NDLI: Controlling direct-to-consumer advertising, professional promotion and the price of pharmaceutical drugs

Content Provider	IEEE Xplore Digital Library
Author	Pasdirtz, G.W.
Copyright Year	2009
Description	Author affiliation: University of Wisconsin Madison, WI 53706, USA (Pasdirtz, G.W.)
Abstract	Direct-to-consumer (DTC) advertising is the most visible and controversial part of contact between patients and the pharmaceutical manufacturers but it is only part of the current promotional mix. Advertising in medical journals, detailing (direct sales calls on physicians) and distribution of free samples are all used along with DTC advertising to induce product demand. In this paper, I exploit a new data set on pharmaceutical promotion (Donohue, Cevasco, and Rosenthal 2007) to estimate two state space models: one model explains the dynamics of pharmaceutical promotion and another investigates the impact of pharmaceutical promotion on the market for pharmaceutical products. Simulation results suggest that limitations on professional detailing and free samples (not DTC advertising) could reduce cyclical instability of pharmaceutical promotion. However, the pharmaceutical market does not behave as a competitive market, that is, while promotion increases sales, prices have no statistically significant negative feedback effect on sales. As a result, promotional controls will reduce sales but not prices. Market failure suggests a range of interventions that might be applied to pharmaceutical pricing.
Starting Page	2096
Ending Page	2106
File Size	304288
Page Count	11
File Format	PDF
ISBN	9781424457700
e-ISBN	9781424457717
DOI	10.1109/WSC.2009.5429640
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2009-12-13
Publisher Place	USA
Access Restriction	Subscribed
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	Advertising Pharmaceuticals Drugs Marketing and sales Costs Aggregates Manufacturing Protection State-space methods Medical services
Content Type	Text
Resource Type	Article

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in