Promotion of Prescription Drugs and Its Impact on Physicians’ Choice Behavior

Füsun F. Gönül,

1. Simon School of Business, University of Rochester

Associate Professor of Marketing1Franklin Carter,

2. Haub School of Business, Saint Joseph’s University

Assistant Professor of Pharmaceutical Marketing2Elina Petrova,

3. Graduate School of Industrial Administration, Carnegie Mellon University

Doctoral Student in Marketing3Kannan Srinivasan

4. Graduate School of Industrial Administration, Carnegie Mellon University

H.J. Heinz II Professor of Management, Marketing, and Information Systems4



Abstract

The authors investigate whether and how pricing and promotional activities influence prescription choice behavior using a comprehensive panel of physicians and data on competitive price and promotional activities. The authors find that physicians are characterized by fairly limited price sensitivity, detailing and samples have a mostly informative effect on physicians, and physicians with a relatively large number of Medicare or health maintenance organization patients are less influenced by promotion than other physicians are.

Cited by

. (2013) How Would a Ban on Prescriber-Identifying Information Impact Pharmaceutical Marketing?. International Journal of Public and Private Healthcare Management and Economics 1:3, 38-52
Online publication date: 1-Sep-2013.
CrossRef
. (2012) A Cluster Analysis of Physician’s Values, Prescribing Behaviour and Attitudes towards Firms’ Marketing Communications. International Journal of Customer Relationship Marketing and Management 1:4, 62-79
Online publication date: 1-Oct-2012.
CrossRef
. 2012. A Cluster Analysis of Physician’s Values, Prescribing Behaviour and Attitudes towards Firms’ Marketing Communications. , 250-267.
CrossRef
, , . (2012) Answering the journalistic six on the training needs assessment of pharmaceutical sales representatives: Comparative perspectives of trainers and trainees. International Journal of Pharmaceutical and Healthcare Marketing 6:1, 71-96
Online publication date: 1-Jan-2012.
CrossRef
, . (2011) Evaluation of pharmaceutical drug information brochures in the Emirate of Abu Dhabi (United Arab Emirates). Journal of Pharmaceutical Health Services Researchno-no
Online publication date: 1-Dec-2011.
CrossRef
, , . (2011) A new multivariate count data model to study multi-category physician prescription behavior. Quantitative Marketing and Economics 9:3, 301-337
Online publication date: 1-Sep-2011.
CrossRef
. (2011) Knowledge-based approach to improving detailing plan in multiple product situations using PDE weights. Expert Systems with Applications 38:4, 3835-3843
Online publication date: 1-Apr-2011.
CrossRef
, . (2011) An Exploratory Study on the Effects of a Pharmaceutical Company's CSR Activities on Doctors' Decision Regarding Prescription Drug. Iryo To Shakai 21:2, 189-203
Online publication date: 1-Jan-2011.
CrossRef
, , . (2011) Late entrant over-the-counter and Rx market entry strategies: An investigation in the pharmaceutical industry. International Journal of Pharmaceutical and Healthcare Marketing 5:2, 79-98
Online publication date: 1-Jan-2011.
CrossRef
, , , . (2011) Drug prescription practices in Brazil: a structural equation model. International Journal of Pharmaceutical and Healthcare Marketing 5:4, 262-278
Online publication date: 1-Jan-2011.
CrossRef
, . (2010) Pharma rebates, pharmacy benefit managers and employer outcomes. Health Care Management Science 13:4, 281-293
Online publication date: 1-Dec-2010.
CrossRef
, . (2010) Lifestyle and general medicines: A study of promotional-mix strategies in India. Journal of Medical Marketing
Online publication date: 26-Nov-2010.
CrossRef
, , . (2010) Analysis of Network Type Exchange in the Health Care System: A Stakeholder Approach. Journal of Medical Systems
Online publication date: 3-Nov-2010.
CrossRef
, , . (2010) Determinant values in the medical act of prescribing in the Portuguese context. Journal of Medical Marketing 10:3, 213-230
Online publication date: 1-Jul-2010.
CrossRef
, . (2010) Modeling the effects of pharmaceutical marketing. Marketing Letters 21:2, 121-133
Online publication date: 1-Jun-2010.
CrossRef
, . (2010) Impact of e-detailing on the number of new prescriptions. Health Care Management Science 13:2, 101-111
Online publication date: 1-Jun-2010.
CrossRef
. (2010) Early Marketing Matters: A Time-Varying Parameter Approach to Persistence Modeling. Journal of Marketing Research 47:1, 173-185
Online publication date: 1-Feb-2010.
Abstract | PDF (140 KB) | PDF Plus (154 KB) 
. 2010. Chapter 10 A Survey on the Economics of the U.S. Pharmaceutical Industry. , 201-241.
CrossRef
. (2009) Do Pharmaceutical Marketing Activities Raise Prices? Evidence from Five Major Therapeutic Classes. Journal of Public Policy & Marketing 28:2, 146-161
Online publication date: 1-Nov-2009.
Abstract | PDF (109 KB) | PDF Plus (120 KB) 
, . (2009) Pharmaceutical promotion, prior authorisation and the use of erectile dysfunction medications in the US Medicaid population. Journal of Management & Marketing in Healthcare 2:4, 384-400
Online publication date: 1-Oct-2009.
CrossRef
, , . (2009) Strategic fit to resources versus NPD execution proficiencies: what are their roles in determining success?. Journal of the Academy of Marketing Science 37:3, 266-282
Online publication date: 1-Sep-2009.
CrossRef
, , , , . (2009) Direct-to-Consumer and Physician Promotion of Tegaserod Correlated With Physician Visits, Diagnoses, and Prescriptions. Gastroenterology 137:2, 518-524.e2
Online publication date: 1-Aug-2009.
CrossRef
. (2009) Marketing of the Life Sciences: A New Framework and Research Agenda for a Nascent Field. Journal of Marketing 73:4, 4-30
Online publication date: 1-Jul-2009.
Abstract | PDF (253 KB) | PDF Plus (290 KB) 
. (2009) Quantifying the Benefits of Individual-Level Targeting in the Presence of Firm Strategic Behavior. Journal of Marketing Research 46:2, 207-221
Online publication date: 1-Apr-2009.
Abstract | PDF (263 KB) | PDF Plus (259 KB) 
, . (2009) A model of the role of free drug samples in physicians’ prescription decisions. Marketing Letters 20:1, 15-29
Online publication date: 1-Mar-2009.
CrossRef
. (2009) Are HMO physicians more price sensitive in prescribing brand-name drugs?. International Journal of Pharmaceutical and Healthcare Marketing 3:3, 184-209
Online publication date: 1-Jan-2009.
CrossRef
, , . (2009) The relevance of marketing activities in the Swiss prescription drugs market: Two empirical qualitative studies. International Journal of Pharmaceutical and Healthcare Marketing 3:4, 323-346
Online publication date: 1-Jan-2009.
CrossRef
, , . (2009) The Australian rise of esomeprazole-was expenditure on samples a contributor?. Pharmacoepidemiology and Drug Safety 18:1, 62-68
Online publication date: 1-Jan-2009.
CrossRef
, , , . (2008) Generalizations on the effectiveness of pharmaceutical promotional expenditures. International Journal of Research in Marketing 25:4, 234-246
Online publication date: 1-Dec-2008.
CrossRef
, , , . (2008) Can branded drugs benefit from generic entry? The role of detailing and price in switching to non-bioequivalent molecules. International Journal of Research in Marketing 25:4, 247-260
Online publication date: 1-Dec-2008.
CrossRef
, . (2008) Pricing of prescription drugs and its impact on physicians’ choice behavior. Health Care Management Science 11:3, 288-295
Online publication date: 1-Sep-2008.
CrossRef
. (2008) Network connectedness of pharmaceutical sales rep (FLE)-physician dyad and physician prescription behaviour: A conceptual model. Journal of Medical Marketing 8:3, 257-268
Online publication date: 1-Jun-2008.
CrossRef
, , , . (2008) Critical appraisal of apparently evidence-based written advertising in Pakistan. Pharmacy World & Science 30:3, 216-221
Online publication date: 1-Jun-2008.
CrossRef
. (2008) Market segmentation with mixture regression models: Understanding measures that guide model selection. Journal of Targeting, Measurement and Analysis for Marketing 16:3, 228-246
Online publication date: 1-Jun-2008.
CrossRef
, . (2008) A Model of Arbitral Decision Making: Facts, Weights, and Decision Elements. Industrial Relations 47:2, 266-283
Online publication date: 1-Apr-2008.
CrossRef
. (2008) An expert system to derive carryover effect for pharmaceutical sales detailing optimization. Expert Systems with Applications 34:3, 1742-1753
Online publication date: 1-Apr-2008.
CrossRef
, , . (2008) Characteristics of Patients Receiving Pharmaceutical Samples and Association Between Sample Receipt and Out-of-Pocket Prescription Costs. Medical Care 46:4, 394-402
Online publication date: 1-Apr-2008.
CrossRef
, , . (2007) A Decade of Direct-to-Consumer Advertising of Prescription Drugs. New England Journal of Medicine 357:7, 673-681
Online publication date: 16-Aug-2007.
CrossRef
, , . (2007) Pionier, Früher Folger oder Später Folger: Welche Strategie verspricht den größten Erfolg?. Zeitschrift für Betriebswirtschaft 77:5, 539-573
Online publication date: 1-May-2007.
CrossRef
, , . (2007) A Multibrand Concept-Testing Methodology for New Product Strategy. Journal of Product Innovation Management 24:1, 34-51
Online publication date: 1-Jan-2007.
CrossRef
, , , . (2006) Physicians' Decision Process for Drug Prescription and the Impact of Pharmaceutical Marketing Mix Instruments. Health Marketing Quarterly 22:4, 73-107
Online publication date: 28-Feb-2006.
CrossRef
, , , . (2006) Pharmaceutical promotion and GP prescription behaviour. Health Economics 15:1, 5-18
Online publication date: 1-Jan-2006.
CrossRef
. (2006) Marketing strategy: taxonomy and frameworks. European Business Review 18:4, 266-293
Online publication date: 1-Jan-2006.
CrossRef
, . (2005) The Effect of Prescription Drug Advertising on Doctor Visits. Journal of Economics <html_ent glyph="@amp;" ascii="&"/> Management Strategy 14:3, 701-727
Online publication date: 1-Sep-2005.
CrossRef
, , . (2005) Motivations and perceived influences on rural and urban general practitioners when prescribing conventional non-steroidal anti-inflammatory drugs or COX-2 inhibitors. Journal of Clinical Pharmacy and Therapeutics 30:4, 337-343
Online publication date: 1-Aug-2005.
CrossRef
, . (2004) Are Physicians ?Easy Marks?? Quantifying the Effects of Detailing and Sampling on New Prescriptions. Management Science 50:12, 1704-1715
Online publication date: 1-Dec-2004.
CrossRef
. (2004) Response Modeling with Nonrandom Marketing-Mix Variables. Journal of Marketing Research 41:4, 467-478
Online publication date: 1-Nov-2004.
Abstract | References | PDF (268 KB) | PDF Plus (327 KB) 
, , , . (2004) Direct-to-Consumer Advertising and its Utility in Health Care Decision Making: A Consumer Perspective. Journal of Health Communication 9:6, 499-513
Online publication date: 1-Nov-2004.
CrossRef
. (2004) Effects of Direct-to-Consumer Advertising on Medication Choice: The Case of Antidepressants. Journal of Public Policy & Marketing 23:2, 115-127
Online publication date: 1-Sep-2004.
Abstract | References | PDF (189 KB) | PDF Plus (241 KB) 
, , . (2004) Consumer Learning and Brand Valuation: An Application on Over-the-Counter Drugs. Marketing Science 23:1, 156-169
Online publication date: 1-Jan-2004.
CrossRef
, , . (2003) Prescription drug samples - does this marketing strategy counteract policies for quality use of medicines?. Journal of Clinical Pharmacy and Therapeutics 28:4, 259-271
Online publication date: 1-Aug-2003.
CrossRef
, , . (2003) A 3-stage model for assessing the probable economic effects of direct-to-consumer advertising of pharmaceuticals. Clinical Therapeutics 25:1, 309-329
Online publication date: 1-Jan-2003.
CrossRef
, . (2003) Situational price sensitivity: the role of consumption occasion, social context and income. Journal of Retailing 79:4, 199-212
Online publication date: 1-Jan-2003.
CrossRef
. (2002) The Role of Marketing in Pharmaceutical Research and Development. PharmacoEconomics 20:Supplement 3, 77-85
Online publication date: 1-Jan-2002.
CrossRef