An Exploratory Investigation of Social Responsibility in DTC Advertising — Evidence From Outlier Analysis

The USA and New Zealand are the only two countries that allow advertising of prescription drugs directly to consumers. Although these drugs are not available over the counter, the rationale for allowing this type of advertising is that prospective customers can recognize their symptoms in the advertisements and approach their physicians for prescriptions for the advertised drugs. This type of advertising, called DTC advertising is an example of a pull strategy, where advertising to the customer generates a demand for the advertised product, which is then pulled through the channel. DTC advertising is often complemented by push strategies, such as sampling and detailing. Sampling involves the distribution of free samples by pharmaceutical representatives to physician’s offices. Detailing covers the expenses of these representatives as they visit physician’s offices.