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Prescription Drugs

In August 1997, the Food and Drug Administration (FDA) declared a reinterpretation of its rules on direct-to-consumer (DTC) advertising, the result of that was to allow branded broadcast advertisements and so to extend the quantity of DTC advertising several-fold. a considerable body of analysis, consisting primarily of shopper surveys, provides the premise for a preliminary assessment of the results of DTC advertisements. The FDA's own assessment, that DTC advertisements will give substantial advantages and don't seem to cause substantial damage, is in keeping with survey and different information. Direct-to-consumer advertisements seem to supply valuable info (including risk information); induce information-seeking (mainly from physicians); prompt patients to debate conditions not antecedently discussed; and generate vital, positive externalities as well as the likelihood of improved patient compliance with drug medical aid. the results of DTC advertisements on drug consumption and on health care have however to be assessed. The author suggests that an extra relaxation of bureau rules would accelerate the dissemination of valuable info, with favorable consequences for drug development and shopper health. The authors investigate whether or not and the way valuation and promotional activities influence prescription selection behavior employing a comprehensive panel of physicians and information on competitive value and promotional activities. The authors notice that physicians ar characterised by fairly restricted value sensitivity, particularisation and samples have a largely informative result on physicians, and physicians with a comparatively sizable amount of Medicare

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