Consumer Survey on

Perception of E Pharmacies
Contents
Approach & Methodology of the Study...................................................................................3
Objective & Scope 3

Methodology 3

Secondary Research & Research Tool Development 3

Primary Research 3

Demographic Characteristics of Consumer Respondents 4

Analysis of Surveyed Consumers.............................................................................................5

Medicine Buying Behaviour 5

Frequency of Buying Medicine 5

Sources to Buy Medicines 6

Medicines Bought for Chronic Diseases 7

Expenditure on Medicine 7

Perception on Retail Pharmacy 8

Consumers’ Perceptions towards Existing Pharmacies 8

E-Pharmacy 10

E-Pharmacy – Way Ahead 10

Features Attracting Consumers towards E-Pharmacy 11

Perceived Issues in E-Pharmacy 13

Key Highlights........................................................................................................................14

Page | 2
 Approach & Methodology of the Study
Objective & Scope
The study was undertaken to understand the perception of consumers towards ‘E Pharmacy’. It was
done through detailed assessment of feedback from prospective users by conducting a cross country
survey.

Methodology
The study was conducted using secondary as well as an extensive primary survey.

Secondary Research & Research Tool Development

A dedicated research team was deployed to understand the concept of e-pharmacy by studying
several reference materials on the subject. On the basis of information from secondary sources, the
research tool was developed for primary data collection including ‘Semi-Structured Questionnaire’ in
a pre-conceived format. The research tool (questionnaire) developed for the study was administered
on the identified target audiences.

Primary Research
Before starting the main survey, the prepared survey tool was Sample Size
pretested through a pilot field survey. The outcomes of the pilot Type of Respondent Sample
survey were examined properly and necessary changes were made. Consumers 4600
The Final Questionnaire was prepared and online survey was conducted to gather responses.
 Age Profile Gender Profile

554,
555, 56, 1% Below 35 Years
12%
12%
Male
35 to 54 Years

2308, 50%
1681, 37% 55 to 74 Years Female
4046,
88%
75 Years or older

Demographic Characteristics of Consumer Respondents

Consumer respondents from all the age groups have participated in the survey and we can
observe a fair representation across all the age groups. As evident from the chart, around half the
respondents were in the age group of 18 to 34 years. While 37percent of the consumer
respondents surveyed were from the age group of 35 to 54 years. Cumulatively, around 13 percent
of the sample were more than 55 years of age.
It was seen that off all the surveyed respondents, 88 percent were males whereas the remaining 12
percent were females.

With the improved penetration of internet and

Online Shopping/ Banking
Behavior computer/smartphones, in today’s time, internet
based services are increasingly becoming an
763, 17% integral part of people’s lives. Some of the
Yes popular internet based services such as online
shopping and banking have positively influenced
3837, No
the lives of users by making transactions less
83%
cumbersome. Consequently, it was observed that
83 percent of the consumer respondents bank or
shop online.

Considerable shares of the

respondents falling within the age Online Shopping/ Banking Behavior
- Age Wise
groups of below 35 and 55 to 74
years (83 percent each) were into 75 Years or older 75% 25%

online banking and shopping. 55 to 74 Years 83% 17%

Further, around 85 percent of the
35 to 54 Years 85% 15%
respondents in age groups of 35 to
54 years performed such Below 35 Years 83% 17%
transactions. It can be concluded Yes No
here that online shopping or banking is not restricted to any particular age group, especially the
young. Additionally, limitations on physical movement due to old age as well as a continually
increasing number of nuclear families – leading to a rise in elderly population with limited support
from family members - can be responsible for such a huge percentage of online shoppers.

Analysis of Surveyed Consumers

Medicine Buying Behaviour
Frequency of Buying Medicine
The survey findings revealed that a
Frequency of Buying Medicine
considerable share of the respondents tend
to buy medicine either once in a month (46
220, 5%
percent) or once in 15 days (37 percent). 124, 3% Once in 15 days
Some of the respondent consumers reported
439, 9% Once a Month
that they buy medicines as and when needed 1695, 37%
or prescribed by their respective doctors. Once in three Month
Further, it would be required to understand
2122, 46% Once in six Month
the effect of different parameters on the
medicine buying frequency of consumers to Others
get a detailed insight on the same.

Frequency of Buying Medicine

- Age Wise
75 Years or older 25% 57% 5% 11% 2%

55 to 74 Years 30% 57% 8% 3%3%

35 to 54 Years 39% 46% 8% 4% 3%

Below 35 Years 37% 43% 11% 6% 3%

Once in 15 days Once a Month Once in three Month Once in six Month Others

As analyzed, the frequency of buying medicines changed significantly for different age groups. It can
be observed from the chart that instances of buying medicines once in 15 days decreases with
increase in age. On the other hand, instances of buying medicines once in a month increases with
increasing age as far as the sample respondents are concerned. In simple words, with increase in
age, consumers tend to have more planned purchases of medicines.
Sources to Buy Medicines

68% Sources to Buy Medicine

61%

20%

10%

5%

3%
Personally visit Personally order Place orders for Someone else visits Someone else Someone else
medical stores medicines over the medicine over medical stores orders medicines places orders for
internet telephone call over the internet medicine over a
telephone call

While analyzing the medicine buying behavior of sample consumers, it was observed that majority
of them buy medicines on their own. The fact that physical medicine outlets formed the primary
source of medicines was reiterated by the findings, which showed that majority (68 percent) of the
surveyed consumers personally visit medical stores, and about 20 percent of the respondents order
medicines over the telephone from such outlets. However, 61 percent consumers have reported
that they resort to online purchase of medicines.

Sources to Buy Medicines - Age Wise

72%

68%

63%
61%

60%
55%

Personally visit medical

stores
29%

Personally order
23%

medicines over the

15%

internet
Place orders for
medicine over
telephone call
Below 35 Years 35 to 54 Years 55 to 74 Years

As per the responses, personal visits to medical stores was the most adopted mode of purchase
across all age groups except the age group of 55 to 74 years, where the adoption of e-pharmacy (60
percent) is more as compared to other means of buying medicines. On the other hand, as is evident
from the chart, the preference of buying medicines through physical visits to the medical stores
decreases with increase in age. Subsequently, placing orders for medicines over the telephone
increases with increasing age, as indicated by the sample respondents. Also, it was observed that
majority of the elderly respondents are buying their medicines on their own, though it has shown a
decreasing trend with increase in age.
Medicines Bought for Chronic Diseases
On being enquired whether the
Buying Pattern of Medicines for Chronic
Diseases respondent consumers took
medicines for chronic diseases like
BP, Diabetes, Asthma etc., around
1717, 37%
63 percent responded on the
2883, 63% Yes affirmative, whereas the remaining
No 37 percent reported that there
were no such requirements.
Irrespective of their age and other
factors, majority of consumers need to buy medicines for chronic diseases.

People are expected to be more

prone to chronic diseases with Buying Pattern of Medicines for Chronic Diseases
Yes No

14%
age. Evidences of this pattern

31%
48%

can be seen in the chart, wherein

with increase in age, the

86%
69%
frequency of buying medicines
52%

for chronic diseases was found

to increase among the surveyed
consumers. Approximately 86 Below 35 Years 35 to 54 Years 55 to 74 Years
percent of the respondents in the age group of 55 to 74 years have been buying medicines for
chronic diseases.

Expenditure on Medicine
On analyzing the expenditure pattern
Monthly Expenditure Incurred Over
over medicine by the sample
Medicine (In INR)
respondents, it was observed that
185, 4% Less than 1000
majority (39 percent) of the surveyed 49, 1%

consumers reportedly spent between 403, 9% 1001 to 2500

1135, 25%
INR 1001 to 2500 in a month on 2501 to 5000
1027, 22%
medicines, followed by 25 percent and 5001 to 10000
1801, 39%
22 percent spending less than INR
10001 to 20000
1000 and INR 2501 to 5000
More than 20000
respectively. Altogether, the monthly
expenditure incurred over medicine by 86 percent of the respondent consumers is up to INR 5000.
Perception on Retail Pharmacy
Consumers’ Perceptions towards Existing Pharmacies
The respondents were also enquired with a view to understand certain key aspects about their
experiences and perceptions on the services/facilities offered by the existing retail medicine outlets
they regularly buy from.

It is important to assess the aspect of consumers

Need to Visit Multiple
Pharmacies not being able to find all the required medicines
at one particular pharmacy and therefore, having
150, 3%
to go through the inconvenience of visiting
multiple pharmacies. In order to get a view on
2196,
Yes this aspect, the respondent consumers were
2254, 48%
49% No asked about their experience as regards the need
N/A
to visit multiple pharmacies for medicines. In

response, around 48 percent respondents reported that they have to visit multiple pharmacies to
buy medicines.

Pricing is another sensitive issue for customers

and their past experience on it needs to be Difference in Medicine Price
among Pharmacies
analyzed. To ascertain the same, the
196, 4%
respondents were asked if they have been
through occasions where they were charged
different prices for the same medicine at 1313, 29%
Yes
different pharmacies. A significant 67 percent 3091, 67%
No
of the sample indicated towards differences N/A
in prices of medicines at different outlets.

Further, 32 percent of the consumers reported

Availability of Qualified
Pharmacist the unavailability of qualified pharmacists to
601, dispense medicines at pharmacies, whereas
13%
more than half the respondents i.e. around 55
percent were of the opinion that they found
1488, 2511, Yes
32% qualified personnel dispensing medicine at the
55%
No retail outlets they visited.
N/
A

Counselling on areas such as dosage, Counselling on Administration of

administration, side-effects, etc. of Medicines
422,
medicines is an extremely important aspect 9%
to understand the level of service received Yes1306, 28%
No
by buyers at medical stores. Approximately
63 percent respondents reportedly don’t N/A
2872, 63%

Page | 8
get proper counselling about the administration of medicines at their preferred medical stores, as
per the responses.

On assessing the extent of distribution of medicines

Sale of Medicines
without strictly on the production of valid prescriptions by
Prescription the buyers at the counter, it was found that 50
195, 4% percent respondents get medicines without any
prescription as against 46 percent who said that they
Yes do not get medicines or other pharmaceutical
2100, 2305, No products without valid prescriptions. The sale of
46% 50%
N/A medicines without prescription is a market norm
according to half the respondents.

In order to determine if the sale of generic or

over the counter drugs is accompanied by proper Getting Proper Bill for
Medicines
bills with batch numbers and expiry dates of
133, 3%
medicines, the respondents were asked if they
receive the same during purchase of medicines
from the stores they visit. Around 36 percent 1648, Yes
reported that they do not get bills with batch 36%
2819, No
number and expiry date for their purchases, 61%
N/A
while more than 60 percent respondents
reported that they receive the same.

To increase sales and retain customers, some

Home Delivery of
Medicines chemists provide a value added service of taking
orders over phone. In order to determine to what
457, 10% extent was this trend prevalent in the market, the
respondents were asked if they received such
2258, Yes added services. Nearly half the sample reportedly
49% have received such services, whereas 41 percent
1885, No
41%
N/A have never been provided home delivery service
by their respective chemists as per the

responses.

Normally, it is a practice (intentionally or in same composition during the process of

case of unavailability of a particular brand of
medicine) adopted by pharmacists to offer
customers medicines of alternate brands of
similar composition. On asking about such
incidences, 67 percent of the respondents
recalled instances wherein they were offered
with an alternate or substitute brand for the
Page | 9
 Price Difference on
Substitute/Alternative Medicine

Cheape

r 1135, 37% 1292, 42%

Costiler
637, 21%
Of same price

Page | 10
purchase whereas 33 percent could not recall any such offer.

Further, on enquiring about any variations in

Substitute/ Alternative
Medicine offered the price of the alternate brands of medicine
offered by the pharmacist to customers, it was
Yes observed that 42 percent of the sample found
the alternate brands to be cheaper in price,
1536, 33%
37 percent found the alternate brands to be
No
3064, 67% of the same price and only 21 percent
reported that price was on the higher side.
This shows that the most dominant trend in
the market is to provide a cheaper alternative
to consumers.

E-Pharmacy
E-Pharmacy – Way Ahead
The willingness of the target consumers
Considering e-Pharmacy in
Future towards adopting e-pharmacy needs to be
considered to understand its future potential,
458, as it is one of the major growth drivers in
10%
addition to internet penetration,
computer/smartphone penetration,
Yes computer literacy, health consciousness and
4142, 90% purchasing power. On enquiring about the
No
willingness of the buyers towards online

purchase of their medicinal requirements in the near future, it was observed that 90 percent of
the respondents showed such inclination whereas 10 percent were averse.

Respondents across all age groups

had shown receptiveness towards Considering e-Pharmacy in Future - Age Wise
Yes No
the concept of e-pharmacy.
Consumers in the age groups 65 to
70 years and 35 to 44 years have 9% 8%
11%
shown the highest intent to use e-
pharmacy in the future.
91% 92%
Respondents aged below 35 years 89%
(89 percent) have shown the lowest
inclination towards the adoption of Below 35 Years 35 to 54 Years 55 to 74 Years

e-pharmacy in the times to come.

ases
Considering e-Pharmacy in Future
by Patients with Chronic
 The perception of consumers buying
161, 6%
medicines for chronic diseases is expected to
have a significant impact on determining the
acceptance as well as growth of e-pharmacy
in the future. Among such respondents, the
2722, 94% acceptability for e-pharmacy as an important
prospect has been found to be higher, with 94
Yes percent of the respondents currently buying
medicines for chronic diseases showing the
displayed by only 6 percent of the sample. No
inclination to accept e-pharmacy in the
future, reluctance towards the same being

Features Attracting Consumers towards E-Pharmacy

The convenience factor associated with e-
Convenience of Ordering from
pharmacies happens to be one of the major
Mobile Application
determinants for attracting more and more
consumers. Against the routine purchase of
pharmaceutical products from physical 1121, 24%
outlets, the respondents were enquired as to Yes
3479, 76%
how much convenience online purchase of
medicines using a mobile based application No
would potentially bring. Approximately 76
percent respondents agreed that e-pharmacy will be convenient as compared to the existing mode
of purchase they are using.

To find out whether consumers get all

All Required Medicines at
one Store/website required medicines from a single store or
have to go to multiple stores to obtain the
same, the respondents were enquired on
1081, 24% those lines. A majority (76 percent) of the
respondents stated that a single store or
Yes website sufficed their medicinal
3519, 76%
requirements. A small percentage of the
No respondents i.e. 24 percent indicated that
visits to multiple stores for buying
medicines was necessary in their case.
Around 87 percent respondents perceive that
Home Delivery of
home delivery of medicines would be a major Medicines
factor propelling the increase in acceptance of 611,
13%
online shopping of medicines. According to
them, this would be considerably helpful for the
patients/end users as it would reduce their Yes
3989, 87%
dependency on other persons for the purchase
No
of medicine.
L
Better
o
732, w
16%
e
r
3868, 84%

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 eived s dicines. Around Q ci rs. eventuall
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as h 84 percent of u a Around to
one o the respondents a l 26 attracting
of the p are of the E-bill for
li Tracking and Reimbursement consumer
d percent
bigge p opinion that low t e of the s to this
platform.
st i prices, discounts y t respond
1275, 28% A
adva n and savings on o e ents
ntage g purchases would f r 3325, 72%
think p
Yes
s of be a big feature m m that p
switc o that would e i quality No
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Page | 12
onlin m towards e- c n es, i
e e pharmacy. i t which is m
n f a key a
e o aspect t
Around 74
Choice of Delivery s r having e
percent of the Time & Location
o a consider l
respondents
n tt able y
agreed that
Y r ramifica
convenience in
e o a tions on 7
choosing the
s f c the 2
date, time and
N f ti health
location for the
o e n of p
delivery of
r g people, e
orders would
h m would r
improve the
a o be c
acceptability of
p r compro e
e-pharmacy in
p e mised if n
the market,
e a medicin t
leading to more 1213, 26%
n n e is
takers for this
s d 3387, 74%
traded o
value added
t m online. f
service.
o o Howeve
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it
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1182,
o
26% s
74 percent e
f 3418, Yes No c u are of the s
M 74% opinion p
r m
e that quality
di u e of o
ci medicines would not be n
n compromised at e-
pharmacy stores, and will d
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medicines are advantages that consumers will enjoy if they opt for e-pharmacy.

Registration of e-pharmacies with the regulatory

Certification for
Legitimacy authorities like drug control authority would enable the
customers to differentiate among the e-pharmacies.
According to our survey, 69 percent respondents think
1429,
31%
that proper guidelines and certification of e-pharmacy
stores by competent authorities would increase the base
Yes of online medicine shoppers. The remaining 31 percent
3171,
69% No respondents are of the opinion that proper licensing and
certification will not boost the market share of e-

pharmacy.

Perceived Issues in E-Pharmacy

Since the concept of e-pharmacy is still at a nascent stage, customers are expected to face different
problems while placing orders online. These problems may be related to technology, operational
processes or government norms.

Perceived Problems during Online Transaction

45%

43%

22%

13%

11%

10%

Requirement of the Delay in receiving Time consuming Quality issues Inconvenience in Price issues
Prescription the medicines process placing orders

As per the respondents, requirement of valid prescription (45 percent) by the e-pharmacies has
emerged as the major problems perceived while buying medicines online. Other major problem
perceived by consumers was related to delays in delivery of medicines (43 percent) which is
related to the operational efficiency of e-pharmacies in delivering medicines at the door steps of
consumers in time. Further, time consuming processes to place the order for medicines online and
quality issues were indicated by 22 percent and 13 percent of the surveyed consumers respectively.

Page | 13
Key Highlights
 A total of 4600 consumer respondents from all the age groups have participated in the
survey with a fair representation across all the age groups. Around half the respondents
were in the age group of 18 to 34 years.
 Off all the surveyed respondents, 88 percent were males whereas the remaining 12 percent
were females.
 Majority (83 percent) of the consumer respondent’s bank or shop online. Additionally,
online shopping or banking is not restricted to any particular age group, especially the
young.
 A considerable share of the respondents tend to buy medicine either once in a month (46
percent) or once in 15 days (37 percent).
 With increase in age, consumers tend to have more planned purchases of medicines as the
instances of buying medicines once in a month increases (from 43 percent to 57 percent)
with increasing age.
 Majority of the sample consumers buy medicines on their own by personally visiting
medicine outlets (68 percent) and about 20 percent of them ordering medicines over the
telephone from such outlets.
 The preference of buying medicines through physical visits to the medical stores decreases
(from 72 percent to 55 percent) with increase in age. Subsequently, placing orders for
medicines over the telephone (from 15 percent to 29 percent) increases with increasing age.
 Majority (63 percent) of consumers need to buy medicines for chronic diseases and with
increase in age, the frequency of buying medicines for chronic diseases was found to
increase (from 52 percent to 86 percent).
 The monthly expenditure incurred over medicine by 86 percent of the respondent
consumers is up to INR 5000. Off them, 39 percent reportedly spent between INR 1001 to
2500 in a month on medicines.
 Around 48 percent respondents reported that they have to visit multiple pharmacies to buy
medicines.
 A significant 67 percent of the sample have been through occasions where they were
charged different prices for the same medicine at different pharmacies.
 Unavailability of qualified pharmacists to dispense medicines at pharmacies has emerged as
another major issue as reported by 32 percent of the consumers.
 Approximately 63 percent respondents don’t get proper counselling about the
administration of medicines at their preferred medical stores.
 The sale of medicines without prescription seems to be a market norm as reported by half
the respondents.
 Around 36 percent of the sample consumers reported that they do not get bills with batch
number and expiry date for their purchases.
 Approximately 41 percent of the sample consumers don’t get home delivery service by their
respective chemists.
 Majority (67 percent) of the respondents recalled instances wherein they were offered with
an alternate or substitute brand for the same composition during the process of purchase.
Off them, 42 percent found the alternate brands to be cheaper in price and 37 percent
found the alternate brands to be of the same price.
 90 percent of the respondents showed inclination towards online purchase of their
medicinal requirements in the near future. Further, consumers in the age groups 65 to 70
years (92 percent) and 35 to 44 years (91 percent) have shown the highest intent to use e-
pharmacy in the future. Also, 94 percent of the respondents currently buying medicines for
chronic diseases have shown the inclination to accept e-pharmacy in the future.
 Approximately 76 percent respondents think that e-pharmacy will be more convenient as
compared to the existing mode of purchase they are using.
 A majority (76 percent) of the respondents stated that a single store or website would
suffice their medicinal requirements and would be a major benefit for consumers.
 Around 87 percent respondents perceive that home delivery of medicines would be a major
benefit propelling the increase in acceptance of online shopping of medicines.
 Around 84 percent of the respondents are of the opinion that low prices, discounts and
savings on purchases would be a big feature that would attract consumers towards e-
pharmacy.
 Around 74 percent of the respondents agreed that convenience in choosing the time and
location for the delivery of orders would improve the acceptability of e-pharmacy in the
market.
 74 percent are of the opinion that quality of medicines would not be compromised at e-
pharmacy stores, and will eventually be key to attracting consumers to this platform.
 Approximately 72 percent of the respondents perceive that ease of tracking orders,
convenience in cancellation of orders and the option of reimbursement in online purchase of
medicines are advantages that consumers will enjoy if they opt for e-pharmacy.