The risk-value trade-off: price and brand information impact consumers\u2019 intentions to purchase OTC drugs

Lisa Aufegger,Ara Darzi,Colin Bicknell,Celine Yanar

doi:10.1186/s40545-020-00293-5

Abstract

BackgroundEuropean 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.MethodsParticipants 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.ResultsBrand 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.ConclusionsAdvertisements, 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.

Highlights

Increasing needs to curb healthcare cost and growing public demands for self-medication have led to a major expansion of Europe’s Over-the-Counter (OTC) drug market [1]
In particular, are regarded as the best way for patients to receive similar treatments at lower costs [5]. They enter the market once the patent of a branded drug has expired, allowing for the market to change from a monopoly to oligopoly, where generics and branded
Hypothesis 3 Perceived quality and perceived risk fully mediate the relationship between brand information and purchase intention a

Summary

Introduction

Increasing needs to curb healthcare cost and growing public demands for self-medication have led to a major expansion of Europe’s Over-the-Counter (OTC) drug market [1]. Germany, like most other EU member states, faces fiscal pressure regarding the long-term sustainability of its healthcare system, driven by high levels of public expenditure, increased prevalence of chronic disease and mounting demographic pressure [3]. In particular, are regarded as the best way for patients to receive similar treatments at lower costs [5]. They enter the market once the patent of a branded drug has expired, allowing for the market to change from a monopoly to oligopoly, where generics and branded. 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 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

Objectives

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Results

Conclusion