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

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

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