THE COMPARISON BETWEEN ORIGINAL BRAND (ORI)

AND FAKE QUALITY (KW)

Arranged by :
Lilis Surastirani
NIM 2190034

Department of Business Administration

Faculty of Administration and Secretariat
Asmi Multimedia Business Institute
 I. INTRODUCTION

At present there are many new products emerging, both food products, clothing, jewelry
and so forth. Branded and non-branded products have different meanings and different
qualities. Until now, the use of world-class products is not only for consumers who have been
income. In fact, young consumers who have not yet started earning income do not want to lose
to taste the use of this prestigious product.
Imitation products in Indonesia are also known as kwalitet (KW). "KW goods" are goods
that are produced as imitations, replicas, or imitations of other goods. This "KW item" is not
only produced as a replica or replica of a famous brand, but also for all brands. "KW goods"
are produced without using the relevant brand rights, the producers make them in a way that is
like imitating them. Therefore, it can simply be said that "KW goods" are fake goods. The most
common level of "KW goods" is "super KW". "KW 1", and "KW 2", and the price of the most
expensive KW goods and has a quality similar to the original is super KW. (Doli, 2013).
Everyone has their respective considerations in choosing a product, whether they feel
satisfaction in the purchase which later can be a reason for re-choosing products with the same
brand. According to Zhang (2015) the intention of consumer behavior is customer satisfaction
and customer loyalty. One of the things that will be remembered by customers regarding
products that they already know has good quality is the brand, besides that the brand also makes
it easier for customers to recognize the identity of a product so that it makes it easier for others
to know and know it by word of mouth just by mentioning the brand, according to Latif, Islam,
Rahman, Mohamad and Kongsompong (2016) customers can form brand associations in a
variety of ways other than marketing activities that are from direct experience through
information from other sources or other non-participants.
According to Morling and Strannegard (in Mocanu, 2013) in recent years the brand has
mushroomed and has replaced the function of the product itself. The creation of a replica
product will clearly have an impact on the producers who released the original product, one of
which is a large loss on the brand owner's company, because consumers will be more interested
and buy products at lower selling prices, it should not be allowed to occur because of the work
the work created is the work itself and should be valued accordingly.
 II. CONTENT OR DISCUSSION

A. GENERAL UNDERSTANDING OF ORI (ORIGINAL) BRANDS AND KW (FAKE)

BRANDS.
Original quality products (ORI) are products that are official items from the
manufacturer. These goods are purely produced, selected, standardized by the producers
themselves so that the quality of the goods is truly maintained and does not disappoint the
buyers. Buying an Original product is also a matter of pride for people who buy it especially
if the product brand is quite well known in the world. While the meaning of the mock word
in the Big Indonesian Dictionary (KBBI) is not true (genuine), and fake. The process of
making imitation goods is called imitation, the meaning of imitation has the same meaning
as counterfeiting. Counterfeiting is the process of making, adapting, imitating or objects,
statistics, or documents, with a view to deception. Counterfeit products eliminate the
symbolic value of genuine (luxury) goods and disguise brand equity (Zhou and Hui, 2003).
Counterfeit goods produced are considered cheap versions of the original goods, so it is
possible that different perceptions of quality will not be seen.
The results of previous studies conducted by Nia and Zaichkowsky (2000) show
that, the more successful and famous a brand of a product is, the greater the chance of
imitation of the brand among the public. This situation is a new opportunity for artificial
product businesses to take advantage through the fame of the original product that was
earlier on the market.

B. BRAND CONSCIOUSNESS.
Consumers who are aware of the brand according to Lee et al. (2006), will be more
likely to attach importance to attributes such as brand names and countries of origin.
Consumer perceptions of certain brands will also affect their purchase intentions of these
brands (Lee et al. 2006). The tendency of consumers who have brand awareness including
brand adolescents to buy fashion products is because the brand symbol used can create
prestige for its users (Cheek and Easterling, 2008).
 Brand consciousness is the need and desire to buy famous national brands, brands
at higher prices, or brands that are more often promoted through advertising media. Famous
brands often make social statements regarding one's status, for example Rolex watches,
BMW cars, electronic equipment, and clothing under the GUCCI brand. Regardless of its
function, luxury products are often used to reflect the prestige of their owners, which is
why consumers who are aware of brands will most likely have a negative attitude towards
artificial luxury products (Phau et al. 2009).

C. VALUE CONSCIOUSNESS.
According to Furnham and Valgeirsson (2007) that, consumers are more likely to
engage in buying behavior when there is price pressure. Even though counterfeit products
are of lower quality, not opting for original products is a big savings. So for consumers
who are aware of the value, will have a high value perception of imitation products. When
there is a price advantage, consumers will prefer to buy artificial luxury products (Phau et
al. 2009).

D. PRICE - QUALITY INFERENCE.

When there is a price advantage, consumers will prefer to buy artificial luxury
products (Phau et al. 2009). Awareness to get lower prices is the definition of awareness
of a value.
According to Huang et al. (2004), the difference perceived by consumers in terms
of original and imitation products, namely lower prices and worse guarantees, prices and
risks tend to be important factors related to attitudes toward imitation products. Quality
inference based on price level according to Wang et al (2005) has become a common
assumption among consumers and is an important factor in consumer behavior.

E. SOCIAL INFLUENCE.
Consumers are more likely to buy branded products, which can show brand status
that reflects the prosperity, wealth, and social class of the customer concerned according
to Phau et al. (2009), because consumers tend to associate themselves with the social class
position where they are at the moment, or even the higher social class above them.
 Consumer decisions to use original or imitation brand products are influenced by pressure
from the reference group, and also depend on the norms used by the social group.
According to Phau et al. (2009) that there are two general forms of consumer sensitivity to
social influence, namely information sensitivity and normative sensitivity.

F. BRAND PRESTIGE.
According to Phau et al. (2009) that consumers will increasingly be negative
towards artificial luxury products when they are aware of the prestige of a brand of these
products. In the marketing literature, brand prestige is defined as a relatively high status
related to the position of a brand (Erdogmus and Budeyri-Turan, 2012). Hanzaee et al.
(2012) states that an assessment of a brand that is considered prestigious is a collection of
community perception or a group about the status of a particular brand. According to
Erdogmus (2012), prestige brand is important in the ready-to-use goods market in the sense
of fulfilling one's acceptance in a social life or in fulfilling personal needs.

G. ATTITUDE TOWARDS COUNTERFEIT LUXURY BRAND.

According to Liao and Hsieh (2013) that, the intention to do or not perform certain
behaviors is influenced by those related to attitude (attitude towards behavior), and those
related to social influence. Phau et al. (2009), that based on Theory of Planned Behavior,
buying behavior is determined by purchase intentions, which are determined by attitude.

H. INTENTION TO REPURCHASE COUNTERFEIT LUXURY BRAND.

Increasingly an individual has an evaluation of mock products, according to Alfadl
et al. (2014), the higher purchase intention that person has. Phau et al. (2009) that, the more
negative consumers' attitudes towards imitation luxury brand products, the less likely they
are to repurchase such imitation luxury brand products. According to Wang et al. (2005)
that normative sensitivity looks at purchasing decisions based on expectations of what will
impress others.
 III. CLOSING

A. CONCLUSION.
1. Everyone has their respective considerations in choosing a product. there are those who
choose original brand products because they are more prized than Kw and there are
also those who choose fake or non-original brand products because of limited economic
capacity, but self-guidance and the environment force the use of products with certain
brands. So they decide to choose fake or not Original Products because at first glance
almost similar to the original product.

2. That the trade in counterfeit or non-original brand products by using well-known

brands carried out by traders can be said as brand violations that have fulfilled the
elements in accordance with the provisions of Law No.15 of 2001 concerning
Trademarks. And in the implementation of legal protection, Law 15/2001 on
Trademarks has proven to be ineffective due to inhibiting factors such as low human
resources, limited information and insights from business actors, lack of legal
awareness of related parties (both seller and consumer), more concerned with lifestyles
in this day and age where there is a need to buy famous brand goods at cheap prices,
there is a sense of ignorance of the brand rights holders to the original brand to process
lawsuits related to funding issues for violations committed by the micro, small, and
medium traders, easily providing business licenses.

3. Whereas the preventive and repressive efforts in brand violations are really not optimal,
both in the process of supervision and guidance from the Ministry of Law and Human
Rights, as well as related institutions to business actors.
B. SUGGESTION.
1. Owners or holders of trademark rights should cooperate with the public, the Ministry
of Justice and Human Rights law enforcement officials related to the trade problem of
this fake trademark and related agencies in order to facilitate the process of monitoring
the mark. This is useful to detect and take action if there are indications of brand
violations in the future towards even better. Applying the maximum time to socialize
the place of brand violations and targets to be achieved in order to realize preventive
efforts. For example, a maximum time limit is set for the sale of a particular brand, if
the time limit has been exceeded but there are still places where the sales of counterfeit
brands are made, then one of the law enforcement agencies can work together with the
owner of the brand as a relative offense to make efforts or repressive actions of law
enforcement.

2. The need for transfer of trademark registration and deletion and cancellation of
trademarks is carried out strictly and selectively to provide guarantees for trademark
owners, namely guarantees of justice and legal certainty. Law enforcers related to
trademark infringement issues must be active in conducting surveillance even without
complaints from trademark owners and licensees because of the large number of non-
original or fake goods that can be smuggled into the country. And also the active role
of the Government and other law enforcement officials is not just waiting for reports
or complaints from owners or holders of trademark rights and more personnel in order
to tighten supervision of these non-original goods.