Abstract

The Internet has provided a new advantage for counterfeiters - the opportunity to sell goods without prior consumer inspection. Leveraging this opportunity, deceitful purveyors of imitation goods use product presentation and website trust features to sell counterfeit goods as genuine. Based on trust and deception theories we propose that there are two categories of counterfeit deception mechanisms online: product level information and seller level information. Counterfeiters conceal the signals that identify the product as a fake using product presentation, and present themselves as legitimate business entities using website trust features. We find that advanced product presentation has a positive influence on consumers’ perception of the authenticity of products. The results of this study are informative and might be effective in further exploration of deception mechanisms in online counterfeit markets.

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