Journal article
The Impact of Online Anti-Counterfeiting on Channel Structure and Pricing Decisions
Sustainability (Basel, Switzerland), v 15(10), p8253
01 May 2023
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
Counterfeiting is an important challenge in maintaining the security and sustainability of supply chains. This paper examines a supply chain consisting of a luxury goods manufacturer (and a retailer) in the presence of counterfeit goods. Inspired by the reality that both manufacturers and retailers have incentives to implement anti-counterfeiting, this paper combines the psychological impact of anti-counterfeiting efforts on consumers and discusses the impact of anti-counterfeiting efforts on pricing and profits. We find that: (1) anti-counterfeiting has a positive impact on the selling price of brand products and the firms' profits. However, the impact on wholesale prices varies depending on who implements the anti-counterfeiting strategy. (2) Only when the quality of brand products is higher than the threshold, is the firm willing to input anti-counterfeiting efforts. Manufacturers in a reselling structure are more motivated to fight counterfeits. (3) Implementing anti-counterfeiting in a direct selling structure is the most effective strategy for manufacturers. Under a reselling structure, it is more beneficial for manufacturers to have the retailer input anti-counterfeiting efforts. Our study provides insights into the reasons why some manufacturers establish internal anti-counterfeiting teams under the direct selling structure, while others incentivize retailers to invest in anti-counterfeiting.
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Details
- Title
- The Impact of Online Anti-Counterfeiting on Channel Structure and Pricing Decisions
- Creators
- Weiting Wang - Southwestern University of Finance and EconomicsYi Liao - Southwestern University of Finance and EconomicsWenjing Shen - Drexel University
- Publication Details
- Sustainability (Basel, Switzerland), v 15(10), p8253
- Publisher
- Mdpi
- Number of pages
- 26
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Decision Sciences (and Management Information Systems)
- Web of Science ID
- WOS:001007577300001
- Scopus ID
- 2-s2.0-85160720318
- Other Identifier
- 991020836218704721
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- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Environmental Sciences
- Environmental Studies
- Green & Sustainable Science & Technology