Indian Institute of Management Ahmedabad

About: Indian Institute of Management Ahmedabad is a education organization based out in Ahmedabad, India. It is known for research contribution in the topics: Context (language use) & Emerging markets. The organization has 1828 authors who have published 4011 publications receiving 59269 citations. The organization is also known as: IIMA & IIM Ahmedabad.

Deciding Where to Buy: Store Choice Behaviour of Indian Shoppers

Abstract: Store choice is a decision that a shopper is fairly involved in. It is important for a store to understand this behaviour for developing marketing strategies to attract and keep its clientele. It is found that shoppers choose the store based on many aspects that could be classified as primary and image based. It is also found that the importance of each of these aspects changes with the kind of store the shopper wants to visit. In the Indian context where the shopper does not have much variety in store format, the type of store is recognized by the kind of product the store deals in. The paper is an attempt to understand this behaviour of the shopper. The shoppers are explored for the primary reasons for choosing a store. Then, using a factor analysis, the several image dimensions are classified. Further, using multinomial logit regression, the store choice pattern is studied across different types of store. Implications for the managers in the retail business are drawn and future research directions have been highlighted.

Regulation and Welfare: Evidence from Paragraph IV Generic Entry in the Pharmaceutical Industry

Abstract: With increasing frequency, generic drug manufacturers in the United States are able to challenge the monopoly status of patent-protected drugs even before their patents expire. The legal foundation for these challenges is found in Paragraph IV of the Hatch-Waxman Act. If successful, these Paragraph IV challenges generally lead to large market share losses for incumbents and sharp declines in average market prices. This paper estimates, for the first time, the welfare effects of accelerated generic entry via these challenges. Using aggregate brand level sales data between 1997 and 2008 for hypertension drugs in the U.S. we estimate demand using a nested logit model in order to back out cumulated consumer surplus, which we find to be approximately $270 billion. We then undertake a counterfactual analysis, removing the stream of Paragraph IV facilitated generic products, finding a corresponding cumulated consumer surplus of $177 billion. This implies that gains flowing to consumers as a result of this regulatory mechanism amount to around $92 billion or about $133 per consumer in this market. These gains come at the expense to producers who lose, approximately, $14 billion. This suggests that net short-term social gains stands at around $78 billion. We also demonstrate significant cross-molecular substitution within the market and discuss the possible appropriation of consumer rents by the insurance industry. Policy and innovation implications are also discussed.