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Physicians' Persistence and Its Implications for Their Response to Promotion of Prescription Drugs

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  • Ramkumar Janakiraman

    (Mays School of Business, Texas A& M University, College Station, Texas 77843)

  • Shantanu Dutta

    (Marshall School of Business, University of Southern California, Los Angeles, California 90089)

  • Catarina Sismeiro

    (Tanaka Business School, Imperial College London, London SW7 2AZ, United Kingdom)

  • Philip Stern

    (Warwick Business School, University of Warwick, Coventry CV4 7AL, United Kingdom)

Abstract

Motivated by the medical literature findings that physicians are inertial, we seek to understand (1) whether physicians exhibit structural persistence in drug choice (structural persistence occurs when the drug chosen for a patient depends structurally on the drug previously prescribed by the physician to other patients) and (2) whether persistence, if present, is a physician-specific characteristic or a physician state that can change over time. We further explore the role of promotional tools on persistence and drug choice, and we investigate whether physicians who exhibit persistence respond differently to three forms of sales promotion: one-to-one meetings (detailing), out-of-office meetings, and symposium meetings. Our results show significant levels of physician persistence in drug choice. We find that persistence is mostly a cross-sectional physician feature. Nonpersistent physicians appear to be responsive to detailing and symposium meetings, whereas persistent physicians seem to be responsive only to symposium meetings. Out-of-office meetings, such as golf or lunch, have no effect on physicians' drug choice. We also find that (1) older physicians and those who work in smaller practices are more likely to be persistent and (2) physicians who are more willing to receive sales force representatives have a lower likelihood of being persistent. Finally, we discuss implications for public policy from our rich set of results.

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  • Ramkumar Janakiraman & Shantanu Dutta & Catarina Sismeiro & Philip Stern, 2008. "Physicians' Persistence and Its Implications for Their Response to Promotion of Prescription Drugs," Management Science, INFORMS, vol. 54(6), pages 1080-1093, June.
  • Handle: RePEc:inm:ormnsc:v:54:y:2008:i:6:p:1080-1093
    DOI: 10.1287/mnsc.1070.0799
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    Cited by:

    1. Ricardo Montoya & Oded Netzer & Kamel Jedidi, 2010. "Dynamic Allocation of Pharmaceutical Detailing and Sampling for Long-Term Profitability," Marketing Science, INFORMS, vol. 29(5), pages 909-924, 09-10.
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    3. Ravi Aron & Shantanu Dutta & Ramkumar Janakiraman & Praveen A. Pathak, 2011. "The Impact of Automation of Systems on Medical Errors: Evidence from Field Research," Information Systems Research, INFORMS, vol. 22(3), pages 429-446, September.
    4. Doug J. Chung & Byungyeon Kim & Byoung G. Park, 2019. "How Do Sales Efforts Pay Off? Dynamic Panel Data Analysis in the Nerlove–Arrow Framework," Management Science, INFORMS, vol. 65(11), pages 5197-5218, November.
    5. Gonzalez, Jorge & Sismeiro, Catarina & Dutta, Shantanu & Stern, Philip, 2008. "Can branded drugs benefit from generic entry? The role of detailing and price in switching to non-bioequivalent molecules," International Journal of Research in Marketing, Elsevier, vol. 25(4), pages 247-260.
    6. Raf Van Gestel & Tobias Müller & Johan Bosmans, 2018. "Learning from failure in healthcare: Dynamic panel evidence of a physician shock effect," Health Economics, John Wiley & Sons, Ltd., vol. 27(9), pages 1340-1353, September.
    7. Sismeiro, Catarina & Mizik, Natalie & Bucklin, Randolph E., 2012. "Modeling coexisting business scenarios with time-series panel data: A dynamics-based segmentation approach," International Journal of Research in Marketing, Elsevier, vol. 29(2), pages 134-147.
    8. Xiaojing Dong & Ramkumar Janakiraman & Ying Xie, 2014. "The Effect of Survey Participation on Consumer Behavior: The Moderating Role of Marketing Communication," Marketing Science, INFORMS, vol. 33(4), pages 567-585, July.
    9. Carey, Colleen & Lieber, Ethan M.J. & Miller, Sarah, 2021. "Drug firms’ payments and physicians’ prescribing behavior in Medicare Part D," Journal of Public Economics, Elsevier, vol. 197(C).
    10. Avdic, Daniel & Blankart, Katharina, 2021. "A Hard Look at “Soft” Cost‐control Measures in Healthcare Organizations: Evidence from Preferred Drug Policies in Germany," CINCH Working Paper Series (since 2020) 74978, Duisburg-Essen University Library, DuEPublico.
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    12. Raf Van Gestel & Tobias Mueller & Johan Bosmans, 2018. "Learning from failure in healthcare: Dynamic panel evidence of a physician shock effect," Diskussionsschriften dp1809, Universitaet Bern, Departement Volkswirtschaft.
    13. Andrew J. Epstein & Jonathan D. Ketcham, 2014. "Information technology and agency in physicians' prescribing decisions," RAND Journal of Economics, RAND Corporation, vol. 45(2), pages 422-448, June.
    14. Margaret K. Kyle, 2019. "The Alignment of Innovation Policy and Social Welfare: Evidence from Pharmaceuticals," NBER Chapters, in: Innovation Policy and the Economy, Volume 20, pages 95-123, National Bureau of Economic Research, Inc.
    15. Melissa Newham & Marica Valente, 2022. "The Cost of Influence: How Gifts to Physicians Shape Prescriptions and Drug Costs," Papers 2203.01778, arXiv.org, revised Apr 2023.
    16. Appelt, Silvia, 2010. "Authorized Generic Entry prior to Patent Expiry: Reassessing Incentives for Independent Generic Entry," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 357, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    17. Holtrop, Niels & Wieringa, Jakob & Gijsenberg, Maarten & Stern, P., 2016. "Competitive reactions to personal selling," Research Report 16004-MARK, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    18. Appelt, Silvia, 2010. "Authorized Generic Entry prior to Patent Expiry: Reassessing Incentives for Independent Generic Entry," Discussion Papers in Economics 11476, University of Munich, Department of Economics.
    19. Hongju Liu & Qiang Liu & Pradeep K. Chintagunta, 2017. "Promotion Spillovers: Drug Detailing in Combination Therapy," Marketing Science, INFORMS, vol. 36(3), pages 382-401, May.
    20. Rizwan Raheem Ahmed & Dalia Streimikiene & Josef Abrhám & Justas Streimikis & Jolita Vveinhardt, 2020. "Social and Behavioral Theories and Physician’s Prescription Behavior," Sustainability, MDPI, vol. 12(8), pages 1-25, April.
    21. Stefan Stremersch & Aurélie Lemmens, 2009. "Sales Growth of New Pharmaceuticals Across the Globe: The Role of Regulatory Regimes," Marketing Science, INFORMS, vol. 28(4), pages 690-708, 07-08.
    22. Greffion, Jérôme & Breda, Thomas, 2015. "Façonner la prescription, influencer les médecins," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 17.
    23. Xiaojing Dong & Pradeep Chintagunta & Puneet Manchanda, 2011. "A new multivariate count data model to study multi-category physician prescription behavior," Quantitative Marketing and Economics (QME), Springer, vol. 9(3), pages 301-337, September.
    24. Van Gestel, R.; Müller, T.; Bosmans, J.;, 2017. "Learning from failure in healthcare: dynamic panel evidence of a physician shock effect," Health, Econometrics and Data Group (HEDG) Working Papers 17/24, HEDG, c/o Department of Economics, University of York.
    25. Stefan Stremersch & Vardit Landsman & Sriram Venkataraman, 2013. "The Relationship Between DTCA, Drug Requests, and Prescriptions: Uncovering Variation in Specialty and Space," Marketing Science, INFORMS, vol. 32(1), pages 89-110, June.

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