Economics of Counterfeit Products: With Special Reference to Mobile Phones & Watches

Abstract

The Indian population is increasing at an alarming rate causing threat to the economic development, not forgetting the fact that another sector that is increasing at the same rate is the counterfeit goods. One important fact that needs to be checked is why we find such an increase in the counterfeit products. The fact that the aspiration of the population is increasing, in desire to have luxury products needs to be explored. Objective of the study is to examine the attitude toward the counterfeit product in the market on various parameters. A total 1207 responses from 22 districts of Delhi & NCR were used to examine the probability of intention to buy counterfeit of Mobile phones & Watches; the study employed the factor analysis and logit analysis. Results revealed that counterfeit purchasers had lower perceptions of business ethics, implying that ethical beliefs may become the key to develop the strategies to reduce demand for counterfeit products.