Studies on pharmaceutical markets

PhD ceremony: Ms. K.C. Reber, 14.30 uur, Academiegebouw, Broerstraat 5, Groningen

Dissertation: Studies on pharmaceutical markets

Promotor(s): prof. J.E. Wieringa, prof. P.S.H. Leeflang

Faculty: Economics and Business

The pharmaceutical market is a complex system in which various participants meet and which is continually changing: new drugs enter the market, public health issues are reassessed, and regulatory guidelines change.

This thesis aims to contribute to the development of new and relevant knowledge in the field of healthcare and pharmaceutical marketing. In Chapter 2, we investigate which product, store, customer, and competitor characteristics enhance over-the-counter sales in a retail pharmacy setting. We find that assortment and promotions are crucial determinants of pharmacy performance. The results further suggest that store and location factors that are critical for traditional retailers may be less important for pharmacies.

In Chapters 3 and 4, we assess the impact of Direct Healthcare Professional Communications (DHPCs) on new drug use. Half of the drugs that received a DHPC show a decrease in use in the short-term, but only a minority of drugs with a DHPC show substantial long-term reductions in use. Moreover, the impact of a DHPC on drug use varies greatly depending on drug and DHPC characteristics.

Drug innovation success depends on how fast a new drug is adopted by how many prescribers. In Chapter 5, we analyze the interplay between stage in the adoption process, marketing efforts, and physician characteristics on prescriptions. We find considerable variation in physicians’ propensity to prescribe and their detailing sensitivity. These differences can be related to physician characteristics and their stage in the adoption process. The results of our analyses may help pharmaceutical marketing managers target physicians more effectively.