Return on Investment Implications for Pharmaceutical Promotional Expenditures: The Role of Marketing-Mix Interactions

The authors empirically explore the revenue impact of marketing-mix variables and their interactions and find pharmaceutical direct-to-consumer advertising and detailing affect demand synergistically, detailing raises price elasticity, and detailing has a higher return on investment than does direct- to- consumer advertising.

Abstract

The authors empirically explore the revenue impact of marketing-mix variables and their interactions. The findings include the following: pharmaceutical direct-to-consumer advertising and detailing (sales force) affect demand synergistically, detailing raises price elasticity, and detailing has a higher return on investment than does direct-to-consumer advertising. The authors also discuss other implications and provide future research directions.