Fashion and consumer science - Term Paper Example

? Fashion and consumer science Table of Contents 4 Introduction 5 Research Questions 5 Research Objectives 6 Literature Review 7 Impact on Profession 9 Implications 9 Hypothesis Testing 10 Research Methodology 11 Sampling 11 Data Collection 12 Methodology 13 Limitations 15 Expected Managerial and/or Theoretical Implications/Contributions 15 Major Learning Points 15 Reference 17 Abstract The project would begin with a brief introduction of the counterfeit fashion industry and the menace it creates in the world. The transaction of fake products in the market has evolved as a popular business which has had significant impacts on other industries. The phenomenon has also had devastating effects on the society and its people resulting in significant losses and spoiling the image of major organizations and their product brands. After exploring the sector, the project would develop the research question. The research question would be primarily based on the present consumer perception of the fashion counterfeit industry and the factors influencing their purchase decisions. The research objective would seek to present the benefits which the research would result in. The literature review would throw insight into the global trends in the sector and its implications on society. This is complemented by exploring the impacts of the business in the job market. The research would then conduct a hypothesis testing for the project. The research methodology chosen for the purpose would include both qualitative and quantitative methods. The several contributions that the dissertation would contribute to the literature would be presented as managerial and theoretical contributions or implications. Finally the major learning points from the research would be presented in the project. Introduction The project brings forth a comprehensive view of the counterfeit fashion industry and the menace that it creates across the world. This is not a problem which is limited to few product and product categories, rather it has emerged a global phenomena affecting numerous industries. It can also have devastating effects on the society and its people. The report presents the menacing effects that this phenomenon has on society, the factors influencing the same and the means that may be adopted by the genuine fashion brands for protecting it. The clandestine nature of the activity makes it hard to obtain any accurate statistics on the same. However, copyright industries in USA have claimed that this sector remain subjected to huge losses. Counterfeit clothing and other items in the fashion world have predominantly prevalent in Europe. The most common technique of counterfeiting is by importing clothing and then attaching labels in one of the states which is followed by releasing the product for sales in some other state. The process gains from the goods freely moving across the borders. Most nations have demonstrated transactions in the sector and some of them have even evolved notorious in the field of production and exporting of fake products. Information provided by the European Union and United States have shown insight into the extent of such transactions and their impacts on society (Vithlani, 1997, p.4). Research Questions Since the project seeks to explore the factors influencing consumer’s behavior towards buying counterfeit fashion products, the research question has been developed based on the above idea. Even after having complete knowledge of the counterfeit fashion business, consumers are tempted towards buying the products. Moreover, such behavior of consumers also influences his preference for buying luxury brands. The project tries to explore both of the above aspects of consumer behavior. The research questions are as follows: Why consumers purchase the counterfeit fashion products even after having knowledge of the same? When and how do counterfeits influence the genuine item consumers’ preference for luxury brands? Research Objectives This research would demonstrate that consumers’ desire for counterfeit luxury brands provides a hinge for the social motivations and feelings which underlie their preference for luxury brand. This specifically shows in particular that both the consumers’ preferences for counterfeit brands and also the subsequent opposite change in preference for real brands is found to be more when their luxury brand attitude acts as a social adjustive as opposed to the value expressive function. The objective of the project is to identify the factors which develop consumer’s affinity towards the counterfeit fashion brands. It would reflect such social functions which can be influenced by the elements of marketing mix. This would consequently be effective in allowing the marketers in curtailing the demand for the counterfeit brands by implementing particular marketing ix actions. Counterfeit products are illegal and spoil the reputation and brand value of the genuine brands. Thus the project objective is to develop and implement such techniques which would curb the creation and production of such counterfeit products. The idea would be to develop anti-counterfeiting steps for tackling the problem (Wilcox, Kim & Sen, 2008, p.4). Literature Review Parallel trading is referred as the situation in which products are bought in a certain territory legitimately and diverted to be sold in some other territory. However, this is not done with the consent of the person holding the right of the receiving territory. Two major principles contribute towards facilitating the process of limiting the rights of the IPR owner. First is the principle of territoriality. The IPR protection is only limited for certain countries and regions and not for all. It is also ruled by the exhaustion principle which limits the right of the owner to prevent distribution of products in the market using his consent (Vithlani, 1997, p.7). Parallel trading, also referred to as grey market trade has recently evolved as an established sector which operates along with the authorized market. Before the implementation of the Trademark Directive of 1989, there were a number of member states in the European Union which had applied for the doctrines of international exhaustion, which implied that rights would be considered as being exhausted just at the time when the good would be sold in a territory. The doctrine restricts function of the Trademark Law as guarantee of authenticity of origin of the products and puts limit over the control of the trademark owner. However, the Trademark Directive in 1989 has limited the exhaustion to the European Economic Area (Vithlani, 1997, p.7). Theft of the original ideas has emerged as the worst robbery practice in the world of fashion. Considerable efforts have gone into the spending in inventing different designs and establishment of trademarks. However, the common attitude developed in the enforcement agencies for treating the counterfeit luxury products as “soft” crimes. Some of the consumers purchasing the fake luxury products even do so with complete knowledge of the trade and are not be willing to pay as per the original item’s price. However, there is an indirect advantage that is carried by the brand. It is generally believed that counterfeits help in contributing towards marketing of brands without causing loss of profits (Vithlani, 1997, p.13). The following table would reflect the increasing trend of counterfeiting across the world. Figure 1: Increasing value of counterfeiting as a percentage of world trade (Source: Vithlani, 1997, p.25) The lack of anti-counterfeiting steps may be regarded as a contributory factor towards increase of counterfeiting among the luxury products in Europe. Italy and United Kingdom have emerged as notorious for the counterfeit of fashion products. Significant evidence came forth when the UK customs officials started a ?4.25 million worth of racketing in 1997 which involved more than 100 000 numbers of counterfeited designer labels. There were batches including labels for Calvin Klein, Ralph Lauren and Timberland, and many others. The labels are sewn into the lower quality and low priced fashion apparels like jeans, shirts, and T-shirts which are made in United Kingdom. Impact on Profession The fashion business is different from all other businesses in the world. In none of the other businesses is change so much heavily dependent upon or embraced. Historically, the fashion industry has been well dominated by one sector of the market, specifically the Italians and the Italians. In spite of this, with the progression of the design houses the fashion business has evolved simultaneously. With globalization of the fashion world, the notion of a clear leader in the industry no longer exists. The Americans, French, English and Italians share equal billing for the fight over consumers’ monies and attention. Competition is driven by the markets in capitalist societies. However, the presence and increase of illegal production of the imitation merchandise has had a wreaking effect on the world and business of fashion. With the growth of international trade by 47%, the growths of the counterfeit products have increased threefold. For instance in Italy, along with the increase in illegal immigrants the sale of fake merchandise along the streets in Rome have also increased and the skilled craftsmen employed in the reputed fashion houses are contended with. Persuaded and tempted by high profits that are associated with the counterfeits, the independent craftsmen often lend their skills and expertise for making the fast money (Decker, 2004, p.8). Implications Consumers remain least guided by their conscious and are least affected by moral grief and ethics. They seem to remain unaffected about whether a business is done using fair means or have deep pockets as long they can afford to buy the products. However, piracy and counterfeiting do not affect only the riches in society. It shows its effects through a tarnished brand image for reputed companies and also through their bottom line. As soon as the organizations begins to run red in their business, employees start feeling the pinch and also results in rising prices of the company’s products. Some of the largest of luxury brands across the word have resulted in huge loss and have lost significant amount of their sales revenue to the counterfeits. According to estimates, in a matter of ten years 100,000 numbers of jobs in Europe were lost because of counterfeiting. In addition to this it is seen to hamper the progress of individual businesses, along with the growth and development of the fashion sector. This consequently impedes the growth of the national economy on the whole. However, root of the problem lies with the consumers. As long as the society remains tolerant towards such crimes and consumers continue to demonstrate increased demand for such products, the supply of counterfeits would keep increasing and expanding. Consumers fail to realize that they are reaping the benefits of the designers’ success over the counterfeits. As soon as consumers stop adding to the fake business by refusing to purchase the fake products, production of the knockoffs would consequently decrease. Subsequently the designer prices would fall. Consequently this would create a win-win situation for both the designers and consumers. The fall in demand for the fake products would diminish the prices of fake products which would make them more affordable towards the consumers. Hypothesis Testing Hypothesis testing involves statistically testing a sample data derived from a population. Hypothesis testing begins with the formulation of a null and alternate hypothesis. Statistical tests are then used to accept or reject the null hypothesis (Gravetter & Wallnau, 2008, p.230). The set of hypotheses proposed for the present study are stated below: H1: The propensity of consumers to purchase counterfeit luxury products is largely dependent on the sociological elements. H2: An exposure to counterfeit luxury brand and products would have a negative influence on the profitability of the original brands. H3: Counterfeits are most likely observed in case of more popular brands. The hypothesis testing would be done by analyzing and including the aspect of reference groups that include the necessary audience as sample size for being the respondents of the study. These reference groups would be chosen in a manner that would help in analyzing their role and their importance in influencing the research question. Research Methodology Sampling Sampling involves selecting the set of respondents among the total population. The sample size assumes importance considering the fact that the views of the respondents are largely used to test the hypothesis. There are several methods of sampling that includes probability and non probability based sampling. Non probability based sampling techniques involve a process in which the selected sample size is selected randomly from the population without the use of any probability theory. Probability sampling techniques on the other hand use probability theories to select a sample size from a given population. Both these techniques are further subdivided into different sub groups (Babbie, 2008, p.203). Probability sampling techniques are divided into four type’s namely simple random sampling, systematic sampling, stratified sampling and cluster sampling techniques. Simple random sampling involves selecting a sample from a population in which every individual from the targeted sample has an equal opportunity of getting selected for being the respondents for the study. Systematic sampling techniques involve selecting a sample from a population in which every respondent is selected on the basis of a certain interval that is measurable either in space and time. In this technique every individual of the population has an equal chance of being selected however each of the sample does not have a similar chance or probability of getting selected for the study. Stratified sampling techniques use a technique that divides the total population into groups that are homogeneous within themselves. These groups are named as strata. Each of the chosen strata is assigned a weight that ensures that every individual in the population has an equal opportunity of being selected as a respondent for a particular research study. Cluster sampling involves dividing the total population into groups and then using random techniques to select the respondents for the study. It is widely assumed that the selected group’s members are a representative of the total population (Levin & Rubin, 1998, p.300-302). In the present study a probability based sampling technique would be used. In the probability sampling technique a simple random sampling would be used to select the respondents from a chosen population. The sample size for the study would be kept at 50 individuals that would be a representative of the total population selected for the study. Data Collection Data collection techniques involve collecting the data from the primary market. There are various forms of data collection techniques available to a researcher. One of the most common data collection techniques includes a questionnaire. The present study would also use a questionnaire as a tool for collecting data for the primary study. Questionnaires can be both open as well as closed ended and the choice largely depends upon the researcher with regards to the nature of the research question. Open ended questionnaires like focus group interviews are used in case of qualitative research techniques where the data consists of non numerical data and an in depth analysis is requires. Closed ended questions are normally used in situations where numerical data is required for conducing statistical analysis. Common form of closed ended questionnaires include Likert scales where the response in measured on a pre determined scale (Nargundkar, 2003, p.57). The present study would use a questionnaire study that would contain a mix of open as well as closed ended questions. The choice assumes significance considering the methodology for the study that would be a mix of qualitative as well as quantitative research techniques. Data for the closed ended questions would be collected using a focus group interview technique while the closed ended questions would have multiple options of which the most appropriate one would be selected by the respondents as an answer to a particular question. The use of open ended questions would help in generating a greater picture of the topic of study as the respondents would not be limited with the nature of options. Closed ended questions would help in quantifying the data that could be analyzed statistically to generate answers for the chosen set of research questions. Methodology Research methodology can be of two types namely quantitative as well as qualitative research. The basic difference among the two most widely used research methodologies is that quantitative research techniques largely use quantifiable data like numbers that are subjected to statistical analysis whereas qualitative research techniques are used to conduct a cause and effect analysis. Qualitative research methodologies do not use numerical data for analyzing a research questions. This technique is more often used by researchers when they want to find an in depth analysis of a particular research question. However researchers presently undertake a form of research methodology that uses a combination of both qualitative as well as quantitative research techniques. This is popularly referred as the mixed research methodology. This form of research methodology offers certain unique advantages as both qualitative as well as quantitative research can be carried out. This helps in generating a data analysis where an in depth analysis can be tested statistically. This ensures greater validity and reliability of the research being undertaken for the study. The use of a mixed research framework also offers advantages as the use of open ended questions largely helps in generating a deeper analysis as the respondent is free to provide the maximum possible information about a particular research question. Use of quantitative research techniques helps in analyzing the reliability and validity of the research question that makes the research more useful and appropriate towards analyzing the hypothesis framed for the study (Clark & Creswell, 2010, p.1-2). The present study would be carried out by using a mixed research methodology. Hence the questionnaire would contain both open as well as closed ended questions that would largely help in undertaking a qualitative as well as quantitative research analysis. The qualitative study would be carried out using a focus group interview technique and the data collected would be used to conduct an in depth analysis of the topic of research. The questionnaire would also contain closed ended questions would be used to conduct statistical analysis of the data collected from the survey. The combined outcomes would be summarized and a set of plausible conclusions and recommendations would be framed that would help uncover the elements of the topic of study. Limitations In spite of the best of efforts the present research would have certain limitations. Some of these limitations would include respondent errors that occur when respondents do not answer a question correctly. In addition to his certain other errors may occur due to choosing a set of wrong respondents. The research study is conducted using a particular specific location and its results may not be generalized for the entire global business markets. The research has been carried out by considering the fact that the macro economic conditions remain stable and there is no turbulence in the macroeconomic environment. Expected Managerial and/or Theoretical Implications/Contributions The growth of such businesses has resulted in the growth of anti-counterfeiting measures by organizations. A number of anti-counterfeiting technologies have emerged to tackle the problem. The emergence of magnetic stripes, smart cards and other electronic technologies have become imperative and have been made mandatory by management in organizations. There has also been a breakthrough in biotechnology which has made possible the identification of particular chemical structures and their abilities to generate certain reactions. They have also become important in the field of anti-counterfeiting measures. Major Learning Points The study conducted above has helped in analyzing a large number of theoretical concepts behind the use of counterfeit brands in the market as well as its effects on the fashion industry. The analysis of literature helped in getting a fair overview of the various theoretical aspects associated with branding as well as the effect of counterfeit brands on the business prospects of the products of the fashion industry. The literature review also helped in generating greater awareness about the use of counterfeit brands in the market by linking the crucial aspect with the consumer behavior of the target market segments. The section on primary research helped in increasing the knowledge about the different types of research methodologies including the aspects of sampling, data collection, and questionnaire design as well as research methodologies. This section helped in generating a better knowledge about the various intricacies of analyzing data from the primary market and to use the data to answer a research question. Overall the present study helped in increasing my knowledge curve that has enabled in increasing my domain knowledge as well as to gain sound practical analysis of the theoretical concepts in real life business scenarios. Reference Bobbie, E.R. (2008). The basics of social research. Cengage Learning. Clark, V. L. P. & Creswell, J.W. (2010). Designing and Conducting Mixed Methods Research. SAGE. Decker, M. A. (2004). “Knockouts of Knockoffs:” The Global Implication of Fashion Piracy. Retrieved on June 02, 2011 from http://www.philau.edu/schools/gs/news/documents/MelissaDecker.pdf. Gravetter, F.J. & Wallnau, L.B. (2008). Statistics for the Behavioral Sciences. Cengage Learning. Levin, R.I., & Rubin, D.S. (1998). Statistics for Management. Pearson Education India. Nargundkar, R. (2003). Marketing Research-Text & Cases 2E. Tata McGraw-Hill Education. Vithlani, H. (1997). The Economic Impact of Counterfeiting. Retrieved on June 02, 2011 from http://www.oecd.org/dataoecd/11/11/2090589.pdf. Wilcox, K., Kim, H. M. & Sen, S. (2008). Why Do Consumers Buy Counterfeit Luxury Brands?. Journal of Marketing Research. Volume XLV. Retrieved on June 02, 2011 from http://www.iccwbo.org/uploadedFiles/BASCAP/Pages/Why%20Do%20Consumers%20Buy%20Counterfeit%20Luxury%20Brands.pdf Read More