October 3rd, 2009
A recent article made me think back to a post I wrote last summer titled “Stephanie Fierman Likes Plastic Gucci Sunglasses – And Is OK With It.” The post says that experts who say that not-rich consumers are essentially duped into buying luxury goods are missing a large swath of buyers who know exactly what they’re doing: that is, buying fun, knowing full well that they could buy functionality at a far lower price. Hence, Gucci vs. $10 plastic sunglasses I can buy on the street. Plastic is plastic. But that dopey logo represents an indulgence – a reward – for which I am sometimes willing to pay full freight.
BusinessWeek outlines the efforts of Dan Ariely, a behavioral economist and author of the book Predictably Irrational, who has spent the past year trying to figure out the forces that drive people to cheat (paging Bernie Madoff…)
Ariely’s very very boiled down conclusion is that individuals who are not directly faced with evidence or reminders that what they are doing is wrong are more likely to plow ahead and conversely, those who are reminded are less likely to do so. He describes a couple of experiments he used to try to measure “deception’s slippery slope.”
* Subjects who knowingly wore faux designer sunglasses later cheated twice as often on an unrelated task than those wearing authentic goods – take the first step and it’s that much easier to take the second.
* Get an auto insurance applicant to sign his name on the top of the application rather than the bottom, and he will be more honest about his driving habits – put the consequences right in someone’s face and you’re likely to get “better” behavior.
Here’s a TED video of Ariely talking about why people think it’s ok to cheat:
This has extreme ramifications – and potential opportunities – for luxury goods manufacturers like LVMH who spend a lot of money and time drawing attention to the costs of counterfeit goods.
Part of the problem is the arguments these companies use. Does the average woman – out with her friends to have a little fun on a Saturday afternoon without a lot of money – have any sympathy when the luxury companies are described as the chief victims of counterfeit buying? I don’t think so.
But what if these manufactures took a different tack, promoting the fact that buying faux fuels organized crime and following it through with stories of what these same criminals did with the $30 I paid for a fake Chloe bag? It certainly wouldn’t be possible in all venues, but could some of these firms visit places like Canal Street in New York and engage directly with potential buyers about the consequences of buying fakes? I don’t think I’ve ever seen this happen. I’ve seen local TV and newspaper stories about how a luxury company has done a raid with local law enforcement… but never a company interacting directly with consumers at the street-level point of purchase.
If was looking at a table full of fake Tiffany merchandise and given proof of the spot that my money goes to fund terrorist groups, what would I do? Would I stand there and think of the two friends I lost on American Airlines Flight 11? I believe I would – and I think I’d walk away from the table, and tell my friends about the experience.
The Guccis and Tod’s and Burberrys of the world need to find a way to debunk the idea that buying fakes is a victimless crime, and they need to do it as close to the moment of impact – the moment I’m about to buy that fake Cartier watch as possible.
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