IDEAS home Printed from https://ideas.repec.org/a/sej/ancoec/v781y2011p167-190.html
   My bibliography  Save this article

Can Credence Advertising Effects Be Isolated? Can They Be Negative?: Evidence from Pharmaceuticals

Author

Listed:
  • W. David Bradford

    () (Department of Public Administration and Policy, 201C Baldwin Hall, University of Georgia, Athens, GA 30602, USA)

  • Andrew N. Kleit

    () (Department of Meteorology and Center for Health Care Policy, 213 Hosler Building, The Pennsylvania State University, University Park, PA 16802, USA)

Abstract

We explore the relative impact of informative versus the credence effects of direct-to-consumer advertising in the market for prescription drugs. In particular, we examine how advertising for statin medications affects the delay between diagnosis and pharmacological treatment for patients with elevated cholesterol, as well as the time between treatment initiation and therapy switching. Duration models of delay to treatment indicate that over some ranges, advertising increases the likelihood of treatment, while over other ranges greater advertising is associated with lower likelihood of treatment. Results for the switching behavior models indicate that on net, advertising tends to both discourage switching between drugs and encourage therapy continuation. However, the component of the advertising that represents credence effects is generally positive, which indicates that as patients' spell of drug usage lengthens, the Food and Drug Administration–required warnings in advertisements induce consumers to switch away from the pharmaceuticals they are using.

Suggested Citation

  • W. David Bradford & Andrew N. Kleit, 2011. "Can Credence Advertising Effects Be Isolated? Can They Be Negative?: Evidence from Pharmaceuticals," Southern Economic Journal, Southern Economic Association, vol. 78(1), pages 167-190, July.
  • Handle: RePEc:sej:ancoec:v:78:1:y:2011:p:167-190
    DOI: 10.4284/0038-4038-78.1.167
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.4284/0038-4038-78.1.167
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eisenberg, Matthew D. & Avery, Rosemary J. & Cantor, Jonathan H., 2017. "Vitamin panacea: Is advertising fueling demand for products with uncertain scientific benefit?," Journal of Health Economics, Elsevier, vol. 55(C), pages 30-44.

    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sej:ancoec:v:78:1:y:2011:p:167-190. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Razzolini) The email address of this maintainer does not seem to be valid anymore. Please ask Laura Razzolini to update the entry or send us the correct email address. General contact details of provider: http://edirc.repec.org/data/seaaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.