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Consumer Loyalty in the Swedish Pharmaceuticals Market

Author

Listed:
  • Granlund, David

    (Department of Economics, Umeå University)

  • Rudholm, Niklas

    (Department of Economics, Dalarna University)

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.

Suggested Citation

  • Granlund, David & Rudholm, Niklas, 2008. "Consumer Loyalty in the Swedish Pharmaceuticals Market," Umeå Economic Studies 742, Umeå University, Department of Economics, revised 21 Feb 2012.
    • Handle: RePEc:hhs:umnees:0742
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    File URL: http://www.econ.umu.se/DownloadAsset.action?contentId=47313&languageId=3&assetKey=ues742
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    Cited by:

    1. Granlund, David & Köksal, Miyase Yesim, 2011. "Parallel Imports and Mandatory Substitution Reform - A Kick or A Muff for Price Competition in Pharmaceuticals?," HUI Working Papers 49, HUI Research.

    More about this item

    Keywords

    Brand loyalty; Branded Generics; Doctors; Parallel import; Generic competition; Secondary Brand;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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