Developing Measurement Scales of Organizational and Issue Legitimacy: A Case of Direct-to-Consumer Advertising in the Pharmaceutical Industry

The purpose of this paper is to explore the concepts of issue legitimacy and organizational legitimacy, providing a new measure of each construct. The scales were developed and tested using data collected through a statewide survey of Alabama residents. Assessments of issue legitimacy were based on perceptions of direct-to-consumer advertising, whereas assessments of organizational legitimacy were based on perceptions of the pharmaceutical industry as a whole. The findings provide evidence that organizational legitimacy can be reliably measured using a five-item scale and issue legitimacy can be reliably measured using a six-item scale. The implications of the results and potential uses of the scales are discussed.     

Ethical Issues in Outsourcing: The Case of Contract Medical Research and the Global Pharmaceutical Industry

The outsourcing of medical research has become a strategic imperative in the global pharmaceutical industry. Spurred by the challenges of competition, the need for speed in drug development, and increasing domestic costs, pharmaceutical companies across the globe continue to outsource critical parts of their value chain activities, namely contract clinical research and drug testing, to sponsors across the globe, typically into emerging markets. While it is clear that important ethical issues arise with this practice, unraveling moral responsibility and the allocation of responsibility is not so clear, considering that contracts, by their very definition transfer responsibility from the principal to the agent. This research provides a framework for exploring some of the ethical issues, including attributions of moral responsibility associated with Contract Medical Research. Using a theory of strategic and moral behavior, the research shows that both clients and sponsors in contract research have individual and collective responsibility to ensure that due care and diligence is exercised in the performance of clinical research. The research suggests some guidelines for stakeholder action.     

Social relationships and social anxiety appeals in direct-to-consumer advertising

The use of social relationships as a promotional tool in direct-to-consumer (DTC) advertising has received limited attention despite relational impacts on illnesses and empirical evidence supporting social relationships’ positive influence with some patients. This content analysis provides insights into social relationship appeals’ use in DTC magazine ads for each drug-class category. Further, the current study introduces the concept of social anxiety appeals into the DTC advertising literature, which had previously focused more on fear appeals, such as the fear of pain. Social relationships appeared in 42.5% of the 421 DTC ads included in the sample. Social anxiety appeals appeared in 28.5% of ads with social relationships. Types of social relationships depicted (nonromantic, romantic, non-human pets or cartoon characters, and family) vary across drug-class categories. The current study affirms that DTC advertisers frequently appeal to the theoretical importance of relationships as an aid to improved health. It also raises ethical issues when neither the implied improvements in relationships nor decreased social anxiety are direct consequences of prescribed use of the advertised pharmaceutical.     

The Effects Of Information Sources On Consumer Reactions To Direct-to-Consumer (DTC) Prescription Drug Advertising: A Consumer Socialization Approach

This study examines the process by which, and the extent to which, consumers' reliance on mass media and interpersonal channels for health information is associated with consumer responses to direct-to-consumer (DTC) advertising. By analyzing nationally representative survey data collected among a U.S. adult population, this study finds that those who rely more on mass media and interpersonal channels for health information form more positive attitudes toward DTC advertising. In addition, reliance on interpersonal channels for health information leads consumers to have more active discussions with their health professionals about the drug advertised. Implications for pharmaceutical marketing practitioners and DTC advertising researchers are discussed with reference to the heated debate surrounding DTC advertising in the wake of the recent Vioxx recall incident.     

刍议新医改政策对制药企业药品营销的影响

近年来,我国医药行业有很大发展,消费保持高速增长,但仍然存在制药企业规模小、研发弱、市场集中度低,药品流通领域"多、小、散、乱"等问题。新医改对制药企业的药品销售从产品、价格、渠道和促销等方面都带来影响。制药企业要认真研读此次新医改相关政策和文件,规避新医改政策给企业造成的不利影响,并利用此次医改的时机和国家对医药行业进行结构调整的机会,从战略层面上来研究和寻求对策。     

The Social Reality of Depression: DTC Advertising of Antidepressants and Perceptions of the Prevalence and Lifetime Risk of Depression

This study is rooted in the research traditions of cultivation theory, construct accessibility, and availability heuristic. Based on a survey with 221 subjects, this study finds that familiarity with direct-to-consumer (DTC) print advertisements for antidepressant brands is associated with inflated perceptions of the prevalence and lifetime risk of depression. The study concludes that DTC advertising potentially has significant effects on perceptions of depression prevalence and risk. Interpersonal experiences with depression coupled with DTC advertising appear to significantly predict individuals’ perceived lifetime risk of depression. The study ultimately demonstrates that DTC advertising may play a role in constructing social reality of diseases and medicine. The findings strongly suggest that the social cognitive effects of DTC advertising are far-reaching, impacting pharmaceutical marketing strategy as well as presenting issues regarding public health and the business ethics of advertising drugs to consumers. Jin Seong Park is a doctoral student at the University of Florida in Gainesville. He earned his MA from Marquette University and BA from Korea University in Seoul, Korea. His research interests include health communication and DTC drug advertising, mood and heuristics in consumer information processing and judgments, and international advertising. Jean M. Grow is an assistant professor at Marquette University. She earned her PhD from University of Wisconsin-Madison and her BFA from the School of Art Institute of Chicago. Her scholarly work focuses on controversial advertising case studies. She has published extensively on Nike women's advertising, and her most recent scholarship focuses on DTC advertising of pharmaceuticals and public service announcements for Hepatitis C. In 2005, she coauthoured a book on creative strategy, Advertising Strategy: Creative Tactics from Outside/In (with T. Altstiel). Prior to joining the academy, she worked in the advertising industry with agencies such as DDB Needham, Foote Cone & Belding, J. Walter Thompson, and Leo Burnett.     

The commercial contribution of clinical studies for pharmaceutical drugs

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.     

Presumed Influence of Direct-to-Consumer (DTC) Prescription Drug Advertising on Patients: The Physician's Perspective

This study explored the influence of the presumed influence model in the context of DTC (direct-to-consumer) advertising. A survey of 404 physicians studied presumed effects of DTC advertising on patients and whether the presumed effects influenced physicians' support for regulation and response to patient requests. Results partially supported the proposed model. Physicians perceived the highest degree of DTC advertising influence on patients' inquiries with their doctors and requests for advertised drugs and the lowest degree for beneficial influence of DTC ads. Physicians tend to support government regulation of DTC advertising, and their support is consistent across different demographic and perceptual variables. While physicians' responses to patients' requests for an advertised drug is mixed, greater presumed detrimental effects predicted refusal of patient requests, even after controlling for physicians' demographic and attitudinal characteristics. However, acceptance of patients' requests and recommendation of other drugs are found to be unrelated to presumed DTC advertising influence. The results are discussed in relation to existing theoretical work and DTC advertising literature. Future research recommendations are also provided.     

Advertising Spending Efficiency of Beauty-Care Product Companies: Comparison Between Local Companies and Multinational Companies in the U.S. Market

ABSTRACT

In this study, the authors apply data envelopment analysis (DEA) to evaluate the financial efficiency of U.S. beauty-care companies and foreign companies based on their media advertising expenditures in eight key media outlets (i.e., magazines, newspapers, outdoor, network TV, spot TV, syndication TV, cable TV, and radio) and their revenues in the U.S. market. The analyses revealed that 47.4% of the companies examined advertised efficiently. Companies that advertised inefficiently could save, on average, 75% of their advertising spending. The results also indicated that although U.S. companies are more efficient overall than are non-U.S. companies in terms of advertising spending, the competitiveness of non-U.S. companies should not be underestimated because some of them advertised efficiently (e.g., Kao Corporation from Japan) or almost efficiently.     

The Abandoned Stakeholders: Pharmaceutical Companies and Research Participants

Most discussions concerned with advancing the just and ethical treatment of research participants in developing countries have revolved around the moral principle of autonomy and the legal doctrine of informed consent (O’Neill 2002). However, if emerging ethical concerns are to be addressed effectively, the discussion needs to expand into the domain of business ethics where arguments addressing issues such as fair/appropriate compensation, entitlement, and corporate obligations to stakeholders are commonplace. The argument I present in this paper will conclude that emerging ethical considerations regarding the treatment of research participants in developing countries have evolved well beyond the scope of the principle of informed consent and that in order to resolve these concerns more appropriately and effectively, the new default or status quo should be to consider research participants as stakeholders of the sponsoring pharmaceutical company, even after the clinical trial is completed. This conclusion is significant because although it is fair to assume that, at some point in the timeline, most stakeholder theorists already do consider research participants stakeholders of the pharmaceutical company sponsoring the trial, the completion date of the clinical trial usually signifies and marks the termination of their stakeholder status and thus any consideration of what is owed further to the research participant.     

Relationship Quality as Predictor of B2B Customer Loyalty in the Pharmaceutical Sector: Evidence from Jordan

This article aims to investigate the impactful effect of relationship quality dimensions (i.e., trust, satisfaction, and commitment) on aspects of loyalty represented by attitudinal loyalty and behavioral loyalty. A quantitative survey method was employed to achieve the objectives of the study. Furthermore, a convenience sampling technique was adopted to select a representative sample from physicians working in the public healthcare sector in Jordan. A total of 500 questionnaires were distributed, and 408 questionnaires were used in the statistical analyses. The data were analyzed by applying structural equation modeling to test the study model, and hypotheses were constructed and tested quantitatively and discussed qualitatively. The results revealed that both aspects of customer loyalty (i.e., behavioral and attitudinal) were affected positively by the overall dimensions of relationship quality (i.e., trust, satisfaction, and commitment), providing a recommendation for pharmaceutical companies in Jordan to focus on improving the relationship quality between their medical representatives and physicians due to the importance of such a factor in improving customer loyalty, which will reflect positively in managing their customers effectively and enhancing future business opportunities.     

The Ethical Challenges of Direct-to-Consumer Genetic Testing

Genetic testing is currently subject to little oversight, despite the significant ethical issues involved. Repeated recommendations for increased regulation of the genetic testing market have led to little progress in the policy arena. A 2005 Internet search identified 13 websites offering health-related genetic testing for direct purchase by the consumer. Further examination of these sites showed that overall, biotech companies are not providing enough information for consumers to make well-informed decisions; they are not consistently offering genetic counseling services; and some sites even offer tests with little evidence of clinical value. This article aims to raise company and consumer awareness about the ethical concerns surrounding the direct-to-consumer marketing of health-related genetic tests. It also suggests ways that biotech companies can bring their services to the public in an ethically responsible manner, without increased regulatory oversight. Submitted for the Special Issue on Ethical Issues in Biotechnology.     

Integration of Multiple Sales Channels with Web-Based Technology–A Case of the Pharmaceutical Industry

ABSTRACT

Channel-centric selling approach is considered a competitive advantage when web-based technologies, such as the Internet, call centers, and database marketing, have emerged. A basic starting point is building corporate Internet Presence Sites (IPSs). The study attempts to answer the fundamental question of how effective IPSs are in reaching target customers and how they are integrated in multi-channel strategies for customer contact. In order to attain homogeneity in sampling, only the pharmaceutical industry was selected. The research entailed both content analysis of IPSs and a focus group study of physicians and pharmacists, conventionally the major target customers for pharmaceutical companies. Results showed that large companies incorporate significantly more attributes related to public relations, building of user group and communities, and services to business partners; but the interviewees did not report any usage of the IPSs. To increase return on companies' hefty investment, the researchers suggested a framework for companies to integrate web-based strategies with multiple sales channel design.     

Attitudes of Indonesian Mothers Toward Food Advertising Directed to Children

Advertising directed toward children is a controversial issue with growing concerns from parents around the world, including emerging markets such as Indonesia. The reasons for its negative effects include that such advertising could lead to materialism, parent–child conflict, and feelings of unhappiness. In particular, advertising by food companies is a target for criticism due to concerns about unhealthy food and childhood obesity. This article reports on the findings of a number of focus groups of Indonesian mothers to obtain an indication of the mothers’ ethical judgment toward such advertising. The results identify reasons why the mothers found particular advertisements to be unethical and ways advertisements can improve their message. From the responses, some important issues are raised that would be of interest to international advertisers.