, if people have a favourable attitude toward counterfeiting
products, there is a high likelihood that they will purchase counterfeit goods. Although many
people believe that counterfeits do not provide the same benefits as genuine products,
consumers find it beneficial when purchasing counterfeit fashion products.

BENEFITS TO CONSUMERS DUE TO THE PURCHASE OF COUNTERFEIT

PRODUCTS

1) Economic Benefits - More and more users are interested in the useful life of the product;
they frequently consider longevity and reliability, especially when the product is a
function. Vulnerable consumers benefit from their low-cost purchases in another way.
When the percentage of false values is low. False users discovered an appreciation for
economic benefits, as well as the difference in price and quality between the fake and
the original. The client always has the final say. Consumers choose their ability if they
decide to idols, and they do not care about the quality of counterfeits after that.
2) Hedonic Benefits – It has also been discovered that consumers purchase counterfeit
products not only for economic reasons, but also to exploit other brands such as logos,
celebrities, celebrities, and celebrities. Furthermore, they are associated with the brand.
Such advantages are known as people who have referred to as When consumers are
looking for hedonic benefits from certain requirements, fraud is a better and less
expensive option; they are less concerned about the quality of fraud. The style and
design of bogus questions for customers to answer during the purchase decision
process. The appearance and awareness of fake costumes are accompanied by the
ability to achieve a short-term goal. As a result, the benefits sought by imposters can be
positively linked to false purchasing intentions.
3) Wealth accumulation is not a status, according to Thorstein Veblen, a well-known
economist and sociologist on Theory of the Free Class (1899). The situation is more
than just evidence of wealth. It takes a lot of money to spend too much money that is
considered meaningless to demonstrate this wealth. The use of masterpieces refers to
such behaviour that demonstrates a loss of wealth.

11
It is about spending money on things that are less honest and more important, with the
sole purpose of attracting attention and gaining prestige and social status (Veblen,
1899/1994). It all starts in the Middle Ages, when the Acculturative Law establishes
that people of different social classes can only hold currency up to a certain value. The
groom and the western can choose from a variety of clothing and types. Most
classrooms forbid students from wearing gold, embroideries, diamonds, or nails
(Tynan, McKechnie, & Chhuon, 2010). The reasoning behind all of these ceilings is
straightforward. Make certain social classes visible and sensitive on the social ladder.
This is evident in Elizabeth I's earrings blanket (1533-1603), a remarkable
demonstration of divinity and its social status (Belfanti, 2017). Branded brands like
Gucci, Rolex, Bottega Veneta, Coach, and Louis Vuitton cater to the elites who believe
in the power of rank. Veblen (1899, 1953) is thought to be the first to investigate the
"state" in the theory of entertainment. Apparel has been discovered to be a significant
indicator of the situation. The majority of consumers purchase clothing to emphasise
their privileged position, reflecting the vacancy and independence of their work
commitments. His economic ideas on Veblen describe how people typically buy
products to demonstrate their exceptionality and to feel a sense of status for themselves
and others, as well as (Packard, 1959a) & (Belk, 2003).

12
1.2 STATEMENT OF PROBLEM

Counterfeit refers to the illegal use of a certified brand's trademarks, patents, and copyright on
products manufactured by counterfeiters and sold at a low cost that are replicas of genuine
goods, there are two types of counterfeiting. The first is deceptive counterfeiting, followed by
non-deceptive copying. Misleading fake items are intentionally sold in the marketplace to
mislead consumers. Customer purchasing behaviour is defined by their willingness to
repurchase and buy counterfeit as a substitute for any product.

When consumers are unable to purchase original goods due to the high prices they demand and
prefer to buy counterfeit goods due to their lower prices. Counterfeiting is widespread and
rapidly expanding globally, in both developing and developed countries. It refers to an
uncertified representation of certified products with the intent of defrauding the buyer by
convincing them that they are purchasing genuine products. Counterfeiting famous fashion
luxury brands has now become a major global issue. According to Mark Monitor in 2018,
approximately 47% of brands are failing to cash due to counterfeiting, with one in three
claiming that the decline in sales corresponds to more than 10% and four in ten businesses have
experienced an increase in counterfeiting are involved in selling unauthorized brands by
breaching laws of authorized brands.

Over the last two decades, there has been a rapid increase in counterfeiting, which has now
become a major political, social, and economic issue on a global scale. Counterfeiting has
become a 21st-century crime not only because it violates laws and affects the profits of
businesses in all sectors, but it also poses serious health and safety risks to consumers who use
counterfeit products, resulting in heavy bleeding in the global economy. According to the (ICC)
International Chamber of Commerce (2017), global faking and piracy are increasing at an
alarming rate, with counterfeiting potentially reaching US $2.3 trillion by 2022. According to
the Organization for Economic Cooperation and Development (OECD) and the European
Union Intellectual Property Office (EUIPO), the international trade in counterfeited and
bootlegged goods is worth $461 billion, or 2.5% of global trade in 2013, and is expected to
reach $991 billion by 2022. The primary reason for the country's continued progress and
presence of counterfeit products is the rapid growth of consumer demand, which is the market's
driving force and results in the global expansion of counterfeiting.

13
In a new study by OECD India ranks 5th in the production of counterfeit products with a
percentage contribution of 1.2%. The other countries are China which accounts for 63.2%,
Singapore with 1.9% and Thailand with 1.6%. This includes the production of replicas and
counterfeit products such as medicines, foodstuffs of all kinds, soaps, cosmetics, perfumes, and
consumer goods, particularly luxurious fashion products, which are freely available in the
market. Approximately 65% of consumer goods are counterfeits, putting people's health and
safety at risk because their contents are never tested. Manufacturers of original and genuine
products, government revenue, and counterfeit buyers are all suffering as a result of the
country's free-floating counterfeit brands.

Due to the rise in counterfeits in India today, it is critical to determine which factors cause
consumers to purchase counterfeit goods. This paper is an attempt to understand the multiple
factors which are associated with consumer buying behaviour towards counterfeit products.
These inferences can further be used to assist companies that manufacture genuine goods in
developing an appealing marketing strategy by understanding people's attitudes toward
purchasing intentions and the reasons for shifting their demand toward counterfeited goods.
Earlier investigations have now been directed at various countries such as Malaysia, Indonesia,
and Vietnam. to ascertain the attitude and intent to purchase counterfeits As a result, the reason
for conducting research in Bangalore, India is to fill a research gap by learning about the
consumer purchasing patterns of individuals from different age groups in Bangalore, which
may differ from other countries due to the influence of country-specific factors, for which a
study should be conducted to investigate these factors.

14
1.3 REVIEW OF LITERATURE

According to marketing literature, counterfeit and fake products are widely available in larger
markets, threatening the exclusivity of original luxury brands. The market demand for
counterfeit products is extremely high due to two major determinants: low price and high
monetary value.

The symbol of the brand is one of the most important reasons for purchasing counterfeit
products. People buy such items to join the upper crust of society, People buy counterfeit
products to avoid being a spendthrift by purchasing original products. Another reason is that
the price of a fake is one-third or one-fourth of the price of the original. Because of this benefit,
people overlook the low quality of such products.

Counterfeit products have lower quality than original products, but people continue to buy them
because they provide good value for money. There are two approaches to brand justice: a
customer-based approach and a financial shift.
If an organisation is successful in making consumers loyal to the brand, it will reap additional
benefits because consumers will become less price-sensitive.

Brand faithfulness reduces marketing costs, which leads to trade influence because ideal
products get ideal shelf space and can easily attract consumers. More importantly, the
organisation will be able to compete and react to competitors because they will be relieved
knowing that their loyal customers will not switch brands.

Customer perception is the perceived quality of a good or service about its potential point, in
comparison to substitutes. Because excellence is a perception, it cannot be judged impartially,
and it is also a slanted decision of what is important for the buyer concerned.
The distinctiveness of counterfeit goods and original goods is not the same. Counterfeit
products are associated with stumpy individuality and low prices. Premium quality and
expensive products are available in a discerning market associated with original luxury branded
products.

Copies of brands tarnish the image of genuine brands while also undermining their exclusivity
and individuality. By owning a branded product, the consumer is admired; these branded

15
products are recognized and accepted by others, and as a result, individual agreement to own
these goods increases. Because of the availability of counterfeited products, a larger group of
buyers buys original brands. It diminishes the value of owning original luxury brands. Because
of the low prices, anyone can purchase counterfeit goods.

According to previous research, consumers' attitudes toward counterfeited products vary by

country. Such differences can be explained by factors such as social influence, personality
traits, and product attributes.

According to western researchers, counterfeited products are associated with the infringement
of trademarks, copyright, brand, labelling, and features, all of which concern the product's
appearance. Because there is a continuous increase in both demand and supply, counterfeiting
thrives. This is because multinational marketing has created a high global demand for well-
known brands. Since then, counterfeit luxury goods have become a major issue; Asian
countries are well-known locations, Because the quality of counterfeit luxury products has
improved over time, distinguishing the quality of counterfeit luxury products from genuine
luxury brands has become difficult. Counterfeit product is defined as "the act of producing or
selling a product containing a deliberate and calculated reproduction of a genuine symbol." A
counterfeit symbol is either identical to or cannot be distinguished from a genuine symbol.

Attempting to combat counterfeiting appears insufficient, particularly in the luxury market.

Most of the time, the consumer in the luxury market is aware that the product being purchased
is an imitation. We are seeing an increase in the number of studies related to the demand for
counterfeit goods. The motivation for these studies is a desire to better understand consumer
demand for counterfeit goods. Based on the previous research conducted there are three reasons
why people buy counterfeit products: the symbolic status of counterfeiting, the distribution
channel of retailers, and the price of counterfeit products.

According to the majority of the literature review, price has always been the most important
factor in driving consumers away from the original brands. Because of the low prices of
counterfeit products, consumers save money, and the fictitious value of such products is
relatively high. Lavish or significant products are those that bring the wisdom of status to their
owner.

16
There are four types of customer-perceived value: financial value, functional value, individual
value, and social value. Counterfeit products have existed for a long time, but they only became
a serious issue for business owners in the 1970s. Although it is well known that copies and
other counterfeit products are made and distributed unethically, consumers are willing to
accomplish, consume, and distribute them, thus extending their reach even further.

According to scientific literature, buyers typically choose fake products due to their economic
benefits. Some researchers claim that a consumer's age does not affect their intent to purchase
counterfeits. According to some researchers, youth are primarily interested in purchasing
counterfeit goods. When the effects of income, education, and gender are considered, a
comparable difference emerges.

17
1.4 IDENTIFICATION OF RESEARCH GAPS

A research gap is simply an unresolved issue or unaddressed topic in a field that indicates a
dearth of prior study in that area. There are various research gaps such as Literature gaps,
Disagreement gaps, Contextual Gaps, Methodological gaps and so on.

Some of the research gaps which will be covered in this research are –
The majority of research has focused on determining how buying counterfeit goods affects the
economy. But an even more important factor is to understand why consumers are interested in
purchasing these products in the first place.
Therefore, this research will talk about the factors which influence consumer decision-making
in terms of counterfeit products.
The purchase behaviour of counterfeit varies from country to country considering that each
country has a different way of approaching it, selling it and also gaining profits from it.
Therefore, a general conclusion cannot be drawn on the behaviour of consumers in all mankind.
Hence, this research focuses on the behaviour only in a specific region (Bangalore).
Overall, to understand the increase in the purchase of counterfeit products, it is very important
to understand the psychographics of the consumers who are purchasing them. Therefore, this
study focuses on understanding consumer behaviour in terms of various factors which
influence the same.

18
 CHAPTER 2
RESEARCH METHODOLOGY

19
2.1 SCOPE OF THE STUDY

One of the main problems with real products' authenticity is counterfeiting. The market for
counterfeit goods and products is expanding globally. A product sold in the counterfeit market
may be counterfeit or original, although this is considered a violation of the sale rule. A
counterfeit marketplace can affect the development of a country. They are frequently created
with the intention of profiting from the superior worth of the copied goods. Since it harms a
brand's reputation in addition to a company's earnings, almost every business is concerned
about counterfeiting. Because of this loss, the majority of these businesses are failing. All of
the top businesses are working very hard to stop this fake goods Consumers are put in danger
by counterfeit goods, and some products suffer major bodily harm as a result. On a strict
economic note, with a highly competitive market and shrinking margins, a counterfeit
operation can directly harm the company’s growth and longevity. Sectoral organizations have
been using many initiatives and modern technology to prevent counterfeit goods But the
company that makes that product is introducing numerous contemporary technology, which is
unusual for people to believe in a product. Such as barcode and QR code. Customers view their
mobile application as a tool that enables businesses and consumers to determine the legitimacy
of products.
The scope of this study, therefore, is to determine and analyze the extent to which multiple
factors influence the purchase decision-making of consumers in the case of counterfeit
products. This research is directed by applying both primary data and secondary data like
previous research papers and articles. The analysis of the research is done by both quantitative
and qualitative methods. The formulation of the factors which are associated with buying
behaviour of the consumers for the questionnaire to be prepared was derived from multiple
qualitative secondary sources. And the data collected for analysis based on which the results
will be interpreted in quantitative data. The data is limited to Bangalore, Karnataka with a
sample size of 100 respondents. The questionnaire collects demographic, psychographic and
opinion-based responses from the respondents to interpret behaviour towards counterfeit
purchases which have been made knowingly or unknowingly for multiple products by the
consumers.

20
2.2 RESEARCH OBJECTIVES

QUANTITATIVE OBJECTIVES –
- To analyze the role played by demographics such as age, gender, educational
qualification, occupation and family income in purchasing counterfeit products.
- To understand the awareness of consumers of the impact of the purchase of counterfeit
products on the global economy.

QUALITATIVE OBJECTIVES –
- To understand and evaluate various product segments which contribute towards
increased sales of counterfeits products in India.
- To understand the factors that influence purchase decisions concerning counterfeit
products in each step of the consumer decision-making process.

2.3 FRAMING OF RESEARCH HYPOTHESIS

In statistics, the process by which an analyst tests a hypothesis on a population parameter is

referred to as hypothesis testing. The type of data and the goal of the study influence the
analyst's methodology. Using sample data, hypothesis testing is performed to assess a
hypothesis' plausibility. Such data may come from a process that generates data or from a
bigger population.

The steps in hypothesis testing are –

1) Set up the hypotheses and conditions for testing: Each hypothesis test includes two
population hypotheses. The null hypothesis, denoted as H 0, is a statement of a specific
parameter value. This hypothesis is assumed to be correct until evidence suggests
otherwise. The alternative, or research hypothesis, is denoted as H an in the second
hypothesis. The alternative hypothesis is a statement of a possible range of values for
the parameter. One must also ensure that any conditions (assumptions) required to run
the test have been met, such as data normality, independence, and the number of success
and failure outcomes.
2) Determine the level of significance, This value is used as a probability cutoff when
deciding whether or not to reject the null hypothesis. This alpha value represents the

21
 probability we are willing to place on our test for rejecting the null hypothesis
incorrectly. The most typical value is 0.05 or 5%. Other popular options include 0.01
(1%) and 0.1 (10%).
3) Calculate the test statistic: Collect sample data and compute a test statistic that
compares the sample statistic to the parameter value. The test statistic is calculated with
the null hypothesis assumed to be true and includes a measure of standard error as well
as assumptions (conditions) related to the sampling distribution.
4) Determine the rejection region or calculate the probability value (p-value): A p-value
is determined by calculating the probability of the sample data producing such a test
statistic or one more extreme using the test statistic. The rejection region is discovered
by first determining a critical value with alpha; the rejection region is the area that is
more extreme than the critical value. In the following section, we go over the p-value
and rejection region in greater detail.
5) Make a decision about the null hypothesis: In this step, we decide whether to reject or
not reject the null hypothesis.
6) Give your overall conclusion: We want to summarise our results into an overall
conclusion for our test once we have found the p-value or rejection region and made a
statistical decision about the null hypothesis.

The hypothesis for this study is as follows –

H0- The decision to recommend counterfeit products is dependent on the individual's gender.
H1 - The decision to recommend counterfeit products is independent of the individual's gender.

H0 - There is a relationship between age and the purpose of purchasing counterfeit products -
H1 - There is no relationship between age and the purpose of purchasing counterfeit products

22
2.4 RESEARCH DESIGN

A hundred individuals were asked to fill out the carefully formed questionnaire which included
questions on demographics, social behaviour, and psychographics of the individual. The
sample size included people from ages ranging from 18-60, male and female gender, with
different occupations such as student, employee, homemaker and so on. Within the
questionnaire, a few specific questions were used to frame the hypothesis. From the selection
of the research topic to setting the objectives, framing the hypothesis and inferring results, the
research was carried out in a systematic manner. The most crucial component was identifying
and collecting data. To find essential points, they were classified, evaluated, interpreted and
presented in a methodical manner.

Type of Research –
Descriptive research is defined as a research method that describes the characteristics of the
population or phenomenon being studied.
The descriptive research method focuses on describing the nature of a demographic segment
rather than on "why" a specific phenomenon occurs. In other words, it "describes" the research
topic without explaining "why" it occurs.

Sample Size –
In market research, sample size refers to the number of subjects included in a sample size. We
define sample size as a group of subjects chosen from the general population who are
considered to be representative of the real population for that specific study.
For this research, the sample size is 100.

Instrumentation technique -

A Research Instrument is a tool for gathering, measuring, and analyzing data related to your
research interests. These tools are most commonly used to assess patients, clients, students,
teachers, and staff in the health sciences, social sciences, and education. Interviews, tests,
surveys, and checklists are examples of research instruments.
The Research Instrument is typically chosen by the researcher and is linked to the study
methodology.

23
As part of this research, a survey was conducted through questionnaires. The type of questions
asked include –

Demographics Questions - If you want to learn more about a respondent's background or

income level, use demographic survey questions. When used correctly, these types of questions
in a questionnaire can help you gain a better understanding of your target audience.
Demographic questions are effective tools for segmenting your audience based on who they
are and what they do, allowing you to delve even deeper into your data.

Multiple choice questions - Multiple choice questions are the most common type of survey
question. They allow your respondents to choose one or more options from a predefined list of
answers. They are simple to use, produce data that is easy to analyse and provide mutually
exclusive options. Because the answer options are fixed, your respondents will have an easier
time completing the survey.
Perhaps most importantly, you will receive structured survey responses resulting in clean data
for analysis.
There are numerous formats for multiple-choice questions.
The single-answer multiple-choice question is the most basic variation. To allow respondents
to select only one answer, single-answer questions use a radio button format (circle buttons
representing options in a list). They are effective for binary questions, questions with ratings,
and questions with nominal scales.

Rating Scale Questions - The question in rating scale questions (also known as ordinal
questions) displays a scale of answer options from any range (0 to 100, 1 to 10, etc.). The
respondent chooses the number that best represents their response.

Rating scale questions include Net Promoter Score questions. They use a scale to determine
how likely customers are to recommend their product or service to others.

Likert Scale - You've probably seen this type of question before. Likert scale questions, also
known as "do you agree or disagree" questions, are frequently used in surveys to gauge
respondents' opinions and feelings.

24
Likert scale questions give respondents a range of options—for example, starting at "not at all
likely" and scaling all the way up to "extremely likely". That is why they are effective at
understanding specific feedback. Employee survey questions, for example, frequently use a
Likert scale to measure their opinions or attitudes on a variety of topics.

Matric Questions - Matrix questions are the best option if you want to ask a few questions in
a row with the same response options. As a matrix question, a series of Likert scale or rating
scale questions can work well. Matrix questions can help to simplify a lot of content, but they
must be used with caution. Large matrices, such as the one below, can be perplexing and
difficult to navigate on mobile devices.

Open Ended Questions - Open-ended survey questions necessitate respondents type their
response into a comment box and do not provide pre-set answer options. Individual responses
are then examined, as are text analysis tools.

2.5 METHODS FOR DATA COLLECTION AND VARIABLES OF THE STUDY

The process of gathering and analyzing accurate data from various sources to find answers to
research problems, trends and probabilities to evaluate possible outcomes is known as data
collection.
Data collection breaks down into two methods, Primary and secondary –
Primary –
As the name implies, this is original, first-hand data gathered by data researchers. This is the
first step in gathering information, and it is completed before any further or related research is
conducted. Primary data results are highly accurate if the information is collected correctly by
the researcher. However, there's a downside, as first-hand research is potentially time-
consuming and expensive.
In this research, the key source of primary data is the data collected through a survey in order
to get answers for the research objectives.

Secondary –
Secondary data is data that has been collected by other parties and has already been statistically
analysed. This data is either information that the researcher entrusted to others or information
that the researcher looked up. Simply put, it's secondhand knowledge. Secondary information,

25
while easier and less expensive to obtain than primary information, raises concerns about
accuracy and authenticity. The majority of secondary data is quantitative.
In this research the sources of secondary research include –
- E-books
- Research works
- Articles

26
 CHAPTER 3
DATA ANALYSIS AND INTERPRETATION

27
3.1 TECHNIQUES FOR DATA ANALYSIS

The process of systematically applying statistical and/or logical techniques to describe and
illustrate, condense and recapitulate, and evaluate data is known as data analysis. Shamoo and
Resnik (2003) claim that various analytical techniques "offer a manner of drawing inductive
inferences from data and differentiating the signal (the phenomenon of interest) from the noise
(statistical fluctuations contained in the data).
While statistical procedures may be used in qualitative research, analysis is frequently an
ongoing iterative process in which data is continuously collected and analysed almost
simultaneously. Indeed, researchers typically look for patterns in observations throughout the
data collection process (Savenye, Robinson, 2004). The specific qualitative approach used
(field study, ethnography content analysis, oral history, biography, unobtrusive research) and
the form of the data determine the form of the analysis (field notes, documents, audiotape,
videotape).

Improper statistical analyses distort scientific findings, mislead casual readers, and may have
a negative impact on public perception of research (Shepard, 2002). Integrity concerns are
equally relevant in the analysis of non-statistical data. The different methods of analyzing data
include –

1) Correlation analysis –
Correlation analysis is used to quantify the relationship between two continuous variables, such
as a dependent and independent variable or two independent variables. The sample correlation
coefficient, r, quantifies the relationship's strength. Correlations are also statistically
significant. Correlations are described using a unit-free measure known as the correlation
coefficient, which ranges from -1 to +1 and is denoted by r. A p-value denotes statistical
significance. As a result, correlations are typically represented by two key numbers: r = and p
=.

- The linear relationship becomes weaker as r approaches zero.

- Positive r values indicate a positive correlation, which occurs when the values of both
variables tend to rise in tandem.
- Negative r values indicate a negative correlation, which occurs when the values of one
variable tend to rise while the values of the other variable fall.

28
 - Based on what we see in the sample, the p-value provides evidence that we can
meaningfully conclude that the population correlation coefficient is likely different
from zero.
- The term "unit-free measure" refers to correlations that exist on their own scale: in our
example, the number given for r does not exist on the same scale as elevation or
temperature. This is distinct from other types of summary statistics.

2) Regression Analysis
The term "regression analysis" refers to the process of determining the relationship between an
outcome variable and one or more variables. The dependent or response variable is the outcome
variable, and the risk elements and co-founders are known as predictors or independent
variables. In regression analysis, "y" represents the dependent variable and "x" represents the
independent variables.

In correlation analysis, the sample of a correlation coefficient is estimated. It is denoted by r

and ranges between -1 and +1, quantifying the strength and direction of the linear association
between two variables.
The correlation coefficient sign is indicated by the direction of the link. The immensity of the
coefficient or its magnitude contributes towards the strength of the relationship.

A correlation of r = 0.8, for example, indicates a positive and strong association between two
variables, whereas a correlation of r = -0.3 indicates a negative and weak association. A
correlation close to zero indicates the absence of a linear relationship between two continuous
variables.

3) Variance and Standard Deviation

Standard deviation and variance are the two key areas of statistics. It is a measure of statistical
data dispersion. Dispersion is the degree to which values in a distribution differ from the
distribution's average. The measures used to quantify the variation are -

(i) Range

(ii) Quartile Deviation

29
(iii) Mean Deviation

(iv) Standard Deviation

Variance is a measure of how evenly distributed a set of data is. If all of the data values are
identical, the variance is zero. All non-zero variances are regarded as positive. A low variance
indicates that the data points are close to the mean and to each other, whereas a high variance
indicates that the data points are widely separated from the mean and from one another. In a
nutshell, variance is defined as the average of the squared distance between each point and the
mean.

The standard deviation is a measure that shows how much variation (such as spread,
dispersion, and spread) exists from the mean. The standard deviation represents a "typical"
departure from the mean. It is a popular measure of variability because it returns to the data
set's original units of measurement. As with variance, if the data points are close to the mean,
the variance is small; if the data points are widely separated from the mean, the variance is
large. The standard deviation calculates how far the values deviate from the average. The most
widely used measure of dispersion, standard deviation, is based on all values. As a result, even
a small change in one value affects the standard deviation.
4) Chi-Square Test
A chi-squared test (symbolized as 2) is essentially a data analysis based on observations of a
random set of variables. a...., a.., a.., a... Karl Pearson developed this test for categorical data
analysis and distribution in 1900. It became known as Pearson's chi-squared test as a result.
The chi-square test is used to estimate the likelihood of observations made under the
assumption that the null hypothesis is true.
A hypothesis is a possibility that a given condition or statement is true, which we can then test.
Chi-squared tests are typically constructed by adding the squared falsities or errors over the
sample variance.
When the null hypothesis is true, the sampling distribution of the test statistic is referred to as
the chi-squared distribution. The chi-squared test is used to determine whether there is a
significant difference between normal and observed frequencies in one or more classes or
categories. It indicates the likelihood of independent variables.

30
The Chi-squared test is only applicable to categorical data, such as men and women who fall
into the categories of Gender, Age, Height, and so on.

Finding P-value –
P stands for probability in this context. In statistics, the chi-square test is used to calculate the
p-value. The following are the different values of p that indicate different hypothesis
interpretations:

P = 0.05; Hypothesis is rejected

P>.05; Acceptance of Hypothesis
Probability is based on chance, risk, or uncertainty. It is the possibility of the sample's outcome
or the occurrence of an event. However, when we talk about statistics, we are talking about
how we handle various data sets using various techniques. It aids in the representation of
complex or large amounts of data in a simple and understandable manner. It describes the
gathering, analysing, interpreting, presenting, and organising of data. The chi-squared test is
related to the concepts of probability and statistics.
Formula –
χ2 = ∑(Oi – Ei)2/Ei

5) ANOVA – Analysis of Variance

if it is a first time, or if it is a newcomer. It is used to demonstrate do understand the means
between different populations. The Anova test compares two types of variation, the variation
between sample means and the variation within each of the samples. The formula below
represents one-way Anova test statistics:

Source – byju’s

F = Anova Coefficient
MSB = Mean sum of the squares between the data set groups
MSW = Sum of mean squares within the data set groups
MSE = Mean sum due to the error
SST = total Sum of squares
p = Total number of populations

31
n = Total number in the population
SSW = Sum of squares within the groups
SSB = Sum of squares between the groups
SSE = Sum of squares due to error
s = Standard deviation of the samples
N = Total number of observations

32
3.2 HYPOTHESIS TESTING AND METHODS

Hypothesis:
H0 - There is a relationship between age and the purpose of purchasing counterfeit products.
H1 - There is no relationship between age and the purpose of purchasing counterfeit products.

H0 - The gender of the individual and intent to purchase counterfeit products are related factors.
H1 - The gender of the individual and intent to purchase counterfeit products are unrelated
factors.

H0- The decision to recommend counterfeit products is dependent on the individual's gender.
H1 - The decision to recommend counterfeit products is independent of the individual's gender.

1) Hypothesis 1
H0 - There is a relationship between age and the purpose of purchasing counterfeit products.
H1 - There is no relationship between age and the purpose of purchasing counterfeit products.

Chi-Square Test –
To understand the dependency of variables –

Observed values:
FACTORS/AGE(YRS) 18-24 25-31 32-38 39-44 TOTAL
low pricing 13 8 4 5 30
influence of social
groups 5 16 9 5 35
maintain social status 7 5 7 13 32
None 0 1 2 0 3
TOTAL 25 30 22 23 100

33
Expected Values

FACTORS/AGE(YRS) 18-24 25-31 32-38 39-44

low pricing 7.5 9 6.6 6.9

influence of social
groups 8.75 10.5 7.7 8.05

maintain social status 8 9.6 7.04 7.36

None 0.75 0.9 0.66 0.69

(O-E)^2/E

FACTORS/AGE(YRS) 18-24 25-31 32-38 39-44

- - -
low pricing 0.733333333 0.111111111 0.393939394 0.275362319
influence of social - -
groups 0.428571429 0.523809524 0.168831169 0.378881988
- -
maintain social status -0.125 0.479166667 0.090909091 0.766304348
None -1 0.111111111 2.03030303 -1

CHI SQAURE 0.050750518

df (degree of freedom) 9
p-value 0.999999999

Inference:
From the above test is can be inferred that there is no significant relation between age and the
purpose of the purchase of counterfeit products.

34
 2) Hypothesis 2
H0 - The gender of the individual and intent to purchase counterfeit products are related factors
H1 - The gender of the individual and intent to purchase counterfeit products are unrelated
factors

Chi-Square Test –
Observed Values
GENDER/INTENT YES NO TOTAL
MALE 41 8 49
FEMALE 40 11 51
TOTAL 81 19 100

Expected Values
GENDER/INTENT YES NO
MALE 39.69 9.31
FEMALE 41.31 9.69

(O-E)^2/E
GENDER/INTENT YES NO
MALE 0.043237591 0.184328679
FEMALE 0.041542 0.177100103

CHI SQUARE 0.446208373

DF 1
P VALUE 0.504141059

Inference:
With the chi-square test it can be noted that the gender of the individual and intent to purchase
counterfeit products are unrelated factors.

35
 3) Hypothesis 3
H0- The decision to recommend counterfeit products is dependent on the individual's gender.
H1 - The decision to recommend counterfeit products is independent of the individual's gender.
According to the survey conducted, the decision to recommend counterfeit products between
male Vs female can be given by the below table:

MALE FEMALE
21 21
7 7
12 12
3 3
6 5

SUMMARY
OUTPUT

Regression
Statistics
Multiple 0.99824
R 323
0.99648
R Square 956
Adjusted 0.99531
R Square 941
Standard 0.48231
Error 264
Observati
ons 97

ANOVA
Significa
df SS MS F nce F
Regressi 198.102 198.102 851.592 8.8367E
on 1 124 124 531 -05
0.69787 0.23262
Residual 3 645 548

Total 4 198.8

Coeffici Standar Lower Upper Lower Upper

ents d Error t Stat P-value 95% 95% 95.0% 95.0%

36
 - -
0.41312 0.38729 1.06671 0.36432 0.81940 1.64565 0.81940 1.64565
Intercept 741 064 16 66 42 907 42 907
0.97779 0.03350 29.1820 8.8367E 0.87116 1.08443 0.87116 1.08443
variable 923 686 584 -05 544 302 544 302

Inference:
With the regression analysis, we can see that the decision of recommending counterfeit
products is independent of the gender of the individual.

37
3.3 DATA INTERPRETATION
The process of reviewing data and arriving at relevant conclusions using various analytical
methods is referred to as data interpretation. Data interpretation assists researchers in
categorizing, manipulating, and summarizing information to answer critical questions.
Data interpretation is intended to assist people in making sense of numerical data that has been
collected, analyzed, and presented. Having a baseline method (or methods) for interpreting data
will provide structure and consistency to your analyst teams. Indeed, if several departments
have different approaches to interpreting the same data while sharing the same goals, some
mismatched objectives can result. Diverse approaches will result in duplicated efforts,
inconsistencies in solutions, wasted energy, and, inevitably, time and money.

Descriptive analysis:

Inference:
30% of the respondents are in the age group of 25-31
25% of the respondents are in the age group of 18-24
23% of the respondents are in the age group of 39-44
22% of the respondents are in the age group of 32-38
This shows that age is not a critical factor in terms of purchase of counterfeit products

38
Inference:
51% of the respondents are female
49% of the respondents are male
This shows that gender is not a critical factor in the purchase of counterfeit products

Inference:
48% of the respondents are Post Graduates
40% of the respondents are graduates
6% of the respondents are Doctorates
4% of the respondents have completed PUC
2% of the respondents have other qualifications
Majority of the audience is highly educated, however they still like purchasing counterfeit
products due to convenience based factors.

39
Inference:
68% of the respondents have family income above 10LPA
22% of the respondents have family income between 5-10LPA
10% of the respondents have family income between 3-5LPA
It can be inferred that the purchase of counterfeit products is independent of the income
received by the family.

Inference:
37.1% of the respondents purchase counterfeit products due to the influence of social groups
such as friends, family, co-workers, peer groups etc.
33% of the respondents purchase counterfeit products to maintain social status in society,
which leads to the fulfilment of self-actualization needs.
29.9% of the respondents purchase counterfeit products due to low pricing, as it gives them the
satisfaction of owning a brand of their choice at affordable prices.

40
Inference:
The majority of the respondents said that they have a high ability to distinguish between fake
and original products.

Inference:
Between a fake and original Air Jordans logo, although, the logos were very similar, the
majority of the respondents were able to spot the fake logo.

41
Inference:
The majority of the respondents have purchased counterfeits of shoes and footwear.
Followed by the second majority in Handbags and other backpacks.

Inference:
The Majority of the respondents do not recommend others to purchase counterfeit products.

42
Inference:
In comparison with other factors such as low pricing, the influence of social groups,
maintaining social status, self-satisfaction, and happiness of owning a brand, low pricing has
the most common and highest reason for purchase which is 78.6%.

Inference:
The majority of the respondents purchased food products unknowingly that they were
counterfeit.

43
Inference:
The majority of the respondents say that the counterfeit products purchased by them were
presented to them as original.

Inference:
The majority of the respondents said that they would not consider repurchase of the counterfeit
products.

44
Inference:
The majority of the respondents said that they would not recommend others to buy counterfeit
products.

Inference:
The majority of the respondents found out that the products purchased were counterfeit when
the observed the logo/design of the product which was very similar to the original but has
minute differences, making it difficult to find out in the first go.

45
Inference:
The majority of the respondents agree that counterfeit products help in improving brand
awareness of the products in the market.

Inference:
The majority of the respondents agree that counterfeit products benefits consumers at a large
scale.

46
 CHAPTER 4
FINDINGS AND RECOMMENDATIONS

47
4.1 RESEARCH OUTCOMES AND FINDINGS

1) 30% of the respondents are in the age group of 25-31, 25% of the respondents are in
the age group of 18-24, 23% of the respondents are in the age group of 39-44 and 22%
of the respondents are in the age group of 32-38. There are multiple people from
different age groups in this study, however, not everyone has the same purchase intent
for counterfeit products. Therefore, there is no significant relationship between age and
the purpose of the purchase of counterfeit products.

2) 51% of the respondents are female and 49% of the respondents are male. Hence there
is no significant impact of gender in the purchase of counterfeit products.

3) 51% of the respondents are female and 49% of the respondents are male. Hence there
is no significant relationship between the intent to purchase counterfeit products and
the gender of the individual.

4) Therefore, the decision of recommending counterfeit products to other individuals is

also independent of gender.

5) 48% of the respondents are Post Graduates, 40% of the respondents are graduates, 6%
of the respondents are Doctorates, 4% of the respondents have completed PUC and 2%
of the respondents have other qualifications. The majority of the audience is highly
educated, however, they still like purchasing counterfeit products due to convenience-
based factors.

6) 68% of the respondents have family income above 10LPA, 22% of the respondents
have family income between 5-10LPA and 10% of the respondents have family income
between 3-5LPA. It can be inferred that the purchase of counterfeit products is
independent of the income received by the family.

7) 37.1% of the respondents purchase counterfeit products due to the influence of social
groups such as friends, family, co-workers, peer groups etc. 33% of the respondents
purchase counterfeit products to maintain social status in society, which leads to the
fulfilment of self-actualization needs. 29.9% of the respondents purchase counterfeit

48
 products due to low pricing, as it gives them the satisfaction of owning a brand of their
choice at affordable prices.

8) 41% of the respondents said that they have a high ability to distinguish between fake
and original products.

9) Between a fake and original Air Jordans logo, although, the logos were very similar,
78% of the respondents were able to spot the fake logo.

10) 69% of the respondents have purchased counterfeits of shoes and footwear. Followed
by the second majority in Handbags and other backpacks.

11) 38% of the respondents do not recommend others to purchase counterfeit products on
a Likert scale of 1-5 when 1 is the lowest.

12) In comparison with other factors such as low pricing, the influence of social groups,
maintaining social status, self-satisfaction, and happiness of owning a brand, low
pricing has the most common and highest reason for purchase which is 78.6%.

13) 43% of the respondents purchased food products unknowingly that were counterfeit,
other products include – 40% cosmetic products, 22% electronics, 21% footwear, 16%
handbags, 8% medical equipment, 1% gym equipment and 3% none of products. This
means that the counterfeit industries are very easily able to fool customers and sell them
fake goods.

14) Out of the above, around 60% of the respondents say that the counterfeit products
purchased by them were presented to them as the original.

15) Around 45% of the respondents said that they would not recommend others to buy
counterfeit products. This could be because the products lack in quality and lead to
early wear off when compared with the original goods.

16) 52% of the respondents found out that the products purchased were counterfeit when
they observed the logo/design of the product which was very similar to the original but
has minute differences, making it difficult to find out in the first go.

49
 17) 45% of the respondents agree that counterfeit products help in improving brand
awareness of the products in the market. Since the products are presented as original
and carry the logo and name in a very similar way, it helps in making a lot of the
customers aware of their brand.

18) 56% of the respondents agree that counterfeit products benefit consumers on a large
scale. Since the products come at a lower cost and are easily available in local markets,
it becomes easier for them to accept them, instead of looking for the originals. Even
when they try to purchase the original sometimes, it leads to fraudulent activities.
Therefore, consumers believe that it benefits them to purchase counterfeit products.

4.2 RECOMMENDATIONS

The products should be designed in such a way that counterfeiting is difficult. In this manner,
consumers would prefer genuine brands over counterfeits. Furthermore, they can lower the
price of their products so that a consumer with a regular income can purchase the original
products.
To begin with, original brand manufacturers should not try to gain 100% product for each of
their products by raising the prices. Because price is the primary motivator for consumers to
purchase counterfeit goods.
Second, they should create designs that are difficult for counterfeit product manufacturers to
replicate.
Finally, they should develop some legal laws with the assistance of the government in order to
raise public awareness that counterfeit products are illegal and unethical.

4.3 LIMITATIONS TO THE STUDY

Although we achieved our research's goals and objectives, we are still aware of its limitations.
First and foremost, we'd like to talk about the sample size, which is 100 and therefore can't
speak for a large geographical location. The reason for this was the time constraint. Due to time
constraints, we only collected responses from 100 people. However, another study can be
conducted to see if the results of a larger sample size can be generalized.

50
Second, we collected the data using a convenient sampling technique, so the data was selected
from people at large from different occupations, backgrounds and both men and women. The
study can be elaborated more when the sample size is larger and specific to a particular set of
individuals.

4.4 CONCLUSIONS
The counterfeit industry is currently a major global issue because counterfeit and pirated
products are not only a threat to the global economy but are also harmful and dangerous to
those who are unable to distinguish the fake from the original. Even with the combined effort
of authorized brand manufacturers and the government’s legal agencies, the sale of counterfeit
and fake brands could not be stopped. Many original brands in India are harmed by counterfeit
brand manufacturers or sellers. According to previous research, current research has discovered
that counterfeiting in India has affected all industries. This study helped us to understand that
the multiple factors which are associated with the purchase of counterfeit products include –
low pricing, the influence of social groups, maintaining social status, self-satisfaction and the
happiness of owning a brand that one loves at affordable prices. Fraudsters are becoming
increasingly popular. They build their own online stores. When the copy of the design is
registered, they have sold counterfeit goods to the actual outdoor situation. All product
specifications use the same brand and logo. China and India are both victims of fraud. They
were able to take advantage of their stock, price, and fairness. It is widely used in developed
countries, such as development. Some fake users refuse to accept negative outcomes if they do
not respond to unexpected losses caused by counterfeit products. Part of the money was lost
due to fictitious losses, which cannot be attributed to the loss of intellectual property or other
legal procedures. This study has tried to focus on understanding the co-relation between various
factors such as age, gender, intent of purchase and willingness to recommend the products.
Although, the sample size is small it can be understood that the purpose of purchase and age
are unrelated factors. Similarly, the gender and purchase intention are unrelated and the
recommendation of purchase of counterfeit products is independent of the gender of the
individual.

51
4.5 FUTURE SCOPE
Counterfeit products are always going to be a part of India, due to its huge population and
various segments of the population who are not able to afford the brands that they want, the
market of counterfeit products has gained its popularity mainly due to the same reason. The
future study of this industry can talk about –
- The detailed analysis of geographic location and availability level of counterfeit
products
- How this industry has impacted the economic development
- What are the measures of prevention and awareness that can be taken to reduce their
purchase

52
 REFERENCES

1) https://www.googleadservices.com
2) https://emeritus.org/in/learn/types-of-research-design/
3) https://www.indeed.com/career-advice/career-development/research-methodology
4) https://www.purdue.edu/leansixsigmaonline/blog/lean-six-sigma-principles/
5) https://www.researchgate.net/publication/235300428_Counterfeits_and_branded_pro
ducts_Effects_of_counterfeit_ownership
6) https://www.researchgate.net/publication/323091906_A_Study_of_Factors_Affecting
_Consumer%27s_Willingness_to_buy_Counterfeit_Products
7) http://www.diva-portal.org/smash/get/diva2:530386/fulltext01.pdf
8) https://www.emerald.com/insight/content/doi/10.1108/JABES-02-2020-
0011/full/html
9) https://www.oecd.org/sti/ind/2090589.pdf
10) https://core.ac.uk/download/pdf/333957499.pdf
11) https://www.acrwebsite.org/volumes/6411/volumes/v12/NA%20-%2012
12) https://www.amity.edu/abs/abr/pdf/Vol%2018%20No.1/8.pdf
13) https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachme
nt_data/file/994529/Counterfeit-Goods-research.pdf
14) https://www.omniconvert.com/what-is/sample-size/
15) https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2866354
16) https://www.educba.com/statistical-analysis-tools/
17) https://corporatefinanceinstitute.com/resources/data-science/regression-analysis/
18) https://www.investopedia.com/terms/c/correlationcoefficient.asp
19) https://byjus.com/maths/correlation-and-regression/

53