The relationship between competitive pricing and direct-to-consumer advertising: How to manage DTC advertising of Rx drugs in an integrated marketing mix strategy

Abhik Roy and Mary E. Schramm

The oligopolistic nature of the U.S. pharmaceutical industry presents its members with a unique opportunity to leverage the interaction between competitive pricing strategy and promotion strategy.

MANAGEMENT SLANT

  • Direct-to-consumer advertising tends to be effective in stimulating drug-category sales in pharmaceutical markets, where leader–follower pricing behavior exists.
  • Under certain conditions, an integrated advertising and pricing

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