Search results

1 – 10 of over 6000
Book part
Publication date: 20 August 2012

Patricia M. Danzon and Andrew J. Epstein

Purpose – This study examines the effect of price regulation and competition on launch timing and pricing of new drugs.Methods – Our data cover launch experience in 15 countries…

Abstract

Purpose – This study examines the effect of price regulation and competition on launch timing and pricing of new drugs.

Methods – Our data cover launch experience in 15 countries from 1992 to 2003 for drugs in 12 major therapeutic classes. We estimate a two-equation model of launch hazard and launch price of new drugs.

Findings – We find that launch timing and prices of new drugs are related to a country's average prices of established products in a class. Thus to the extent that price regulation reduces price levels, such regulation directly contributes to launch delay in the regulating country. Regulation by external referencing, whereby high-price countries reference low-price countries, also has indirect or spillover effects, contributing to launch delay and higher launch prices in low-price referenced countries.

Implications – Referencing policies adopted in high-price countries indirectly impose welfare loss on low-price countries. These findings have implications for US proposals to constrain pharmaceutical prices through external referencing and drug importation.

Details

The Economics of Medical Technology
Type: Book
ISBN: 978-1-78190-129-8

Keywords

Book part
Publication date: 13 August 2012

Arild Røkenes and Nina K. Prebensen

This chapter delineates the antecedents of tourists’ perceptions of the extent to which they perceive the prices they pay as being fair. The study also tests the relative…

Abstract

This chapter delineates the antecedents of tourists’ perceptions of the extent to which they perceive the prices they pay as being fair. The study also tests the relative importance of overall price fairness perception, which is measured as the relative gap between the expected price and the perceived price. A model and hypothesis was developed and tested, with reference to existing theories. Data was collected from nine nature- and activity-based firms in Northern Norway. A regression analysis was performed, in order to test the relative effects and strengths of the antecedents of tourist perception of price fairness. The results revealed that both information and monetary antecedents affect perceptions of price fairness. In particular, monetary-related antecedents such as household income, payment in advance, and value for money affected perception of whether prices were fair. Interestingly, information-related antecedents such as previous experience affected negative perceptions of price fairness. The results are discussed in terms of their implications for the tourist industry.

Details

Advances in Hospitality and Leisure
Type: Book
ISBN: 978-1-78052-936-3

Keywords

Book part
Publication date: 25 March 2010

Pedro Pita Barros

Purpose – Pharmaceutical expenditures have an important role in Europe. The attempts to control expenditure have used a wide range of policy measures. We reviewed the main…

Abstract

Purpose – Pharmaceutical expenditures have an important role in Europe. The attempts to control expenditure have used a wide range of policy measures. We reviewed the main measures adopted by the European Union countries, especially in countries where governments are the largest third-party payers.

Methodology – To complement a literature review on the topic, data was gathered from national reviews of health systems and direct inquiries to several government bodies.

Findings – Almost all countries regulate prices of pharmaceutical products. Popular policy measures include international referencing to set prices (using as benchmark countries that have set lower prices), internal reference pricing systems to promote price competition in domestic markets, and positive lists for reimbursement to promote consumption of generics (including in some cases substitution by pharmacists of drugs prescribed by physicians). Despite the wide range of policy measures, it is not possible to identify a “silver bullet” to control pharmaceutical expenditures. We also identified two main policy challenges: policy coordination among countries within the European Union to maintain incentives for R&D at the global level, and the development of new relationships with the pharmaceutical industry; namely, the so-called risk-sharing agreements between the pharmaceutical industry and governments/regulators (or large third-party payers).

Details

Pharmaceutical Markets and Insurance Worldwide
Type: Book
ISBN: 978-1-84950-716-5

Book part
Publication date: 19 November 2012

Kent B. Monroe

This chapter summarizes the behavioral pricing research findings of price and how buyers respond to price. This includes the relationship between price and perceived value and the…

Abstract

This chapter summarizes the behavioral pricing research findings of price and how buyers respond to price. This includes the relationship between price and perceived value and the decision heuristics that help us understand how price influences perceptions of value and eventual product choice. Buyers also use price as an indicator of product quality, and customers’ perceptions of quality, benefits, and value affect how they will respond to a purchase situation. In addition, buyers’ perceptions of the sacrifice affect the purchase decision, that is the degree that consumers reflect on the amount that they would “give up” by paying the monetary price for a product may vary according to a variety of situations and conditions, such as type of product or service, or the perceived unfairness of the price, or if the buyer perceives a brand is superior to competing brands. The chapter also discusses how buyers trade off or compare the perceived gains arising from price-quality judgments versus the perceived sacrifice required to acquire the product or service, including whether buyers integrate price and other attribute information following a nonlinear (proportional) or linear (subtractive) process. It also summarizes research on price as a multidimensional attribute, considered with additional dimensions such as warranty coverage, and warrantor reputation. Finally, the chapter examines perceived product value as being decomposed into its (1) perceived acquisition value (the expected benefit to be gained from acquiring the product less the net displeasure of paying for it) and (2) perceived transaction value (the perceived merits or fairness of the offer or deal).

Details

Visionary Pricing: Reflections and Advances in Honor of Dan Nimer
Type: Book
ISBN: 978-1-78052-996-7

Abstract

Details

Review of Marketing Research
Type: Book
ISBN: 978-0-7656-1306-6

Book part
Publication date: 1 August 2017

Terence A. Brown, Douglas C. Friedman and Zinaida Taran

The purpose of this chapter is to examine the phenomenon of “showrooming” in which shoppers use mobile devices in retail stores to check prices and other data on products that…

Abstract

Purpose

The purpose of this chapter is to examine the phenomenon of “showrooming” in which shoppers use mobile devices in retail stores to check prices and other data on products that they then may buy online.

Methodology/approach

We conducted depth interviews with 50 consumers, 13 small retailers, and 6 large retailers.

Findings

We identified four distinct behavioral groups of customers and six strategies small retailers are currently using or could use to address the potential problems showrooming can create. We also identified a new type of reference pricing.

Research limitations/implications

This research provides a guide researchers can use in further work on showrooming. The research consists of depth interviews. It is possible that other types of retailers may have developed other strategies not identified here or that a larger number of non-student participants would have identified other categories, though differences between students and non-students in our sample were not noteworthy.

Practical implications

This chapter provides a practical guide to small retailers as to how they can deal with the growing practice of showrooming, helping them to choose strategic responses based on the types of consumers they serve.

Originality/value

This is one of the first papers to be published in an academic journal on the value of showrooming. It provides a typology of consumers grouped by their behavior, that is, how and why they engage or don’t engage in showrooming. This can help academic researchers in future research as well as managers of small retail businesses. We also identified a new, third type of reference pricing.

Details

Qualitative Consumer Research
Type: Book
ISBN: 978-1-78714-491-0

Keywords

Book part
Publication date: 25 March 2010

Avi Dor

Pedro Pita Barros reviews pharmaceutical policies adopted by health care systems in European (OECD) countries. He notes that cost-sharing for pharmaceuticals is higher than…

Abstract

Pedro Pita Barros reviews pharmaceutical policies adopted by health care systems in European (OECD) countries. He notes that cost-sharing for pharmaceuticals is higher than cost-sharing for other services. However, although pharmaceutical cost-sharing is pervasive across the European Union, concerns over equity have led most countries to adopt sliding fee schedules and even outright exemptions from copayments for vulnerable populations such as the elderly and low income households. The most common form of price regulation in these countries is reference pricing, either “external” (pegging pharmaceutical payments to lowest prices in a group of countries) or “internal” (pegging pharmaceutical prices to the lowest price within a therapeutic class), as well as outright administrative price controls. In his theoretical results, Barros shows that reference pricing lowers cost to consumers the most, followed by administrative price lists, while the pure coinsurance system yields the higher total cost. To foster innovation, Barros proposes adoption of innovative payment schemes based on supply-side risk sharing whereby payments to drug manufacturers are tied to treatment results and patient outcomes. Such schemes are akin to pay-for performance methods used to reimburse physicians in certain managed care settings in the United States.

Details

Pharmaceutical Markets and Insurance Worldwide
Type: Book
ISBN: 978-1-84950-716-5

Book part
Publication date: 13 July 2011

Kent B. Monroe

This chapter traces the development of the pricing research program of Kent Monroe, beginning with his doctoral dissertation and continuing to the present time. Drawing on…

Abstract

This chapter traces the development of the pricing research program of Kent Monroe, beginning with his doctoral dissertation and continuing to the present time. Drawing on psychophysics and adaptation-level theory the early research efforts concentrated on validating two important concepts relative to behavioral pricing research: reference price and acceptable price range. Then the behavioral pricing research program expanded to explore how the context of a purchase situation, including the structure of the prices available for judgment, influences buyers' price perceptions and willingness to buy. In the early years his research included pricing models and research on patronage behavior. Subsequently, concentrating primarily on behavioral pricing research, he began to integrate findings from the research program into examining how various sellers pricing strategies and tactics influence buyers' judgments and purchase decisions. These efforts led to the first edition of his book Pricing – Making Profitable Decisions published in 1979. The book was subsequently revised and expanded in 1990 and again in 2003.

Details

Review of Marketing Research: Special Issue – Marketing Legends
Type: Book
ISBN: 978-0-85724-897-8

Content available
Book part
Publication date: 1 August 2017

Abstract

Details

Qualitative Consumer Research
Type: Book
ISBN: 978-1-78714-491-0

Book part
Publication date: 13 July 2011

V. Kumar

Over the past 25 years as a marketing academic, I have been fortunate to have collaborated with various researchers and firms and have contributed to the advancement of the…

Abstract

Over the past 25 years as a marketing academic, I have been fortunate to have collaborated with various researchers and firms and have contributed to the advancement of the marketing field. This is a review article that tracks my progress through these years that has led me to explore different areas of marketing, thereby shaping me as a researcher and an academic. As I see now, all of my research work can be viewed from a decision-making point of view – decisions that marketers can make either at the market, brand/firm/store, or the customer level. These decisions have in turn been transformed into strategies or tactics leading up to successful implementations and improved bottom-line results. The development of strategies/tactics and successful implementations can be seen in nearly 10 areas of research that I have involved myself in. This article also highlights how my research studies have contributed and advanced the creation of knowledge in each of these research areas.

Details

Review of Marketing Research: Special Issue – Marketing Legends
Type: Book
ISBN: 978-0-85724-897-8

1 – 10 of over 6000