Counterfeit Make-Up Products – Threat for the Market, Companies and Customers

The goal of this thesis is to explore whether conscious use of counterfeit make-up product can negatively affect the way how consumers perceive the quality of genuine branded products and the brand associations they relate to the luxury brands. Moreover, shopping intentions of consumers who had bought illicit make-up in the past, the main factors that drive their shopping intentions were analysed together with the risks consumers might perceive prior to the purchase. To find answers to all research questions, review of the relevant literature together with both qualitative research and quantitative research were conducted. The primary research in form of two focus group discussions included 13 respondents in the age range from 18 to 35 years old, who had knowingly purchased counterfeit make-up products in the past. To further complement the key findings from the group discussions, an online survey was conducted. In total, 233 respondents from 15 to 50 years old replied to the structured questionnaire. The key findings disproved the assumption that both perceived quality and brand associations are negatively affected by the use of fake cosmetics. The main purchase intention that consumers consider is lower price. Majority of consumers perceive the performance risk, only a couple respondents were considering health risks connected to the use of the illicit make-up.