Factors Contributing To Trade In Counterfeit Products In Nairobi City County: A Case Of Hp Toner Cartridges

Abstract

Counterfeit trading in the City of Nairobi has been on the rise owing to a myriad of factors as explained in this paper. The study dwelled on four factors that influence counterfeit trading. Against this background, the main objective of this study was to determine the factors contributing to trade in counterfeit HP toner cartridges in Nairobi City. The specific objectives of the study were to examine the effects of brand popularity on trading of counterfeit HP toner cartridges, to determine the relationship between the pricing strategy and trading of counterfeit HP toner cartridges, to investigate the role of consumer awareness of counterfeits on trading of HP toner cartridges, and to establish the influence of current legislations on trading of counterfeit HP toner cartridges. The study adopted the rational choice theory and enterprise theory of crime to explain this phenomenon. In terms of methodology, the study adopted a descriptive research design and targeted top and middle level managers working at the Anti-Counterfeit Agency (ACA), wholesalers and retailers of HP toner cartridges (distribution channels), end users of HP toner cartridges, and dealers of counterfeit HP toner cartridges, (n =125). The study adopted stratified random sampling technique and used a questionnaire to collect quantitative data, while interview guide was applied to collect qualitative data from key informants. The researcher used SPSS version 20 programme to analyse quantitative data and employed applied descriptive statistics that included frequency and percentages. The qualitative data derived from unstructured questions were grouped into various thematic areas and applied to reinforce quantitative data. Analysis of the collected data established that brand popularity of HP toner cartridges significantly influenced counterfeit trading of genuine products and that the price of HP toner cartridges significantly determined the extent of imitation of the product. In addition, the study established that consumer awareness predicates consumer willingness to purchase counterfeit products and that the current legislations on anti-counterfeit trading are not effective to deter counterfeit. In terms of recommendations, the researcher recommended that companies should enhance product reputation/quality, increase company reputation, and boost brand value and that organizations involved in production of consumer goods should enhance the availability and affordability of genuine products. Furthermore, the researcher recommended that organizations should conduct awareness campaigns as a tool to make the public aware on the demerits of consuming counterfeit products, while government authorities and agencies such as ACA and other trans-border agencies, should legislate stringent laws that daunt counterfeit trading.