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Combating copycatting in the luxury market with fighter brands

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  • Hou, Pengwen
  • Zhen, Ziyan
  • Pun, Hubert

Abstract

We examine the effectiveness of using a fighter brand to combat copycatting in the luxury goods industry. In our research setting, the copycat product has a high resemblance to the luxury brand manufacturer’s original product, so customers may purchase the copycat product to gain the status utility. We find that the manufacturer should launch a fighter brand if the copycat product has a low resemblance to the original product. Moreover, the copycat will be less likely to enter the market when the manufacturer releases a fighter brand. Some insights regarding consumer surplus and social welfare are also provided.

Suggested Citation

  • Hou, Pengwen & Zhen, Ziyan & Pun, Hubert, 2020. "Combating copycatting in the luxury market with fighter brands," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    • Handle: RePEc:eee:transe:v:140:y:2020:i:c:s1366554520306608
    DOI: 10.1016/j.tre.2020.102009
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    References listed on IDEAS

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    8. Shen, Bin & Minner, Stefan & Chan, Hau-Ling & Brun, Alessandro, 2020. "Logistics and supply chain management in the luxury industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).

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