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Consumers Spending Less on Prescription Drugs
Date:2/25/2009

Retailers can manage perception of price and price itself Kurt Salmon Associates says

NEW YORK, Feb. 25 /PRNewswire/ -- Consumers say they are spending an estimated 3% less on prescription drugs this year versus last year thanks, in part, to the economic downturn, according to Kurt Salmon Associates' recent evaluation of more than 8,000 shoppers' opinions.

The decline is likely the result of a continued shift towards lower-cost generic drugs and an increasing number of consumers who are looking to save money by self-medicating or simply reducing overall drug consumption.

KSA's analysis suggests that retailers that can manage consumers' perceptions of price -- as much as price itself -- are the most likely to be successful in the prescription drug category, especially in the present economy.

Wal-Mart gaining share; Target gets high advocacy and price-to-value

For example, many retailers have adopted discount and generic drugs programs. But Wal-Mart Stores Inc. has been the most successful at marketing its discount drug offering and appears to be gaining share from traditional drug chains, such as Rite Aid Corp., which consumers perceive as having higher prices.

Target Corp. also could prove an advantage in the prescription drug category. Consumers give the multiline retailer high advocacy and price-to-value scores.

Conducted in partnership with Prosper Inc., a leader in online market intelligence, the research includes more than three years' worth of comprehensive consumer data and shows that:

  • Prescription drug users are increasingly price sensitive. In January 2009, 20% of prescription drug consumers cited price as a reason for switching retailers, which is up from 16% in 2008.

  • Retailers with a value orientation ar
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SOURCE Kurt Salmon Associates
Copyright©2009 PR Newswire.
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