Abstract

Canadian pharmaceutical companies are increasingly using direct-to-consumer advertising (DTCA) of prescription medications in an attempt to stimulate sales. While published literature on the impact of DTCA is limited, one study conducted in the United States by Basara (1996) suggested that DTCA has a positive impact on new prescription volume and thus sales. This study investigates the reliability of findings of Basara (1996) and extends them using a Canadian prescription medication that was advertised directly to consumers. IMS Health Canada new prescription data was obtained for a prescription medication. The same promotional-response modeling technique known as intervention time-series analysis that Basara (1996) used, was used to investigate the potential for DTCA to impact new prescription volume for this medication. Results suggest that DTCA did not have an identifiable impact on new prescription volume for this product. Findings suggest that caution should be used when interpreting Basara's (1996) findings in the Canadian context. Specifically, the impact of DTCA appears to be dependent on product, market, and advertisement related factors. Research implications, limitations, and directions for future research are discussed.