Pricing of pharmaceutical products in Ethiopia

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This descriptive study was aimed to uncovering the three important aspects of pricing decisions made by pharmaceutical firms in Ethiopia which are the pricing strategies implemented, the determinant factors that affect the choice of pricing strategies and their relation to the identified pricing strategies. A systematic random sampling was used to administer a survey questionnaire containing three parts. The main strategies that were found to be most widely implemented among the pharmaceutical firms include cost-plus pricing, parity pricing, differential pricing, Low price supplier and penetration pricing. The determinant factors that are most considered in the firms pricing decisions includes cost, company objectives such as profitability, customer features such as order volume. A regression analysis was performed to see the kind of relationship that might exists between the identified most widely used pricing strategies and the factors that are considered in pricing decision. The result of this regression analysis demonstrated that the identified factors have a strong correlation with those pricing strategies that revolves around the factors and also the most common correlation as depicted by other literatures.


A thesis submitted to the Graduate program of the Department of Management College of Business and Economics of Addis Ababa University In partial fulfillment of the requirements for the Degree of Master of Business Administration


Pharmaceutical products