Since its founding in 1997, the National Pharmaceutical Pricing Authority (NPPA) had tried the drug prices through various initiatives the supply side, the control had yielded only limited success. This time NPPA had a new initiative, the prescribed target was announced at educating consumers about the inexpensive alternatives for medications prescribed by doctors. By consumer information about the different brands and their prices, NPPA hoped to customer self-selection of medicines offer short by … Read more »

Since its founding in 1997, the National Pharmaceutical Pricing Authority (NPPA) had tried the drug prices through various initiatives the supply side, the control had yielded only limited success. This time NPPA had a new initiative, the prescribed target was announced at educating consumers about the inexpensive alternatives for medications prescribed by doctors. By consumer information about the different brands and their prices, NPPA hoped to customer self-selection of medicines through Short Message Service offer (SMS or “texting”). NPPA appeared on the premise that customer self-selection could be in self-regulation of consumption result in operation, resulting in better control of expenditures for health care to the customers. Given the enormous proliferation of mobile phones in India and the gradual reduction of various mobile service charges, saw text-based service possible. However, had the proposed system with strong opposition from other actors, such as doctors and pharmacies met. In addition, the large-scale adoption of the proposed service has been questioned, as the decision-making for drug was very complex.
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from
K.R. Jayasimha,
Mukherjee Srabanti
Source: Ivey Publishing
14 pages.
Release date: 25 May 2012. Prod #: W12043-PDF-ENG
National Pharmaceutical Pricing Authority (NPPA): influence customer behavior HBR case solution

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