The Relationship between Competitive Pricing and Direct-to-Consumer Advertising: How to Manage DTC Advertising of Rx Drugs In an Integrated Marketing Mix Strategy

The oligopolistic nature of the U.S. pharmaceutical industry presents its members with a unique opportunity to leverage the interaction between competitive pricing strategy and promotion strategy. Previous studies have examined the role of direct-to-consumer advertising in influencing demand and sales; this study emphasizes the impact of consumer advertising on a supply-side phenomenon, the setting of prices relative to those of close competitors.