The introduction and performance of store brands
Management Science
Endogeneity in Marketing Decision Models
Marketing Science
Strategic Pricing and Detailing Behavior in International Markets
Marketing Science
Generic and Brand Advertising Strategies in a Dynamic Duopoly
Marketing Science
Marketing Science
The Advertising Mix for a Search Good
Management Science
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Consumers cannot purchase a prescription drug without a prescription from a physician, yet many prescription drugs are promoted to consumers with the help of direct-to-consumer (DTC) advertising. In this paper, we propose and test a competitive model of DTC advertising. We find that the brand specificity of DTC advertising can have an inverted U-shaped relationship with detailing, DTC advertising, and profits. Furthermore, an increase in the cross-price sensitivity between competing prescription drugs is not always detrimental to firm profits. A laboratory test lends qualitative support to some of our model predictions. We also discuss potential implications of DTC advertising for generic drugs and over-the-counter drugs.