Drug Detailing and Doctors’ Prescription Decisions: The Role of Information Content in the Face of Competitive Entry

Abstract

W e study the effects of information content in 59,814 pharmaceutical sales calls on doctors' prescription decisions for statins, in the face of entry of competing brands and generics, using a hierarchical Bayesian distributed lag model. We conclude that adding information content to the prescription response model improves the in-and out-of-sample performance of the model. In the first six months following generic entry, it is more effective for incumbent brands to detail on drug contraindications and indications, compared to other periods, to positively differentiate from generics. In the first six months following branded entry, it is less effective for incumbent brands to detail on drug indications and costs, given increased competitive clutter. We also document substantial heterogeneity among doctors in their response to information content. Our model is helpful for analysts to more accurately assess the effectiveness of detailing. Our empirical results are also informative for drug manufacturers as they set or change their messaging policies in response to entry and help firms to tailor their message content at the doctor level.

Unpacking the Relationship between Sales Control and Salesperson Performance: A Regulatory Fit Perspective

“…In the pharmaceutical context, for example, medical reps sell products to doctors and hospitals on the basis of information about drug efficacy, dosing, and side effects; drug and food interactions; and drug costs (see Kappe and Stremersch 2016). They search for novel ideas, skills, and knowledge and seek new selling techniques to promote drugs and build close relationships with customers (e.g., physicians, hospitals).…”

“…The sales function within pharmaceutical companies is typically organized as different units that are constructed to meet the requirements of diverse market segments and individual customers (e.g., diabetes consultants, hospitals). Sales reps focus their attention on developing and managing close relationships with doctors, who are often confronted with better-informed and more demanding patients, growing health cost pressures, and limited time to meet and interact with medical reps (e.g., Ahearne et al 2010; Kappe and Stremersch 2016).…”

The value of context-specific studies for marketing

“…& IQVIA (previously IMS Health) provides data from panels of doctors on their prescription behavior (and the detail visits they receive, among others) (Kappe & Stremersch, 2016), as well as market-level data on monthly sales and promotional spending (broken down by different types of promotion) (Stremersch & Lemmens, 2009). & Co-development alliance and pipeline data: Clarivate…”

Drugs Becoming Generics—The Impact of Genericization on the Market Performance of Antihypertensive Active Pharmaceutical Ingredients

“…According to Venkataraman and Stremersch, marketing effectiveness is modified by the efficacy and side effects of a drug [ 48 ]. The picture is further complicated by the fact that it does matter what kind of information is made available to physicians in the various life stages of the product, because emphasizing a certain product characteristic in a competitive environment can be beneficial or detrimental to product sales [ 49 ].…”