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Pharmaceutical industry has experienced tremendous growth and increased drug brand competition in recent years. Drug brand advertising is an imperative and key marketing tool used for the success of drug brands. Recent trend of increased use of drug advertising to build drug brands has received considerable attention of practitioners, academics and regulatory authorities. Therefore, investigation of the impact of drug advertising on brand equity has become a critical concern. While the impact of advertising on brand equity has been explored in few consumer goods sectors, the concept of brand equity is relatively less explored for drug brands. Using physicians and consumers’ sub-samples, this study objective is therefore to employ both quantitative (questionnaire) and qualitative (interview) research designs and methodology to examine the link between drug advertising and drug brand equity dimensions and overall brand equity. Results from structural equation modeling of questionnaire and thematic analyses of interview data reveal a positive and significant impact of drug advertising on drug brand equity dimensions and overall brand equity.Brand equity dimensions exhibit partial mediation for consumers’ sub-sample and full mediation for physicians’ sub-sample. Drug brand equity is achieved if drug advertising successfully targets brand awareness, perceived quality and loyalty. Drug advertising appears to influence brand awareness that leads to perceived brand quality and drug brand loyalty, ultimately impacting the overall drug brand equity. Results in the study indicate significant differences across demographic and drug brand categories. Taken together, outcome in the study suggest key role of drug brand advertising in building drug brand equity. Theoretically, the study contributes by highlighting the mediating role of brand equity dimensions in influencing drug brand equity. The study also has important implications for practitioners in devising their advertising strategies for various drug brand categories, and for regulators in providing useful insights in further strengthening of future drug brand regulation
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