Analysis of the demand for counterfeit goods

The production, distribution and consumption of counterfeit goods have been increasing at an alarming rate. Current legislation addresses the supply side of the problem, but not the demand side of the problem. The purpose of this paper is to examine, empirically, factors affecting consumer demand for counterfeit goods were analyzed.

The economic theory of consumer demand provided the theoretical framework. Data were collected from students enrolled at a major mid‐western university, and logistic regression was used to estimate demand functions for counterfeit goods.

The results indicated that student sensitivity to the counterfeit problem did not significantly deter the purchase of counterfeit goods.

Educators in textiles and apparel should have a vested interest in providing education about counterfeiting, resulting in students with greater sensitivity to the issue.

The production, distribution and consumption of counterfeit goods have been increasing at an alarming rate. Current legislation addresses the supply side of the problem, but not the demand side of the problem. Consumer education may be a feasible approach for addressing the demand side of the problem.