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

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.

Effects on Direct-to-Consumer Advertising of Prescription Drugs in Singapore: The Moderating Role of Low Credibility

As consumer beliefs about direct-to-consumer (“DTC‘) advertising vary, two different types of beliefs (beliefs about DTC advertising and beliefs about quality of treatment) are associated with how consumers' beliefs affect behavioral intentions. The authors also consider how consumers' judgments of DTC advertising of prescription drugs vary with different levels of credibility. Taking a moderating effect perspective on the consumer beliefs-behavioral intentions formation, the authors theorize that the lower level of credibility is a key element in facilitating consumer activity. Data from Singaporean had been used to test a proposed model. The findings show that the effect of beliefs about quality of prescription drugs advertised on behavioral intention is more powerful than the effect of beliefs about DTC advertising. The interaction effects suggest that at a lower level of credibility on DTC advertising, consumers are likely to discuss this matter with their doctors to increase their confidence.