The commercial contribution of clinical studies for pharmaceutical drugs

Ashish Sood, Eelco Roel Kappe, Stefan Stremersch

Research output: Contribution to journalArticle

5 Scopus citations

Abstract

Pharmaceutical drugs are rigorously evaluated through clinical studies. The commercial consequences of such clinical studies, both to the promotion for and sales of drugs, are largely under-researched. The present study answers the following research questions: 1) How does the evolution of clinical study outcomes affect product sales? 2) How does the evolution of clinical study outcomes affect a firm's promotion expenditures to physicians and consumers? 3) Is the assessment of the responsiveness of sales to promotion expenditures biased when the analyst omits the role of clinical studies? We summarize a comprehensive body of clinical studies in three metrics: valence, dispersion, and volume. We extend the literature with the following findings. A higher valence and volume of clinical studies (i.e., more positive and larger number of studies) increase sales. A higher valence of clinical studies increases spending on both direct-to-consumer advertising and direct-to-physician promotion. A higher dispersion among clinical studies decreases spending on direct-to-consumer advertising. A higher volume of clinical studies has no effect on direct-to-physician promotion, but decreases direct-to-consumer advertising. Furthermore, the results show that omitting these metrics from a market response model leads to an overestimation of the responsiveness of sales to promotion expenditures.

Original languageEnglish (US)
Pages (from-to)65-77
Number of pages13
JournalInternational Journal of Research in Marketing
Volume31
Issue number1
DOIs
StatePublished - Mar 1 2014

All Science Journal Classification (ASJC) codes

  • Marketing

Fingerprint Dive into the research topics of 'The commercial contribution of clinical studies for pharmaceutical drugs'. Together they form a unique fingerprint.

  • Cite this