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The Debate on Influencing Doctors' Decisions: Are Drug Characteristics the Missing Link?

  • Sriram Venkataraman

    ()

    (Goizueta Business School, Emory University, Atlanta, Georgia 30322)

  • Stefan Stremersch

    ()

    (School of Economics, Erasmus University Rotterdam, 3000 DR Rotterdam, The Netherlands
    Fuqua School of Business, Duke University, Durham, North Carolina 27708)

Registered author(s):

    Decision making by physicians on patients' treatment has come under increased public scrutiny. In fact, there is a fair amount of debate on the effects of marketing actions of pharmaceutical firms toward physicians and their impact on physician prescription behavior. While some scholars find a strong and positive influence of marketing actions, some find only moderate effects, and others even find negative effects. Debate is also mounting on the role of other influencers (such as patient requests) in physician decision making, both on prescriptions and sample dispensing. The authors argue that one factor that may tip the balance in this debate is the role of drug characteristics, such as a drug's effectiveness and a drug's side effects. Using a unique data set, they show that marketing efforts--operationalized as detailing and symposium meetings of firms to physicians--and patient requests do affect physician decision making differentially across brands. Moreover, they find that the responsiveness of physicians' decision making to marketing efforts and patient requests depends upon the drug's effectiveness and side effects. This paper presents clear guidelines for public policy and managerial practice and envisions that the study of the role of drug characteristics, such as effectiveness and side effects, may lead to valuable insights in this surging public debate.

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    File URL: http://dx.doi.org/10.1287/mnsc.1070.0718
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    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 53 (2007)
    Issue (Month): 11 (November)
    Pages: 1688-1701

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    Handle: RePEc:inm:ormnsc:v:53:y:2007:i:11:p:1688-1701
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    1. Gary S. Becker & Kevin M. Murphy, 1993. "A Simple Theory of Advertising as a Good or Bad," The Quarterly Journal of Economics, Oxford University Press, vol. 108(4), pages 941-964.
    2. Puneet Manchanda & Pradeep K. Chintagunta, 2004. "Responsiveness of Physician Prescription Behavior to Salesforce Effort: An Individual Level Analysis," Marketing Letters, Springer, vol. 15(2_3), pages 129-145, 07.
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    4. Cutler David M. & Garber Alan M., 2003. "Introduction to Frontiers in Health Policy Research, Volume 6," Forum for Health Economics & Policy, De Gruyter, vol. 6(1), pages 1-6, January.
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    7. Rizzo, John A, 1999. "Advertising and Competition in the Ethical Pharmaceutical Industry: The Case of Antihypertensive Drugs," Journal of Law and Economics, University of Chicago Press, vol. 42(1), pages 89-116, April.
    8. David M. Cutler & Alan M. Garber, 2003. "Frontiers in Health Policy Research, Volume 6," NBER Books, National Bureau of Economic Research, Inc, number cutl03-1, September.
    9. Leffler, Keith B, 1981. "Persuasion or Information? The Economics of Prescription Drug Advertising," Journal of Law and Economics, University of Chicago Press, vol. 24(1), pages 45-74, April.
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