“I Know Enough to Buy the Fake”: Intelligence, Knowledge and the Valuation of Luxury Brands

Claudia Townsend, University of Miami, USA
Sanjay Sood, UCLA, USA
Dan Ariely, Duke University, USA
We examine how valuation of luxury brands varies across general intelligence and brand knowledge. Results indicate that respondents with greater brand knowledge will pay more for a counterfeit product. Also, intelligence is positively correlated with valuing luxury brands for their signaling ability and negatively correlated with valuing them for quality.
[ to cite ]:
Claudia Townsend, Sanjay Sood, and Dan Ariely (2011) ,"“I Know Enough to Buy the Fake”: Intelligence, Knowledge and the Valuation of Luxury Brands", in NA - Advances in Consumer Research Volume 39, eds. Rohini Ahluwalia, Tanya L. Chartrand, and Rebecca K. Ratner, Duluth, MN : Association for Consumer Research, Pages: 223.