Consumers Purchasing Behaviour:

Authentic vs Mall Pull Out.

Submitted by:

Dela Cruz, Mark Dave

Triviño, Jonald A.

Submitted to:
NUQUI, ROMEO

Summer Term

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 Acknowledgement

We would like to offer our heartfelt appreciation to everyone who contributed to

this paper. First and foremost, we would want to express our gratitude to our professor
for giving us with the guidance they need and tools to finish this job. We also like to
thank our classmates for their helpful input and encouragement during the writing
process.

We also like to thank the employees at the library and other organizations for providing
us with access to important research resources. Our friends and family members also
deserve to be recognized for their constant support and encouragement throughout this
difficult journey.

Finally, we would like to acknowledge everyone on the team for their tremendous effort
and dedication. This article would not have been feasible without their hard work and
teamwork.

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 Table of Contents

Introduction………………………………………………………………4

Significance in Marketing……………………………………………...5

Consumer Awareness………………………………………………….6

Nature and Description………………………………………………...7

How new is the special topic………………………………………….8

Mall Pull Out in the market…………………………………………….9

Technical aspect………………………………………………………...10

Origin on how Mall Pull Out Started in The Market………………………11

Advantages and disadvantages………………………………………12

Business Operations……………………………………………………13
Marketing in improving sales, market share and profit…………..14
Uses of the special topic……………………………………………….15
Impact of the special topic to the competition……………………..16
Who can benefit from this special topic in marketing…………….17
References………………………………………………………………...18-19

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Introduction

Mall pulls out product is another term for fake product that uses the same
material but not the exact material with some minimal imperfection products unlike to
those authentic brands that the production of their product is very polished and there
are no imperfections. The production and distribution of mall pull out in the market
nowadays is one of the problems of those retailers who owns the legitimate brand. This
problem is already expanding throughout the global market that gives a big impact to
the owner and manufacturer of the brand and its economies is already affected by this
mall pull out products. This affects to the behaviour of the consumers in the market that
is why we are making this paper to gather information and study on how these specific
names or declared fake product affects the sales and how the behaviour of the
consumers changes in buying branded and legit products. This products is known for
copying the design like they are very identical that’s why this is being called as a mall
pull out and by that people will attract easily since they don’t have enough knowledge
on the product that they are going to purchase, aside from having a cheaper price this
product also have the same tag that can identify that it looks real especially if this is
through online shops but if you will consider the material you can see the difference of
those products. According to (J. Salvatierra) Most replica is produced in China, India
and Thailand and head west via Hong Kong, Macao, and Singapore, as well as through
ports in Ukraine and Albania or Morocco and Egypt, the United Arab Emirates, Kuwait
and Saudi Arabia. As an individual we can see how mall pull out product can affect to
the community not only to the community but also to the reputation of the brand owner
who produced a lot of good quality authentic product for their consumers satisfaction.

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Significance in Marketing

These existing fake products nowadays give a massive loss to the company who
owns and selling the authentic brand. According to (H. Ibrahim) these products are often
of inferior quality and can harm consumers, leading to negative reviews and word-of-
mouth recommendations. This can lead to a loss of trust and credibility for the business,
which can be difficult to regain. A tarnished reputation can also lead to a decline in sales
and market share. Understanding the behaviour of the consumers on their buying
decision has a significance in marketing since before we sell a product, we always
consider the behaviour of our target market because they are the one who give life to
our businesses and why we should consider the behaviour of our consumer simply
because by doing that we can see the perspective of the consumer on how they want a
product and what are their preferences on buying goods also we can end up in giving
them the satisfaction after purchasing. When it comes to the product this mall pull out
product can violate the intellectual property of an owner since they are only copying the
brand and selling it to a lower price that cause that the consumer will choose their
product over the legit one since the consumers behaviour is unpredictable, there are
some consumer that will choose a pricy product since they know that the quality of the
product will last unlike those fake products. By knowing the rights of their brand against
those fake brand will give them an idea on how to counter it such as making it in a legal
way since they are the one who made the concept or the idea and yet there are some
entrepreneurs who is producing a product that is similar from what they produce. On
this case brand owner should make an awareness or give a certain idea to the market
regarding their brand to give awareness to the consumers on what product they are
going to purchase, if they will be going to execute it properly the behaviour of the
consumer will change and the possibility of getting the support of the consumers on
buying the legit or the authentic product will happen.

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Consumer awareness

Consumer should know what are the products that they are going to purchase
since we are in living in a modern world a lot of changes happen since the technology is
improving and it also affects to the marketers who is producing their own brand. But
together with the evolution of technology the world of authentic brand is being cover
with a manufacturer who creates a product with the same identity like an authentic
product the is hard to identify if the product that they are buying is an authentic one, it
can affect to the authentic brand since some seller declare their product as an authentic
product even though their product is just a clone or declared as a mall pull out which is
also having the same physical appearance and tagging that will encourage the
consumer to but it since they declared it as a mall pull out product where authentic is
being sell here. By giving an awareness to the consumer or giving them the knowledge
regarding the product they are going to purchase they are not easily to be encouraged
to buy a certain product without proof of authenticity. Below are the steps that the
consumer should know to avoid this kind of products in the market.

1. Be vigilant on purchasing a product: Consumer should become vigilant on buying

a product and lessen the excitement before buying a product since we don’t
know if the product that being offer to us is authentic.
2. Always check the labelling of a product: One way to counter those fake products
is to check the label of a certain product example is if you are going to purchase
a sneaker you should check the threads of the shoes if this is very polished and
always check if the shoe is in perfect form because from them you can easily
recognize if the product in front of you is an authentic or fake.
3. Keep on supporting the authentic brand than mall pull out: There is a lot of
declared name for fake products such as OEM (Original Equipment
Manufactured), Class A, Mall pulls out, UA (Unauthorized Authentic) Etc. If a
seller declared their price with one of the given names, you could reject the offer
because this kind of products are all fake and not authentic.

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Nature and Description

Mall pulls out product is another term for a fake product that make it more formal in
the ears of the consumer and in the market. But there are still many classified names of
a fake products.

1. OEM (Original Equipment Manufactured) – According to (CFI Team) An Original

Equipment Manufacturer or OEM is a company that manufactures and sells
products or parts of a product that their buyer, another company, sells to its own
customers while putting the products under its own branding. OEMs commonly
operate in the auto and computer industries.

2. Mall pull out- Mall pull out is another name that been made to make fake product
more formal but in doing this study we discover that there is no product like this
since in malls all of the product is in their inventory and how come that a brand
will sell it in a very cheaper amount knowing that the value of the brand is very
popular in the market and the demand is very high especially in the malls.

3. Replica- Replica items are the exact replicas of the originals. They are also
known as copies of an authentic brand because they are made after the original
renowned product. As a result, despite their similarity to the original items, they
are not passed off as authentic since there are still some parts that they cannot
make fully polished.

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How new is the special topic

This issue is already arisen in the modern world due to the evolution in the
technology and even the skill of every individual is already developing that leads to
creating the possible. According to (OECD.org) Trade in fake goods, which infringe on
trademarks and copyright, creates profits for organised crime gangs at the expense of
companies and governments. Fakes of items like medical supplies, car parts, toys, food
and cosmetics brands and electrical goods carry a range of health and safety risks. As
you can see it is indicated there where the fake goods can come from since it has a
wide covered in the market. We are aware of how the population of manufacturer evolve
and how they manage to expand the product that they can dominate and due to this the
behaviour of the consumers instantly change since they will prioritize purchasing a
product that is similar to the product that they need to buy with a cheaper price, and
because of this those authentic brand will have the decrease on their sales since
consumers are already patronizing those fake products that has the same image, but
aside from it people will no longer be able to patronize the authentic product even if they
are going to release a new product because the mindset of the consumer is that there
are an upcoming replica release in the market that is going to release so instead of
buying a legit one they will choose to buy the cheaper price. If we are going to observe
there are some famous brands that is having a clearance sale due to lower sales, and
this is the main causes of having replica in the market. Although the government are
already finding a solution to give credit to the effort of the brand but still it is hard for
them to stop the growing population replica manufacturer.

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Mall Pull Out in the market

Mall Pull Out is one of the products that consumers are patronizing nowadays
because it produces the same image of a brand that can make them comfortable to use
because the similarity of the authentic product and mall pull out is very similar even in
the labelling of the product you cannot deny that you will see it as an authentic product.
As a result, many real product producers are seeing a drop in sales since consumers
are already gravitating toward the mall pull out brand owing to its lower pricing.
However, when we compare the quality and longevity of an actual brand to that of a
mall pull out, the results are significantly different since an authentic product is made
with very high-quality materials, such as in shoes, bags, and so on. Many products are
already being replicated; it is simple for them to produce a product like this, especially in
China, India, and Thailand and head west via Hong Kong, Macao, and Singapore, as
well as ports in Ukraine and Albania or Morocco and Egypt, the United Arab Emirates,
Kuwait, and Saudi Arabia; these countries are very popular in making replica products
due to their advancement in technological evolution, and we cannot deny it because
these countries are very popular in making replica products. They may simply advertise
these kinds of products through social media and other channels that have a large
audience. It also has an impact on consumer health because we don't know what
materials were utilized to make these items.

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Technical aspect

These fake products, which have been classified under various names, are those
that manufacture a copy of a brand and distribute it to the market at a lower and more
affordable price in order to attract consumers and cause a change in the brand owner's
sales, which in turn affects consumer behaviour. It poses a significant problem to the
government and industry in determining how to combat the expanding number of
duplicated brands. Add to that the consumer behaviour of being encouraged to
patronize those classified fake products, and it becomes a big threat to the authentic
brand owner on how they will fight it and how they can encourage their past consumers
to still patronize their brand knowing that replica is already making it very similar to their
produce goods in the market, and also how they will manage to make an action into it
knowing that this crisis has been going on for a long time. In fact, a lot of fake brands
are emerging in today's modern world from various countries due to technological
advancements. Even the most difficult part of the goods can be replicated, and it will
look real in the eyes of the consumer, causing them to purchase it knowing that it is a
fake product and not authentic.

Another issue is that we may not be aware of the materials used by the
manufacturer to produce these goods, but we are not safe from those materials, which
can harm our health and also harm the environment, because those goods do not use
the exact material to produce an authentic product that is legally safe for the health of
the consumer and users of the product. Aside from that, they are not only capable of
replicating the exact product, but also the labelling, warranty cards, and packaging of
the product, which makes the consumer more convinced to buy the specific product,
giving the market the impression that those fake goods are as realistic as an authentic
product.

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Origin on how Mall Pull Out Started in The Market

Mall pull outs are another term of sellers to prevent their product being labeled as
outright fake. This strategy is commonly being used today to market the fake products
that the seller is selling to the consumers. Counterfeit products not only harm the
original brand owners but also deceive consumers who may unknowingly purchase the
product thinking that it was authentic. The production and sale of fake products has
been around in the market for a very long time. It has practically existed for around 150
years. The big upturn of production of counterfeit began in the late 70s because of the
rising popularity of designer clothes that entices a lot of consumers (Humphreys,2019).
In that time blatant labeling and brand identity were used to gain a recognizable
reputation in the market.

In our modern era, the popularity of streetwear has brought about a lot of
opportunities for counterfeiting products, especially trendy fashion merchandise. The
fast pace of changing fashion trends has attracted people with a low budget to buy the
cheaper products which are the mall pull outs, replicas and fake. The global market
allows counterfeiters to produce and distribute fake products on a large scale especially
with the rise of globalization and the internet, counterfeit goods have become more
widespread and sophisticated. Even with all of the legal measures that the authentic
brands are doing to protect their brand and trademark. You can see that the counterfeit
market is still prospering.

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Advantages and disadvantages

Counterfeit products are unauthorized replicas or imitations of genuine products.

They come with both advantages and disadvantages. Here are the points to consider:

Advantages
 Allows consumers to buy prestige at a lower price.
 Wider choices of products for the consumers
 Availability


Disadvantages
 Poor Quality of products
 Lost value for money
 Loss of revenue for genuine brands
 Undermining innovation and creativity.
 Negative Brand Image

While counterfeit products may appear to offer cheaper alternatives, they present
significant risks to consumers, brand owners, and society as a whole. It is essential for
consumers to be aware of the risks associated with fake products and make informed
choices that will get their money's worth.

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Business Operations

Counterfeit production involves the unauthorized manufacture of goods that

replicate the design, branding, and packaging of genuine products. This process often
uses cheaper materials and labor to reduce production costs and maximize their profits
because they are selling the replica product at a very cheap price.

They are typically sold through illegal channels such as black markets,
unauthorized websites, and street vendors. In many cases, they are being disguised as
genuine products to deceive consumers that lack the proper information regarding these
counterfeit products. Counterfeit goods are supported by a global network of unethical
labor practices such as sweatshops in developing countries wherein employees are
working at a low wages and under unhealthy conditions (AlpVision, 2023).
With the rise of social media platforms such as Facebook and Instagram, sellers of
unauthorized products can easily market the goods to consumers. Those involved in the
production, distribution, or sale of counterfeit products can face penalties, that includes
fines and imprisonment.

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Marketing in improving sales, market share and profit

Counterfeit products can have significant negative effects on the sales of genuine
products and the overall business of legitimate brands. Fake products are often sold at
a much cheaper price compared to the original. Since the counterfeiters cut production
costs by avoiding expenses such as research, development, and quality control. With
that, the consumers that are looking for a cheaper alternative of a product will opt to buy
the fake ones. Some might also be convinced that they are buying a mall pull out
product but in reality it is just a marketing term used by sellers of fake products to entice
consumers. It leads to a decline of sales of the authentic brand. luxury brands lose
around $30.3 billion of sales due to online counterfeiting (Driver, 2018).
The growth in globalization of trade and technological aspects has been
beneficial to a lot of people especially the economies of every nation. But it also
possesses adverse effects on authentic brands wherein the market of counterfeit
products is flourishing quickly. Legitimate business organizations are spending a lot of
time and resources in protecting their copyright and trademark but after all the course of
action the fake products are still booming.

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Uses and usage of the special topic in the environment and people

Consumer purchasing behavior can vary significantly depending on whether they

are buying authentic or fake products. It includes the motivations behind their choices
and the impact on the environment and people. It differs between the two types of
products. Authentic products are manufactured by reputable brands that invest in
research, development, and quality control to meet industry standards. You can
definitely guarantee quality assurance when you buy from legit brands because they
have a reputation to maintain. Consumers may have a strong emotional connection or
loyalty to specific brands. They prefer authentic products because they associate them
with their positive experiences in using their products and also the brand's reputation.
Environmentally conscious consumers may choose authentic products from brands that
demonstrate sustainable and ethical practices in their supply chain and manufacturing
processes. Companies now are taking an eco-eco-friendly approach in producing their
clothes to help recycle and save the world from pollution.

The production of fake products often involves lower quality materials, less
oversight, and unethical labor practices. Many of the fake clothes are being produced in
a sweatshop wherein it violates a lot of employee’s welfare such as terrible working
conditions, giving unfair wages, making them work for unreasonable hours, child labor,
and a lack of benefits for workers. Counterfeiting can also lead to environmental harm
as fake goods may be manufactured without consideration for eco-friendly standards or
regulations. They can just produce the goods without considering safety hazards and
environmental dangers that it can do to nearby residents.

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Impact of the special topic to the competition

The market of fake products is growing rapidly even with business organizations
taking measures to protect their brands and trademarks. The rise of globalization and
the internet has made it easier for counterfeiters to manufacture and distribute fake
products across borders. Online marketplaces and e-commerce platforms provide
accessibility for counterfeiters to reach a global audience with ease. Counterfeits have
now become a real competitor and they can cut the company’s cash flow (Williams,
n.d). Today, a lot of people are price-sensitive, consumers are often drawn to cheaper
alternatives. Counterfeit products which are often sold at significantly lower prices and it
appeals to budget-conscious consumers looking for cost-effective options. It requires a
massive amount of effort from governments, law enforcement agencies, brands, and
consumers To address the growing problem of counterfeit products. Stricter intellectual
property protection laws, increased consumer awareness, and effective enforcement
policies against counterfeiters are some of the measures that can help combat the rapid
growth of fake products. The impact for the competition of this topic will change the
perception of the consumers after we gave them the awareness regarding those
product that is circulating around the market that is not very deserving for the amount
they paid, lets say this brand or products are cheaper than the authentic brand but how
about the quality and satisfaction that they can get from it, this kind of goods are only
have a short period of time of usage and after that consumer will look for another kind of
product that will become an exchange from it and consumer will have an expenses
unlike the authentic brand wherein it has already tested that it will last for a long period
of time. On the other hand if this special topic will arise the sales of the authentic brand
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will increase since consumer will patronize again and will encourage them to purchase
an authentic brand than fake or mall pull out, original equipment manufactured, replica
and unauthorize authentic brand.

Who can benefit from this special topic in marketing?

Consumers are the ones who can benefit from authentic and fake products.
Consumer purchasing behavior towards authentic and fake products is influenced by a
variety of factors, including price, brand loyalty, social image, ethical considerations,
and trends. Understanding the motivations behind these choices is essential in creating
awareness for consumers in the market . Some consumers may unknowingly purchase
fake products especially if they are being deceived by sellers claiming the products are
genuine. Some consumers also buy fake products because it allows them to buy
prestige brands without breaking the bank. Some only prefer authentic products
because it gives quality assurance. Authentic clothing is associated with higher quality
materials, craftsmanship, and production standards. Consumers expect better durability
and performance, leading to longer-lasting garments. Individualtant to note that
individual preferences and priorities can differ significantly among consumers. It leads to
a diverse range of perceptions and behavior when buying products. Additionally,
consumer perceptions can evolve over time based on changing fashion trends, societal
attitudes, and personal experiences that they may encounter. It allows individuals to
make choices that align with their values and lifestyle.

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References:

Javier Salvatierra (Jun 22, 2017)

https://english.elpais.com/elpais/2017/06/22/inenglish/1498121880_945362.html

Hazem Ibrahim (Apr 25, 2023)

https://www.linkedin.com/pulse/fake-products-real-consequences-
importance#:~:text=Counterfeit%20products%20are%20often%20of,in%20sales
%20and%20market%20share.

CFI Team (May 28, 2020)

https://corporatefinanceinstitute.com/resources/valuation/original-equipment-
manufacturer-oem/?
utm_source=RAN&utm_medium=affiliate&utm_campaign=3927952&ranMID=45676&ra
nEAID=3927952&ranSiteID=Ua3V4gnvX2o-v0C.O0WNoQ2QtzR0nAZf1g

OECD.org (March 18,2019)

https://www.oecd.org/newsroom/trade-in-fake-goods-is-now-33-of-world-trade-and-
rising.htm

Humphreys, G. (2019, September 30). Counterfeit: counterculture to couture. Varsity.

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 Retrieved July 17, 2023, from https://www.varsity.co.uk/fashion/17807

How Much Money lost due to the Counterfeit Fashion Industry? (2023, April 13). AlpVision.

Retrieved July 17, 2023, from https://alpvision.com/counterfeit-fashion-industry/

Driver, R. (2018, May 16). Luxury brands lose $30.3 billion due to online counterfeiting in 2017.

Fashion Network. Retrieved July 17, 2023, from

https://us.fashionnetwork.com/news/Luxury-brands-lose-30-3-billion-due-to-online-

counterfeiting-in-2017,977979.html

Williams, R. (n.d.). What are the biggest impacts of counterfeits on brands? Red Points.

Retrieved July 18, 2023, from https://www.redpoints.com/blog/what-are-the-biggest-

impacts-of-counterfeits-on-brands/

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