Measuring and Pricing the Value of Anti-Counterfeiting Services A Case Study in Agriculture

Abstract

Counterfeiting poses a significant threat across global industries, including agriculture, where it compromises food security, harms brand reputation, and leads to considerable economic losses. This thesis explores the value of anti-counterfeiting services through a case study of AGDA, a global agricultural company facing increasing counterfeit challenges. The purpose is threefold: (1) to determine how the value of anti-counterfeiting activities, specifically monitoring, detecting, and taking down counterfeits, can be measured; (2) to develop a pricing framework for offering these services to external parties; and (3) to identify the types of industries where such services can deliver the greatest value. The study employs a mixed-methods approach, combining a comprehensive theoretical framework with empirical data from qualitative interviews and internal documents from AGDA. The theoretical portion draws from literature on customer value, brand valuation, pricing strategies, and counterfeiting typologies. Empirical findings highlight five core values driving customer preference for AGDA, quality, innovation, technical support, distribution network, and brand reputation, while also detailing regional differences in counterfeiting awareness and behavior. Analysis reveals that the value of anti-counterfeiting services is multidimensional, incorporating not only direct cost savings from confiscated goods but also brand protection, customer loyalty, and emotional value. Moreover, in industries such as agriculture and pharmaceuticals where counterfeiting is deceptive, anti-counterfeiting services provide the highest value. When applying a pricing framework, traditional cost- and competitor-based pricing strategies are limited in capturing this full scope of value. Instead, value-based pricing, combined with service pricing theory, is identified as the most appropriate model since it supports a high degree of value appropriation. Recommendations are provided for AGDA to further develop its service offering, engage external clients, and refine its pricing model based on contextual industry characteristics.