AT THE CROSSROADS OF LAW AND ECONOMICS: THE MOTIVATION OF GENZ FOR PURCHASING COUNTERFEIT BRANDED PRODUCTS
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Abstract
The aim of our research is to identify the legal backgrounds of counterfeiting, i.e. trademark infringement and its effect on the brand value (equity) from an economic perspective on the one hand. On the other hand we aim to identify the motivational factors which lead GenZ (Generation Z) to purchase counterfeit branded products (CBPs) in the context of non- deceptive counterfeiting. With the help of our research we have identified that those who purchase counterfeit branded products are fully aware of their decisions. Thus, in general, the commercial transaction and the purchase itself are not done under false pretences. This article does not evaluate the effect and motivation of the selling party who, in offering these products use online platforms to sell in most cases. They, sometimes, offer highly sought international brands at an extremely cheap price. Those branded products would not be available under normal circumstances at that low price level. The aim of the article is to focus on the buyers and to identify the backgrounds for their conscious behaviour in making those decisions. The paper starts with the depiction of the legal background concerning counterfeit branded products, bringing examples for international and Hungarian practices with the relevant legal regulations. The paper identifies the legal and economic effects - in fact, the loss – created internationally by these practices, including the theoretical effects on brand value (equity). During the research we performed a primary group interview including 11 GenZ persons, for deeper understanding the phenomenon at hand. Our research indicates that young people in Hungary are highly price sensitive, at the same time strive not to be excluded from their respective socio-cultural groups – peer pressure and actual fashion trends – thus they try to make an optimal decision given their limited financial resources. Frequently, they opt for the cheaper alternatives.
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