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  • September 2013
  • Article
  • American Journal of Managed Care

Testimonials Do Not Convert Patients from Brand to Generic Medication

By: John Beshears, James J. Choi, David Laibson, Brigitte C. Madrian and Gwendolyn Reynolds
  • Format:Print
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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: A total of 5,498 union members were randomly assigned to receive 1 of 3 different informational letters: 1 without a testimonial (No Testimonial Group), 1 with a testimonial from a person whose shared union affiliation with the recipient was not disclosed (Unaffiliated Testimonial Group), and 1 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.

Keywords

Testimonial; Peer Information; Social Proximity; Communication; Generic Medication; Familiarity; Marketing Communications; Decision Choices and Conditions; Identity; Health Care and Treatment; Marketing Reference Programs; Power and Influence; Brands and Branding; Health Industry

Citation

Beshears, John, James J. Choi, David Laibson, Brigitte C. Madrian, and Gwendolyn Reynolds. "Testimonials Do Not Convert Patients from Brand to Generic Medication." American Journal of Managed Care 19, no. 9 (September 2013): e314–e316.
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About The Author

John Beshears

Negotiation, Organizations & Markets
→More Publications

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  • Automating Short-Term Payroll Savings: Initial Evidence from a Large U.K. Experiment By: Sarah Holmes Berk, John Beshears, James J. Choi and David Laibson
  • How to Choose a Default By: John Beshears, Richard T. Mason and Shlomo Benartzi
  • Present Bias Causes and Then Dissipates Auto-enrollment Savings Effects By: John Beshears, James J. Choi, David Laibson and Peter Maxted
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