How Counterfeit Incidents Can Boost Demand for Authentic Brands

Have you ever wondered what happens when someone is caught using a counterfeit product, like a fake designer bag or watch? Surprisingly, new research suggests that this situation can actually benefit the original brand. Here's how it works: When people with a strong sense of community and connection to others (what researchers call "interdependent" individuals) are caught using counterfeit goods that carry a strong symbolic message—like a luxury brand logo—they often feel a need to restore their reputation. This can lead them to prefer and even buy the authentic version of the product. In contrast, those who see themselves as more independent tend to react differently. They might not feel as much pressure to restore their image after being caught with a counterfeit, especially if the counterfeit item serves a practical purpose rather than a symbolic one. The study conducted several experiments to explore these ideas. We found that people with interdependent personalities were more likely to increase their liking for genuine products after a counterfeit mishap, especially if the fake item carried a strong symbolic message (like prestige or status). This effect held true whether participants were imagining a scenario or had real experience with counterfeits. Interestingly, we also uncovered that a person's desire to "save face"—to repair their reputation after using a counterfeit—played a crucial role. When faced with the choice between the counterfeit and the authentic, those who valued their social standing were more inclined to choose the real thing, especially if the original product offered unique qualities that the counterfeit couldn't replicate. For companies, this study offers important insights. It suggests that focusing on what makes their products truly special and emphasizing these qualities in their designs and marketing strategies can help differentiate them from counterfeit competitors. By highlighting their unique value, brands can attract consumers who prioritize authenticity and quality, even after an incident involving counterfeit products. In essence, we show that incidents involving counterfeits can unexpectedly turn into opportunities for original brands to strengthen their appeal and loyalty among consumers who value authenticity and their social image.Liangyan Wang, Qin Wang, Eugene Chan & Robin Keller (2024). Counterfeits can benefit original products when people are caught using counterfeits. (external link)  Psychology & Marketing, 41(5), 977 – 988.