THE INFLUENCE OF CONSUMER PERCEPTION OF COUNTERFEIT LUXURY GOODS TOWARD BRAND IMAGE AND PERCEIVED QUALITY OF LUXURY BRANDS

• Main Author: Marsha Dewantari, Gabriella
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83040
• Institution: Institut Teknologi Bandung

The luxury industry, expected to have a valuation of €1.5 trillion by 2023, faces significant challenges due to the widespread presence of counterfeit goods. This study examines the influence of consumer perception of counterfeit luxury goods on the brand image and perceived quality of genuine luxury brands. The data was gathered utilizing the purposive sampling method and obtained through online surveys given to current and potential consumers of luxury brands in Indonesia, yielding 296 valid replies. The study employed Partial Least Square Structural Equation Modelling (PLS-SEM) to examine two hypotheses. The results suggest that counterfeit products negatively affect both the brand image and perceived quality of genuine luxury brands. Important suggestions involve enhancing product authentication efforts, initiating educational campaigns regarding the superiority of luxury brands. Future research should incorporate additional variables, such as consumer loyalty, and expand demographic groups outside Indonesia to achieve fuller comprehension of consumer perceptions. These insights are essential for formulating effective ways to mitigate the negative effect of counterfeit items on luxury brands.