Counterfeits or Shanzhai? The Role of Face and Brand Consciousness in Luxury Copycat Consumption

Abstract

This study responds to the emergence of the Shanzhai phenomenon in the international marketplace and introduces the Shanzhai phenomenon into the consumer behavior literature by defining it and comparing it with well-known concepts like luxury counterfeits. More specifically, it examines how consumers’ face and brand consciousness influence their willingness to buy luxury counterfeits rather than Shanzhai products. The results show that consumers who are more face conscious are more likely to choose luxury counterfeits than Shanzhai products. In addition, consumers’ face consciousness elicits a high concern for well-known brands, which also in turn leads to a more favorable attitude toward luxury counterfeits than Shanzhai products. These findings enable researchers to better understand consumers’ responses toward both Shanzhai and counterfeit products and help companies that are protecting their original brands to tailor their consumer-directed measures more effectively.