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Umbrella Branding in Pharmaceutical Markets

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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. This paper investigates how advertising in the market of over-the-counter (OTC) drugs affects the decision to buy prescription drugs from a promoted brand name. I exploit specific charac- teristics of market regulation in Germany to identify the effect of advertising and find positive effects of umbrella branding on sales of prescription drugs. Umbrella branding results in market expansion, particularly for generic firms which invest in OTC drug advertising. If the effect leads to more consumers of generic substitutes or to more patients in undertreated therapeutic areas, market expansion can have a positive effect on welfare.

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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    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:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • I1 - Health, Education, and Welfare - - Health
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General

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