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Umbrella Branding in Pharmaceutical Markets

Author

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  • Suppliet, Moritz

    (Tilburg University, TILEC)

Abstract

Umbrella branding is a marketing practice whereby multi-product firms leverage their reputation across different product categories. The paper investigates how advertising in the market for non-prescription drugs affects the decision to buy prescription drugs from the same firm. To estimate the effects of umbrella branding, I exploit the fact that consumer-directed advertising of prescription drugs is prohibited in Germany and identify advertising spillovers with an instrumental variable that builds on exogenous seasonality in the non-prescription drug industry. Umbrella branding results in market expansion, particularly for generic firms, and can have a positive effect on consumer welfare in under-treated therapeutic areas.
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Suggested Citation

  • Suppliet, Moritz, 2017. "Umbrella Branding in Pharmaceutical Markets," Discussion Paper 2017-034, Tilburg University, Tilburg Law and Economic Center.
  • Handle: RePEc:tiu:tiutil:be3f3c38-5e39-4a67-af57-820c14957e0b
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Chris Sampson’s journal round-up for 5th October 2020
      by Chris Sampson in The Academic Health Economists' Blog on 2020-10-05 11:00:05

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    Cited by:

    1. Laurent Cavenaile & Pau Roldan, 2019. "Advertising, innovation and economic growth," Working Papers 1902, Banco de España;Working Papers Homepage.
    2. Pau Roldan & Laurent Cavenaile, 2016. "Advertising, Innovation and Economic Growth," 2016 Meeting Papers 150, Society for Economic Dynamics.

    More about this item

    Keywords

    umbrella branding; regulation; empirical io; pharmaceuticals ; marketing;

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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