The consequences of entering an OTC market for a prescription-based business model in the hearing aid industry

The direct sales of hearing aids to consumers will start soon because of the introduction of the ‘Over-the-Counter Hearing Aid Act of 2016’ and has therefore received some attention in the academic literature. The focus is mainly on the perspective of the hearing care professional, however the manufacturer perspective is missing. This research paper aims to determine what the consequences are of entering an OTC market for a prescription-based business model in the hearing aid industry. We conducted a single case study at a large hearing aid manufacturer to collect our primary data. Our research is qualitative by nature, and we use multiple sources of evidence (including interviews), and triangulation, to increase internal validity and get a clear multi-perspective view. The results of our research have provided us with a manufacturer perspective and shown that there are different consequences of entering an OTC market for a prescription-based business model, starting at solving a new value proposition for a new customer segment: consumers with mild to moderate hearing loss.