Knowledge, Morality, and the Appeal of Counterfeit Luxury Goods

Counterfeiting is a negative phenomenon, bearing undesirable consequences for both companies and consumers of the original brands. Yet some consumers, while acknowledging the immorality of counterfeiting, still have positive predispositions toward such fake products. Why? We investigate consumers’ reactions to counterfeits as a function of consumers’ subjective knowledge in the domain of fashion and luxury goods. Four studies demonstrate that low-knowledge consumers react more positively to counterfeits than high-knowledge consumers because they are more morally disengaged and view these reproductions as acceptable. The findings offer actionable guidance to managers on how and where to concentrate their anticounterfeiting efforts depending on the average level of knowledge and moral disengagement of their customers.