Why do consumers buy fake luxury goods even when they think it’s wrong?
11/17/2025
3 min
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In this video, Professor Zi WANG focuses on an intriguing paradox that was the topic of her recent coauthored research* : why do consumers who condemn counterfeiting still buy fake luxury goods?
In France, nearly 40% of people admit to having purchased a counterfeit item, according to the expert, even though almost half also believe counterfeiting is harmful to the economy and to creativity. This gap between moral values and actual behavior reveals something fundamental about human decision-making in luxury contexts.
The role of status & visibility
She explains that the driver of this behavior lies in status and visibility. “Luxury goods are not only products; they are social signals. A Louis Vuitton bag or a Chanel logo, displayed in public, communicates prestige, belonging, and social recognition.”
Under these conditions, the psychological reward of fitting in or looking successful can outweigh the discomfort of breaking moral principles. “In other words, the quest for social validation often silences consumers’ ethical hesitation.”
Luxury goods: behavioral neuroscience illustrates conflicts consumers face
Using behavioral neuroscience, the researchers illustrated this inner conflict . “When people evaluate counterfeit luxury goods, the brain’s reward circuits light up strongly, while moral judgment areas remain relatively quiet. In other words, temptation wins. However, when consumers are reminded of the ethical and hidden costs of fake goods, such as intellectual property theft, reduced innovation, poor labor conditions, or even long-term damage to self-image, their intention to buy counterfeit luxury products actually decreases sharply.”
For luxury brands, the expert argues that they must go beyond legal or financial arguments to fight against counterfeits. They need to address the moral and identity forces that drive consumer behavior. By reframing authenticity as a mark of confidence, dignity, and self-respect, brands can shift consumer choices from imitation to integrity. “The message is simple: authenticity must replace imitation as the ultimate status symbol.”
*The full study:
Morality is for Social Being: The Role of Morality in Social-Adjustive Functional Attitudes Toward Counterfeit Luxury Consumption. J Bus Ethics (2025). Lyu, D. ( Shanghai University of Engineering Science, Shanghai, China), Wang, Z. (IÉSEG), Kumar, A. (EMLYON Business School,) & Jia Jin (Shanghai International Studies University).
