GOOD SAMARITAN COLLEGES
SENIOR HIGH SCHOOL
Burgos Avenue, Cabanatuan City, Nueva Ecija. 3100. Tel: (044) – 464-3212. Loc. 131
THE IMPACT OF BRAND AUTHENTICITY TO THE CONSUMER’S DECISION
MAKING
_________________________________________
A Research Paper
Presented to the
Faculty of Senior High School
Good Samaritan Colleges
Cabanatuan City
______________________________________
In Partial fulfillment
Of the Requirements for
Practical Research 2
By
Arcega, Misty B.
Arenas, Chynna G.
Calimag, Jhanella Elizabeth T.
Cruz, Nicole Anne O.
Dela Vega, Alexandria
Feria, Myka Beatriz R.
Gregorio, Neil Alyson M.
Maducdoc, Mariah Andrea G.
Relator, Leslie Joy H.
12 ABM - Accountancy
(October 2019)
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CHAPTER 1
The Background and Its Setting
Introduction
Everyone has a lot of needs and wants in life. It could be
foods, utilities, medicines, school supplies, new kicks,
clothes, cosmetics, accessories – you name it. There are a large
number of things or products people actually spend money on that
leads them to buy from time to time or on a daily basis. For
some people, buying is needed to be done to be able to fulfill
their basic demands in life but for the others, buying should be
done so that they could meet their desires. Throughout the
years, people have developed a systemic way of purchasing
products in the marketplace to be able to satisfy their
necessities. People’s choices and decisions in terms of
purchasing may vary because of the influence of different
factors in life. Decision making is probably the hardest thing
to make especially to consumers because nowadays, they are being
surrounded by so many choices and endless amount of
opportunities.
Needs and wants are the basic reason or the minimum
requirement consumers look for in a product. They are called
the qualifying or the “gatekeeper” dimension in a purchase
(Principles and Practices in Marketing, 2017, P. 11). According
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to the five steps of the decision making process of a consumer,
determining the problem or needs, collecting some information
about the product, evaluating alternatives, making a purchasing
decision, and post-purchasing are all part of the stages that a
consumer must undergo just to meet their needs and wants in
their everyday lives. Based on Business Dictionary, consumers’
actions are determined by psychological and economical factors,
and are influenced by environmental factors such as cultural,
group, and social values.
Indeed, decision making plays an important role when one
purchases a product because they must undergo processes and
consider various things. Also, this topic about consumers’
behavior is of outmost important for marketers. They must know
how consumers decide and what changes they should anticipate to
make their products greater and to be able to develop right and
effective marketing strategies and tactics.
According to “UK Essays” (2018), consumers practice
extensive decision making when buying products. Their purchase
involves comparing many alternatives and evaluating them in
terms of different characteristics. The process of their
decision making really requires a significant investment of time
and effort. Barkman (2018) stated that if marketers know the
reason why consumers choose the products they choose, they have
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a big chance of gravitating them towards their products and
also, they can give consumers the best products that they can
offer. In addition, he mentioned that the decision making of
consumers has a huge role in the marketing field. Once marketers
study the behavior of consumers, they will figure out why
consumers are being selective in terms of purchasing certain
kinds of product.
In times of increasing uncertainty or doubt when a consumer
is in the middle of making decisions, brand authenticity is an
essential human aspiration, making it “one of the cornerstones
of contemporary marketing” and a major factor for brand’s
success. It is undeniable that brand authenticity is becoming a
prevalent phenomenon and an issue in today’s marketplace because
most of the people commonly feel uncertain in their daily lives,
even in the products or brands that they consume (Bruhn,
Heinrich, Schafer,Schoenmuller, 2012).
In this day and age, aside from brand authenticity, the
trend of high end replica items has also been increasing
quickly. These are the products that are copies of authentic
products which can be indistinguishable from the original. These
products might range from branded items such as shoes, clothes,
bags, jewelry, accessories, and many more. This is causing
original brand companies a great deal of frustration while
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consumers experience extreme confusion that makes their decision
making even harder.
However, the studies and researches conducted about brand
authenticity and high end replicas are still not on its peak.
This issue is still left unnoticed by many; it seems like only a
small amount of attention has been given to this topic. There
is indeed an insufficient understanding and lack of awareness on
the importance of identifying the ways on how consumers perceive
authentic brands and its impact on their decision making.
Given these conditions, the researchers are motivated to
undergo this study primarily to know which among the authentic
products and high end replicas are patronized by the consumers.
The researchers see the need to delve into the issue of the
consumer’s purchase decision with regards to choosing between
authentic brands and high end replicas because every person is
playing a role of a consumer and makes a lot of buying decisions
almost every day. This will give the consumers the ability to
gain information and comprehend it purposefully as well as
meaningfully so that it would be useful and applicable to them.
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Review of Related Literature
The concept between brand authenticity and the consumer’s
decision making is a prevalent issue from any economical
settings in different societies. Brand authenticity upholds the
integrity, validity, reliability and honesty of a certain
company. If a brand is truly authentic and original, consumers
will undoubtedly patronize it. However, due to the influx of
high end replica products within our country, the purchase
decisions of consumers when it comes to buying authentic brands
are affected. With that being said, consumers may patronize both
kind of products but they can only choose one between the two.
This chapter presents review materials found to be relevant
and have bearing to this study. The literature reviewed below
examines the consumer’s decision making, consumer’s income, age,
gender, and relationship status that might affect their purchase
decisions. These articles provide additional and wider
information, which enrich insights and knowledge regarding to
the topic of the study. Reviewing related materials helped the
researchers to gather valuable data and ideas that are integral
to the whole study.
The researchers gathered the following information for the
development of ideas regarding brand authenticity. The
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researchers firmly believe that the information gathered will be
beneficial to the business owners as well as the consumers,
which can help them influence the market. The data gathered were
relevant, and have been analyzed and assembled by the
researchers to be able to build a better understanding among the
persons who will try to read or study this research.
Cconsumer’s Decision Making
Today's market economy has a lot of products to offer to
the consumers. Needless to say, our economy will not function
without consumers as they are considered the heart of the
economic industry. With a wide range of products available in
the industry, consumers are obliged to be analytical when it
comes to choosing which product they should purchase. From
purchasing a simple canned good to purchasing clothes, consumers
follow a few basic steps that allows them to properly decide
which product they could buy. The consumer decision-making
process consists of five steps, which are need recognition,
information search, evaluations of alternatives, purchase and
post-purchase behavior ("Study" 2015). The following decision-
making process by consumers serves as a guideline in choosing
the best product they could buy within our economy.
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The decision making of consumers are also affected by a few
notable factors. These factors commands what kind of product
they could buy, how much money they can spend on a product, and
what brand of product they will buy. According to Chakraborty
(2017), the following factors greatly influence the buying
decisions of consumers in our economy; this includes the
economic, functional, social, personal, marketing mix, personal,
psychological, and cultural factors in the environment of the
consumer. In the Philippine settings, Filipinos are also quite
careful in their spending decisions. The Filipino buying
behavior is influenced by various factors such as family,
friends, relatives, and colleagues, and over the years, this
buying behavior was already affected by modern philosophy as
influenced by Asians, Americans and Europeans, and the like
(Castillo, 2018).
Consumer's Income Affecting the Purchase
The income of a consumer greatly affects his or her
purchase decision. Normally, when income rises, the consumer has
the capability to buy more and expensive goods. They have the
ability to choose whether to buy an expensive product or buy
both expensive and cheaper products. However, if income falls,
the consumer has no choice but to buy affordable and cheaper
products (Taylor et al., 2017).
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Today, economic inflation increases more than the Filipinos
are expecting. This inflation also affects their financial
income which makes purchasing difficult for them. The cost of
living increases, while their income remains the same. This
affects their purchase decision. Some of them are capable of
buying expensive products, while most of them prefer buying
products that does not cost them that much. In fact, in the
Philippines, high end replicas are more prominent than authentic
products ("LookUpgrade Corp." 2018).
Customer's Age Affecting the Purchase
Age is an important demographic factor that affects
consumer behavior. As people grow, their needs and buying
decision making patterns change. Age brings changes to people’s
lifestyle and with it, their needs and personal values are also
affected. When people are young, they spend more on their
lifestyle needs from fun and movies to fashion. As they grow
older, their expenses on these things shrink. Also, people’s
choice of brands and products start changing as they grow older.
In fact, an old consumer is more serious when it comes to
choosing brands and quality than younger consumer who is more
likely to be adventurous (Pratap, 2017).
In the Philippines, online shopping and cashless payments
are very prominent. In fact, most of the consumers are ranging
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from the age of 17 to 25. More millennials shopped online and
used cashless payments for their purchases in 2017 due to sale
events and promos. These young consumers are more likely to
spend a lot of money just to buy patronized products, just like
skincare products, digital products, school supplies, make ups,
clothes, and shoes. They tend to buy a lot of stuffs more than
older consumers who prefer buying stuffs which they only need
(Abadilla, 2018).
Consumer's Gender Affecting the Purchase
Between male and female sexes, several things are different
and these differences also affect their buying choices. The two
sexes have different needs in terms of fashion and lifestyle.
So, their consumer behavior in these two areas can be vastly
different. It is mainly the difference in needs that lead to
differing choices. Also, female consumers have more needs than
male consumers have. Homemakers are less likely to be involved
in impulse buying. In most of the households, it is the women
that influence most of the product choices (Pratap, 2017).
Filipino women were more prone to consume vanity which
makes them more materialist than Filipino men. Women's
preoccupation with their physical appearance motivates them to
buy clothes and stuffs that will emphasize their physical
attributes. However, some men are showing their interest when it
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comes to fashion and personal care which helps in minimizing the
gap between males and females in terms of materialism and
purchasing patterns (Pan & Jamnia, 2015)
Customer's Relationship Status Affecting the Purchase
New research shows relationship status for women can impact
their decision making and brand choices. According to a study
from Mindshare Hong Kong, females in relationships rely less
conscious of brands compared to single females. Consequently,
when it comes to skincare purchases, single females are more
likely to rely on authentic and expensive products. The result
shows almost 20% of single females are more likely to be
influenced by TV celebrities and have a higher tendency to be
influenced by Facebook brand pages ("Marketing," 2018).
In the Philippines, 56.4% of the consumers are in a
relationship who tend to buy impulsively. The findings reveal
that relationship status has a significant influence to the
buying behavior of the consumers (Sangalang, Siochi, Plaza,
2017). The result corroborates the study of Ahmad, Bashar &
Wasiq (2012) that impulse buying could be done more by people
who are in a relationship as compared to single.
Consumer's Education Affecting the Purchase
Education affects how people view things around them. The
more educated a person is, the higher the level of discretion he
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will employ in making purchases. People’s preferences can change
with education. Education affects a number of things including
the fashion people wear and the programs they watch. It affects
even the choice of stationary and the magazines. The reason why
same ads do not work with all consumers, is because different
careers also affects the way people view things. If observed
carefully, education’s effect can easily be seen on consumer's
behavior. An educated customer would weigh his options carefully
before going for a purchase (Pratap, 2017).
According to the Department of Education and the National
Statistical Coordination Board in the Philippines, 1 in 6
Filipino kids will not attend school. Further, only 7 out of 10
kids will complete elementary school. Of those 7 kids, only 4
will complete high school, 1 will proceed onto university. In
this case, most of the Filipino consumers does not have the
ability to attain higher education which also affects their
purchasing decisions. In fact, one of the highest number of
consumers of high end replica products are Filipinos. However,
Filipinos who attained higher education, who have the ability
pursue their choice of careers have a higher standard when
buying products (Meron, 2018).
To sum up the different reviews regarding to the topic of
this study, it is truly important to study the issues with
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regards to the consumer’s decision making process. Due to the
prices of authentic products, the ones that are originated from
legitimate production companies, a lot of business owners are
producing replicas or imitations of these products. These
products are the exact copy of the authentic ones which almost
have the same quality as the original but when it comes to
price, it is cheaper. These products became popular and it
causes a great division among the consumers when they are
purchasing. Many people tend to think of buying high end replica
products as something acceptable and normal since the original
is often perceived as overpriced.
In addition, some of the demographic factors of the
consumers such as age, sex, relationship status, and monthly
income have a great impact in their purchasing decision in times
of uncertainty when choosing between authentic brands and high
end replicas.
Learning and gaining knowledge about the different
purchasing decisions of the consumers may become beneficial and
useful in future references and studies. The reviews and
existing knowledge stated above already contain a lot of
information about the consumers and their decision making
process but this research will contribute and provide more
knowledge and understanding about the said topic.
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Theoretical Framework
This study aims to determine the impact of brand
authenticity with regards to the decision making of consumers.
Specifically, it aims to analyze the underlying factors that
could greatly affect the purchasing decisions of consumers given
that authentic brands are one of their product choice in the
market industry. In short, the principal concern of this study
is to analyze the decision making of consumers. With that being
said, the main fundamental theory applied in this research is
the "Theory of Reasoned Action". This theory helps provide a
strong foundational guideline for the researchers that will
allow them to easily envision the process of conducting this
research. The theory of reasoned action was created by Martin
Fishbein and Icek Ajzen in the late 1960's, this theory centers
its analysis on the importance of pre-existing attitudes in the
decision making process ("Association for Consumer Research,"
2015). This theory believes that consumers base their purchasing
decisions based on their intention to receive a particular
outcome, in short, consumers set a goal on their mind before
purchasing any products. When a consumer sets a goal in their
purchase decisions, several factors have to be considered.
Consumers consider a wide range of factors that may affect their
goals in their purchase decisions. These factors range from
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their age, gender, relationship status, and monthly income.
Specifically, Reasoned Action predicts that behavioral intent is
created or caused by two factors: our attitudes and our
subjective norms. The concept of this theory is truly essential
in this study. In an economical setting, whenever a consumer is
exposed with authentic brands in the market industry, he or she
does not always buy that product in an instant, there is a high
possibility that the consumer will experience dilemma between
choosing authentic brands or seeking out alternatives such as
high end replicas. The consumer greatly analyzes the factors
involved in his or her purchasing decisions by being subjective
about the potential outcomes or result that could be associated
with the product that he or she will buy. Aside from being
subjective, attitude also has an effect with the consumer's
decision making. Whenever our attitudes lead us to do one thing
but the relevant norms suggest we should do something else, both
factors influence our behavioral intent ("CIOS" 2017). If a
consumer's attitude commands him or her to purchase authentic or
original brand, he or she has the freedom to buy it. However,
since the purchase of high end replicas are favored by many, the
consumer will also be influenced and obliged to change his or
her attitude and also buy high end replicas.
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Conceptual Framework
Figure 1 shows the independent and dependent variables of this
research. In this study, the independent variable is the
underlying impact of brand authenticity. Meanwhile, the
dependent variable is the decision making on purchasing a
product of the senior high school students of Good Samaritan
Colleges. The profile variables which include the profile of the
students such as their age, gender, relationship status, and
monthly income have effects to the dependent variable.
With regards to the arrows, lines, and linkage shown in the
figure, the first arrow indicates the significant relationships
between the independent and dependent variable. Factors such as
the age, gender, starnd, relationship status, and monthly income
significantly affect the dependent variable of the study. On the
other hand, the broken line in the second arrow represents their
significant differences with one another. Therefore, the small
oval shape inside the independent variable shows that these
profile variables are the variables that should look for
differences.
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Research Paradigm
INDEPENDENT VARIABLE DEPENDENT VARIABLE
Selected Profile
Variable of the
Respondents
Age
Gender
Strand
Relationship
Status Consumer’s Decision
Monthly Income Making
Figure 1
Research Paradigm of the Study
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Statement of the Problem
The aim of this study is to undertake a quantitative
research in order to determine the impact of brand authenticity
in consumer’s decision making to be able to gain a deeper
understanding about how they decide when buying certain
products. More specifically, the researchers seek to answer the
following questions:
1. How may the profile of the respondents be described in
terms of:
1.1 age;
1.2 gender;
1.3 strand
1.4 relationship status; and
1.5 monthly income?
2. What are the impacts of brand authenticity in consumer’s
decision making on purchasing a product and to what extent
are such factors carried out?
3. Is there a significant relationship between the profile
variables and the impact of brand authenticity in the
consumer’s decision making on purchasing a certain product?
4. Are there significant differences in the decision making of
the respondents when grouped according to:
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a. age;
b. gender;
c. strand;
d. relationship status; and
e. monthly income?
Hypotheses of the Study
The following are the proposed hypotheses for this study:
1. The respondents are ranging from the ages 17-18 years old,
which are mostly female and in a relationship. They have a
monthly income ranging from 10,000 to 30,000 pesos. Majority
of the respondents prefer buying authentic products more than
high end replicas.
2. Brand, quality, and price of the product are the major factors
that affect the decision making of a consumer in purchasing
certain products.
3. There is a significant relationship between the profile
variable and the impact of brand authenticity in the
consumer's decision making in purchasing a certain product.
4. There are significant differences in the decision making of
the respondents when grouped according to:
a. age;
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b. gender;
c. strand;
d. relationship status; and
e. monthly income
Scope and Limitation of the Study
The main focus of this study is to determine the underlying
impact of brand authenticity with regards to the decision making
of consumers. This study will be conducted in the Senior High
School Department of Good Samaritan Colleges for the school year
2019-2020. This limits only to Grade 12 students from all of the
three strands, namely; Science, Technology, Engineering and
Mathematics (STEM), Accountancy, Business and Management (ABM),
and Humanities and Social Sciences (HUMSS).
This study will not cover other problems that are not
correlated between brand authenticity and the consumer’s
decision making. With that being said, this study aims to
provide a comparative data that will show the most patronized
type of product between authentic brands and high end replicas.
The researchers limit their study by providing survey
questionnaires to the participants of the study. The questions
focused on areas such as the profile of the respondents, this
includes their age, gender, strand, relationship status, and the
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monthly income of their respective household. This study also
focuses on the impact of brand authenticity to the consumer’s
decision making when purchasing a product, the relationship
between the profile variables and the impact of brand
authenticity in the consumer’s decision making on purchasing a
certain product, and the differences in the decision making of
the respondents when grouped according to age, gender,
relationship status, and monthly income.
Significance of the Study
With a significant portion of consumers encountering risks
and uncertainties when it comes to purchasing in the
marketplace, this study on determining the impact of brand
authenticity in the consumer’s decision making can be a good
source of information about the consumers who are being
analytical and selective in terms of choosing products. More
specifically, this study will benefit the following:
Bureau of Customs. This study will give a basis on making
or improving government policies, rules and regulations
regarding the list of goods that are prohibited and permitted
from being exported or imported to the country or are otherwise
restricted.
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Market Sector. This study will provide the market sector
some information regarding the preferences of consumers in terms
of buying products. The companies or marketers in the market
sector will be able to produce, promote, and sell their products
to their target customers in a most desirable way because they
will know how and why consumers act in a certain way making
their buying decisions help companies build an effective
marketing strategies. They will be able to adapt the trends in
the market and customize their product lines to match these
certain trends.
Consumers. This study will help the consumers in terms of
recognizing the right kind of products and understanding the
influences that might affect their decision making process. It
will also help them meet their expectations when it comes to
quality, price, and authenticity of the product.
Future Businessman and Businesswoman. This study will serve
as a foundational guideline in order for them to start their
business without difficulty of running it. It will help them to
become knowledgeable when it comes to the preferences of the
consumers which will help the company in terms of formulating
business strategies and tactics successfully.
Students. This study will guide them to be aware of the
purchasing decision of the consumers. It will help them to
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become a wise decision maker. Also, this study will serve as a
notice for students that a person’s purchasing decisions can
influence other consumers.
Future Researchers. This study can be used as a reference
for those researchers who may undergo studies similar with this
current study. The information that can be found here may become
a source for further research regarding the impact of brand
authenticity to the consumer’s decision making.
Definition of Terms
The following terms are defined and explained according to
their use in this research. Some terms are operationally
defined, or based on the own definition of researchers. It is
the definition in terms on how it is measured and manipulated in
the study. While the others are conceptually defined that tells
the actual meaning of terms. These explanations will give
enlightenment to the terminologies used in the study:
Operational definition of terms:
Decision Making – this is a skill that involves methods,
processes, and strategies that the consumer uses to critically
analyze the choices of product that they will buy.
High End Replica – this type of products are usually called
imitation products, knock-offs, and Class A. They are almost the
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same compared with the authentic products but it is cheaper in
price and almost excellent in quality. Normally, they are
considered legal.
Brand Authenticity – this refers to the originality of a
product. This type of product usually came from legitimate
production companies that guarantee the validity, quality, and
legality of their products.
Conceptual definition of terms:
Consumer – the one who buys goods or services for their own use.
He or she plays a vital role in any business’ success and in the
economic system of a nation.
Market – any place where two parties meet to trade or facilitate
the exchange of products and services. The two parties involved
are usually sellers and buyers. The market may be physical like
a retail outlet, where people meet face-to-face, or virtual like
an online market, where there is no direct physical contact
between sellers and buyers.
Purchase – the act of buying something. It is to acquire by
paying for it or spending money.