Counterfeiting on Customer-Based Brand Equity of Sportswear in South Africa

Abstract

Counterfeiting is a phenomenon that exists in various industries and continues to rise at unprecedented rates. Counterfeiting involves the manufacturing of products that have features and characteristics of a brand. Counterfeiting is a profitable business for those involved in it as it exploits the popularity of the brand. Brands that are most susceptible to counterfeiting because of increased popularity and exclusive products.

Counterfeiting has been described to be harmful to customer-based brand equity (CBBE) and have damaging long-term effects, however, it is important to investigate if there are any positives that can be derived from it. This study explores counterfeiting of sportswear brands and how this impacts customer- based brand equity and the consumer willingness to purchase the original brand. Three elements of customer-based equity that were investigated are brand awareness, brand loyalty, and perceived quality. This paper builds on research conducted that investigates counterfeiting in a South African context.

A quantitative study was conducted on a sample of 294 university students in the Johannesburg central business area, using a self-administered questionnaire. SEM analysis was applied to investigate the hypotheses. The results indicate that counterfeiting of sportswear products, positively influences perceived quality and the willingness to purchase the original brand. This was true for people that buy counterfeit clothing and for those that do not. Perceived quality was found to not have a negative effect on CBBE and the willingness to purchase the original brand. Conversely, counterfeiting does not have any effect on brand awareness and brand loyalty on the willingness to purchase the original brand. The study shows that the purchase of counterfeit sportswear brands does not have a negative effect on CBBE. The study contributes to the growing literature on counterfeiting and supports a different view on the impact on CBBE, to be of benefit to marketers, policy makers and luxury brands in South Africa