Brand name drugs are chemically identical to their generic counterparts. Yet, consumers often prefer the brand name product to the generic product. Making consumers think that a brand name drug differs from its generic counterpart is an example of

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Product differentiation is a marketing strategy whereby businesses attempt to make their product appear unique and superior to similar products on the market. In the case of brand name drugs and their generic counterparts, even though they are chemically identical, the branding efforts can lead to consumers perceiving the brand name drug as different or superior, which is a classic example of product differentiation.

Brand Name Drugs Are Chemically Identical to Their Generic Counterparts