Exploiting the Potential Value of Over-the-counter Drugs Leveraging on Brand Equity: An Analytic Network Process Approach

We propose a network model to identify the main drivers of consumer-based brand equity. We apply our research to assess the value of three over-the-counter drug brands. Our aim is to help manufacturers to improve their position in the market of self-medication. This market has very peculiar characteristics: consumers buy products in response to their specific health needs; nonetheless, the market is not strictly regulated in the same way that the prescription market, which allows firms to choose their pricing and communication strategies. Moreover, consumers are not forced by physicians to buy one specific drug, but they can choose the one they prefer. To develop our model we use the Analytic Network Process methodology, which allows integrating qualitative and quantitative judgments from many decision makers and deals with non-regular preference structures. The output of the model is a ranking of the brand value drivers, according to their importance in influencing the consumers’ purchase intentions. We find that advertising plays a major role in this setting. To test our model and validate our results, we analyse three Italian brands that produce over-the-counter (OTC) Diclofenac-based drugs. In addition, we compare our results with their market share.