Title: Strategic change within the pharmaceutical industry: the impact of direct-to-consumer advertising for prescription medicines

Authors: Margaret Hughes-Morgan, Joelle L. Kendrick, Fred W. Morgan, Jeffrey J. Stoltman

Addresses: Eli Broad College of Business, Michigan State University, East Lansing, MI 48824, USA. ' Eli Lilly and Company, Lexington, Kentucky 40517, USA. ' School of Business Administration, Wayne State University, Detroit, MI 48202, USA. ' School of Business Administration, Wayne State University, Detroit, MI 48202, USA

Abstract: Advertising prescription medicines directly to consumers is a controversial practice. At present, only two economically developed countries, the USA and New Zealand, allow complete direct to consumer advertising. The positive side is that consumers have access to greater levels of information about new and leading products. The negative side is the imbalance in presentation of benefits and risks via advertising. In this paper, we review the pros and cons of this practice and discuss its impact on product development and performance.

Keywords: direct-to-consumer advertising; DTCA; DTC; Food and Drug Administration; FDA; pharmaceutical industry; strategic change; prescription medicines; product development; product information; benefits; risks.

DOI: 10.1504/IJISCM.2010.033078

International Journal of Information Systems and Change Management, 2010 Vol.4 No.3, pp.246 - 257

Published online: 07 May 2010 *

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