Drivers of peak sales for pharmaceutical brands

Marc Fischer, Peter S.H. Leeflang, Peter C. Verhoef

Research output: Contribution to journalArticlepeer-review

Abstract

Peak sales are an important metric in the pharmaceutical industry. Specifically, managers are focused on the height-of-peak-sales and the time required achieving peak sales. We analyze how order of entry and quality affect the level of peak sales and the time-to-peak-sales of pharmaceutical brands. We develop a growth model that includes these two variables as well as control variables for own and competitive marketing activities. We find that early entrants achieve peak sales later, and they have higher peak-sales levels. High-quality brands achieve peak sales earlier, and their peak-sales levels are higher. In addition, quality has a moderating effect on the order of entry effect on time-to-peak-sales. Our results indicate that late entrants have longer expected time-to-peak-sales when they introduce a brand with high quality.
Original languageEnglish
Pages (from-to)429-460
Number of pages32
JournalQuantitative Marketing and Economics
Volume8
Issue number4
Early online date13 Aug 2010
DOIs
Publication statusPublished - Dec 2010

Bibliographical note

Creative common license- attribution

Keywords

  • peak-sales metrics
  • brand growth
  • econometric models
  • market entry
  • pharmaceutical marketing

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