DETERMINANTS OF BUYER BEHAVIOR IN PURCHASING GENERIC AND BRANDED DRUGS – A STUDY IN ANDHRA PRADESH

Abstract

Understanding customer behavior and the factors influencing the purchasing behavior of generic and branded medicines is the crucial for marketing drugs. This study aimed to examine the influencing factors in customers' decisions to purchase medicines of branded and generic. In this purpose Andhra Pradesh state has taken study area and in which three regions i.e. North Coastal Andhra, South Coastal Andhra and Rayalaseema were selected and from each region one district randomly selected. Thus, from North Coastal Andhra, Srikakulam district, from South Coastal Andhra, West Godavari district and from Rayalaseema Kurnool district were selected for this study. Moreover, this is a quantitative and qualitative study used a self-administered questionnaire to collect data from the respondents. A convenience quota sample of 600 participants was selected randomly from selected three districts. The questionnaire included 6 items on personal characteristics, 10 statements on generic medicine use characteristics, 10 statements each on branded medicine use characteristics, and 9 items on determinants influencing customers' decision to purchasing medicine. A three-step analysis method was used to study the perceptions of respondents on purchasing behavior of medicines, priority based rank analysis and identification of determinants to purchase medicines. Statistical significance was set at p<0.05, with a 95% confidence interval. Linear multiple regressions is best fit to measure the influence of socio-economic variables of buyers on their attitude towards purchase of Generic and Branded drugs. In this model of regression analysis out of the total 9 explanatory variables as many as 7 variables are found to be significant, but two variables i.e. quality of drug and reliability of drug are not significant. The study reveals that price, quantity, discounts and incentives, product availability of medicines and employment status, economic status and family size of the buyers are indicating significant influence on drugs buying behavior.