Chapter 3 - Pharma Customers

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About This Quiz

This quiz covers strategic interactions between pharma companies and their customers, focusing on departments, customer groups, and distribution roles.

Chapter 3 - Pharma Customers - Quiz

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  • 2. 

    What is "Direct to Consumer Advertising"?

    • Pharma companies selling their products directly to the consumer

    • Pharma companies paying physicians to promote their products

    • Pharma companies using consumer advertising techniques to reach its customer base

    • Pharma companies using pharmacies to market and sell their generic equivalents at a lower price.

    Correct Answer
    A. Pharma companies using consumer advertising techniques to reach its customer base
    Explanation
    Direct-to-consumer advertising refers to the practice of pharmaceutical companies using consumer advertising techniques to reach their customer base. This means that instead of solely targeting healthcare professionals, such as physicians, these companies directly promote their products to the general public through various advertising channels. The aim is to raise awareness about specific medications, their benefits, and potential side effects, ultimately influencing consumers to request these products from their healthcare providers. This approach allows pharmaceutical companies to establish a direct line of communication with consumers and potentially increase sales.

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  • 3. 

    Why is the government a unique customer group?

    • It is not responsible for supplying payment for the pharmaceutical products it receives.

    • It serves special populations and receives favorable pricing.

    • Because it controls the FDA, the government is less liable for regulatory affair infractions.

    • Because it's the US government, which is unique to begin with.

    Correct Answer
    A. It serves special populations and receives favorable pricing.
    Explanation
    The government is considered a unique customer group because it serves special populations and receives favorable pricing. This means that the government can negotiate lower prices for pharmaceutical products, allowing them to provide affordable healthcare to specific groups of people. This special treatment sets the government apart from other customer groups who may not have the same advantages in terms of pricing and access to healthcare.

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  • 4. 

    What is a Pharmacy Benefit Manager?

    • The HR representative for pharmacists

    • The manager of a pharmacy

    • An office of the FDA, responsible for making sure pharmacists adhere to all FDA regulations

    • An organization that administers pharmacy benefits on behalf of healthcare payers.

    Correct Answer
    A. An organization that administers pharmacy benefits on behalf of healthcare payers.
    Explanation
    A Pharmacy Benefit Manager (PBM) is an organization that handles the administration of pharmacy benefits on behalf of healthcare payers. PBMs work with insurance companies, employers, and government agencies to negotiate drug prices, manage formularies, process prescription claims, and provide other services related to pharmacy benefits. They aim to control costs, improve medication adherence, and ensure the safe and effective use of medications. PBMs play a crucial role in the healthcare system by facilitating access to affordable and high-quality prescription drugs for patients.

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  • 5. 

    What information does a written prescription NOT have on it?

    • The prescribers and patients identities

    • The product strength and form

    • Dispensing instructions

    • The condition that the drug is supposed to treat

    Correct Answer
    A. The condition that the drug is supposed to treat
    Explanation
    A written prescription does not include the condition that the drug is supposed to treat. A prescription typically includes information such as the prescribers and patients identities, the product strength and form, and the dispensing instructions. However, the specific medical condition for which the drug is being prescribed is not typically listed on the prescription. This information is usually discussed between the prescriber and the patient during the consultation or visit.

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  • 6. 

    True or false: Open formularies provide no reimbursement for products that are not on the formulary.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Open formularies provide reimbursement for products that are not on the formulary. This means that even if a medication or product is not listed on the formulary, individuals can still receive reimbursement for it. Open formularies typically offer more flexibility and options for patients, allowing them to access a wider range of medications and treatments.

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  • 7. 

    What is the main difference between a retail pharmacy and a hospital pharmacy?

    • The types of drugs dispensed: schedule I-III drugs are only dispensed in a hospital pharmacy due to their high risk of abuse.

    • The customer base: retail pharmacies accept any valid prescription and hospital pharmacies dispense prescriptions to patients being treated within the hospital

    • The location of the pharmacy: hospital pharmacies are the only place in a hospital that a patient can get a prescritpion filled

    • There is no difference between the two.

    Correct Answer
    A. The customer base: retail pharmacies accept any valid prescription and hospital pharmacies dispense prescriptions to patients being treated within the hospital
    Explanation
    The main difference between a retail pharmacy and a hospital pharmacy is the customer base. Retail pharmacies accept any valid prescription and cater to a wide range of customers, whereas hospital pharmacies primarily dispense prescriptions to patients being treated within the hospital. This difference in customer base is due to the different roles and functions of these two types of pharmacies within the healthcare system.

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  • 8. 

    True or false: Pharmacy and pharmacist licenses are federally-controlled to ensure consistency from state to state.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Pharmacy and pharmacist licenses are not federally-controlled. Instead, they are regulated at the state level. Each state has its own licensing requirements and regulations for pharmacies and pharmacists, which can vary from state to state. This lack of federal control allows states to tailor their licensing requirements to meet their specific needs and regulations. Therefore, there is no consistency in pharmacy and pharmacist licenses from state to state.

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  • 9. 

    What are the three departments of a pharma company that develop strategy to influence the demand of a product?

    • Marketing, R&D, Admin

    • Field Sales, Managed Markets, Marketing

    • Managed Markets, Operations, Field Sales

    • Regulatory Affairs, Field Sales, R&D

    Correct Answer
    A. Field Sales, Managed Markets, Marketing
    Explanation
    Field Sales, Managed Markets, and Marketing are the three departments of a pharma company that develop strategies to influence the demand of a product. Field Sales is responsible for promoting and selling the product directly to healthcare professionals and customers. Managed Markets focuses on negotiating contracts and pricing with payers and insurance companies to ensure access to the product. Marketing department develops and implements marketing strategies to create awareness, generate demand, and position the product in the market. These three departments work together to drive sales and increase the demand for the company's products.

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  • 10. 

    True or false: Pharmacists are sometimes allowed to modify prescriptions.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Pharmacists are sometimes allowed to modify prescriptions because they have the expertise and knowledge to make appropriate changes in certain situations. This could include adjusting the dosage, substituting a generic medication for a brand name, or changing the form of the medication. However, it is important to note that pharmacists must adhere to legal and professional guidelines when making modifications to ensure patient safety and proper treatment.

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  • 11. 

    True or fales:  Pharmacists typically have significant influence on drug selection.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Pharmacists typically do not have significant influence on drug selection. While they play an important role in dispensing medications and providing information about them, the ultimate decision on drug selection is usually made by the prescribing healthcare provider. Pharmacists may offer recommendations or suggestions based on their expertise, but the final decision rests with the prescriber.

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  • 12. 

    Which three customer groups make up the demand drivers for a pharmaceutical product?

    • Payers, Consumers, Retailers

    • Wholesalers, Consumers, Pharmacists

    • Authorized Healthcare Professionals/Physicians, Consumers, Payers

    • Retailers, Pharmacists, Authorized Healthcare Professionals/Physicians

    Correct Answer
    A. Authorized Healthcare Professionals/Physicians, Consumers, Payers
    Explanation
    The demand drivers for a pharmaceutical product are the customer groups that influence the demand for the product. In the case of pharmaceutical products, the three customer groups that make up the demand drivers are Authorized Healthcare Professionals/Physicians, Consumers, and Payers. Authorized Healthcare Professionals/Physicians prescribe and recommend the use of pharmaceutical products to their patients, which drives the demand. Consumers, who are the patients themselves, directly influence the demand by seeking and using pharmaceutical products. Payers, such as insurance companies or government healthcare programs, also play a significant role in driving the demand as they cover the cost of the pharmaceutical products.

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  • 13. 

    What two principles make up "adherence"? 

    • Compliance and Regulation

    • Consistence and Persistence

    • Persistence and Compliance

    • Persistence and Determination

    • Ad and Herence

    Correct Answer
    A. Persistence and Compliance
    Explanation
    Adherence refers to the act of following or sticking to something, such as rules, guidelines, or a prescribed course of action. Persistence refers to the ability to continue doing something despite difficulties or obstacles. Compliance, on the other hand, refers to the act of obeying or conforming to a rule or regulation. Therefore, the principles that make up "adherence" are persistence, which involves continued effort, and compliance, which involves following rules or regulations.

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  • 14. 

    To what/whom does the term "payer" refer?

    • The individual consumer

    • The pharmacist whom the consumer pays

    • The regulatory bodies that control the pharma companies

    • The broad array of customers that collectively control reimbursement for drug use

    Correct Answer
    A. The broad array of customers that collectively control reimbursement for drug use
    Explanation
    The term "payer" refers to the broad array of customers that collectively control reimbursement for drug use. This includes insurance companies, government agencies, and other entities that pay for the cost of medications on behalf of the individual consumer. These payers have the authority to determine which drugs are covered, set pricing and reimbursement rates, and establish policies and guidelines for drug utilization.

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  • 15. 

    The FDA controls:

    • How products are promoted to prescribers

    • Physician referrals

    • Consumer advertising

    • A and B

    • A and C

    Correct Answer
    A. A and C
    Explanation
    The FDA controls how products are promoted to prescribers and consumer advertising. This means they have regulations in place to ensure that pharmaceutical companies are not making false or misleading claims when promoting their products to doctors and consumers. The FDA aims to protect the public by ensuring that the information provided about medications is accurate and unbiased.

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  • 16. 

    What is a KOL (key opinion leader)

    • The leader of a focus group/think tank regarding appropriate messaging of a new product.

    • A broad group of widely respected physicians who have influence over their peers because of their past medicinal discoveries.

    • A select group of physicians who held a leadership role in a clinical trial and can influence the adoption of novel products.

    • A prescribing physician who, because of their elete industry status, influences the thoughts of the consumer on which products to use.

    Correct Answer
    A. A select group of physicians who held a leadership role in a clinical trial and can influence the adoption of novel products.
    Explanation
    A KOL (key opinion leader) is a select group of physicians who held a leadership role in a clinical trial and can influence the adoption of novel products. They are considered experts in their field and have the ability to shape the opinions and decisions of other healthcare professionals regarding the use of new products. Their involvement in clinical trials gives them credibility and influence over the medical community, making them key players in the adoption of innovative treatments and therapies.

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  • 17. 

    What information is NOT typically highlighted/included on promotional tool/clinical evidence for a pharma product?

    • Details about the clinical trials

    • Science behind the product

    • Clinical evidence in a graphical form

    • Summarized/highlighted key messages

    • A detailed list of the adverse effects of the product

    Correct Answer
    A. A detailed list of the adverse effects of the product
    Explanation
    Promotional tools and clinical evidence for a pharma product typically do not include a detailed list of the adverse effects of the product. This is because promotional materials are designed to highlight the benefits and positive aspects of the product, rather than focusing on potential negative effects. Including a detailed list of adverse effects may discourage potential customers from using the product. However, it is important for healthcare professionals and patients to have access to this information, which is typically provided in the product's package insert or prescribing information.

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  • 18. 

    It is estimated that ___% of all drugs perscribed in the U.S. are initiated by consumer request.

    • 10%

    • 30%

    • 50%

    • 70%

    • 90%

    Correct Answer
    A. 30%
    Explanation
    Approximately 30% of all drugs prescribed in the U.S. are initiated by consumer request. This suggests that a significant portion of medication prescriptions are a result of patients specifically asking their healthcare providers for certain drugs. This could be due to various reasons such as patients seeking specific medications they have heard about or seen advertised, or patients requesting medication for perceived symptoms or conditions. This statistic highlights the influence of consumer demand on the prescribing practices in the U.S. healthcare system.

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  • 19. 

    What role do wholesalers NOT play as the primary distribution channel for the pharma industry?

    • Assume risk and responsibility for product supply

    • Manage receivables and credit risk

    • Specialize in distributing pharmaceutical products to pharmacies, hospitals, and clinics.

    • Enforce regulatory requirements for product handling and distribution

    • Sell their products in bulk at a cost effective price.

    Correct Answer
    A. Sell their products in bulk at a cost effective price.
    Explanation
    Wholesalers in the pharma industry do play a role in assuming risk and responsibility for product supply, managing receivables and credit risk, specializing in distributing pharmaceutical products to pharmacies, hospitals, and clinics, and enforcing regulatory requirements for product handling and distribution. However, they do not play a role in selling their products in bulk at a cost-effective price. This role is typically performed by manufacturers or other intermediaries in the supply chain.

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  • 20. 

    Two ways companies work with each customer group to drive demand for their products:

    • Increase awareness of a certain disease and its available therapies, and cut costs for those available therapies.

    • Rely solely on marketing and promotions to drive demand.

    • Focus on differentiating their product from others in the market and increasing awareness of a certain disease and its available therapies.

    • Differentiate their product from others in the market and saturate the market with notable information about the product.

    Correct Answer
    A. Focus on differentiating their product from others in the market and increasing awareness of a certain disease and its available therapies.
    Explanation
    Companies work with each customer group to drive demand for their products by focusing on differentiating their product from others in the market and increasing awareness of a certain disease and its available therapies. This approach allows companies to highlight the unique features and benefits of their product, making it more attractive to customers. Additionally, by creating awareness about a specific disease and its available therapies, companies can position their product as a solution, thereby driving demand. This strategy combines product differentiation and disease awareness to effectively generate demand for the company's products.

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  • 21. 

    What is the most common strategy employed by pharmaceutical companies to ensure a position in the formulary?

    • Offer concessionary pricing (rebates)

    • Be the most effective drug on the market for a particular condition

    • Demonstrate increased safety over alternative therapies

    • Be the least expensive drug on the market for a particular condition

    Correct Answer
    A. Offer concessionary pricing (rebates)
    Explanation
    Pharmaceutical companies often employ the strategy of offering concessionary pricing or rebates to ensure a position in the formulary. By providing discounts or lower prices for their drugs, these companies can incentivize healthcare providers or insurance companies to include their products in the formulary. This strategy helps the pharmaceutical companies gain market share and increase the accessibility of their drugs to patients.

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  • 22. 

    On which program do physicians NOT heavily rely to stay abreast of developments in pharmaceutical therapy?

    • Continuing education programs

    • Professional publications

    • Product presentations delivered by pharmaceutical sales reps

    • Pharmacy benefit managers

    • Journal advertising

    Correct Answer
    A. Pharmacy benefit managers
    Explanation
    Pharmacy benefit managers (PBMs) are not relied upon heavily by physicians to stay updated on developments in pharmaceutical therapy. PBMs primarily focus on managing prescription drug programs for health insurance plans, negotiating prices with drug manufacturers, and processing claims. While they play a role in the healthcare system, they do not provide the same level of information and education as continuing education programs, professional publications, product presentations by pharmaceutical sales reps, and journal advertising, which are more commonly used by physicians to stay informed about pharmaceutical therapy.

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  • 23. 

    What is NOT a utilization control used by payers?

    • Manufacturing restrictions

    • Educational programs

    • Prior authorization requirements

    • Co-pays

    • Utilization "report cards"

    Correct Answer
    A. Manufacturing restrictions
    Explanation
    Manufacturing restrictions are not a utilization control used by payers. Utilization controls are measures implemented by payers to manage and control the use of healthcare services and resources. These controls aim to ensure appropriate and cost-effective utilization of services. Examples of utilization controls include prior authorization requirements, co-pays, educational programs, and utilization "report cards." Manufacturing restrictions, on the other hand, refer to limitations or regulations placed on the production or distribution of goods, which are unrelated to healthcare utilization control.

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  • 24. 

    Who is the most important customer base for almost all prescription products.

    • Suburban housewives

    • The consumer

    • Those with prescribing authority

    • Pharmacists

    Correct Answer
    A. Those with prescribing authority
    Explanation
    The most important customer base for almost all prescription products is those with prescribing authority. This is because these individuals, such as doctors and other healthcare professionals, are responsible for writing prescriptions and determining which medications are appropriate for their patients. They have the power to influence the choice of prescription products and are directly involved in the decision-making process. Therefore, pharmaceutical companies and healthcare providers often target and cater to this customer base to ensure the success and widespread use of their prescription products.

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  • 25. 

    Why do pharmaceutical companies typically divide pharmacies into classes of trade?

    • To divide large national chains from single-store independent pharmacies.

    • To establish appropriate pricing strategies and market priorities.

    • To ensure full saturation of the market with their product.

    • To separate pharmacies based on their focus of chemical or biological products.

    Correct Answer
    A. To establish appropriate pricing strategies and market priorities.
    Explanation
    Pharmaceutical companies typically divide pharmacies into classes of trade in order to establish appropriate pricing strategies and market priorities. This allows them to tailor their pricing and marketing efforts based on the specific needs and characteristics of each class. By understanding the different market segments and their preferences, pharmaceutical companies can effectively allocate their resources and maximize their sales potential.

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  • 26. 

    What is NOT considered an institutional pharmacy?

    • Specialty Pharmacies

    • Nursing Homes

    • HMO Pharmacies

    • Hospitals and Specialty Clinics

    Correct Answer
    A. Specialty Pharmacies
    Explanation
    Specialty pharmacies are not considered institutional pharmacies because they do not typically provide care within an institutional setting. Institutional pharmacies are usually found in nursing homes, hospitals, and specialty clinics, where they provide medication management services to patients within those facilities. Specialty pharmacies, on the other hand, focus on providing specialized medications and services to patients with complex medical conditions, often outside of an institutional setting. Therefore, specialty pharmacies do not fall under the category of institutional pharmacies.

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  • 27. 

    Most major activities of full-service pharmaceutical companies can be roughly divided into three functional categories.  Which is NOT one of these core business areas?

    • Regulatory and Business Development

    • Marketing and Sales

    • Research and Development

    • Manufacturing and Operations

    Correct Answer
    A. Regulatory and Business Development
    Explanation
    Regulatory and Business Development is NOT one of the core business areas of full-service pharmaceutical companies. The other three options, Marketing and Sales, Research and Development, and Manufacturing and Operations, are all integral parts of the pharmaceutical industry. Regulatory and Business Development, on the other hand, typically involves activities such as obtaining regulatory approvals and licenses, managing legal and compliance matters, and exploring new business opportunities, which are important but not considered core functions.

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  • 28. 

    Which is not a sub category of "General Practitioner"

    • General surgery

    • Internal medicine

    • Obstetrics and gynecology

    • Pediatrics

    • Family practice

    Correct Answer
    A. General surgery
    Explanation
    General surgery is not a subcategory of "General Practitioner" because it is a separate medical specialty that focuses on surgical procedures and interventions. General practitioners, on the other hand, provide primary healthcare services, including preventive care, diagnosis, and treatment of common illnesses and injuries. While general practitioners may refer patients to general surgeons for surgical interventions, general surgery is not considered a subcategory of general practice.

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  • Current Version
  • Mar 19, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Jan 25, 2009
    Quiz Created by
    Msquared
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