Combating copycatting in the luxury market with fighter brands

Pengwen Hou, Ziyan Zhen and Hubert Pun

Transportation Research Part E: Logistics and Transportation Review, 2020, vol. 140, issue C

Abstract: We examine the effectiveness of using a fighter brand to combat copycatting in the luxury goods industry. In our research setting, the copycat product has a high resemblance to the luxury brand manufacturer’s original product, so customers may purchase the copycat product to gain the status utility. We find that the manufacturer should launch a fighter brand if the copycat product has a low resemblance to the original product. Moreover, the copycat will be less likely to enter the market when the manufacturer releases a fighter brand. Some insights regarding consumer surplus and social welfare are also provided.

Keywords: Brand extension; Copycat; Entry deterrence; Fighter brand; Luxury industry; Status utility (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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DOI: 10.1016/j.tre.2020.102009

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