Diffusion of new pharmaceutical drugs in developing and developed nations

    Authors

    R. Desiraju; H. Nair;P. Chintagunta

    Comments

    Authors: contact us about adding a copy of your work at STARS@ucf.edu

    Abbreviated Journal Title

    Int. J. Res. Mark.

    Keywords

    diffusion; cross-country analysis; pharmaceuticals; hierarchical Bayes; LAGGED DEPENDENT-VARIABLES; PRODUCT DIFFUSION; MODELS; REGRESSORS; Business

    Abstract

    In the context of introducing new products around the world, it is important to understand the relative attractiveness of various countries in terms of maximum penetration potential and diffusion speed. In this paper, we examine these market characteristics for a new category of prescription drugs in both developing and developed countries. Using data from 15 countries and a logistic specification in the hierarchical Bayesian framework, we report the differences in diffusion speed and maximum penetration potential between developing and developed nations. Our methodology accounts for the limited number of data observations, as well as serial correlation and endogencity problems that arise in the analysis. The principal findings are as follows. (i) Compared to developed countries, developing nations tend to have lower diffusion speeds and maximum penetration levels. (ii) Laggard developed countries have higher speeds. However, laggard developing countries do not have higher diffusion speeds, (iii) Per capita expenditures on healthcare have a positive effect on diffusion speed (particularly for developed countries). while higher prices tend to decrease diffusion speed. The paper concludes by identifying useful avenues for additional research. (C) 2004 Elsevier B.V. All rights reserved.

    Journal Title

    International Journal of Research in Marketing

    Volume

    21

    Issue/Number

    4

    Publication Date

    1-1-2004

    Document Type

    Article; Proceedings Paper

    Language

    English

    First Page

    341

    Last Page

    357

    WOS Identifier

    WOS:000226021200003

    ISSN

    0167-8116

    Share

    COinS