Effects of pharmaceutical marketing:a re-analysis of the study of Windmeijer et al

Despite a growing body of scientific research, there is still much uncertainty about the effects of marketing expenditures on the demand for pharmaceuticals. Recently it was found that higher marketing expenditures for a brand may reduce the price elasticity of demand, and hence allow firms to charge higher prices (Windmeijer et al [1]). In this study we reconsider the study by Windmeijer et al. We find that their econometric models are based on an incorrect assumption of homogeneous parameters across brands. As a consequence, our conclusions concerning the effects of pharmaceutical marketing are different from theirs.

Modeling the effects of pharmaceutical marketing

Successful innovation of prescription drugs requires a substantial amount of marketing support. There is, however, much concern about the effects of marketing expenditures on the demand of pharmaceutical products (Manchanda et al., Market Lett 16(3/4):293–308, 2005). For example, excessive marketing could stimulate demand for products in the absence of a fundamental need. It also has been suggested that increased marketing expenditures may reduce the price elasticity of demand and allow firms to charge higher prices (Windmeijer et al., Health Econ 15(1):5–18, 2005). In this paper, we present the outcomes of an empirical study in which we determine the effects of pharmaceutical marketing expenditures using a number of frequently used “standardized” models. We determine which models perform best in terms of predictive validity and adequate descriptions of reality. We demonstrate, among others, that the effects of promotional efforts are brand specific and that most standardized models do not provide adequate descriptions of reality. We find that marketing expenditures have no or moderate effects on demand for pharmaceutical products in The Netherlands.

Marketing responsibility in an era of economic and climatic challenge

Purpose – The purpose of this paper is to illustrate Michael Thomas's concept of civic professionalism and social trusteeship as a future alternative to the current marketing profession's code of conduct and to put this in the context of climate change and ecological sustainability as a model for firms everywhere. Design/methodology/approach – Review of the marketing profession's responsibility towards society, communities and the ecology of the planet in the twenty-first century in the light of climate change. Findings – The hypothesis for the paper emerges as: whether it is possible for Chinese firms to embrace the needs of twenty-first century global ecological sustainability in meeting their own economic requirements for development and financial prosperity. Research limitations/implications – Limited secondary research and primary research that is also limited in terms of scope. Practical implications – As we move into an era of Chinese economic supremacy, we marketers must face up to the responsibility we have towards balancing the progression of global economic development (and selling goods and services in global market systems) with our responsibility towards our cultural systems and the global ecological system (the global ecosystem), the home of all our economic wealth. Social implications – To extrapolate lessons and opportunities for firms from developing economies as they move towards global domination of world economic markets and, suggest strategies for sustainability that they can, and should, adopt. Originality/value – The paper presents a theoretical framework for a global strategy for sustainability, and provides a vision of marketing responsibility that embraces civic professionalism, social trusteeship and a strategy for sustainability.

Charismatic leadership as a driver of sales-marketing collaboration

The purpose of this study is to develop an integrative framework for investigating the organizational consequences of marketing leadership. The new integrative framework employs the theories of charismatic leadership and organizational identification as foundation. Combining constructs and propositions from these two theories, and informed by initial insights from in-depth interview research, our proposed framework offers an holistic model to explore and explain how marketing leadership behaviours influence (1) relations between marketing and sales groups, and (2) consequent firm performance. The paper develops propositions and offers future research directions.

What counts versus what can be counted:the complex interplay of market orientation and marketing performance measurement

Market orientation (MO) and marketing performance measurement (MPM) are two of the most widespread strategic marketing concepts among practitioners. However, some have questioned the benefits of extensive investments in MO and MPM. More importantly, little is known about which combinations of MO and MPM are optimal in ensuring high business performance. To address this research gap, the authors analyze a unique data set of 628 firms with a novel method of configurational analysis: fuzzy-set qualitative comparative analysis. In line with prior research, the authors find that MO is an important determinant of business performance. However, to reap its benefits, managers need to complement it with appropriate MPM, the level and focus of which vary across firms. For example, whereas large firms and market leaders generally benefit from comprehensive MPM, small firms may benefit from measuring marketing performance only selectively or by focusing on particular dimensions of marketing performance. The study also finds that many of the highest-performing firms do not follow any of the particular best practices identified.

The application of physiological observation methods to emotion research

Purpose - The purpose of this paper is to examine consumer emotions and the social science and observation measures that can be utilised to capture the emotional experiences of consumers. The paper is not setting out to solve the theoretical debate surrounding emotion research, rather to provide an assessment of methodological options available to researchers to aid their investigation into both the structure and content of the consumer emotional experience, acknowledging both the conscious and subconscious elements of that experience. Design/methodology/approach - A review of a wide range of prior research from the fields of marketing, consumer behaviour, psychology and neuroscience are examined to identify the different observation methods available to marketing researchers in the study of consumer emotion. This review also considers the self report measures available to researchers and identifies the main theoretical debates concerning emotion to provide a comprehensive overview of the issues surrounding the capture of emotional responses in a marketing context and to highlight the benefits that observation methods offer this area of research. Findings - This paper evaluates three observation methods and four widely used self report measures of emotion used in a marketing context. Whilst it is recognised that marketers have shown preference for the use of self report measures in prior research, mainly due to ease of implementation, it is posited that the benefits of observation methodology and the wealth of data that can be obtained using such methods can compliment prior research. In addition, the use of observation methods cannot only enhance our understanding of the consumer emotion experience but also enable us to collaborate with researchers from other fields in order to make progress in understanding emotion. Originality/value - This paper brings perspectives and methods together to provide an up to date consideration of emotion research for marketers. In order to generate valuable research in this area there is an identified need for discussion and implementation of the observation techniques available to marketing researchers working in this field. An evaluation of a variety of methods is undertaken as a point to start discussion or consideration of different observation techniques and how they can be utilised.

Two sides to attitudinal commitment:the effect of calculative and loyalty commitment on enforcement mechanism in distribution channels

Previous conceptualizations of attitudinal commitment are extended by considering two very different components of a manufacturer’s attachment to an independent channel intermediary. Relying on commitment theory, a model is developed that describes how attitudinal commitment may reside in either the instrumental or the social strain of a manufacturer’s relationship with its distributor. For each strain, the developmental role played by key facets of the channel setting—relative dependence, pledges, and trust—are shown. Furthermore, the nature of the attachment bond is posited to motivate very different governance mechanisms as the distribution agreement is enforced by either social or contractual means. Empirical support for the model demonstrates that an expanded view of attitudinal commitment is important in understanding the complex nature of attachment in channel relationships.

The primacy of theory

Purpose – The purpose of this editorial is to provide indicative guidance to prospective EJM contributors of the importance of theoretical development to the success of submissions. Design/methodology/approach – The authors use a combination of conceptual thinking and theoretical literature to present key concepts of theory and its relevance to a manuscript's contribution to knowledge. Findings – The authors propose some guidelines for researchers who wish to publish the results of their work in EJM, and these also have relevance to other top academic journals. Research limitations/implications – The topic of theoretical conceptualisation and development is a complex one. Because of space constraints, the coverage of many issues is necessarily brief in this article. Practical implications – Scholars should find the thoughts contained in this article to be of significant benefit to their publication efforts in EJM and other top journals. Originality/value – While other top marketing journals have in the past provided similar guideline-style pieces, this is one of the few to be written from an inclusive perspective, with the explicit focus on the theoretical development stage.

Market orientation in the service sector of the transition economies of central Europe

The Narver and Slater market orientation scale is tested in the context of service firms in the transition economies of central Europe and found to be both valid and reliable. The survey examined levels of market orientation in 205 business to business services companies and 141 consumer services companies in Hungary, Poland and Slovenia. As predicted by the predominantly western marketing literature, those service firms with higher levels of market orientation; were more often found in turbulent, rapidly changing markets; were more likely to pursue longer term market building goals rather than short term efficiency objectives; more likely to pursue differentiated positioning through offering superior levels of service compared to competitors; and also performed better on both financial and market based criteria. A number of different business approaches, however, are evident in the transition economies suggesting that other business orientations may co-exist with a market orientation creating a richer and more complex set of organizational drivers.

Marketing strategy and competitive positioning

Marketing Strategy and Competitive Positioning deals with the process of developing and implementing a marketing strategy. The third edition focuses on competitive positioning at the heart of marketing strategy and includes in-depth discussion of the processes used in marketing to achieve competitive advantage.

What is a marketing resource? A response to Gibbert, Golfetto and Zerbini

The article by Gibbert et al. (2005) [Gibbert M, Golfetto F, Zerbini F. What do we mean by 'marketing' resources and competencies? A comment on Hooley, Greenley, Cadogan and Fahy (2005). Journal of Business Research; 2005] criticises our treatment of marketing resources and argues that greater attention should be paid to the notion of competencies as marketable outputs. We respond by revisiting the conceptual domain of the marketing resources construct and also by examining whether marketing competencies represent a new category of marketing resource. © 2005 Elsevier Inc. All rights reserved.

Multilevel analyses in marketing research:differentiating analytical outcomes

Marketing scholars are increasingly recognizing the importance of investigating phenomena at multiple levels. However, the analyses methods that are currently dominant within marketing may not be appropriate to dealing with multilevel or nested data structures. We identify the state of contemporary multilevel marketing research, finding that typical empirical approaches within marketing research may be less effective at explicitly taking account of multilevel data structures than those in other organizational disciplines. A Monte Carlo simulation, based on results from a previously published marketing study, demonstrates that different approaches to analysis of the same data can result in very different results (both in terms of power and effect size). The implication is that marketing scholars should be cautious when analyzing multilevel or other grouped data, and we provide a discussion and introduction to the use of hierarchical linear modeling for this purpose.