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 601

Table 20.2 Overview of diffusion studies that include pharmaceutical marketing variables into the mixed infl uence diffusion models

Type of diffusion
model Author(s) Marketing instruments included The way marketing variables are included Type of data Key fi ndings

Lilien et al. ( 1981 ) Trial-repeat model Own and competitive detailing Own promotional efforts affect the trial rate

through external infl uence and competitive
promotional efforts affect the repeat rate

Two prescription drugs
(US market)

Signifi cant but small own and
competitor detailing effects
are found

Rao and Yamada
( 1988 )

Trial-repeat model Own and competitive detailing See Lilien et al. ( 1981 ) Twenty prescription

drugs (US market)

Signifi cant but small own and
competitor detailing effects
are found

Hahn et al. ( 1994 ) Trial- repeat model Own and competitive aggregate

detailing and medical journal
advertising

Two options: (1) own and competitor's promotional
efforts affect the trial rate through external
infl uence; (2) only own promotional efforts
affect the trial rate through external infl uence

Twenty-one prescription
drugs (US market)

Promotional efforts affect the
trial rate through external
infl uence

Shankar et al.
( 1998 )

Trial-repeat model Own and competitive aggregate

detailing and medical journal
advertising

Own and competitors' promotional efforts affect
the trial rate through both external and internal
infl uences

Thirteen prescription
drugs (US market)

Marketing spending of
non-innovative late entrants
is signifi cantly less effective
than those of pioneers and
innovative late movers. An
asymmetry in competition
associated with innovative
late entry is also revealed

Berndt et al.
( 2003b )

Trial model Own detailing (also the average

industry quality adjusted price
is considered)

Own promotional efforts affect the trial rate
through the potential market

Four prescription
drugs (US market)

Signifi cant estimates are
obtained for detailing

Vakratsas and
Kolsarici ( 2008 )

Trial model Own detailing, medical journal

advertising and direct-to-
consumer advertising (DTCA)

Own promotional efforts affect the trial rate
through both external and internal infl uences

A number of new
prescriptions
(confi dential
data from a
non-US market)

Medical Journal advertising
and DTCA affect the trial
rate, detailing does not

Ruiz-Conde et al.
( 2011 )

Trial-repeat model Own and competitive detailing,

medical journal advertising,
physician meetings, and DTCA

Own and competitors' promotional variables affect
the trial rate through: (1) external infl uence,
(2) internal infl uence, or (3) both external
and internal infl uences

Thirty-four prescription
drugs (US market)

Promotional efforts affect the
trial rate. The external
infl uence formulation
is the most appropriate
for the majority of the drugs