The impact of increasing internet penetration on prescription choices and response to pharmaceutical detailing: a 10‐year empirical investigation

Abstract

This study investigates the implications of increased internet penetration on demand in the context of pharmaceutical prescribing. The internet has changed the information and tools available to make decisions in complex tasks such as those made by physicians, and any impact on prescribing patterns has implications for the marketing activities of drug manufacturers, necessitating a strategic rethink of business practices. This study conceptualizes the prescription decision-making process through the lens of expectancy value theory. The unique research design allows for the observation of contrasting internet penetration rates of geographically distributed physicians over an extended time period in multiple drug categories. Modeling physician behavior as a combination of learning, peer effects, and face-to-face detailing by pharmaceutical firms, the study finds that the growth of the internet has a significant moderating impact on detailing efforts. Interestingly, the study also documents the interaction between learning and peer effects, as well as how the internet ultimately reduces reliance on prior prescription behavior (prescribing inertia) for the four Cardiovascular drug categories under consideration. We discuss the implications of these findings for R&D managers, marketers, and policymakers.