Trust in manufacturer has a positive relationship with consumer’s choice of
purchasing private label drugs.
According to Chinese “Product Marking Requirements”, all retailers must disclosure
the manufacturers’ names and locations for all products (including private label
products). Previous research suggests that manufacturer disclosure of private label
products introduces a number of potential evaluation biases into the consumer
decision-making process (Fugate, 1986). Drug is a high involvement product, which
requires high quality; otherwise it will bring high risk to consumers. The authors’ work
experiences in the Chinese pharmaceutical industry suggest that Chinese consumers
perceive drugs produced in economically developed regions (e.g. Shanghai and Beijing)
or by large manufacturers to have higher quality than drugs produced in economically
underdeveloped regions (e.g. Qinghai) or by small manufacturers.