Brand value degradation due to counterfeits
Typ
Examensarbete för masterexamen
Master's Thesis
Master's Thesis
Program
Management and economics of innovation (MPMEI), MSc
Publicerad
2024
Författare
Friberg, Carl
Tholén, Eric
Modellbyggare
Tidskriftstitel
ISSN
Volymtitel
Utgivare
Sammanfattning
Counterfeiting is a widespread issue for companies, leading to financial losses and a decline in
consumer trust. As a result, brand protection programs become important. However, measuring
the impact of these programs remains a challenge. This is especially true when looking into
how counterfeiting affects brand value degradation. Therefore, this thesis aims to develop an
equation to estimate brand value degradation due to counterfeiting and assess the return on
investment for brand protection programs. To gain insights into measuring brand protection
effectiveness, an iterative method inspired by grounded theory was employed. Three data
sources were utilized, internal documents from a counterfeit takedown provider, a narrative
literature review, and semi structured interviews.
This thesis identifies key variables that influence brand value degradation caused by
counterfeiting. These variables include, the number of unique customers buying counterfeits,
the percentage of deceived and unsatisfied customers, exposures required for attitude change,
information diffusion, customer acquisition cost, and the cost of brand protection programs. The
identified variables are then incorporated into equations that calculate brand value degradation
due to counterfeits, total costs due to counterfeits, and the return on investment of brand
protection programs.
This approach offers an advantage by shifting the focus from the complexities of measuring
brand value to estimating the costs associated with customer losses due to counterfeiters
deceiving customers. By leveraging the developed equations, firms can gain valuable insights
into the brand value degradation caused by counterfeiting. This information can be used to
empower brand professionals to effectively report these losses to management, enabling
informed decision making. Future research should focus on evaluating specific brand protection
activities, quantifying the impact of individual variables, and exploring additional factors
influencing brand value degradation.
Keywords: Counterfeiting, Brand value degradation, Brand protection programs, Return on
investment
Beskrivning
Ämne/nyckelord
Counterfeiting , Brand value degradation , Brand protection programs , Return on investment