BackgroundTiered pricing - the concept of selling drugs and vaccines in developing countries at prices systematically lower than in industrialized countries - has received widespread support from industry, policymakers, civil society, and academics as a way to improve access to medicines for the poor. We carried out case studies based on a review of international drug price developments for antiretrovirals, artemisinin combination therapies, drug-resistant tuberculosis medicines, liposomal amphotericin B (for visceral leishmaniasis), and pneumococcal vaccines.DiscussionWe found several critical shortcomings to tiered pricing: it is inferior to competition for achieving the lowest sustainable prices; it often involves arbitrary divisions between markets and/or countries, which can lead to very high prices for middle-income markets; and it leaves a disproportionate amount of decision-making power in the hands of sellers vis-à-vis consumers. In many developing countries, resources are often stretched so tight that affordability can only be approached by selling medicines at or near the cost of production. Policies that "de-link" the financing of R&D from the price of medicines merit further attention, since they can reward innovation while exploiting robust competition in production to generate the lowest sustainable prices. However, in special cases - such as when market volumes are very small or multi-source production capacity is lacking - tiered pricing may offer the only practical option to meet short-term needs for access to a product. In such cases, steps should be taken to ensure affordability and availability in the longer-term.SummaryTo ensure access to medicines for populations in need, alternate strategies should be explored that harness the power of competition, avoid arbitrary market segmentation, and/or recognize government responsibilities. Competition should generally be the default option for achieving affordability, as it has proven superior to tiered pricing for reliably achieving the lowest sustainable prices.
Purpose The new focus of brand communication in social media has driven firms to develop the effective visual content strategy. In light of narrative transportation theory, this study aims to investigate the impact of a photo’s narrative elements on self-brand connection through viewers’ transportation and emotional responses. Additionally, this study tests the role of telepresence on Instagram in this psychological mechanism. Design/methodology/approach Using between-subjects experimental design, two experimental studies test the effect of implied movement (Study 1) and diverse narrative elements such as a character, implied motion for chronology and the relevant background (Study 2). Findings Results demonstrate that a single narrative element, i.e. implied motion, does not induce a viewer’s transportation to the presented image. Rather, the viewer’s transportation occurs as a function of complex and diverse narrative elements, such as implied motion and the background as a context. Practical implications Findings suggest that the concept of photo narrative should be taken into consideration in a visually-oriented social media environment. To increase self-brand connection, social media communication should be designed with diverse elements to promote viewers’ active simulation and create meaning to the branded photo story. Originality/value This study expands the theory of narrative transportation by applying it to a visual form. Additionally, this research investigates the effect of social media communication on self-brand connection; the findings of this study demonstrate that a major goal of social media communication is not to sell products but to strengthen consumer-brand relationships through branded storytelling.
Purpose Corporate social responsibility (CSR) campaigns have become increasingly popular among fashion apparel brands to reduce environmental impacts of their operations and position themselves as sustainable. In light of attribution theory, this paper aims to investigate how aspects of a CSR campaign affect consumers’ perceptions of brand authenticity, brand attitudes and CSR attitudes. Design/methodology/approach This research is based on a 2 (brand image: sustainable vs disposable brand) × 2 (message source: brand website vs news article) between-subjects experimental design with random assignment to conditions and manipulation checks. Findings When exposed to messages about CSR campaigns, consumers have more favorable perceptions of brand authenticity, brand attitudes and CSR attitudes for a sustainable brand than for a disposable brand, particularly when consumers view information about a CSR campaign on the brand’s website. However, this is not true for disposable brands when CSR campaigns are promoted through a news source. Practical implications Sustainable brands can derive benefits by strategically partnering with causes through CSR campaigns, particularly when their campaigns are promoted through their brand’s website (vs news source). However, brands that offer disposable products (e.g. fast fashion brands) should exercise caution when implementing these campaigns; CSR campaigns may confuse customers as they do not align with the everyday practices of disposable brands. Originality/value As the apparel industry faces increased scrutiny for negative impacts on the environment, this study helps to understand whether customers perceive CSR campaigns as trustworthy and authentic, or as ploys aimed at creating more positive brand images.
Purpose Many apparel brands use growth strategies that involve extending a brand’s line horizontally (same price/quality) and/or vertically (different price/quality). While such opportunities for growth and profitability are enticing, pursuing them could dilute a highly profitable parent brand. Categorization theory’s bookkeeping model and the cue scope framework provide the theoretical framework for this study. The purpose of this study is to test whether specific attributes of a line extension (i.e. direction of extension, brand concept, price discount and perceived fit) make a parent brand more susceptible to dilution. Design/methodology/approach This experimental study manipulates brand concept (premium or value brand) and price level (horizontal or vertical: −20per cent, −80per cent) and measures perceived fit to test effects on parent brand dilution. ANOVA and t-tests are used for the analysis. Findings Vertical extensions dilute the parent brand, but horizontal extensions do not. Dilution is strongest for premium (vs value) brands and when line extensions are discounted (i.e. −20per cent or −80per cent lower than the parent brand), regardless of the perceived fit between brand concept and brand extension price. Overall, brand concept is the strongest predictor of parent brand dilution in the context of vertical-downward extensions. Originality/value This study establishes which factors emerge as important contributors to parent brand dilution. Although previous studies on brand dilution are abundant, few studies have compared the effects of horizontal and vertical extensions on brand dilution. This study offers strong theoretical as well as practical implications.
Purpose – The purpose of this study was to explore strategies used by successful female entrepreneurs to manage the challenges of running a small apparel business. Design/methodology/approach – A qualitative research design was used. Primary and secondary data were collected on small business in three countries: Russia, South Africa and Thailand. In-depth interviews were conducted with a total of 11 female small apparel business owners. Businesses ranged from tailoring and custom clothing shops, to small-scale design and production, as well as small apparel retail stores. Findings – Three emergent themes highlight the similarities and differences that surfaced across the participants’ narratives. Key issues within the thematic areas point to the need for these women to be creative in finding resources to start and grow their small apparel businesses, and to manage the competition that they face within this industry. Research limitations/implications – It is difficult to generalize the findings of this study beyond the sample. Implications of the findings for understanding the needs of female apparel entrepreneurs and small business owners are considered. Originality/value – Despite the significance of women to the apparel industry as well as small business ownership, thus far, the role of women as apparel entrepreneurs and small business owners has been under-examined in the literature. This study offers insight into what it is like for women seeking to succeed as apparel entrepreneurs and small business owners.
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