Scandinavian Working Papers in Economics

HUI Working Papers,
HUI Research

No 17: Consumer Loyalty in the Swedish Pharmaceuticals Market

David Granlund () and Niklas Rudholm ()
Additional contact information
David Granlund: Department of Economics, Postal: Umeå University, SE-901 87 Umeå, Sweden and The Swedish Retail Institute (HUI), Regeringsgatan 60, SE-103 29 Stockholm, Sweden
Niklas Rudholm: Department of Economics, Postal: Dalarna University, SE-781 88 Borlänge, Sweden and The Swedish Retail Institute (HUI), Regeringsgatan 60, SE-103 29 Stockholm, Sweden

Abstract: The purpose of this paper is to test if consumer loyalty is stronger toward brand name prharmaceutical products and branded generics as compared to "true" generics in the Swedish pharmaceutical market. The results show that consumers are equally loyal toward brand name pharmaceuticals and branded generics, while substantially less loyal toward generics. The results thus seem to give support to the idea that brand name recognition is important in creating consumer loyalty toward pharmaceutical products.

Keywords: Brand loyalty; Branded generics; Parallel import; Generic competition

JEL-codes: D12; I11

10 pages, June 9, 2008

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