National Pharmaceutical Pricing Authority (NPPA): Influencing Customer Behaviour Harvard Case Solution & Analysis

Since its start in 1997, the National Pharmaceutical Pricing Authority (NPPA) had been attempting to control drug prices through various supply-side initiatives, which had given restricted success. This time, a new initiative was declared by NPPA, which particularly targeted educating consumers related to the inexpensive choices for medicines prescribed by physicians.

National Pharmaceutical Pricing Authority (NPPA) Influencing Customer Behaviour Case Study Solution

By giving consumers advice about various brands and their costs, NPPA hoped to offer customer self-selection of drugs through short message service (SMS, or "texting"). NPPA appeared to be operating on the grounds that customer self selection could result in self-management of consumption, therefore giving customers greater control of health care expenses. Given the enormous penetration of mobile phones in India as well as the slow decrease of numerous cellular service charges, text-based service appeared doable. On the other hand, the proposed system had met with strong opposition from other stakeholders, including physicians and chemists. Besides, the large scale adoption of the planned service was being questioned as the decision-making process for medicines was hardly simple.

PUBLICATION DATE: May 25, 2012 PRODUCT #: W12043-HCB-ENG

This is just an excerpt. This case is about STRATEGY & EXECUTION

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