Application of the experience curve to price trends in medical devices: Implications for product development and marketing strategies

Journal of Medical Marketing

Volumn 8, Issue 3, 2008, Pages 241-255

  Brown, Alan ^a   Meenan, Brian J ^a   Dixon, Dorian ^a   Young, Terry P ^a   Brennan, Michael ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 48949117553     PISSN: 17457904     EISSN: 17457912     Source Type: Journal    
DOI: 10.1057/jmm.2008.7     Document Type: Article

References (42)

1. Cookson, R. & Hutton, J. (2003). Regulating the economic evaluation of pharmaceuticals and medical devices: A European perspective. Health Pol. 63(2), 167-178.
2. Henderson, B. D. (1974). The experience curve - reviewed I. The concept. Perspectives, 124, 1-2.
3. Henderson, B. D. (1974). The experience curve - reviewed V. Price stability. Perspectives, 149, 1-3.
4. Wilson, M. S. & Gilligan, C. (1997). Strategic Marketing Management 2nd edn, Butterworth-Heinemann, Oxford.
5. Abell, D. F. & Hammond, J. S. (1979). Strategic Market Planning, 1st edn, Prentice-Hall Inc, New Jersey.
6. Wright, T. P. (1935). Factors affecting the cost of airplanes. J. Aeronaut. Sci. 3, 275-282.
7. Alchian, A. (1963). Reliability of progress curves in airframe production. Econometrica 31(4), 679-693.
8. Day, S. G. & Montgomery, B. D. (1983). Diagnosing the experience curve. J. Market. 47(2), 44.
9. Henderson, B. D. (1984). The application and misapplication of the experience curve. J. Bus. Strat. 4(3), 3-9.
10. Lieberman, M. B. (1984). The learning curve and pricing in the chemical processing industries. Rand J. Econ. 15(2), 213.
11. Zimmerman, M. B. (1982). Learning effects and the commercialization of new energy technologies: The case of nuclear power. Bell J. Econ. 13(2), 297.
12. Brown, A., Meenan, B. J. & Young, T. P. (2007). Marketing innovation: medical device prices follow the experience curve. J. Med. Market. 7(3), 203-212.
13. Brown, A., Meenan, B. J. & Young, T. P. (2007). Price trend analysis and its implications for the development of new medical technologies. Proceedings of the 29th International Conference of the IEEE EMBS, 23-26 August, IEEE.
14. HBS Consulting (2006). Pricing strategies: The outlook for medical device and diagnostic companies, HBS Consulting Ltd., London.
15. Day, G. S. (1981). The product life cycle: Analysis and application issues. J. Market. 45, 60-67.
16. Cox, W. E. (1967). Product life cycles as marketing models. J. Bus. 40(4), 375-384.
17. Swan, J. E. & Rink, D. (1982). Fitting market strategy to varying product life cycles. Bus. Horizons, January-February: 72-76.
18. Dhalla, N. K. & Yuspeh, S. (1976). Forget the product life cycle concept!. Harvard Bus. Rev., January-February: 102-112.
19. Mercer, D.A. (1993). Two-decade test of product life cycle theory. British J. Manage. 4, 269-274.
20. Lambkin, M. & Day, G. S. (1989). Evolutionary processes in competitive markets: Beyond the product life cycle. J. Market. 53(3), 4-20.
21. Golder, P. N. & Tellis, G. J. (2004). Growing, growing, gone: Cascades, diffusion, and turning points in the product life cycle. Market. Sci. 23(2), 207-218.
22. NHS National Institute for Clinical Excellence (2004). Guide to the Methods of Technology Assessment, NICE, London, Available at http://www.nice.org.uk/nicemedia/pdf/TAP_methods.pdf.
23. Bodenheimer, T. (2005). High and rising health care costs. Part 2: technologic innovation. Ann. Intern. Med. 142(11), 932-937.
24. Neumann, P. J., Rosen, A. B. & Weinstein, M. C. (2005). Medicare and cost-effectiveness analysis. N. Engl. J. Med. 353(14), 1516-1522.
25. Appelt, P. & Hauser, T. (2006). Prescribing innovations: A practical framework for effective marketing of medical device innovations. J. Med. Market. 6(3), 195-202.
26. NHS (2001). NHS purchasing and supply agency framework document, NHS, London, Available at http://www.pasa.nhs.uk/pasa/ Doc.aspx?Path-[MN][SP]/NHSprocurement/Publications/NHSBooklet.pdf.
27. Armstrong, K. (2006). Collaborative procurement: Hub and spoke. Healthcare Equip. Suppl. 57(3), Available at http://www.hesmagazine.com/story.asp?storyCode=2038636.
28. Schneller, E. S. (2000). The value of group purchasing in the health care supply chain, School of Health Administration and Policy, Tempe.
29. Such, O. (2007). From idea to product - why so many innovations in healthcare wilt on the way to commercialization. Proceedings of the 29th Annual International Conference of the IEEE EMBS, 23-26 August, IEEE.
30. Kaplan, A. V., Baim, D. S., Smith, J. J., Feigal, D.A., Simons, M., Jefferys, D., Fogarty, T. J., Kuntz, R. E. & Leon, M. B. (2004). Medical device development. From prototype to regulatory approval. Circulation 109, 3068-3072.
31. Dixon, D., Brown, A. & Meenan, B. J. (2006). Experiences of new product development in the medical device industry. Medical Device Technol. 17(3), 20-22.
32. Dixon, D., Eatock, J., Meenan, B. J. & Morgan, M. (2006). Application of design of experiment (DOE) techniques to process validation in medical device manufacture. J. Validat. Technol. 12(2), 92-100.
33. FDA (1997). Deciding when to submit a 510(k) for a change to an existing device, Federal Drug Adminstration, Center for Devices and Radiological Health, Rockville, Available at http://www.fda.gov/cdrh/ode/510kmod.html.
34. Shaw, B. (1985). The role of the interaction between the user and the manufacturer in medical equipment innovation. R&D Manage. 15 (4), 283-292.
35. Rochford, L. & Rudelius, W. (1997). New product development process. Stages and successes in the medical products industry. Ind. Market. Manage. 26, 67-84.
36. Frost & Sullivan. Market Engineering Reports (2007) Available at: http://www.frost.com, Accessed 20th January, 2007.
37. Inflationdata.com (2006) Available at: http://inflationdata.com/ Inflation/Consumer_Price_Index/HistoricalCPI.aspx, Accessed 1st October, 2007.
38. National Statistics Online (2006) Available at: http://www.statistics.gov.uk/STATBASE/tsdataset.asp?vlnk- 7174&More=N&All=Y, Accessed lst October, 2007.
39. Henderson, B. D. (1974). The experience curve - reviewed III. Why Does It Work? Perspectives 128, 1-3.
40. Levitt, T. (1965). Exploit the product life cycle. Harvard Bus. Rev. November-December: 81-94.
41. Kortge, G. D., Okonkwo, P. A., Burley, J. R. & Kortge, J. D. (1994). Linking experience, product life cycle, and learning curves. Ind. Market. Manage. 23, 221-228.
42. MATCH. MATCH Experience Curve Plotter (2007) Available at: http://www.match.ac.uk/pricetrends, Accessed 20th November, 2007.