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Measuring brand loyalty in the pharmaceutical industry of South Africa / Hilde du PlooyDu Plooy, Hilde January 2012 (has links)
Brands are recognised as one of the most valuable assets that a company can
possess and therefore brands are key role-players in the business strategies of
organisations. The rivalry amongst competitors in the pharmaceutical industry is
fierce and companies should design their strategies in such a way in order to
achieve competitive advantage. Brand loyalty is regarded as a powerful tool in the
development of pharmaceutical brands.
The main aim of this study was to measure brand loyalty in the pharmaceutical
industry of South Africa and to establish whether patients are brand loyal to original
pharmaceutical brands and the influence of generics on pharmaceutical brand
loyalty. The measurement of brand loyalty in the pharmaceutical industry is based on
Moolla’s brand loyalty framework for the FMCG (fast moving consumer goods)
industry. This study also aimed to determine whether Moolla’s FMCG brand loyalty
framework is applicable to the pharmaceutical industry. The twelve brand loyalty
influences identified by Moolla are: Customer satisfaction; Switching costs; Brand
trust; Repeat purchase; Involvement; Perceived value; Commitment; Relationship
proneness; Brand affect; Brand relevance; Brand performance and Culture.
The empirical study was conducted among 250 over-the-counter medicine
consumers with different demographic profiles. The methodology included the
sampling procedure, data collection, questionnaire development and statistical
techniques used. Results were analysed with regards to Factor analysis; the Kaiser-
Meyer-Olkin measure of sampling adequacy; Cronbach Alpha coefficients; Bartlett’s
test of sphericity, mean values and effect sizes. The Empirical results through
quantitative analysis included the validity of the research instruments, the calculation
of the reliability coefficients which reported on the significance of the research
variables. The results were presented in a conceptual framework to measure
pharmaceutical brand loyalty.
The results of this study concluded that the brand loyalty influences as identified by
Moolla are important for measuring pharmaceutical brand loyalty. The results of this
study also concluded that patients are indeed brand loyal and do prefer branded pharmaceuticals to generic pharmaceuticals in the over-the-counter medicine
industry of South Africa. The importance of this study is the contribution of a brand
loyalty framework to measure pharmaceutical brand loyalty which will aid
pharmaceutical companies in the strategic management thereof. / Thesis (MBA)--North-West University, Potchefstroom Campus, 2013
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Measuring brand loyalty in the pharmaceutical industry of South Africa / Hilde du PlooyDu Plooy, Hilde January 2012 (has links)
Brands are recognised as one of the most valuable assets that a company can
possess and therefore brands are key role-players in the business strategies of
organisations. The rivalry amongst competitors in the pharmaceutical industry is
fierce and companies should design their strategies in such a way in order to
achieve competitive advantage. Brand loyalty is regarded as a powerful tool in the
development of pharmaceutical brands.
The main aim of this study was to measure brand loyalty in the pharmaceutical
industry of South Africa and to establish whether patients are brand loyal to original
pharmaceutical brands and the influence of generics on pharmaceutical brand
loyalty. The measurement of brand loyalty in the pharmaceutical industry is based on
Moolla’s brand loyalty framework for the FMCG (fast moving consumer goods)
industry. This study also aimed to determine whether Moolla’s FMCG brand loyalty
framework is applicable to the pharmaceutical industry. The twelve brand loyalty
influences identified by Moolla are: Customer satisfaction; Switching costs; Brand
trust; Repeat purchase; Involvement; Perceived value; Commitment; Relationship
proneness; Brand affect; Brand relevance; Brand performance and Culture.
The empirical study was conducted among 250 over-the-counter medicine
consumers with different demographic profiles. The methodology included the
sampling procedure, data collection, questionnaire development and statistical
techniques used. Results were analysed with regards to Factor analysis; the Kaiser-
Meyer-Olkin measure of sampling adequacy; Cronbach Alpha coefficients; Bartlett’s
test of sphericity, mean values and effect sizes. The Empirical results through
quantitative analysis included the validity of the research instruments, the calculation
of the reliability coefficients which reported on the significance of the research
variables. The results were presented in a conceptual framework to measure
pharmaceutical brand loyalty.
The results of this study concluded that the brand loyalty influences as identified by
Moolla are important for measuring pharmaceutical brand loyalty. The results of this
study also concluded that patients are indeed brand loyal and do prefer branded pharmaceuticals to generic pharmaceuticals in the over-the-counter medicine
industry of South Africa. The importance of this study is the contribution of a brand
loyalty framework to measure pharmaceutical brand loyalty which will aid
pharmaceutical companies in the strategic management thereof. / Thesis (MBA)--North-West University, Potchefstroom Campus, 2013
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THE IMPACT OF INDUSTRY GROWTH AND ANTITRUST LITIGATION ON THE IMPORTANCE OF GROSS MARGIN RATEJiang, Ping 05 1900 (has links)
How should managers choose between improvements in revenue and gross margin rate, when both contribute to overall profitability? Many finance managers face this question when balancing their companies’ targets and goals. Prior studies show that companies’ stock returns respond to both metrics, especially when they are consistent with each other, which I replicate in my sample. I predict that the relative strength of responses to revenue and gross margin percentage depends on industry growth. I find that the market’s response to revenue growth is greater in high revenue growth than low revenue growth industries. I also argue that the market responds more positively to gross margin rate changes in low growth industries, but the differences are statistically insignificant.In a second study, I apply the theory to the generic pharmaceutical industry where revenue growth is slower. I expect a higher focus on gross margins or pricing when barriers to entry are lower. The Department of Justice and State Attorney Generals sued generic pharmaceutical companies for violating the antitrust laws and manipulating drug prices (consolidated as the multi-district litigation case 2724), making the industry less attractive. I study the pricing changes around the lawsuits and how they affected the likelihood of generic drug manufacturers staying vs. leaving the industry. I also analyze the disparate impact of the lawsuit on large vs. small and medium manufacturers, as the lawsuits listed many large manufacturers as defendants. / Business Administration/Accounting
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