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Pharmaceutical marketers use detailing, sampling and direct-to-consumer advertising (DTCA) to promote a branded prescription drug (brand drug) to health-care professionals and consumers. These promotion mix elements help raise brand awareness, increase prescription likelihood and guard a product market against competing brand drugs. However, the extent to which these elements remain effective when a brand drug goes off patent and its marketing exclusivity expires, allowing low-price generics to enter the market, remains unclear. This study aims to explore the effectiveness of promotion mix elements before and after the market entry of a generic drug.

The authors collected and analyzed a panel data set of 41 brand drugs from 7 therapeutic classes between 2007 and 2014 (3,201 observations) using the two-stage control function approach to address potential endogeneity.

The effectiveness of promotion mix elements changes significantly, but not in a universally uniform way, during a market transition. Detailing and DTCA are increasingly effective after a brand drug’s generics enter the market. In contrast, sampling is more effective before the market transition. The positive effects of sampling on brand sales are stronger when the price of a brand drug is higher than the average price of its competing brands. Sampling also helps amplify the positive influences of detailing and DTCA on brand sales.

This study shows that pharmaceutical promotion is not equally effective in the brand drug market with/without generic competitors. Detailing and DTCA are increasingly effective when generic competition intensifies. In contrast, the distribution of free drug samples is less effective after more generic drugs enter the market.

Incumbent brands’ promotion expenditures often drop dramatically when the expiration of their patents is near, a practice that likely continues after generics enter the market. Taking into consideration these industry norms and their findings, the authors suggest that promotional decisions during a market transition should not overly focus on cutting promotional expenditures across the board. Since a firm’s promotional expenditure tends to be expensive, factoring in information on the effectiveness of each promotion mix element helps marketers make well-informed strategic decisions on resource allocation during the transition from a market without generics to a market with generics.

Previous studies do not explicitly account for structural changes in the brand drug market over time. However, the expiration of patent and marketing exclusivity marks a transitional period in which a brand drug eventually competes with its generic counterparts. Given the criticality of such structural change, the authors examine brand drugs’ promotion effectiveness in the presence of their generic counterparts.

The purpose of this paper is to investigate asymmetric effects of team cohesion and team members’ relational qualification on the creativity of new product ideas.

Structural equation modeling was conducted on survey data collected from 195 new product development practitioners in various US high-technology industries.

The study suggests that creative and potentially successful product ideas include three dimensions – usefulness for customers, and novelty for customers and usefulness for the firms (i.e. enhancement efficiency and effectiveness of companies’ new product development process). By focusing on a relational aspect of new product development teams, the study shows that team task cohesion mediates the relationship between the antecedents (team members’ organizational commitment and social competency) and the three outcome dimensions of a successful product idea (novelty, usefulness to customers and usefulness to the firm). The team members’ interpersonal relationship has no positive association with task cohesion and the desirable qualifications of product ideas.

An ideation team’s socially competent members who identify with their organization are likely to be attracted to a given task. This task cohesion, in turn, enhances the creativeness of the development of product ideas.

To generate fruitful product ideas using a team approach, companies should make sure that their new product ideation teams achieve a sense of mutual commitment to the given ideation tasks, develop a feeling of belongingness and ownership toward the firms and include members who have good social and interpersonal skills. However, the possession of strong social cohesion is not essential for the teams.

This study provides novel insights concerning the relational aspect of product development teams assigned to the initiation phase (front end) of a new product development process.

To investigate consumer innovativeness (CI) from a hierarchical perspective and examine the simultaneous impacts of hierarchical perspective of CI and perceived risk on new product adoption.

An extended innovativeness and perceived risk model was developed. A structural equation model was used to test the hypotheses using empirical data from 746 respondents in a high technology product context.

The results provide support for the hierarchical perspective of CI; domain specific CI mediates the relationship between global CI and new product adoption. Specifically, cognitive and domain‐specific innovativeness enhances the actual adoption of new products; whereas sensory innovativeness and perceived social and physical risks enhance consumers' propensity to acquire novel information about new products. Financial risk, on the other hand, has a negative impact on the propensity to acquire novel information about new products. Time, performance, psychological, and network externalities risks show no significant relations with the tendency to acquire novel information about new products.

The findings provide an explanation to the less than consistent relationship between consumer innovativeness and new product adoption. However, a single research context of high tech consumer goods may be a limitation and future studies need to replicate this hierarchical perspective of CI as a predictor of new product adoption in different research contexts for greater generalizability.

The findings of the study provide some guidelines to marketers on how to increase the new product commercialization success. Marketers should tap into the cognitive and domain‐specific innovativeness to enhance the new product adoption. The sensory part of CI and perceived social and physical risks have implications for the promotion and communication aspects of new product marketing.

Provides new insights about consumer innovativeness trait as a useful predictor of new product adoption.