I dunno if your theory holds up to well when it comes to RC Cars, as they are sold on reputation and the label, so if you want a Tamiya, your going to buy a Tamiya, not a cheap knock-off.
I guess it depends on how you work your logic back though doesn't it. I don't see why the person who really wants an X-Brand car, because of how it handles and it's reliability, would opt for a cheap knock-off.
On the flip side, the places that these 'knock offs' are to be sold, isn't where you racer is looking to buy his/her car. So the probability is that the majority of people who do buy them, wouldn't even entertain buying the X-Brand.
The only thing that is effected, in reality, is company brand and image, but as we are mostly aware in our little 'racing community' we would know it was a knock-off copy.
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