Document Type Master's Dissertation Author Rossouw, Handre URN etd-03162010-145746 Document Title The perceived impact of the SA Code of Practice for the marketing of medicines on customer equity in the pharmaceutical industry of South Africa Degree MBA Department Gordon Institute of Business Science Supervisor
Advisor Name Title Mr R Machado Supervisor Keywords
- pharmaceutical industry
Date 2010-03-16 Availability unrestricted Abstract
The SA Code of Practice for the Marketing of Medicines was formulated in an attempt to reduce the cost of medicines, thus ruling out certain marketing practices. This research report investigated what the perceived impact of the Code may be on customer equity in an already volatile industry.
Quantitative, cross-sectional research was undertaken. A pre-tested, selfadministered, e-mail survey based on the regulations of the Code was distributed to key account retail pharmacies of a particular pharmaceutical company in South Africa. Four hypotheses were statistically tested at significance levels of 0,1 %, 1 % and 5 %. Inferences were then drawn based on the quantitative analyses.
The results show that the market is in favour of the “Code-not-condoned” value, brand and relationship equity marketing practices; thus the Code’s impact may be perceived as negative. Pharmaceutical firms should be careful in selecting “Code-condoned” marketing practices, as these may not contribute to customer equity. This aspect adds to the complexity of choosing the correct marketing practices. It is recommended that only those marketing practices not contributing to customer equity should be outlawed by the Code. The indication is that the Code’s impact may reach further than just attempting to drive down the price of medicines; it may also impact the long term value of a pharmaceutical firm.
Copyright © 2008, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria
Please cite as follows:
Rossouw, JH 2008, The perceived impact of the SA Code of Practice for the marketing of medicines on customer equity in the pharmaceutical industry of South Africa, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-03162010-145746/ >
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