IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v26y2020i1p155-178.html
   My bibliography  Save this article

The economic value and determinants of tourists’ counterfeit purchases: The case of Hong Kong

Author

Listed:
  • Stephen Pratt

    (The University of the South Pacific, Fiji)

  • Christine YH Zeng

    (The Hong Kong Polytechnic University, Hong Kong)

Abstract

Counterfeiting of fashion brands is a multi-billion dollar industry with an increasing number of goods being counterfeited. This research takes a demand-side approach to measuring counterfeiting activity among tourists in Hong Kong. Non-deceptive counterfeit purchases by tourists in Hong Kong amount to US$761.32 million per year. Tourists’ decision of whether to purchase counterfeit goods depended on a mix of extrinsic and intrinsic factors including psychometric variables, trip-related characteristics, and sociodemographics. Lowering the prices of genuine goods and explaining the risks of purchasing counterfeit goods would be the most effective anti-counterfeit measures. However, lowering the price of genuine goods can diminish the brand image of these luxury items.

Suggested Citation

  • Stephen Pratt & Christine YH Zeng, 2020. "The economic value and determinants of tourists’ counterfeit purchases: The case of Hong Kong," Tourism Economics, , vol. 26(1), pages 155-178, February.
  • Handle: RePEc:sae:toueco:v:26:y:2020:i:1:p:155-178
    DOI: 10.1177/1354816619834482
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1354816619834482
    Download Restriction: no

    File URL: https://libkey.io/10.1177/1354816619834482?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lloyd, Alison E. & Yip, Leslie S.C. & Luk, Sherriff T.K., 2011. "An examination of the differences in retail service evaluation between domestic and tourist shoppers in Hong Kong," Tourism Management, Elsevier, vol. 32(3), pages 520-533.
    2. Patrick Harvey & W. David Walls, 2003. "Laboratory markets in counterfeit goods: Hong Kong versus Las Vegas," Applied Economics Letters, Taylor & Francis Journals, vol. 10(14), pages 883-887.
    3. Jana Craft, 2013. "A Review of the Empirical Ethical Decision-Making Literature: 2004–2011," Journal of Business Ethics, Springer, vol. 117(2), pages 221-259, October.
    4. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    5. Correia, Antónia & Kozak, Metin, 2016. "Tourists' shopping experiences at street markets: Cross-country research," Tourism Management, Elsevier, vol. 56(C), pages 85-95.
    6. Carsten Fink & Keith E. Maskus & Yi Qian, 2016. "The Economic Effects of Counterfeiting and Piracy: A Review and Implications for Developing Countries," The World Bank Research Observer, World Bank, vol. 31(1), pages 1-28.
    7. Wu, Mao-Ying & Wall, Geoffrey & Pearce, Philip L., 2014. "Shopping experiences: International tourists in Beijing's Silk Market," Tourism Management, Elsevier, vol. 41(C), pages 96-106.
    8. Tolkach, Denis & Pratt, Stephen & Zeng, Christine Y.H., 2017. "Ethics of Chinese & Western tourists in Hong Kong," Annals of Tourism Research, Elsevier, vol. 63(C), pages 83-96.
    9. Singhapakdi, Anusorn & Vitell, Scott J. & Kraft, Kenneth L., 1996. "Moral Intensity and Ethical Decision-Making of Marketing Professionals," Journal of Business Research, Elsevier, vol. 36(3), pages 245-255, July.
    10. Antonia Correia & Metin Kozak & Seongseop (Sam) Kim, 2018. "Luxury shopping orientations of mainland Chinese tourists in Hong Kong," Tourism Economics, , vol. 24(1), pages 92-108, February.
    11. Huang, Liyuan & Gursoy, Dogan & Xu, Honggang, 2014. "Impact of personality traits and involvement on prior knowledge," Annals of Tourism Research, Elsevier, vol. 48(C), pages 42-57.
    12. Alan Zimmerman & Peggy Chaudhry, 2009. "The Economics of Counterfeit Trade," Springer Books, Springer, number 978-3-540-77835-6, October.
    13. Jaana Woiceshyn, 2011. "A Model for Ethical Decision Making in Business: Reasoning, Intuition, and Rational Moral Principles," Journal of Business Ethics, Springer, vol. 104(3), pages 311-323, December.
    14. Bush, Ronald F. & Bloch, Peter H. & Dawson, Scott, 1989. "Remedies for product counterfeiting," Business Horizons, Elsevier, vol. 32(1), pages 59-65.
    15. Marron, Donald B & Steel, David G, 2000. "Which Countries Protect Intellectual Property? The Case of Software Piracy," Economic Inquiry, Western Economic Association International, vol. 38(2), pages 159-174, April.
    16. Cordell, Victor V. & Wongtada, Nittaya & Kieschnick, Robert Jr., 1996. "Counterfeit purchase intentions: Role of lawfulness attitudes and product traits as determinants," Journal of Business Research, Elsevier, vol. 35(1), pages 41-53, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Catherine Viot & André Le Roux & Florence Kremer, 2014. "Attitude towards the purchase of counterfeits: Antecedents and effect on intention to purchase," Post-Print halshs-02530136, HAL.
    2. Giovanni Mattia, 2013. "Motivazioni e comportamenti nei confronti della contraffazione non-deceptive: un?indagine esplorativa sui giovani acquirenti," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2013(2), pages 83-103.
    3. Correia, Antónia & Kozak, Metin, 2016. "Tourists' shopping experiences at street markets: Cross-country research," Tourism Management, Elsevier, vol. 56(C), pages 85-95.
    4. Catherine Viot & André Le Roux & Florence Kremer, 2014. "Attitude towards the purchase of counterfeits: Antecedents and effect on intention to purchase," Post-Print hal-01803871, HAL.
    5. Catherine Viot & André Le Roux & Florence Kremer, 2014. "Attitude towards the purchase of counterfeits: antecedents and effect on intention to purchase [Attitude envers l'achat de contrefaçons : déterminants et effet sur l'intention d'achat]," Post-Print hal-01803846, HAL.
    6. Aschmoneit, Hauke & Schneider, Martin, 2011. "Kundenverhalten im Kontext der Produkt- und Markenpiraterie: Eine empirische Analyse bei hessischen Studierenden zur Abgrenzung von Verhaltensdeterminanten," Discussion Papers on Strategy and Innovation 11-03, Philipps-University Marburg, Department of Technology and Innovation Management (TIM).
    7. André Le Roux & Marinette Thébault & Yves Roy, 2019. "Exploring consumer behavior regarding counterfeiting: how product category, product attributes, purchase situation and consumers' motivations profiles impact behavior regarding counterfeits and genuin," Post-Print hal-02396977, HAL.
    8. Tongyu Meng & Jamie Newth & Christine Woods, 2022. "Ethical Sensemaking in Impact Investing: Reasons and Motives in the Chinese Renewable Energy Sector," Journal of Business Ethics, Springer, vol. 179(4), pages 1091-1117, September.
    9. Hengky Latan & Charbel Jose Chiappetta Jabbour & Ana Beatriz Lopes de Sousa Jabbour, 2019. "Ethical Awareness, Ethical Judgment and Whistleblowing: A Moderated Mediation Analysis," Journal of Business Ethics, Springer, vol. 155(1), pages 289-304, March.
    10. Lamberto Zollo & Massimiliano Matteo Pellegrini & Cristiano Ciappei, 2017. "What Sparks Ethical Decision Making? The Interplay Between Moral Intuition and Moral Reasoning: Lessons from the Scholastic Doctrine," Journal of Business Ethics, Springer, vol. 145(4), pages 681-700, November.
    11. Nikolaus Thumm & Vincenzo Butticè & Federico Caviggioli & Chiara Franzoni & Giuseppe, Scellato, 2018. "Impact of counterfeiting on the performance of digital technology companies," JRC Working Papers on Digital Economy 2018-03, Joint Research Centre.
    12. Lu-Ming Tseng, 2019. "How Implicit Ethics Institutionalization Affects Ethical Selling Intention: The Case of Taiwan’s Life Insurance Salespeople," Journal of Business Ethics, Springer, vol. 158(3), pages 727-742, September.
    13. Mark S. Schwartz, 2016. "Ethical Decision-Making Theory: An Integrated Approach," Journal of Business Ethics, Springer, vol. 139(4), pages 755-776, December.
    14. Zhang, Jie & Zhang, Rachel Q., 2015. "Supply chain structure in a market with deceptive counterfeits," European Journal of Operational Research, Elsevier, vol. 240(1), pages 84-97.
    15. Song, Lei & Meng, Yan & Chang, Hua & Li, Wenjing & Tan (Frank), Kang, 2021. "How counterfeit dominance affects luxury fashion brand owners’ perceptions: A cross-cultural examination," Journal of Business Research, Elsevier, vol. 130(C), pages 1-13.
    16. Jie Zhang & L. Hong & Rachel Zhang, 2012. "Fighting strategies in a market with counterfeits," Annals of Operations Research, Springer, vol. 192(1), pages 49-66, January.
    17. Bian, Xuemei & Moutinho, Luiz, 2009. "An investigation of determinants of counterfeit purchase consideration," Journal of Business Research, Elsevier, vol. 62(3), pages 368-378, March.
    18. Pueschel, Julia & Chamaret, Cécile & Parguel, Béatrice, 2017. "Coping with copies: The influence of risk perceptions in luxury counterfeit consumption in GCC countries," Journal of Business Research, Elsevier, vol. 77(C), pages 184-194.
    19. Valentine, Sean & Godkin, Lynn, 2019. "Moral intensity, ethical decision making, and whistleblowing intention," Journal of Business Research, Elsevier, vol. 98(C), pages 277-288.
    20. Stephen E. Anderson & Jodine M. Burchell, 2021. "The Effects of Spirituality and Moral Intensity on Ethical Business Decisions: A Cross-Sectional Study," Journal of Business Ethics, Springer, vol. 168(1), pages 137-149, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:toueco:v:26:y:2020:i:1:p:155-178. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.