Prescription loyalty behavior of physicians: an empirical study in India

Abstract

PurposeThis paper seeks to empirically identify the major factors that influence physician loyalty behavior in prescribing certain brands of drugs.Design/methodology/approachTestable hypotheses were developed with respect to physician loyalty behavior regarding drug prescription practices, and a survey questionnaire was designed to capture the data from 71 physicians, as a convenience sample. The hypotheses were tested by PLS path modeling.FindingsThe major finding is that tangible rewards to physicians by the pharmaceutical companies lead to prescription loyalty. The second major finding is that the professional values of pharmaceutical sales representatives (PSR) impact significantly on physician prescription loyalty. The hypotheses related to the impact of PSR personality, drug quality, corporate reputation and professional influence on prescription loyalty were not supported in the study.Practical implicationsThe results should prove useful to pharmaceutical companies in developing physician loyalty to particular brands as well as enhancing the understanding of drug control authorities and governmental health policy makers, in controlling unethical medical practices by physicians.Originality/valueThis paper reports an original empirical study on physician loyalty behavior in the context of drug prescription.