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Research Question: Does price advertising affect consumer purchase patterns of OTC drugs?
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Hypothesis 1 Participants presented with different OTC advertisements show significantly different purchase intensions
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H1(a)
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a. Participants’ purchase intention is greater for the branded OTC drug compared to the generic OTC drug when no price is presented (brand effect)
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H1(b)
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b. Participants’ purchase intention is greater for the low-priced generic OTC drug compared to the high-priced branded drug (price awareness)
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Research Question: How do relevant perceptual factors affect the relationship between price or brand cues and consumers’ purchase intention?
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Hypothesis 2 Price and brand information explain a significant proportion of the variance of purchase intention in absence of other potential predictors
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Hypothesis 3 Perceived quality and perceived risk fully mediate the relationship between brand information and purchase intention
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H3(a)
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a. Exposure to branded drug advertisements increases perceptions of quality and decreases perceptions of risk, whilst the reverse is true for advertisements of generics
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H3(b)
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b. There is a significant positive relationship between perceived quality and purchase intention
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H3(c)
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c. There is a significant inverse relationship between perceived risk and purchase intention
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H4 Perceived quality and perceived risk fully mediate the relationship between price information and perceived value, which in turn predicts purchase intention
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H4(a)
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a. Exposure to high-priced drug advertisements increases perceptions of quality and decreases perceptions of risk (original price-perceived quality effect), the reverse is true for low-priced advertisements
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H4(b)
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b. There is a significant positive relationship between perceived quality and perceived value
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H4(c)
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c. There is a significant inverse relationship between perceived risk and perceived value
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