Media Coverage

Even pirates have their redeeming qualities.

The counterfeiter might be a profit-sapping scourge to many designers, but recently published research from a trio of academics shows that fakes can also push brands to up their game — particularly in terms of aesthetics.

A study published in Market[ing] Science academic journal looked at 31 brands that sold fashion leather and sport shoes in China from 1993 to 2004. The Chinese market proved to be something of a petri dish to the researchers, since it saw a major influx of counterfeits after 1995, when the government pivoted away from the enforcement of footwear trademarks to respond to problems in other sectors, including gas explosions and food poisonings.

“Established companies don’t sit idly by while they are copied shamelessly,” said Yi Qian, a professor at University of British Columbia Sauder School of Business, who cowrote the study. “They react by improving their products to set themselves apart from their illegal competitors.”

A new study finds that once a business responds to a specific grievance on Twitter, it could also open the floodgates to more criticism. But that doesn't mean brands should clam up when an issue arises. Twitter can be a helpful tool for companies hoping to regain the trust of unhappy patrons, and responding to customers on public forums is better than not responding at all. In fact, reaching out can greatly improve the way people think about a company.

"It’s still worthwhile to respond to complaints, because the net effect is still effective. [People] are more likely to complain because they expect the company will help [them] more,” study co-author Liye Ma, a professor at the Robert H. Smith School of Business at the University of Maryland, told The Huffington Post. 

The study, published in the journal Marketing Science, a branch of the Institute for Operations Research and the Management Sciences, focused on customers’ perceptions of companies and how the relationship changes over time.

According to a recent KPMG survey of C-level executives,  92% are using data and analytics to gain greater insights into marketing.72% report their enterprises are regular to heavy users of social media data to improve customer relationships. 81% of enterprises are relying analytics to improve their understanding of customers.