Impact of Catchment, Direct to Consumer Advertisement on Consumer Buying Intention: Retailer and Consumer Aligned Perspective from Indian Pharmaceuticals Industry
Keywords:
Pharmaceutical Industry, Retail, consumer advertising, Prescription Medication, Value chain, Non Prescription medicationAbstract
Due to increasing focus on health-care in India, Pharmacy industry has been provided an impetus for a faster growth trajectory. Crucial to success for any industry is understanding the psyche of the consumers.. Pharma is no exception. While there are many empirical studies on different aspects of Pharma industry. Most of them emanate from outside India. Main objective is to garner insights into as to what are the factors that influence consumer buying intention and how the same is connected to Retailer perspective. Study seeks to establish relationship between catchment demographics and Retailers, understand the impact of direct to consumer advertisement on consumers and the factors influencing their choice of prescription and non-prescription medications in order to facilitate brands and retailers to align their strategies to gain market leadership.
Research was of an exploratory nature and a total of 4 retail chain stores and 15 stand-alone pharmacy managers representing the population were considered as respondents for channel dynamics. A total of 50respondents of pharmaceutical products across various demographic were considered for consumer survey.
Data was collected through questionnaire and in-depth interviews using convenience sampling and the data so gathered was analysed using tools like SPSS/excel. Study revealed that demographic variables such as age and income level of customers also had impact on catchment and retailers. Contrast between the purchase behaviour of prescription and non-prescription.medication was observed in terms of impact of direct to consumer advertising.
This study is of high significance in the modern market scenario in light of increasing spend on health care and focus on affordable health care facilities driven by Government policies and regulations in India.
References
Bala, R., & Bhardwaj, P. (2010). Detailing vs. direct-to-consumer advertising in the prescription pharmaceutical industry. Management science, 56(1), 148-160.
Donohue, J. M., & Berndt, E. R. (2004). Effects of direct-to-consumer advertising on medication choice: The case of antidepressants. Journal of Public Policy and Marketing, 23(2), 115-127.
Donohue, J. M., Cevasco, M., & Rosenthal, M. B. (2007). A decade of direct-to-consumer advertising of prescription drugs. N Engl J Med, 2007(357), 673-681.
Håkonsen, H., Sundell, K. A., Martinsson, J., & Hedenrud, T. (2016). Consumer preferences for over-the-counter drug retailers in the reregulated Swedish pharmacy market. Health policy, 120(3), 327-333.
Hassali, M. A., Yahaya, A. H. M., Shafie, A. A., Saleem, F., Chua, G. N., & Aljadhey, H. (2013). Patterns and predictors of non-prescription medicine use among Malaysian Pharmacy patrons: A national cross sectional study. PloS one, 8(4), e59231.
Huh, J., Delorme, D. E., & Reid, L. N. (2016). A model of consumer response to over-the-counter drug advertising: antecedents and influencing factors. Journal of Health Communication, 21(1), 109-117.
Ikram, S. Z., Hu, Y., & Wang, F. (2015). Disparities in spatial accessibility of pharmacies in Baton Rouge, Louisiana. Geographical Review, 105(4), 492-510.
Lee, M., King, K. W., & Reid, L. N. (2015). Factors Influencing Consumers' Attitudinal and Behavioral Responses to Direct-To-Consumer and Over-the-Counter Drug Advertising. Journal of health communication, 20(4), 431-444.
Major, C., & Vincze, Z. (2010). Consumer habits and interests regarding non-prescription medications in Hungary. Family practice, 27(3), 333-338.
Myers, S. D., Royne, M. B., & Deitz, G. D. (2011). Direct-to-consumer advertising: Exposure, behavior, and policy implications. Journal of Public Policy & Marketing, 30(1), 110-118.
Pujari, N. M., Sachan, A. K., Kumari, P., & Dubey, P. (2016) Study of Consumer’s Pharmaceutical Buying Behavior Towards Prescription and Non-Prescription Drugs. Journal of Medical and Health Research.
Villako, P., Volmer, D., & Raal, A. (2012). Factors influencing purchase of and counselling about prescription and OTC medicines at community pharmacies in Tallinn, Estonia. Acta Pol Pharm, 69(2), 335-340
Widaningrum, D. L. (2015). A GIS-Based Approach for Catchment Area Analysis of Convenience Store. Procedia Computer Science, 72, 511-518.
