Insights into public preferences for pharmaceutical funding

Whitty, Jennifer A. and Rundle-Thiele, Sharyn R. and Scuffham, Paul A. (2008) Insights into public preferences for pharmaceutical funding. International Journal of Pharmaceutical and Healthcare Marketing, 2 (3). pp. 216-234. ISSN 1750-6123


Purpose – Taxes are used to subsidise the public use of pharmaceuticals in some countries. This
paper seeks to quantify criteria considered important by the Australian public for allocating resources
for pharmaceuticals.

Design/methodology/approach – A discrete choice experiment (DCE) was administered to two samples of adults in Australia. A forced choice design was used in a pilot study, but an opt-out option was included in the main study to avoid forcing choice. Data were analysed using multinomial logit.

Findings – For the levels and units presented in the DCE, quality of life (QoL) after treatment was the most important attribute in both the pilot and main studies, followed by survival after treatment and the chance of success for a given pharmaceutical. Cost to the government was of little importance in the pilot study, but was of importance in the main study.

Practical implications – By understanding public preferences, marketers can tailor pharmaceutical
offerings that appeal to the public and to relevant pharmaceutical funding bodies when making
submissions, thus increasing the likelihood of receiving public funding support. Understanding public
preferences allows public policy-makers to direct resources towards those medical technologies which are likely to give the greatest overall societal benefit.

Originality/value – This study shows the simultaneous importance of survival, QoL, chance of success and cost to public preferences for pharmaceutical funding. Cost (tax) signals suggest the public are willing to limit the amount they expect the government to pay for effective pharmaceuticals.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: File reproduced in accordance with the copyright policy of the publisher/author.
Faculty/School / Institute/Centre: Historic - Faculty of Business - School of Management and Marketing (1 Apr 2007 - 31 Dec 2010)
Faculty/School / Institute/Centre: Historic - Faculty of Business - School of Management and Marketing (1 Apr 2007 - 31 Dec 2010)
Date Deposited: 08 Aug 2009 04:33
Last Modified: 30 May 2013 01:18
Uncontrolled Keywords: pharmaceutical products, Australia, health services, health behaviour
Fields of Research (2008): 11 Medical and Health Sciences > 1115 Pharmacology and Pharmaceutical Sciences > 111599 Pharmacology and Pharmaceutical Sciences not elsewhere classified
15 Commerce, Management, Tourism and Services > 1505 Marketing > 150505 Marketing Research Methodology
Fields of Research (2020): 32 BIOMEDICAL AND CLINICAL SCIENCES > 3214 Pharmacology and pharmaceutical sciences > 321499 Pharmacology and pharmaceutical sciences not elsewhere classified
35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3506 Marketing > 350606 Marketing research methodology
Socio-Economic Objectives (2008): C Society > 92 Health > 9204 Public Health (excl. Specific Population Health) > 920401 Behaviour and Health
C Society > 92 Health > 9202 Health and Support Services > 920207 Health Policy Economic Outcomes
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