Consumption Motivations for Counterfeit Luxury Brands: Moderating Role of Genuine Brand Experience

Purpose - In the Chinese market, increasing numbers of luxury brands are overwhelmed by counterfeits, and the continued success of counterfeits has become a considerable problem. Therefore, this research is to understand the purchase motivations for the counterfeits in the Chinese millennial generation, who are the main force of Chinese luxury brand market and counterfeits market. Design/Methodology/Approach - The data comes from a questionnaire survey from Chinese millennials (N= 391). This study uses the regression analysis and moderation effect model to verify causal relations or compare the difference in particular circumstances. Findings - Among the 8 variables, only 5 motivation factors influence purchase intention of counterfeits. The moderating effect of perceived risk was significant only when Mianzi influences the purchase intention of counterfeits. Millennials without experience in genuine brand more tend to buy counterfeits when they are motivated by conspicuous, Mianzi, and materialism reasons. Conversely, consumers with experience are more likely to buy counterfeits mainly when materialism, bandwagon, and Mianzi motivations become important. Notably, men also purchased counterfeits because of Mianzi or self-gift giving than women, the motivations for buying the counterfeits were more diverse relatively in case of middle-incomers. Research Implications - This study introduced the motivations of core consumer psychology factors into the analysis of counterfeits. The results will provide the theoretical basis for global luxury brand managers facing the Chinese market when formulating sustainable development strategies.