Modeling the Effects of Promotional Efforts on Aggregate Pharmaceutical Demand: What We Know and Challenges for the Future - Innovation and Marketing in the Pharmaceutical Industry - page 586

Model Endogeneity Heterogeneity Type of data Key fi ndings

Chintagunta and
Desiraju ( 2005 )

Structural Accommodated Accommodated Quarterly observations

on four brands in
one category (antide-
pressants), data from
fi ve countries:
US, UK, France,
Italy, and Germany

Detailing elasticities are comparable
across the US, Germany, and Italy
(around 0.2). Detailing elasticities are
larger for the UK (.55) and France
(2.43)

Currie and
Park ( 2002 )

Structural Accommodated Not accommodated Yearly, 35 drugs in

one category
(anti depressants), US

Advertising is primarily informative and
therefore benefi cial to society; the
“persuasive” effects of detailing and
journal advertising are insignifi cant

De Laat et al. ( 2002 ) Regression Not accommodated Not accommodated Monthly data on 140

brands in 11 categories,
The Netherlands

Pharmaceutical marketing elasticity equals
0.3. Pharmaceutical marketing lowers
price sensitivity

Dekimpe and
Hanssens ( 1999 )

VAR Accommodated Not relevant Monthly, two drugs in

one category, US

Journal advertising has relatively small but
persistent (and signifi cant) effects on
prescriptions. Sales response to
detailing is stronger in the short run,
insignifi cant in the long run

Gatignon et al. ( 1990 ) Regression Not accommodated Accommodated Cross-sectional data

from 68 drugs in
11 categories, US

Detailing is signifi cant and has positive
effect on market share of new
introductions. Market growth is the
strongest moderator (positive effect)

Hurwitz and
Caves ( 1988 )

Regression Accommodated Not accommodated Yearly data of 29 drugs in

different categories, US

Advertising is largely persuasive

Fischer and
Albers ( 2010 )

Regression Investigated Accommodated Quarterly, 2,831 brands

in 86 categories, US

Estimated short-term own marketing mix
effects are relatively small, with
considerable variation across brands
and across instruments. Long-term
effects are larger than short-term
effects. Order of magnitude:
detailing—journal advertising—DTCA