Virtual Quant Marketing Seminar - Ali Goli
Investigating the Impact of Advertising on Smoking Cessation: The Role of DTC Prescription Drug Advertising
Dear All,
Our next Virtual Quant Marketing Seminar is on Monday, April 8, at Noon ET. The speaker will be Ali Goli (University of Washington).
The zoom link is below, note that this is a new link.
https://hbs.zoom.us/j/93651241772?pwd=N2dTTC9RZHdoTjhXUjdPOXpkRkNDdz09
Abstract:
This study documents the impact of different forms of advertising on the demand for cigarettes and their substitutes. We examine the effects of educational public service announcements (PSAs), e-cigarette advertising, direct-to-consumer (DTC) advertising for tobacco cessation prescription drugs, and advertising by nicotine replacement therapies (NRTs) such as patches and gums on the demand for cigarettes, e-cigarettes, NRTs, and smoking cessation prescription drugs. Among these different forms of advertising, we find evidence only for the effectiveness of DTC advertising of prescription drugs in reducing cigarette demand. DTC advertising increased new prescriptions for tobacco cessation, increased outpatient visits for mental health and substance abuse, and led to a significant spillover effect on the sales of over-the-counter alternatives. This spillover varies systematically with the level of insurance coverage for smoking cessation medications across different regions. Our results highlight the role of DTC advertising and insurance coverage in smoking cessation, providing valuable insights for policymakers. Importantly, our findings suggest that banning DTC advertising could have unintended consequences, resulting in increased cigarette sales and overall nicotine consumption.
The schedule for the rest of the semester is:
Monday, May 6, Noon ET - Sam Goldberg (Stanford)
We encourage you to use our google calendar to keep track of the talks.