While brand name products in the healthcare realm seem to be losing ground to their generic counterparts, Pepto Bismol has added 0.7 market share points in its original formula and 2.5 market share points in stomach remedy tablets despite being priced approximately 60% more than private label products (source: Advertising Age).
While Pepto Bismol brand manager Nathan Fox believes that the recession may have made consumers turn to Pepto Bismol as treatment for multiple symptoms – which is the focus of its advertising campaign “Coverage” (source: Advertising Age) – the brand’s success during the recession could also be due to an unconscious behavioral phenomenon.
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Research on the unconscious drivers of behavior has found that consumers will pay more for a brand name drug than a generic one when their pain is really severe – even while stating that there is no difference between the effectiveness of a brand name drug and it’s generic counterpart  (Zaltman, 2003). This behavioral tendency indicates that human’s unconsciously assign value to the brand-name product – meaning that your subconscious brain tells you that the brand name product will do a better job than the generic one when the best results are needed, even when your rational mind knows there is no difference in the ingredients.
Perhaps in no other case is the best result needed than with symptoms like indigestion, nausea, heartburn, upset stomach and diarrhea – all symptoms that Pepto Bismol combats. It is likely that consumers are willing to pay the 60% premium for Pepto Bismol when their symptoms are severe. You don’t want to take any chances with these symptoms: a generic version just won’t cut it.
While Pepto Bismol’s new advertising message is likely contributing to its success during this recession, it is also likely that the Pepto Bismol brand is embedded in the consumer unconscious mind, and is driving price premium behavior without consumer awareness.
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