Pricing of pharmaceutical products in Ethiopia
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Date
2020-03
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Publisher
A.A.U
Abstract
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.
Description
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
Keywords
Pharmaceutical products