Research On Consumer’s Purchasing Behavior Of Counterfeit Luxury Goods

China’s luxury goods market is rapidly growing, and has gradually become an important component of the global luxury goods market. Meanwhile, domestic issues regarding counterfeiting are increasingly prominent, and remain persistent despite enormous efforts and funds invested towards combating it. This persistence can be attributed to issues created by the market. High demand for counterfeit goods that has created a breathing space for counterfeiting to thrive. Thus, efforts ought to be aimed at studying consumer motivation, and suggestions provided for the timely elimination of counterfeiting.This research focused it survey on five factors:economic factors, interpersonal interactions, self construction, value perception and showing off, and through SPSS software discovered that most consumers think their incomes, price of knockoffs, authenticity of knockoffs, the possibility of substituting a fake for a genuine, and so on as the factors that influence them to buy counterfeits. Through factor analysis "Economic factors", "Value cognition", "Interpersonal interactions" and "Show-off" exist were revealed as four dimensional causative factors, and further analysis through AMOS structural analysis equation revealed value cognition as the number one influencing factor of consumer behavior in the purchase of counterfeits, supported by the mentality of "Substitute a fake for a genuine" as the key driver. Meanwhile, "Economic factors" comes in number two with "Price of knockoffs" as it’s key influencer. "Interpersonal interactions" is the third on the list, being influenced by "Recommendations of friends", but "Show-off" and "Self construction" on the equation showed rather contrasting effects on the purchase of counterfeits. ConclusionIn the end the following conclusions were established:1. "Consumer value cognition" comes first on the list of influencing factors for which "Substitute a fake for a genuine" mentality is the sole reason for this phenomenon. Hence, to eradicate this, one way is to to raise the quality of genuine items to widen the quality margin between the two opposites, and on the hand subsidize the cost of genuine items through reduced cost of production and low tariffs. This will make it impossible to substitute fake for genuine, and consumers will find it rather wise to turn to the genuine ones. In addition to this, manufacturers should strive to make the unique features of their products more profound so as to make it easy for distinction, thus leading to the elimination or reduction in the degree of similarity between genuine and knockoffs.2. "Economic factors" is the second causative factor. Consumer income, together with the cost of knockoffs as well as the cost performance of knockoffs, according to research findings all have something to do with the rate of consumption of fake items. Consumer income has a much bigger impact, followed by cost performance of knockoffs. An issue of great concern to consumers is the quality of the knockoffs, this is similar to the idea of "Substitute a fake for a genuine" in value cognition phenomenon. Even though, companies cannot act directly to dwindle the cost performance of knockoffs but they do have the capacity to increase the cost performance of their products, in the long run, bringing about the fall in cost performance of knockoffs.3. "Interpersonal interaction" is the third big factor, and with self construction, plus the use of counterfeits by the people around, as well as using counterfeits as gifts there exist mutual effects. Research findings indicate that when the people around use knockoffs the consumer, under the influence of friends will tend to also purchase them. To solve this problem, the general public need to be educated on the respective laws governing these issues, and be able to influence the individual through the force of the masses, in addition to this, the general public’s awareness of the basic information and knowledge of products should be strengthened to make sure that the people around have a better sense at differentiating between genuine and fake good, creating psychological restraints on consumers.4. "Showing off" and "self construction" gave contrasting outcomes. Normally, knockoff items can also be used to show off. Particularly, those with low economic capabilities and yet like to show off are more likely to buy knockoffs. But this research finding have shown that this effect is not quite plausible because for those who love to show off the perception of others matter so much to them, and the risk of being exposed represent a much bigger cost to bear. Hence, it’s clear that the more a person’s self construction relies on the opinions of the people around, the lower the possibility of such person purchasing fake luxury items. Government and relevant authorities can use these factors and their various ways and degrees of impact on the consumption of fake luxury goods to further strengthen their efforts towards the extermination of this problem.Finally, this paper also came up with the following recommended solutions:heightened government control as well as the provision of more guidance and assistance to consumers.