Direct-To-Consumer Pharmaceutical Advertising Has Increased the Consumption of Numerous Categories

question 47

Multiple Choice

Direct-to-consumer pharmaceutical advertising has increased the consumption of numerous categories of medications. Consumers confirm that they receive most of the information about these medications from TV commercials rather than from their physicians. In response, the pharmaceutical industry has developed voluntary restrictions regarding this marketing method. Why have they done this?

• A) to slow sales and reduce the incidence of out-of-stock situations
• B) to avoid government regulation of their marketing practices
• C) to improve consumers' perceptions of their companies
• D) to save money
• E) to increase sales

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Definitions:

Gross Receivable

The total amount owed to a company for goods sold or services rendered before any deductions for returns or allowances.

Executory Costs

Expenses arising from operational agreements, such as leases, which are not yet settled.

Periodic Lease Rental Payments

Regular payments made by a lessee to a lessor for the use of property, equipment, or vehicles, typically established under a lease agreement.