Understanding Counterfeit Consumption and Consumer Behaviour
There have been many research papers showing that counterfeit is a serious problem in any industry, but fewer studies and even fewer technologies to curb counterfeit. Even the technologies that are being used today don't stop the growing counterfeit market, because ultimately every technology can be cloned, duplicated, reprogrammed.
We 'll have to understand the reasons why the consumer chooses a fake product in order to provide a solution to this issue.
Reasons that a consumer chooses a counterfeit product:
- Brand Confusion
- Consumer Ethics
- Cheap prices of the counterfeit goods were attractive
Brand Confusion: Several times brands are in misconceptions that the customer is familiar with the brand and is aware of the disadvantages of buying a duplicate. This is one of the major phenomena that brand loses a customer to counterfeit. The Brand should advertise enough to make the customer aware of what logo the brand has or what quality of the material it is selling, in order to make sure customer can differentiate between a real and fake product.
Consumer Ethics: Consumer ethics have gone to a toss since the advent of the Internet. Whatever is being sold on the internet, the way it is presented is distracting to the consumer, which leads to lower quality of products being used and genuine brands who are trying to provide the best quality are being pulverised.
Cheap prices of the counterfeit goods were attractive: Counterfeits being cheap, attract an easy audience. This scenario can reverse itself, consumer who strives to buy quality products think that the more expensive product would be of good quality and this decision benefits counterfeiters, as they have the knowledge of consumer’s mindset thereby marking the low-quality product at a high price.
A Brand can curb Brand Confusion by proper promotion and advertisement of the products, to ensure that the consumer makes the right choice. The technology that can be used for anti-counterfeit is SCoT labels that are not programmed, cannot be cloned or duplicated unlike other anti-counterfeit technologies.
The labels after application can be used for tamper detection, brand protection, counterfeit detection. This engages the consumer to the brand enabling consumer ethics and responsibility towards the brand. When the consumer authenticated the product by themselves, consumer trust in the brand increases. This directly leads to revenue growth by 20%.