Non-price determinants of
intention to purchase
An exploratory study
Chow-Hou Wee, Soo-Jiuan Tan and Kim-Hong Cheok
National University of Singapore, Singapore
Counterfeiting – the production of copies that are identically packaged,
including trade marks and labelling, copied so as to seem to a consumer the
genuine article (Kay, 1990) – is a serious problem besetting an increasing
number of industries. It affects not only products whose brand name is
synonymous with its quality or flavour, but also products which require a high
level of research and development, and marketing (Nash, 1989). The
manufacture and sale of counterfeit products is undermining company and
brand reputations, hitting profits, devaluing research and development costs,
and incurring legal fees (Nash, 1989). According to US estimates, the global loss
from counterfeiting amounts to some $80 billion a year, but what is almost
impossible to value is the damage inflicted on a company by the dilution of its
brands (Kay, 1990). Cartier reportedly spends 25 million French francs a year
trying to protect its trademark (Asia Magazine, 1991). Substandard counterfeit
goods not only ruin goodwill and destroy credibility, they can also be hazardous
to the innocent end-purchaser, especially with regard to pharmaceutical
products (Nash, 1989).
The seriousness of this counterfeiting problem has prompted some marketers
either to take independent legal actions, or depend on anti-counterfeiting firms
which employ international investigators to carry out surveillance and raids
against counterfeiters (Ashuri, 1993). Many countries have also tightened their
laws and regulations against counterfeiting. All six members of the Gulf
Cooperation Council now have trademark laws on their books (Hanson, 1993).
However, counterfeiting continues to flourish because multinational marketing
has created high worldwide demand for well-known brands (Bush et al., 1989).
In addition, technological advances enable counterfeiters to produce brand
name products easily (Cottman, 1992). Inadequate penalties for commerce in
counterfeits and weak enforcement of the respective laws and regulations have
also been blamed for the growth in counterfeit trade. Better organization of
counterfeit activities and the removal of trade barriers also make it likely that
counterfeiting will continue to abound (Kay, 1990).
International Marketing Review,
Vol. 12 No. 6, 1995, pp. 19-46.
© MCB University Press, 0265-1335