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In addition to authentic brands and counterfeits, a new product category has surfaced, providing a wider spectrum of choices for consumers. Known as ‘Shanzhai,’ these products closely mimic authentic products/brands while copying key elements and adding innovative features. Given the added complexity in consumer choice, the present study attempts to understand the characteristics of consumers choosing counterfeit vs. Shanzhai products, based on their values, attitudes and demographics. Findings indicate substantial differences in consumer segments. Specifically, (i) Shanzhai buyers weigh functional values more than counterfeit buyers, while (ii) counterfeit buyers weigh status consumption, social conformity, and materialism values higher, implying they seek recognition from peers; yet they experience less clear self-identity than Shanzhai buyers. Our study sheds light on whether different values affect consumers' choices of counterfeit vs. Shanzhai products and offer important implications for brand managers.
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