
pmid: 32683146
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.
Marketing, umbrella branding, Prescription Drugs, Drug Industry, regulation, pharmaceuticals, empirical io, Advertising, marketing, Drugs, Generic, Humans
Marketing, umbrella branding, Prescription Drugs, Drug Industry, regulation, pharmaceuticals, empirical io, Advertising, marketing, Drugs, Generic, Humans
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