This study examines an unexplored area in services—namely, the existence of inauthentic retail establishments. These fake establishments, which mimic the service and product offerings of genuine establishments, such as Starbucks, McDonald’s, 7-Eleven, Apple, and others, prevail across Southeast Asia, primarily in China, Vietnam, and Cambodia. By employing grounded theory methodology, this study offers an original framework that illustrates why consumers accept and patronize both authentic and inauthentic retail establishments. The model shows that many consumers are satisfied with inauthentic retail establishments, and that some inauthentic retailers are building a loyal customer following. Thus, service organizations should respond to these inauthentic companies by viewing them as potential partners for innovation and expansion, rather than as future parties for costly litigation. That is, the authors suggests that authentic retail organizations should target their inauthentic competitors as possible joint venture partners, especially because these competitors have the ability to mimic authentic operations by operating counterfeit schemes.

• Mark S. Rosenbaum(Northern Illinois University)
• Ipkin Anthony Wong(Institute for Tourism Studies)
• Mingming (Jake) Cheng(Institute for Tourism Studies)