Late entrant over‐the‐counter and Rx market entry strategies

Erin Cavusgil (University of Michigan‐Flint, Flint, Michigan, USA)
Z. Seyda Deligonul (St. John Fisher College, Rochester, New York, USA)
Roger Calantone (Michigan State University, East Lansing, Michigan, USA)

International Journal of Pharmaceutical and Healthcare Marketing

ISSN: 1750-6123

Publication date: 28 June 2011



This paper aims to explore market dynamics and strategic issues that contribute to a late entrant's success in achieving market leadership in the prescription (Rx) and over‐the‐counter (OTC) markets. In the Rx market, consumers must receive physicians' approval before purchasing the product. In the OTC market, consumers make the final drug choice.


Data on sales (both Rx and OTC) and direct‐to‐consumer advertising expenditures for nine gastrointestinal drug products were obtained covering a 17‐year period. Ordinary least squares regression was employed.


The findings show that late‐market entrants, despite existing challenges, can become market leaders. This applies to both the Rx and OTC markets, via varying mechanisms.


This study is unique in demonstrating the differential mechanism in achieving market success for late entrants in the Rx and OTC markets.



Cavusgil, E., Seyda Deligonul, Z. and Calantone, R. (2011), "Late entrant over‐the‐counter and Rx market entry strategies", International Journal of Pharmaceutical and Healthcare Marketing, Vol. 5 No. 2, pp. 79-98.

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Copyright © 2011, Emerald Group Publishing Limited

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