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

Author:

Gönül Füsun F.1,Carter Franklin2,Petrova Elina3,Srinivasan Kannan4

Affiliation:

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.

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.

Publisher

SAGE Publications

Subject

Marketing,Business and International Management

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