Healthy Skepticism Library item: 2785

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Journal Article

Vernon J.
Concentration, promotion, and market share stability in the pharmaceutical industry
Journal of Industrial Economics 1971; 19:246-266

Abstract:

There is no evidence that high promotion leads to high concentration within therapeutic markets. If anything, the inverse relation holds. A very interesting result is the apparent lack of positive association between high rates of new product introduction and high promotion. This conflicts with the usual wisdom on the subject, but the results may be due to inadequate measures of new product innovation.

Keywords:
*mathematical modeling/United States/market share/ competitive consequences of promotion/INFLUENCE OF PROMOTION: MARKET SHARE