Pharmaceutical market in India is about $ 11.1 billion growing at the rate of 17.6% and expected to reach $20 billion (Rs. 88,820 crore) by 2015.India’s pharma market is 13th largest in terms of the value and 4th largest in terms of the volume. Currently only 1%-3% of the pharma retail is in the organized sector. The size of India’s pharmacy retail market is estimated at $4.5 billion, which is dominated by 12-15 big players. There are about 800,000 retail shops serving in India. Pharmacy retail is growing at the rate of 20-25% annually. The organized pharma retail market size has the potential to grow to $9 billion by the year 2012.There are more than 3,500 organized retail pharmacy outlets in India. This is expected to grow nearly three times to 10,000 outlets by end of 2012. In similar fashion we are going to experience changes in pharmacy retail service quality expectation and perception of customer.
There are remarkable changes occurring in the pharma retailing .The will lead to the emergence of the change in service quality, value for the customer. Because quality service is considered as a tool to increase value for the consumer, means of positioning in competitive environment (when most of the companies have opened their own retail), to ensure customer satisfaction and their retention. We also know greater choices and increase in awareness because consumers to be more demanding .So will be employing two tools: Service Quality model and SERVQUAL. Service Quality model diagnoses quality problems in area of expectations and SERVQUAL is to measure perception in the quality provided by the pharmacists to its customers. SERVQUAL is measured by five different determinants that are tangibles, reliability, responsiveness, assurance and empathy. SERVQUAL measures both the expectation and perception of the service on Linker scale of 1 to 7, 22 questions in total. Then, each of the five dimensions is weighted according to customer importance, and the score for each dimension multiplied by the weighting. Following this, the Gap Score for each dimension is calculated by subtracting the Expectation score from the Perception score. A negative Gap score indicates that the actual service (the Perceived score) was less than what was expected (the Expectation score).Quality of Service (QOS) is determined by subtraction of expectation score from perceived score. QOS = Perceived Score - Expected Score This helps to determine the service quality a customer perceives from the retail pharmacies. On the other hand, Service Quality Model deals with five Gaps present in any system. We will fit the model to ensure that Gap 5 exists in the system or not. Such an evaluation can serve as a diagnostic tool that helps the company to monitor, detect any imperfections and most importantly improving the services.
Ho: There is no association between the Quality of service provided in retail pharmacy with customer satisfaction. Its alternative hypothesis:
HA: There is a strong association between the Quality of service provided in retail pharmacy with customer satisfaction. Customer retention
H0: There is no association between the Quality of service provided in retail pharmacy with customer retention. Its alternative hypothesis:
HA: There is a strong association between the Quality of service provided in retail pharmacy with customer retention.
Customer satisfaction and retention
H0: There is no association between the Quality of service provided in retail pharmacy with customer satisfaction and retention. Its alternative hypothesis:
HA: There is a strong association between the Quality of service provided in retail pharmacy with customer satisfaction and retention.
1. To develop a tool to measure Pharmacy Retail Service...