Authenticity, Quality, and the Risk-Averse Consumer: How Perceived Value Drives Genuine Purchases in Counterfeit Markets

Abstract

This study investigates the psychological mechanisms that drive consumers to choose genuine products over cheaper imitations in counterfeit-saturated markets. Grounded in the Stimulus-Organism-Response (SOR) framework and prospect theory, we examine how brand authenticity and perceived quality influence genuine purchase behaviour, with perceived value acting as a mediator and risk aversion as a moderator. Utilizing a quantitative approach, survey data were collected from 412 Indonesian fashion consumers and analysed via Partial Least Squares Structural Equation Modelling (PLS-SEM). The results reveal that brand authenticity and perceived quality significantly enhance genuine purchase intentions, both directly and indirectly through perceived value. Notably, risk aversion asymmetrically moderates these relationships: it amplifies the effect of perceived quality but does not significantly alter the impact of brand authenticity. Accounting for 48.7% of the variance in purchase behaviour, these findings suggest that while quality signals are critical for risk-averse segments, authenticity serves as a universal trust mechanism. The study offers actionable insights for brand managers navigating dual markets where imitation goods compete with legitimate offerings.