Understanding Sample Usage and Sampling as a Promotion Tool: State of Industry Practice and Current Research - Innovation and Marketing in the Pharmaceutical Industry - page 499

System, have completely banned their doctors from dispensing free drug samples to
patients, while others including the University of Pennsylvania and Stanford
University medical schools have prohibited staff members from accepting free drug
samples 1 (Rabin 2007 ). Therefore, understanding the motivation for sampling in a
physician's prescription decision is of interest to pharmaceutical companies in
designing an effective sampling strategy while maintaining healthy public relations.
Results could also help policy makers decide whether sampling should be encour-
aged to the benefi t of patient welfare.
Unlike other promotional tools employed in pharmaceutical marketing, the
effects of sampling are not always one-sided. On the one hand, free drug samples
can stimulate trial and improve sales. On the other hand, sampling might cannibal-
ize sales from regular prescriptions. The extent of cannibalization could be severe,
considering the over $18 billion retail value of drug samples distributed in 2005
alone. Therefore, it is important to consider both the positive and negative infl u-
ences of pharmaceutical sampling when evaluating the profi t impact on sales.
In this chapter, we fi rst provide an overview of common practices in pharmaceu-
tical sampling in the USA. Then we discuss various sources of data that can be used
for drug sampling research. After that, we provide a literature review on the effects
of samples on pharmaceutical sales from both the academic literature and the
empirical studies in the industry. We close the chapter with suggestions for future
research, for both practitioners and academic researchers.

17.2 Current Industry Practice of Pharmaceutical Sampling

In this section, we discuss industry practice of pharmaceutical sampling in the USA.
Specifi cally, we focus on the following topics: (1) why samples are used; (2) the
regulations governing pharmaceutical sampling; (3) sample decision support prac-
tice in pharmaceutical industry; (4) how drug samples are delivered to physicians;
(5) how samples are consumed or dispensing pathway; (6) how samples are used in
treating patients; and (7) the concept of “source of business” (SOB) and how it is
related to sample usage.

17.2.1 Why Samples Are Used?

Pharmaceutical samples are delivered by manufacturers or by third party distribu-
tors, dispensed by physicians, and consumed by patients. These three parties share
certain views on the roles of samples, while each member has its own reasons for
using samples. Patients as consumers perceive samples as a quick access to

1 Free drug samples can be provided to Stanford's pharmacy to be used in free clinics.