Laud the Fraud, Just Not in Public: Counterintuitive Benefits of Counterfeit

Four studies demonstrate counterintuitive beneficial effects of counterfeiting for brands and products. Results suggest high-end brands benefit from perceptions of prevalent counterfeiting, low-end brands benefit from perceptions of infrequent counterfeiting, and the explicit active/passive role a company takes in combating counterfeit has a moderating effect on the consequences of counterfeit.