Biomedical Engineering Reference
In-Depth Information
detailing in Canada can be higher in the presence of spillover. Consequently, managers
who are carving out distinct territories for different sales reps, or setting quotas, will
benefit by accounting for spillover.
Such analysis can have implications, for instance, to the costs from re-importing
pharmaceutical drugs into the USA. Essentially, US drug manufacturers argue
that reimportation of their drugs into the US market cuts into their profitability (see
Senate Bill S319
, introduced in 2011 for more details on alternative perspectives on
reimportation). However, if spillover effects are generating a positive ROI (that has
been hereto unaccounted), then the net cost from reimportation may be attenuated
to some degree. In any case, these types of analyses underscore the importance of
addressing the cross-border issues more completely.
Our goal in this chapter has been to highlight the importance of accounting for
spillover effects of marketing activities in the pharmaceutical industry. It is note-
worthy that extant research has examined a variety of market settings and has
employed both analytical and econometric approaches, as well as experiments to
examine the impact of spillovers and externalities. We hope our discussion here will
spark further research on this important topic.
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