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Article
Publication date: 1 March 1983

A. Parasuraman

The growing consumer demand for, and acceptance of, so‐called no‐name brands of a variety of food, as well as nonfood, products—from cooking oil to cotton swabs, tomato juice to…

Abstract

The growing consumer demand for, and acceptance of, so‐called no‐name brands of a variety of food, as well as nonfood, products—from cooking oil to cotton swabs, tomato juice to toilet tissue, brownie mix to beauty aids, and liquor to laundry detergent—is a significant development in retailing. No‐name brands have captured about 2 percent of the total grocery sales in the United States in just three years . According to a recent report prepared by A.C. Nielsen Company, no‐name brand shares in the top fifty product categories in which they are strongest range from 4 to 10 percent of the category sales volumes; this is in spite of the fact that no‐name brands have not yet achieved the broad levels of retail distribution enjoyed by branded products . In fact, the share of no‐name brands is as high as 16 percent in certain product categories based on the sales volumes of only those retail outlets that carry them. Contrary to industry expectations, the growth of no‐name brands appears to be a persistent market phenomenon rather than a passing fad. Indeed, retail chains such as Ralph's on the west coast and Jewel in the midwest now have “generic” aisles in their stores.

Details

Journal of Business Strategy, vol. 4 no. 1
Type: Research Article
ISSN: 0275-6668

Article
Publication date: 1 January 1981

M. Goormans

Looks at the introduction and marketing of generic products in Belgium. Examines the costs and benefits of their introduction and indicates that their introduction must be made at…

Abstract

Looks at the introduction and marketing of generic products in Belgium. Examines the costs and benefits of their introduction and indicates that their introduction must be made at a time when the market is ready for them. States that introduction for these is best when consumers have a changed opinion about price‐quality relationships and there is a decrease in disposable income.

Details

European Journal of Marketing, vol. 15 no. 1
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 7 April 2015

Shelley-Ann Marion McGee

This paper aims to examine whether authorized generics (AGs) have influenced prices and market shares in markets for molecules facing generic competition in South Africa. AGs…

Abstract

Purpose

This paper aims to examine whether authorized generics (AGs) have influenced prices and market shares in markets for molecules facing generic competition in South Africa. AGs (clones), which are identical to the originator brands, offer a solution for originator companies to protect their markets from independent generic (IG) competition. IG competitors have claimed that AGs have a negative impact on pricing and competition.

Design/methodology/approach

In a retrospective analysis, pricing and quantity data for 24 months post generic entry were extracted for oral solid dosage form products which experienced generic entry into their markets between 2005 and 2011, divided into “Authorized generic affected” and “no authorized generic” markets. A series of indices was calculated, as well as market shares of competing originator and generic products, and the number of generic competitors determined. Indices and market share data for clone affected and unaffected groups were tested at 6, 12, 18 and 24 months using unmatched t-tests, at a 95 per cent significance level.

Findings

None of the evaluated pricing indices showed a consistently significant difference existing between AG-affected and no-AG samples. The only variable for which the two samples consistently differed was market shares, with originator brands experiencing significantly more market share erosion in AG-affected markets. Pricing levels of generics and originator products as well as growth of numbers of generic competitors were similar in both AG-affected and no-AG groups.

Originality/value

A study of this nature on the impacts of AGs in the South African generics has not been previously published and reflects the situation particular to the country.

Details

International Journal of Pharmaceutical and Healthcare Marketing, vol. 9 no. 1
Type: Research Article
ISSN: 1750-6123

Keywords

Article
Publication date: 29 March 2011

Hernan E. Riquelme, Mohamed Elthani and Rosa E. Rios

The purpose of this paper is to investigate the percentage of generic inventory pharmacists have in stock, to comprehend why pharmacists in Jordan recommend and dispense generic

Abstract

Purpose

The purpose of this paper is to investigate the percentage of generic inventory pharmacists have in stock, to comprehend why pharmacists in Jordan recommend and dispense generic products.

Design/methodology/approach

In total, 104 pharmacists were surveyed using a structured questionnaire. The questionnaire contained statements about perception of generic products, inclination to recommend generic products, importance of promotions, factors influencing a recommendation, stock of generics, and among others. Correlational and discriminant analyses were used to establish associations between variables to distinguish characteristics between groups.

Findings

More than half of the Jordanian pharmacists sampled carry between 20 and 39 per cent stock of generic drugs and 46 per cent carry more than 40 per cent stock. One‐third (33 per cent) substitutes branded products by generic ones and slightly more (36 per cent) recommend more generic than branded products as opposed to those who recommend more branded products (24 per cent). Male pharmacists (49 per cent) tend to recommend more generic products than do females (24.6 per cent) and those who recommend more branded products are more influenced by sales visits rather than manufacturer's name or bonuses.

Originality/value

The paper provides valuable information about the pharmaceutical industry in Jordan and the empirical study adds insights from pharmacists about generic medicine.

Details

Journal of Islamic Marketing, vol. 2 no. 1
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 1 April 1987

Luiz Moutinho

Since their introduction, generic grocery products have been a major centre of controversy. Statistics indicate that the rapid growth phase for generics has ended and that this…

Abstract

Since their introduction, generic grocery products have been a major centre of controversy. Statistics indicate that the rapid growth phase for generics has ended and that this concept has now entered the maturity phase of its life cycle. Since generics have now become a permanent feature of the grocery industry, retailers and manufacturers must formulate their marketing strategies carefully, whether these strategies are for offensive or defensive reasons. These critical strategic questions are focused on and recommendations for future strategies now that generics have reached maturity are made.

Details

Marketing Intelligence & Planning, vol. 5 no. 4
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 1 December 2000

Rama Yelkur

Previous research studies on generic products focus mainly on mature markets such as the USA. These studies measure consumer perceptions of all generic products as a whole, with…

3250

Abstract

Previous research studies on generic products focus mainly on mature markets such as the USA. These studies measure consumer perceptions of all generic products as a whole, with respect to price and quality. With the passing of the NAFTA, retailers’ interest in the relatively young Mexican market has increased. The purpose of this study is to determine Mexican consumers’ overall perceptions of generic grocery products, to examine if there are any differences in perception across demographic groups and to determine if there are differences in the perception of generic products across product categories. Two variables were examined: risk perception of generic products and satisfaction with generic products.

Details

Journal of Product & Brand Management, vol. 9 no. 7
Type: Research Article
ISSN: 1061-0421

Keywords

Book part
Publication date: 29 August 2018

Michael A. Carrier and Steve D. Shadowen

Brand-name pharmaceutical companies have engaged in a variety of business conduct that has increased price. One of these activities involves “product hopping,” or brand switches…

Abstract

Brand-name pharmaceutical companies have engaged in a variety of business conduct that has increased price. One of these activities involves “product hopping,” or brand switches from one version of a drug to another. The antitrust analysis of product hopping implicates antitrust law, patent law, the Hatch–Waxman Act, and state drug product selection laws, as well as uniquely complicated markets characterized by buyers different from decision makers. As a result, courts have offered inconsistent approaches to product hopping.

In this chapter, we offer a framework that courts and government enforcers can employ to analyze product hopping. The framework is the first to incorporate the characteristics of the pharmaceutical industry. It defines a “product hop” to include instances in which the manufacturer (1) reformulates the product to make the generic nonsubstitutable and (2) encourages doctors to write prescriptions for the reformulated rather than the original product.

When the conduct meets both requirements, our framework offers two stages of analysis. First, we propose two safe harbors to ensure that the vast majority of reformulations will not face antitrust review. Second, the framework examines whether the hop passes the “no-economic-sense” test, determining if the behavior would make economic sense if the hop did not have the effect of impairing generic competition. Showing just how far the courts have veered from justified economic analysis, the test would recommend a different analysis than that used in each of the five product-hopping cases that have been litigated to date, and a different outcome in two of them.

Details

Healthcare Antitrust, Settlements, and the Federal Trade Commission
Type: Book
ISBN: 978-1-78756-599-9

Keywords

Article
Publication date: 1 April 1997

Gerard P. Prendergast and Norman E. Marr

Branding has traditionally been viewed as an essential tool for marketers to establish an identity for their products. Even products among the commodity range make use of branding…

1878

Abstract

Branding has traditionally been viewed as an essential tool for marketers to establish an identity for their products. Even products among the commodity range make use of branding to establish a position for themselves in the market. Unbranded or “genericproducts, therefore, tend to go against this branding principle. These products, which are usually sold at a price which is lower than their branded equivalents, are most often found in the area of low‐involvement grocery items. Previous studies of consumer perceptions of generic products tend to be broad in their scope by looking at generic products as a product category, rather than seeking consumer views on individual generic products. This paper identifies the characteristics of generic purchasers, and their broad perceptions of generic products as a group; and, the research extends previous work in the area by comparing a range of individual generic products to each other in terms of their value, quality and packaging. In addition, the research identifies how much importance consumers attach to value, quality and packaging when buying these individual products ‐ in generic form or otherwise. A mail survey of 1,000 New Zealanders revealed that, in contrast to previous studies, generic consumers tend to be older and on a lower household income. In general, consumers do not believe that generics are substandard products. However, when looking at individual generic products, the less standardized generic products are not performing as well as others when it comes to consumers’ perceptions and demands. Proposes that if generic products are to have a recognizable future, it may be necessary to embark on a program which enhances consumer perception of the quality and value of the less standardized generic products.

Details

Journal of Product & Brand Management, vol. 6 no. 2
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 14 September 2012

Dean C.H. Wilkie, Lester W. Johnson and Lesley White

This research aims to provide an empirical comparison of the results of three brands' marketing defence strategies used in advance of generic brands entering the market. By…

2679

Abstract

Purpose

This research aims to provide an empirical comparison of the results of three brands' marketing defence strategies used in advance of generic brands entering the market. By reviewing the effectiveness of these strategies, this research looks to extend the research on marketing defence strategies into the importance of anticipating competitor launches.

Design/methodology/approach

A data set containing 243 weeks of scanned sales for 21 generic brands was used in a regression model aimed at measuring the effectiveness of each brand's defence strategies in deterring entry and limiting the market share of these generic brands.

Findings

The analysis shows that several marketing mix components were effective in limiting the impact of generic brands. What was critical to each component's success was ensuring that they were implemented before the launch of the generic brands.

Research limitations/implications

This research has the limitation of being confined to a category of pharmaceutical allergy brands, which limits generalisation of the findings.

Practical implications

The managerial relevance of this research has two parts. First, it will encourage managers to move from implementing strategies in reaction to a competitor launch to implementing strategies in advance of their entry. Second, it provides insights into the effectiveness of several strategic options for brands facing the entry of generic brands.

Originality/value

This study brings together literature regarding entry deterrence and market share loss prevention to help highlight the importance of proactive marketing defence strategies in reducing both the number of entrants and the amount of market share lost. It uses a data set to provide an empirical review of a range of marketing mix components used by pharmaceutical brands against low‐price generic brands.

Details

European Journal of Marketing, vol. 46 no. 9
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 January 1987

Ugur Yucelt

Generic products are purchased by price‐conscious, careful shoppers, who are not, however, willing to accept a lower quality and limited selection of non‐brand names in…

Abstract

Generic products are purchased by price‐conscious, careful shoppers, who are not, however, willing to accept a lower quality and limited selection of non‐brand names in supermarkets. The behavioural differences between generic product users vs. non‐users are compared in the New England region, using hand‐distributed questionnaires to a convenient sample of 150 respondents.

Details

Marketing Intelligence & Planning, vol. 5 no. 1
Type: Research Article
ISSN: 0263-4503

Keywords

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