The impact of direct-to-consumer advertising of prescription drugs on physician visits and drug requests: Empirical findings and public policy implications

Liu, Qiang; Gupta, Sachin

doi:10.1016/j.ijresmar.2011.04.001

Cited by 64 publications

(32 citation statements)

References 40 publications

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“…Truth-in-advertising regulation plays an important role in supporting the credibility on which advertising relies to be e¤ective. (i) whenever DTCA is observed in equilibrium, 22 it always results in a strictly higher level of prescribing of drug than under a PKBE; and (ii) the expected 22 Or rather, in a restricted equilibrium, as de…ned in the Supplementary Material. …ne must exceed a lower bound to support any equilibrium with purely truthful advertising, and must fall between an upper and lower bound for equilibria with both truthful and false advertising.…”

Section: Discussionmentioning

confidence: 97%

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The Regulation of Direct-to-Consumer Advertising of Pharmaceuticals in a Managed Care Setting

Ryan

Vaithianathan

2015

Journal of Public Economic Theory

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We analyse direct-to-consumer advertising (DTCA) in the prescription drug market, when a regulator imposes a …ne for misleading advertisements (truth-in-advertising regulation) and doctors face pressure to contain prescribing costs. The e¢ cacy of a drug is based on scienti…c evidence as well as on patient-speci…c characteristics.Patients do not possess information on either dimension of e¢ cacy.Pharmaceutical …rms observe the scienti…c data and use DTCA to convey this information to patients. Doctors observe both the scienti…c data and patient-speci…c characteristics, and provide treatment recommendations. We develop a model in which DTCA is followed by a doctor-patient signalling game. We show that truth-in-advertising regulation increases the credibility of DTCA and may increase both doctor-patient con ‡ict and prescriptions for an expensive new drug -a market stealing e¤ect. Tighter regulation may encourage more DTCA, and may even encourage more false advertising.

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Section: Discussionmentioning

confidence: 97%

“…Liu and Gupta (2011) analyse prescribing data for patients newly diagnosed with hyperlipidemia, and …nd that DTCA has a positive and statistically signi…cant e¤ect on patient requests for the advertised brand. In Kravitz et al (2005) actors were randomly assigned to make 298 unannounced visits to physicians.…”

Section: Introductionmentioning

confidence: 99%

The Regulation of Direct-to-Consumer Advertising of Pharmaceuticals in a Managed Care Setting

Ryan

Vaithianathan

2015

Journal of Public Economic Theory

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“…They found that direct-to-consumer advertising expenditures shifted demand curve for new generations of antidepressants [12]. Donohue, Cevasco, and Rosenthal (2007), mentioned that marketing promotion campaign which started within the first year of new prescribed drug entry increased drugs misuse due to uncertain safety profile [13].…”

Section: Direct-to-consumer Promotion 1a Market Size and Sharementioning

confidence: 99%

Analysis of Scientific Researches in Pharmaceutical Promotion Globally: Towards Internationally Developing Practically-Oriented Guidelines for Pharmaceutical Companies

Bahlol¹,

Лагуткина²

2016

Bûll. sib. med.

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Purpose. Pharmaceutical industry is transnational and globally important. Many pharmaceutical companies operate their business in multinational and international forms in different countries. Diverse researches from different countries indicated and confirmed marketing promotion importance in pharmaceutical field. Therefore, marketing promotion and its effects are a very important issue that should be globally investigated in real life and evidence context. We oriented our research according to these scientific and practical values.Methodology. We reviewed pharmaceutical marketing promotion researches from more than 25 different countries, e.g., USA, Canada, Italy, France, Russia, India, Egypt and Syria where we employed our knowledge of three widely spread languages, i.e., English, Russian and Arabic. Such language variation supports us with large and variable amount of scientific knowledge, deep understanding and ability of analysis. Some studies investigated average response to pharmaceutical marketing promotion and few studies took into consideration heterogeneity in their effects with respect to advertising medium or drug characteristics.Originality. We investigated empirical evidences of pharmaceutical marketing promotion that can be directed to either consumer or healthcare professionals.Findings. We extracted, gathered and associated information of pharmaceutical promotion globally which oriented us to several evidence and practical facts with regard to employing promotion tools in different definite situations pertinent to main directions; their welfare and health enhancing effects and adverse effects. Practical ImplicationsConsequently, we developed practically-oriented guidelines for companies concerning pharmaceutical promotion globally ate the end of this paper.

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“…For example, in their meta-analysis, Kremer et al (2008) found that the average DTCA elasticity is 0.07. (b) DTCA has mainly a (small) market expansion effect, either through increased category sales or doctor visits (e.g., Iizuka and Jin 2007;Iizuka and Jin 2005;Liu and Gupta 2011). The meta-analytic study of Fischer and Albers (2010) found the long-term DTCA elasticity of category sales to be 0.08.…”

Section: Academic Research On Dtca Influencementioning

confidence: 99%

“…In fact, Liu and Gupta (2011) found that DTCA for cholesterollowering drugs is cost-effective by reducing the under-diagnosis and under-treatment, in other words the category expansion effect of DTCA counterweighs its marketshare stealing effect. …”

Section: Academic Research On Dtca Influencementioning

confidence: 99%

How DTCA Influences Prescription Pharmaceutical Markets

Vakratsas

Kolsarici

2013

International Series in Quantitative Marketing

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This chapter focuses on the potential influence of direct-to-consumer advertising (DTCA) on firm strategy, patients, physicians, and policy change. Particularly, we identify the chain of DTCA influence through which public policy actions, such as DTCA (de)regulation, prompt firm decisions as to whether or not to engage in DTCA, which drugs to pick for direct-to-consumer communication, and how much to allocate to DTCA versus the marketing-mix direct-to-physician (DTP). We highlight the importance of disentangling DTCA effects on the two main stakeholders, patient and the physician, to unravel the intricacies of prescription decisions. With this aim, we analyze a data set for three top-selling classes in the USA, namely, proton-pump inhibitors (PPIs), selective serotonin reuptake inhibitors (SSRIs), and HMG-CoA reductase inhibitors (Statins). The results confirm extant research and suggest that DTCA exhibits oversaturation effects later in the life cycle of a therapeutic class and is unlikely to be the major driver of pharmaceutical sales. On the other hand, DTP spending appears to be more influential and resistant to life cycle effects. IntroductionThe drug prescription decision is highly complex and involves multiple stakeholders. As a result, policy changes regarding prescription pharmaceuticals tend to attract a lot of attention and invite heated debates. One such hotly debated policy

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The impact of direct-to-consumer advertising of prescription drugs on physician visits and drug requests: Empirical findings and public policy implications

Cited by 64 publications

References 40 publications

The Regulation of Direct-to-Consumer Advertising of Pharmaceuticals in a Managed Care Setting

The Regulation of Direct-to-Consumer Advertising of Pharmaceuticals in a Managed Care Setting

Analysis of Scientific Researches in Pharmaceutical Promotion Globally: Towards Internationally Developing Practically-Oriented Guidelines for Pharmaceutical Companies

How DTCA Influences Prescription Pharmaceutical Markets

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