...How Consumers’ Attitudes Toward Direct-to-Consumer Advertising of Prescription Drugs Influence Ad Effectiveness, and Consumer and Physician Behavior MICHAL HERZENSTEIN herzensteinm1@simon.rochester.edu SANJOG MISRA misra@simon.rochester.edu STEVEN S. POSAVAC posavac@simon.rochester.edu Simon School of Business Administration, University of Rochester, Rochester, NY 14627 Abstract Data from 1081 adults surveyed by the FDA were analyzed to explore consumers’ attitudes toward direct-toconsumer advertising (DTCA) of prescription drugs, and the relation between these attitudes and health related consumption behaviors. We report the favorableness of consumers’ reactions to DTCA, and more importantly, demonstrate that consumers’ attitudes toward DTCA are related to whether they search for more information about a drug that is advertised, and ask their physician about the drug. Finally, we document how consumers’ attitudes towards DTCA relate to the prescription writing behavior of their physicians. Mediation analyses that more fully explicate these findings are discussed. Keywords: direct-to-consumer advertising, consumer behavior UK-based Boots Pharmaceuticals aired the first Direct-To-Consumer (DTC) television advertisement of a prescription drug in 1983. The Food and Drug Administration (FDA) subsequently ruled that the ad violated regulations that detailed information about side effects should appear in the ad in a readily understandable format, and consequently required Boots...
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...or are they pushing a product for the pharmaceutical company for promotional purposes? The United States and New Zealand are the only two countries that consider direct-to-consumer pharmaceutical advertising, ethical. Drug advertising advise the consumers about key, treatable health conditions and foster doctor/patient dialogue. I believe when consumers see these advertisements they try to self-diagnose themselves and sometimes finding themselves seeking additional medical attention by going to their primary care physician. “A study has shown DTC advertising is likely to increase the demand rates of both the drug category and drug brand choices, as well as the likelihood the drugs would be prescribed by physicians.” (Woodard) Adversaries of “direct-to-consumer advertising (DTC) argue the FDA has inadequate resources and many claims make it on air.” (Woodard) The amount of regulatory actions engaged by the FDA against pharmaceutical companies and their marketing prescription drugs to consumers has tumbled intensely in recent years. In 1997 the DTC reduced the amount of information that can be delivered during broadcast ads and not stating the adverse effects it could have on a consumer. This can be a reflection of either the industry compliance is better with advertising rules or a deteriorating of FDA omission. I believe it is...
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...Direct-to-consumer advertising of prescription drugs has become a controversial subject. Proponents argue that such communication by the pharmaceutical industry leads to better-informed consumers and improved quality of care. Correctly done advertising can inform the public of certain diseases and Increase awareness about Illnesses. Learning about treatment options can motivate patient to contact their physicians and engage in a more informed conversations about their health concerns. Ads can shape an understanding for symptoms, which increase the likelihood that patients will receive appropriate care for conditions that are frequently under-diagnosed and under-treated. By helping patients identify problems early, Direct-to-consumer advertising can...
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...Deontology Paper Direct-to-Consumer Advertising (DTC) has been a long disputed ethical dilemma. The United States and New Zealand are the only two countries that allow it. By using Rawl's principles of justice, I will explain to you why I feel that this kind of advertising is ethical. There are different kinds of justice. Commutative justice refers to transactions being just. This kind of justice involves keeping transactions fair to both parties of the transactions. The transaction will be fair if both parties "have access to all pertinent information about the transaction; enter it freely and without any coercion; and benefit from the transaction"(DeGeorge, pg 76). Commutative justice is central to business transactions, but distributive justice is central to the actions of the government. John Rawls formulated a theory of distributive justice. He developed these principles in hopes that all rational persons find them acceptable. The principles are universal, respect all people, and can be rationally accepted by everybody. Rawls felt that people would agree "to two specific principles of distributive justice" that can be used in "establishing a just constitution" (DeGeorge, pg 78).These principles are: • First: Each person is to have equal right to the most extensive basic liberty compatible with similar liberty for others. • Second: Social and economic inequalities are to be arranged so that they are both a. reasonably expected to be to everyone's advantage and b...
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...to the consumer. Although the companies’ marketing strategies of medical and pharmaceutical products attempt to persuade the public that the products are revolutionary and life changing, the marketing strategies exclude pertinent information that may change the consumer’s minds about purchasing the products being offered. Many consumers purchase products that assert testimony of anti-aging effects in an attempt to regain what was once lost from the natural human aging process. Other consumers search for answers and treatment to a wide variety of medical conditions or ailments and these revolutionary products are then viewed as the essential answer to the consumer’s search. An ethical dilemma currently exists with the current medical and pharmaceutical marketing strategies and approaches with desperate need for the consumer to be knowledgeable about all aspects of the products being marketed and the government or influential bodies to be reactive to the current marketing strategies. Regulatory Bodies of Marketing for Pharmaceutical Companies The Division of Drug Marketing, Advertising, and Communications (DDMAC), a sub division of the Food and Drug Administration (FDA) have regulated all prescription drug ads since 1962 (FDA, 2013). In 2011 the FDA gave its Office of Medical Policy an upgrade, making it a “super office” and giving the department formerly known as the DDMAC, a new acronym: OPDP for The Office of Prescription Drug Promotion. Most ads that DDMAC first regulated...
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...Direct-to-Consumer Drug Advertising: Ethical or Not? The United States and New Zealand are the only developed countries that allow direct-to-consumer advertising. Whether the practice of direct to consumer advertising is beneficial to the consumers or not is a highly debated subject with both positions presenting sound reasoning for their position. Whether the practice is beneficial or not to the consumer is not the question, but rather, is advertising prescription drugs directly to consumers ethical? To analyze this question I will use Rawls’s second principle of distributive justice for analysis. (2) use that method, developing the argument in support of your case; In utilizing direct to consumer advertising for prescription drugs is the advertising “reasonably expected to be to everyone’s advantage”? and “attached to positions and offices open to all?” (DeGeorge 78) One of the predominate claims of the pharmaceutical companies that the advertisements educate the consumer, thus giving them more information to evaluate their needs and to speak intelligently with their doctor. So, is the information provided in an ad or commercial “reasonably expected to be to everyone’s advantage?” It is reasonable to assume that everyone is exposed to the ads with the various media outlets used, such as TV, radio, newspaper, magazines and so forth, but is the education to everyone’s advantage? The drug companies receive a great deal of returns for every dollar spent on the advertising, thus increased...
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...examples. IP differs from other kinds of property in several ways. While often expensive and time consuming to generate, intellectual property can be quickly and easily copied. The legal framework that protects intellectual property has evolved over the years, as lawmakers have sought to promote commercial progress and enrich culture by rewarding inventors and creative people for their efforts. A person can create an original work fixed on a physical medium; the work automatically becomes the copyright owner. Copyright ownership, operation specific work in specific ways to the owner of an exclusive right to the use of data. This paper will discuss intellectual property and the ethical and legal restraints in respect to marketing and advertising (book citation). II. Various surveys conducted from 1990 with the most important ethical problems faced by businesses are to determine what are these problems. Armstrong (1990) in a study conducted by the Australian international business managers was asked to indicate the most serious ethical problems such as corruption, cultural differences, pricing practices, gifts and nonconforming products. From Advertisements undisputed impact on the community is increasing day by day. The advertisements aim to influence consumers to purchase products and to guide them. This routing when there are issues to be considered. These considerations can call as 'Advertisement Ethics'. Ethics advertisement; away from the concept of honesty and integrity...
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...marketing and advertising, intellectual property, and regulation of product safety and examine whether PharmaCARE violated any of the issues in question. There are many issue’s relating to advertising, intellectual property and regulation in today's workplaces. All phases of marketing and advertising mix are subject to laws and limitations. Every marketing supervisor will be faced with how they must discuss ethics and law when marketing their products. Any marketing manager understands that there are cut and dry solutions to ethical issues that will occur during the normal course of business (Pharmaceuticals, n.d.). The Bureau of Consumer Protection’s places everything in perspective that all communication in the United States must be truthful. The Federal Trade Commission Act (FTC) looks for dishonesty and deception towards customers that try to change their decision to purchase medications. FTC monitors truth-in-advertising laws especially with kids, but there have been a lot of immoral practices in advertisements over time. The most moral decision is not to promote to children but in this case to the parent. Children's ad urges children to get dependent on products that induce on social development (Media, 2004). Cigarette advertising is matched to marketing consumers for distinct programming while alcohol advertising is allowed on all television channels. It is important that organizations consider the right choice of their product before proceeding in advertising. Other advertisement...
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...drug wholesalers and retailers, hospitals, clinics, government agencies, and managed healthcare providers such as health maintenance organizations (HMOs). In the past, Merck used to pursue all areas of unmet medical needs. Today however, under its new strategy, Merck concentrates its research efforts on nine priority areas; addressing the world’s most pressing health care challenges. In 1984, the U.S. Congress passed the Waxman-Hatch Act; simplifying the FDA approval process for generic drugs. Manufacturers of generic drugs were now required to show only that their drugs were chemically and biologically equivalent to the original patented version of the drug. And so, an FDA approved generic drug was considered equivalent, in its effect, to a “branded” drug. Waxman-Hatch enabled manufacturers of generic drugs to enter the market more easily, while also greatly reducing their research costs and eliminating the need for lengthy clinical trials. With the passing of the Waxman-Hatch act, competition came from all over the world; jeopardizing Merck’s core revenue stream and driving the need to commercialize new blockbuster drugs. As soon as a patented drug came off of patent, generics would enter the market; greatly reducing the original patented drug’s market share overnight. Generic drugs claimed a greater share of the U.S. prescription drug market, rising from 10% in 1984 to over 36% in 1993. The Waxman-Hatch act changed the rules of competition in the pharmaceutical...
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...linked to deaths and now everything will need to be reviewed to determine validity. Ethical issues relating to marketing and advertising, intellectual property, and regulation of product safety and examining whether PharmaCare violated any of the issues in question will be explored. Direct-to-consumer marketing (DTC), by drug companies is a strategy that will be argued either for or against in this paper. There are entities responsible for regulating compounding pharmacies under the current regulatory scheme. The actions that either of these entities or the Federal Drug Administration (FDA) could/should have taken will be explored along with whether PharmaCare could face any legal exposure surrounding its practices. The manner in which PharmaCare used the U.S law to protect its own intellectual property will be discussed, and if John the former employee has any claim as the true “inventor” of AD23. One real-world example of intellectual property theft will be examined and the effect to that company’s brand will be discussed. The issue surrounding John’s wife’s death and the other potential litigants against PharmaCare will be analyzed further as the result of AD23. Finally, both major arguments that John can make to claim that he is a whistleblower and the type of protections that should be afforded will be specified. Ethical Issues Marketing and advertising in the pharmaceutical business is a useful tool to assist in boosting sales. However, there is also room for ethical issues...
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...three to five (3-5) ethical issues relating to marketing and advertising, intellectual property, and regulation of product safety. Marketing and advertising are the main channels that all companies use to get access to the customers and present their products to the potential customers. These have a very huge impact on the sales and the overall profit that the company will get. Every company must put into consideration all the legal and ethical issues to ensure that they attract more customers to buy their products hence maximizing their overall profits. Failure to put into consideration the ethical and legal issues in marketing will repel the customers from the company hence low sales and this may put any company out of business. The legal issues related to marketing and advertising include the laws and regulations that are laid down regarding marketing and adverting. Every state has statutes and general laws that dictate how marketing and advertising has to be carried out. From whatever area that the company operates, it has to follow the laws about marketing and adverting. Failure to follow the laws may put the company in legal problems which may be very costly and affect their profit margins. Such legal problems may also destroy the reputation of a company making the potential customers as nobody wants to be involved with the products of a company that has legal problems concerning their marketing and advertising strategies. Ethical considerations regarding marketing aim...
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...Intellectual Property Kemal Cankaya Strayer University Law, Ethics, and Corporate Governance Prof. Augustine S Weekly December 15, 2013 1. Research three to five (3-5) ethical issues relating to marketing and advertising, intellectual property, and regulation of product safety. With the globalization in world economy, business ethics became indispensable neces- sity for companies. Business to business ethics of appropriate behaviors in the long term success of businesses in a positive direction, otherwise it has been the power to adversely affect the behavior. As a result, the collapse of ethical scandals have emerged released in the United States of America and Europe. Business, which clearly indicates the necessity and importance of business ethics ethics have valuable lessons from the collapse. Ethical issues at Marketing Nowadays, marketing ethics, ethical issues comes up with sales-related studies and sensitivity in the community. This aspect of the business from a societal perspective should insist on the importance of ethical practices. As a result of marketing activities by the community due to the high impression, often come up with moral problems in the advertising, personal selling, market research and international marketing issues are seen to be available to unethical behavior. Especially in the 1970s and 1980s, various scandals in the international arena, large-scale corruption in the agenda for the international...
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...three to five (3-5) ethical issues relating to marketing and advertising, intellectual property, and regulation of product safety. Marketing and advertising are the main channels that all companies use to get access to the customers and present their products to the potential customers. These have a very huge impact on the sales and the overall profit that the company will get. Every company must put into consideration all the legal and ethical issues to ensure that they attract more customers to buy their products hence maximizing their overall profits. Failure to put into consideration the ethical and legal issues in marketing will repel the customers from the company hence low sales and this may put any company out of business. The legal issues related to marketing and advertising include the laws and regulations that are laid down regarding marketing and adverting. Every state has statutes and general laws that dictate how marketing and advertising has to be carried out. From whatever area that the company operates, it has to follow the laws about marketing and adverting. Failure to follow the laws may put the company in legal problems which may be very costly and affect their profit margins. Such legal problems may also destroy the reputation of a company making the potential customers as nobody wants to be involved with the products of a company that has legal problems concerning their marketing and advertising strategies. Ethical considerations regarding marketing aim at...
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...Paper Direct to Consumer Marketing of Prescription Drugs Abstract Advertising of prescription drugs remains a controversial topic due to the American citizen health and the doctor-patient relationship. There have been many changes in the federal regulation of print and broadcast advertising over the past twenty years. This has been a gray area of regulatory developments since the original Pure Food and Drugs Act of 1906, which limits the informal and indirect marketing of pharmaceutical drugs. Other than the voluntary decision to follow the AMA Code of Ethics, no formal regulation has been enforced. Direct to Consumer Marketing of Prescription Drugs My research paper will show both sides in the lively debate of Pharmaceutical companies directly marketing to the American public. On one side of this debate is the argument that the growth of Direct-to-Consumer advertising has changed the role of a physician in reducing his/her authority. It is also concerning that the non-medically trained average American absorbing the information on benefits and risks from Direct to Consumer advertising instead of trusting the medically trained physician. The other side of this debate is a lack of public awareness of Pharmaceutical Drug options for medical conditions. Studies have shown mixed results and in 1985, the FDA gave notice in the Federal Register claiming jurisdiction of the Direct to Consumer advertising of prescription drugs so it would provide the American consumer with...
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...by Fred Sand Professor Newcomb, Legal – 500 February 27, 2014 compared The remainder of the document will discuss and examine law suites held against PharmaCARE and various ethical dilemmas the company may encounter. On August 17, 1997, executives around northern New Jersey’s drug corridor, where most of the international Pharmaceutical companies have their headquarters, mobilized for action” (Aitken & Holt, 2000, p. 82). According to Aitken and Holt (2000), this was the day that the US Food and Drug Administration issued temporary guidelines the, for the first time, permitting the drug makers to specify the uses of their prescription remedies in their radio and television advertisements (p. 82). Marketing and advertisement has been around almost since the beginning of time. One of the ethical dilemmas concerning television and radio advertisements for prescription drugs is the potential for the consumer to self-prescribe or evaluate their symptoms. According to the U.S. Food and Drug Administration (2013), doctors believe that patients understand that they need to consult a health care professional about appropriate treatment (p.1). On the other hand, it could be possible for the patient to adapt their own symptoms for the sake of obtaining a desired medication. “Intellectual property (IP) is the work product of the human mind. Novels, paintings, computer programs, songs and inventions are all examples” (Halbert & Ingulli, 2012, p. 316). “Activist...
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