The risk-value trade-off: price and brand information impact consumers’ intentions to purchase OTC drugs
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Published version
Author(s)
Aufegger, Lisa
Yanar, Celine
Bicknell, Colin
Darzi, Ara
Type
Journal Article
Abstract
Background
European countries face fiscal pressure regarding the long-term sustainability of their healthcare system due to increasing levels of public health expenditures and mounting demographic pressures. The promotion of generic drugs is considered to be an efficient means to tackle these challenges; however, market diffusion remains slow. The aim of this study was to investigate the impact of price and brand cues on purchase intentions by means of Direct-to-Consumer (DTC) advertising, and to build on the market cue evaluation model by Dodd et al.
Methods
Participants rated purchase intentions on six DTC adverts varying in price and brand information, followed by self-reports on purchase intentions, attitudes towards generics, brand loyalty, price consciousness, as well as perceptions of quality, risk and value. Open-ended questions explored attitudes toward generic drugs.
Results
Brand information and purchase intentions were mediated by perceived risk and perceived quality, while price information influenced purchase intention through perceptions of quality, risk and value. Consumers’ purchase behaviour was furthermore influenced by unawareness and misconceptions, past experiences, and advertising as a decision-making tool.
Conclusions
Advertisements, including price and brand information, are an important tool to improve consumers’ awareness of the availability of different OTC drugs. Practical and theoretical implications are discussed.
European countries face fiscal pressure regarding the long-term sustainability of their healthcare system due to increasing levels of public health expenditures and mounting demographic pressures. The promotion of generic drugs is considered to be an efficient means to tackle these challenges; however, market diffusion remains slow. The aim of this study was to investigate the impact of price and brand cues on purchase intentions by means of Direct-to-Consumer (DTC) advertising, and to build on the market cue evaluation model by Dodd et al.
Methods
Participants rated purchase intentions on six DTC adverts varying in price and brand information, followed by self-reports on purchase intentions, attitudes towards generics, brand loyalty, price consciousness, as well as perceptions of quality, risk and value. Open-ended questions explored attitudes toward generic drugs.
Results
Brand information and purchase intentions were mediated by perceived risk and perceived quality, while price information influenced purchase intention through perceptions of quality, risk and value. Consumers’ purchase behaviour was furthermore influenced by unawareness and misconceptions, past experiences, and advertising as a decision-making tool.
Conclusions
Advertisements, including price and brand information, are an important tool to improve consumers’ awareness of the availability of different OTC drugs. Practical and theoretical implications are discussed.
Date Acceptance
2020-12-25
Citation
Journal of Pharmaceutical Policy and Practice, 14
ISSN
2052-3211
Publisher
BMC
Journal / Book Title
Journal of Pharmaceutical Policy and Practice
Volume
14
Copyright Statement
© The Author(s) 2021.
License URL
Sponsor
National Institute of Health Research
Subjects
Science & Technology
Life Sciences & Biomedicine
Health Policy & Services
Pharmacology & Pharmacy
Health Care Sciences & Services
OTC advertisement
Brand
Price information
Perceived risk
value
quality
Purchase intention
Brand
OTC advertisement
Perceived risk
Price information
Purchase intention
quality
value
Publication Status
Published
Article Number
11
Date Publish Online
2021-01-25