Consumer Loyalty in the Swedish Pharmaceuticals Market

David Granlund () and Niklas Rudholm ()
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David Granlund: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden
Niklas Rudholm: Department of Economics, Dalarna University, Postal: SE-781 88 Borlänge, Sweden

No 742, Umeå Economic Studies from Umeå University, Department of Economics

Abstract: This paper reports on a study of the prescribing physician's influence on consumers' choice between medically equivalent pharmaceuticals. The study was performed using a dataset of 666,000 observations in which consumers were asked whether they were prepared to pay the price difference in order to obtain the prescribed pharmaceutical instead of the cheapest available substitute. The main results support the hypothesis that prescribing physicians have an impact on consumers' choice between medically equivalent pharmaceutical products.

Keywords: Brand loyalty; Branded Generics; Doctors; Parallel import; Generic competition; Secondary Brand (search for similar items in EconPapers)
JEL-codes: D12 I11 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2008-06-17, Revised 2012-02-21
New Economics Papers: this item is included in nep-com and nep-mkt
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Citations: View citations in EconPapers (1)

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