Testimonials Do Not Convert Patients from Brand to Generic Medication

David Laibson, Brigitte Madrian, Gwendolyn Reynolds, John Leonard Beshears and James Choi

Scholarly Articles from Harvard University Department of Economics

Abstract: Objectives: To assess whether the addition of a peer testimonial to an informational mailing increases conversion rates from brand-name prescription medications to lower-cost therapeutic equivalents, and whether the testimonial’s efficacy increases when information is added about an affiliation the quoted individual shares with the recipient. Research Design and Methods: 5,498 union members were randomly assigned to receive one of three different informational letters: one without a testimonial (No Testimonial Group), one with a testimonial from a person whose shared union affiliation with the recipient was not disclosed (Unaffiliated Testimonial Group), and one with a testimonial from a person whose shared union affiliation with the recipient was disclosed (Affiliated Testimonial Group). Results: The conversion rate for the No Testimonial Group was 12.2%, which is higher than the Unaffiliated Testimonial Group rate of 11.3% and the Affiliated Testimonial Group rate of 11.7%. The differences between the groups are not statistically significant. Conclusions: Short peer testimonials do not increase the impact of a mailed communication on conversion rates to lower-cost, therapeutically equivalent medications, even when the testimonial is presented as coming from a more socially proximate peer.

Date: 2013
New Economics Papers: this item is included in nep-exp, nep-hea, nep-ipr and nep-pr~
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Citations: View citations in EconPapers (2)

Published in American Journal of Managed Care

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Persistent link: https://EconPapers.repec.org/RePEc:hrv:faseco:11920070

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