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

Füsun F. Gönül¹; Franklin Carter²; Elina Petrova³; Kannan Srinivasan⁴

¹ Associate Professor of Marketing, Simon School of Business, University of Rochester. · ² Assistant Professor of Pharmaceutical Marketing, Haub School of Business, Saint Joseph's University. · ³ Doctoral student in marketing, and Information Systems, Graduate School of Industrial Administration, Carnegie Mellon University. · ⁴ H.J. Heinz II Professor of Management, Marketing, and Information Systems, Graduate School of Industrial Administration, Carnegie Mellon University.

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.

DOI

10.1509/jmkg.65.3.79.18329

Volume

65 (3)

Pages

79-90

Language

en

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Sources

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