Determinants of Consumer Buying Decision for Pharmaceutical Products: Evidence from Community Pharmacies in Addis Ababa
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Date
2025-01-01
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A.A.U
Abstract
Pharmaceutical products are indispensable in safeguarding public health, yet insights on the
specific factors shaping consumer buying decision in Ethiopia remain insufficient, particularly
concerning prescription-only and over-the-counter medications. This gap is salient in Addis
Ababa, where dispensing practices frequently deviate from established guidelines and consumers
often rely on informal channels. Accordingly, this study investigated key determinants—including
word of mouth, drug availability, country of origin, and price—that influence purchasing decisions
for pharmaceutical products. Drawing on a two-stage sampling approach, a simple random
sample of 279 community pharmacies was selected from a total of 1,024 registered pharmacies in
Addis Ababa. Subsequently, 384 consumer respondents were conveniently sampled from these
pharmacies, yielding quantitative data on sociodemographic attributes, health literacy, and
product-related preferences. A structured survey instrument was administered, and the resulting
data were analyzed via descriptive statistics and a binary logistic regression model. The results
highlight that demographic factor (e.g., age, gender, marital status, education, and income),
product attributes (brand reputation, availability, and perceived price-quality relationship), and
informational sources (word of mouth, online reviews, and health literacy) significantly shape
purchase intentions. Drug availability emerged as the strongest predictor, while other variables—
such as marital status and word of mouth—also substantially impacted the likelihood of purchase.
In response to these findings, the study recommends (i) improving pharmacy accessibility and
supply chain management to address stockouts, (ii) crafting pricing strategies that balance
consumers’ budget constraints with perceptions of quality, and (iii) enhancing public health
literacy and leveraging reputable digital platforms to disseminate accurate pharmaceutical
information. By incorporating these recommendations, stakeholders can foster a more consumeroriented,
equitable, and efficient pharmaceutical market in Addis Ababa, thereby better aligning
the supply of essential medications with local healthcare needs
Key Words: Consumer behavior, Consumer buying decision, Community pharmacy, OTC,
Prescription drugs