A SEMINAR

ON

A COMPARATIVE STUDY ON CONSUMERS

PERCEPTION TOWARDS ONLINE AND OFFLINE
PHARMACY RETAIL STORE

SUBMITTED BY

NAME : ASHNA JAISWAL

COURSE : MCOM ( FIRST YEAR ), SEMESTER II
SUBJECT : SEMINAR ( MCOM 204S )
ROLL NO : 05/1
SESSION : SEPTEMBER 2021

SUBMITTED TO

J.D. BIRLA INSTITUTE

(AFFILIATED TO JADAVPUR UNIVERSITY)
11, LOWER RAWDON STREET
KOLKATA-700020
 ACKNOWLEDGEMENT

The understanding of a study like this is never the outcome of a single person. Rather it
bears the imprint of a number of persons. I would be failing my duty if I don’t say a word
of thanks to all those who have directly or indirectly helped me in completing this
research and help it make an educative & pleasurable one.

I take immense pleasure in thanking our respected principal, Dr. Deepali Singhee for
giving us an opportunity to present the seminar project.

I would further thank Debjyoti De (co-ordinator of M.com), J.D. Birla Institute and the
faculty members of the Department of Commerce, J.D. Birla Institute, without whom this
seminar project would have been a distant reality.

I would also like to thank my family and friends who have constantly motivated me and
supported me in doing this seminar project.

2
TABLE OF CONTENTS

Sl No. Title Page No.

Title page
Acknowledgement
List of figures
List of tables
1. Introduction 8
2. Review of Literature 9 – 10
 Ovaskainen ( 2001 )
 George (2009)
 Anand and Aethi (2010)
 Gruzdet al (2011)
 Rabbanee FK, Burford O and Ramaseshan B (2015)
 Grazia Orizio (2016)
 Priyanka and Ashok (2016)
 Alamelu and Amudha (2016)
3. Aims and Objectives 11
4. Methodology 12
5. Results and Discussions 13-39
5.1 SECTION 1 – Demographic characteristics and buying
behaviour of consumer respondents
Demographic characteristics of consumer respondents
5.1.1 Age Profile 13
5.1.2 Gender Profile 14
5.1.3 Preference of respondents towards online shopping 15
Medicine Buying Behaviour of the surveyed consumers 16
5.1.4 Frequency of buying medicines 17
5.1.5 Different sources preferred to buy medicines 18
5.1.6 Buying pattern of medicine for chronic diseases 20
5.1.7 Monthly expenditure over medicine (INR) 21

3
 5.2 SECTION 2 – E-Pharmacy (Online Pharmacy Retail)
Consumer opinion and perception towards e-pharmacy
5.2.1 Considering e-pharmacy in future 22
Features attracting consumers towards e-pharmacy
5.2.2 Convenience of ordering from mobile application 23
5.2.3 Availability of all medicines at one store/website 24
5.2.4 Home delivery of medicines 25
5.2.5 Availability of better price 26
5.2.6 Choice of Delivery, Time and Location 27
5.2.7 Quality of medicines 28
5.2.8 E-bill tracking and reimbursement 29
5.2.9 Certification for legitimacy 30
Perceived Issues in E-Pharmacy
5.2.10 Problems faced during online transactions 31
5.3 SECTION 3 – Offline Pharmacy Retail
Consumer opinion and perception towards offline pharmacy
5.3.1 Need to visit multiple pharmacies 32
5.3.2 Difference in medicine price among pharmacies 33
5.3.3 Availability of qualified pharmacist 34
5.3.4 Sale of medicines without prescription 35
5.3.5 Getting proper bill for medicines 36
5.3.6 Home delivery of medicines on ordering over call 37
5.3.7 Substitute/ alternative medicine offered 38
5.3.8 Price difference on substitute/alternative medicine 39
6. Summary and Conclusion 40 – 42
6.1 Medicine buying behaviour of consumers 40
6.2 Online vs offline pharmacy retail store 41
6.3 E-pharmacy – a way ahead 42
6.4 Limitations of the study 43
References
Annexure 44 - 49

4
 LIST OF FIGURES

Sl No. Title Page No.

Figure 1 Age Profile of the consumer respondents 13
Figure 2 Gender Profile of the consumer respondents 14
Figure 3 Preference of respondents towards online shopping 15
Figure 4 Frequency of buying medicines 16
Figure 5 Sources to buy medicines 17
Figure 6 Sources to buy medicines – Age Wise 18
Figure 7 Buying pattern of medicines for chronic diseases 20
Figure 8 Monthly expenditure over medicine (INR) 21
Figure 9 Considering e-pharmacy in future 22
Figure 10 Convenience of ordering from mobile application 23
Figure 11 All required medicines at one store/website 24
Figure 12 Home delivery of medicines 25
Figure 13 Availability of better price 26
Figure 14 Choice of Delivery, Time and Location 27
Figure 15 Quality of medicines 28
Figure 16 E-bill tracking and reimbursement 29
Figure 17 Certification of legitimacy 30
Figure 18 Perceived problems during online transactions 31
Figure 19 Need to visit multiple pharmacies 32
Figure 20 Difference in medicine price among pharmacies 33
Figure 21 Availability of qualified pharmacist 34
Figure 22 Sale of medicines without prescription 35
Figure 23 Proper bill for medicines 36
Figure 24 Home delivery of medicines 37
Figure 25 Substitute/ alternative medicine offered 38
Figure 26 Price difference on substitute/alternative medicine 39

5
 LIST OF TABLES

Sl No. Title Page No.

Table 1 Research Methodology 11
Table 2 Age wise online shopping behaviour of the respondents 15
Table 3 Frequency of buying medicines age wise 17
Table 4 Buying pattern of medicines for chronic diseases -age 20
wise

6
 INTRODUCTION

India’s $6 billion domestic pharma retail market is in the midst of change as the old
order is giving way to the new. The crowded, neighborhood medicine stores are being
replaced by swanky, large format pharmacy chains promoted by organized players
that allow shoppers to browse through a vast range of products including not just
medicines, but also body-care products in air-conditioned comfort. The entry of
organized players is changing the face of the pharmacy business, which today is
highly fragmented. There are four major factors that influence buying behaviour
[A] CULTURAL factors include a consumer’s culture, subculture and social class.
These factors are often inherent in our values and decision processes .cultural factor
may have low impact on consumer buying medicine but high on other goods and
services. [B] SOCIAL factors include reference groups, aspirational groups and
member groups, family, roles and status. This explains the outside influences of
others on our purchase decisions either directly or indirectly. Social factor may give
low impact on consumer buying medicine but may give high impact on other goods
and services. [C] PERSONAL may give high impact on consumer buying
medicine .factors include such variables as age and lifecycle stage, occupation,
economic circumstances, lifestyle (activities, interests, opinions and demographics),
personality and self-concept. These may explain why our preferences often change as
our situation' changes. [D] PSYCHOLOGICAL factors affecting our purchase
decision include motivation (Maslow's hierarchy of needs), perception, learning,
beliefs and attitudes. These factors help consumers to develop product and brand
preferences. This factor may have low impact on consumer buying medicine but high
on other goods and services so consumer buying behaviour will be more depend
personal factor than any other factor and to get personal factor questionnaire are very
important tools. Customer personal factor are highly involve while purchasing
medicine from any retail pharmacy.

7
 REVIEW OF LITERATURE

Ovaskainen, (2001) : WHO  is  really  concerned  with internet sales which may
bypass national drug regulatory authorities, allow medical products on to  the
market  which  are unapproved, fraudulent,  unsafe or ineffective.

George , (2009) Studied on internet pharmacies and recommended regulation

approach on global basis. He narrated the incident of selling drugs and medical
services through internet by the online pharmacies. Role, responsibilities and
liabilities of ecommerce at market place and product sellers needs must be clearly
defined.

Anand and Sethi, (2010) : WHO already cautioned about purchasing medicines if
there is no competent rules and regulations available for that because of
endangering public health and risk for individual.

Gruzdet al, (2011) : Nowaday companies sell through website both prescription drugs
as well as other products related to healthcare and buying medicines through online
is a popular phenomenon. However, few rogue stores are available which promotes
illegal medication & unapproved  drugs.

Wiedmann;Klaus-Peter; Hennigs;Nadine; Pankalla,Lars; Kassubek,Martin;

Seegebarth; Barbara;  Reeh, Marc-Oliver, (2014) : Even when consumers have a
positive attitude towards online shopping, these attitudes are not automatically
translated into regular shopping behaviour. The purpose of this paper is to
investigate the relation of consumer-perceived values and risks, online shopping
attitudes and behaviour in the context of online pharmacy shopping. Based on 152
face-to-face-interviews, we provide empirical results for the identification and
segmentation of different types of online shoppers in the high-risk domain of
medication. In sum, referring to our conceptualisation and exploratory empirical
insights, marketing researchers and practitioners might be able to understand why
different groups of consumers do or do not hesitate to shop in online pharmacies.
Based on the link between perceived values and risks and related attitudes towards
online pharmacy usage, our empirically verified principles that attempt to
understand and bridge consumers' individual @ttitude-behaviour gap may serve as a
first step towards forming appropriate strategies.

Rabbanee,F.K., Burford,O. and Ramaseshan,B , (2015) : Stated that employees in

community pharmacies play a far significant and distinct role compared to the
employees in traditional retail stores. The purpose of this paper is to examine the
effects of employee performance (EP) on customer loyalty of pharmacy services. EP
positively affects pharmacy customers’ perceived value (PV), trust and loyalty. PV
and trust fully mediates the relationships between EP and customers’ attitudinal and
behavioural loyalty. Unlike short-term customers, the long-term relational
customers’ PV was found to have significant impact on their trust and behavioural
loyalty.

8
Grazia Orizio, (2016) : Said in his review that online pharmacies are companies that
sell pharmaceutical preparations, including prescription-only drugs, on the Internet.
Very little is known about this phenomenon because many online pharmacies
operate from remote countries, where legal bases and business practices are largely
inaccessible to international research.  Online pharmacies are an important
phenomenon that is continuing to spread, despite partial regulation, due to intrinsic
difficulties linked to the impalpable and evanescent nature of the Web and its global
dimension. To enhance the benefits and minimize the risks of online pharmacies, a
2-level approach could be adopted. The first level should focus on policy, with laws
regulating the phenomenon at an international level. The second level needs to focus
on the individual. This approach should aim to increase health literacy, required for
making appropriate health choices, recognizing risks and making the most of the
multitude of opportunities offered by the world of medicine 2.0.

Priyanka & Ashok , (2016) : The retail Pharma market in India have mainly three
broad segments - branded generic drugs, non-prescription drugs and patented
products. Branded generic drug is the highest contributing segment of the Indian
pharmaceutical sector, with around 70% market share in terms of revenue whereas
non-prescription medicines and patented drugs constitute 21% and 9%, respectively.
Out of that the anti-infective market share is  around 15.17%, followed  by cardiac
drugs market  at 12.47%, gastrointestinal drugs market at 11.75%, vitamins /
minerals / nutrients market at 8.78%, and anti-diabetic market at 8.13% (CDSCO,
2016).

Alamelu & Amudha, (2016) : Increasing internet and smart phone users prove that
India have a bright future of online pharmacy, although this will bring few
challenges with opportunity.

9
 AIMS & OBJECTIVES

With the increasing digitalization, we have seen a shift in the consumers preference
towards online shopping. In the era of going digital, we see there are various pharmacy
stores that have set themselves on an online platform and made it easier for the
consumers.
This study will help us understand the reason(s) and the various aspects that has been
influencing/affecting/impacting the pharmacy sector.

This study is undertaken to:

 Know the medicine buying behaviour of the consumers.
 Understand the consumers perception toward online retail pharmacy (E-
Pharmacy).
 Understand the consumers perception towards offline retail pharmacy stores.
 Understand the likely future of e-pharmacy in India.

10
 METHODOLOGY

The study was conducted using secondary as well as a primary survey.

After understanding the concept of e-pharmacy by studying several reference
materials on the subject, the research tool, a semi-structured questionnaire was
developed for primary data collection, on the basis of information from secondary
sources.

The questionnaire was prepared and was circulated online as well as offline.
Primary Data is used to conduct the research. It helps reach the targeted consumers
and streamlines the research as far as its objectives is concerned. Both qualitative
and quantitative data are collected through the preparation of a questionnaire.
A sample of 92 respondents was collected from across the city of Kolkata.
Statistical tools such as pie charts, bar graphs have been used to represent the
collected data.

RESEARCH METHODOLOGY
Research Type Primary Research
Data Type Qualitative and Quantitative Data
Data Source Questionnaire
Sample Size 92
Respondents People living in and around the city of Kolkata
Period of Study June 2021 – August 2021
Research Questions Close-ended Questions

Table 1: Research Methodology

11
 RESULTS & DISCUSSIONS

The questionnaire was divided into 3 sections. The first one dealt with the
demographics and the general buying behaviour of the consumers with respect to
medicines. Further, one was to understand the consumers opinion and perception
towards offline pharmacy retail stores whereas the other was to know understand their
opinion and perception towards online pharmacy retail store, i.e. e-pharmacy.

5.1 SECTION 1 – Demographic characteristics and buying behaviour

of consumer respondents

 Demographic characteristics of consumer respondents

5.1.1 AGE PROFILE

AGE PROFILE

10 (11%)

Below 35 yrs
35 - 60 yrs
60 yrs or above
35 (38%)
47 (51%)

Figure 1: Age Profile of the consumer respondents

12
5.1.2 GENDER PROFILE

GENDER PROFILE

12 (13%)

MALE
FEMALE

80 (87%)

Figure 2: Gender Profile of the consumer respondents

Inference: 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 from the age group below 35 years.
While 38 percent of the consumer respondents surveyed were from the age group of
35 to 60 years. Around 11 percent of the sample were more than 60 years of age.

It was seen that of all the surveyed respondents, 87 percent were males whereas the
remaining 13 percent were females.

13
5.1.3 PREFERENCE OF RESPONDENTS TOWARDS ONLINE SHOPPING

ONLINE SHOPPING

15 (16%)

YES
NO

77 (84%)

Figure 3: Preference of respondents towards online shopping

Inference: With the improved penetration of internet and computer/smart phones, in

today’s time, internet based services are increasingly becoming an integral part of
people’s lives. Some of the popular internet based services such as online shopping
and banking have positively influenced the lives of users by making transactions less
cumbersome. Consequently, it was observed that 84 percent of the consumer
respondents bank or shop online.

ONLINE SHOPPING AGE WISE

Yes No
Below 35 yrs 90% (54/60) 10% (6/60)

35-60 yrs 92.31% (24/26) 7.69% (2/26)

60 yrs or above 83.34% (5/6) 16.66% (1/6)

Table 2: Age wise online shopping behaviour of the respondents

14
Considerable shares of the respondents falling within the age groups of below 35 and
35-60 years (90 percent each, approximately) were into online banking and shopping.
Further, around 83 percent of the respondents in age groups of above 6o years
performed such transactions. It can be concluded 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.

 Medicine Buying Behaviour of the surveyed consumers

5.1.4 FREQUENCY OF BUYING MEDICINES

FREQUENCY OF BUYING MEDICINES

4 3
(4%)(3%)
Once in 15 days
9 (10%) Once in a month
34 (37%) Once in 3 months
Once in 6 months
Others

42 (46%)

Figure 4: Frequency of buying medicines

Inference: The survey findings revealed that a considerable share of the respondents
tend to buy medicine either once in a month (46 percent) or once in 15 days (37
percent). Some of the respondent consumers reported that they buy medicines as and
when needed or prescribed by their respective doctors.

15
 FREQUENCY OF BUYING MEDICINES AGE WISE
Once in Once in Once in 3 Once in 6 Others
15 days a month months months
Below 35 yrs 37% 43% 11% 6% 3%

35-60 yrs 35% 47% 8% 7% 3%

60 yrs or above 25% 60% 7% 5% 3%

Table 3: Frequency of buying medicines age wise

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.

16
5.1.5 DIFFERENT SOURCES PREFERRED TO BUY MEDICINES

SOURCES TO BUY MEDICINES

80%
68%
60% 61%
40%
20%
0%
SOURCES TO BUY MEDICINES
18%
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to

10%

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So
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Figure 5: Sources to buy medicines

Inference: While analyzing the medicine buying behaviour 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 18 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.

17
 SOURCES TO BUY MEDICINES – AGE WISE
80%

70%

60%

50%
Personally visit medical stores
40% Personally order medicines over
the internet
Place orders for medicine over
30% telephone call

20%

10%

0%
Below 35 Years 35-60 Years 60 Years or above

Figure 6: Sources to buy medicines – Age Wise

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 60 years or above, 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.

18
5.1.6 BUYING PATTERN OF MEDICINE FOR CHRONIC DISEASES

BUYING PATTERN OF MEDICINE FOR

CHRONIC DISEASES

30 (33%)
YES
NO

62 (67%)

Figure 7: Buying pattern of medicines for chronic diseases

Inference: On being enquired whether the respondent consumers took medicines for
chronic diseases like BP, Diabetes, Asthma etc., around 67 percent responded on the
affirmative, whereas the remaining 33 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.

BUYING PATTERN OF MEDICINE FOR CHRONIC

DISEASES – AGE WISE
Yes No
Below 35 yrs 52% (31/60) 48% (29/60)

35-60 yrs 69% (18/26) 31% (8/26)

60 yrs or above 83% (5/6) 16.66% (1/6)

Table 4: Buying pattern of medicine for chronic diseases – age wise

19
People are expected to be more prone to chronic diseases with age. Evidences of this
pattern can be seen in the chart, wherein with increase in age, the frequency of buying
medicines for chronic diseases was found to increase among the surveyed consumers.
Approximately 83 percent of the respondents in the age group of 60 years or above
have been buying medicines for chronic diseases.

5.1.7 MONTHLY EXPENDITURE OVER MEDICINE (INR)

MONTHLY EXPENDITURE OVER

MEDICINE (INR)
4
9 (4%)
Less than 1000
(10%)
1000-2500
23 (25%)
2500-5000
5000-10000
20 (22%) 10000 or above

36 (39%)

Figure 8: Monthly expenditure over medicine (INR)

Inference: On analyzing the expenditure pattern over medicine by the sample

respondents, it was observed that majority (39 percent) of the surveyed consumers
reportedly spent between INR 1000 to 2500 in a month on medicines, followed by 25
percent and 22 percent spending less than INR 1000 and INR 2500 to 5000
respectively. Altogether, the monthly expenditure incurred over medicine by 86
percent of the respondent consumers is up to INR 5000.

20
5.2 SECTION 2 – E-Pharmacy (Online Pharmacy Retail)

 Consumer opinion and perception towards e-pharmacy

5.2.1 CONSIDERING E-PHARMACY IN FUTURE

CONSIDERING E-PHARMACY IN
FUTURE

7 (8%)

YES
NO

85 (92%)

Figure 9: Considering e-pharmacy in future

Inference: The willingness of the target consumers towards adopting e-pharmacy

needs to be considered to understand its future potential, as it is one of the major
growth drivers in addition to internet penetration, computer/smart phone penetration,
computer literacy, health consciousness and purchasing power. On enquiring about
the willingness of the buyers towards online purchase of their medicinal requirements
in the near future, it was observed that 92 percent of the respondents showed such
inclination whereas 8 percent were averse.

21
  Features attracting consumers towards e-pharmacy

5.2.2 CONVENIENCE OF ORDERING FROM MOBILE APPLICATION

CONVENIENCE OF ORDERING FROM

MOBILE APPLICATION

17 (18%)
YES
NO

75 (82%)

Figure 10: Convenience of ordering from mobile application

Inference: The convenience factor associated with e-pharmacies happens to be one of

the major determinants for attracting more and more consumers. Against the routine
purchase of pharmaceutical products from physical outlets, the respondents were
enquired as to how much convenience online purchase of medicines using a mobile
based application would potentially bring. Approximately 82 percent respondents
agreed that e-pharmacy will be convenient as compared to the existing mode of
purchase they are using.

22
5.2.3 AVAILABILITY OF ALL MEDICINES AT ONE STORE/WEBSITE

ALL REQUIRED MEDICINES AT ONE

STORE/WEBSITE

22 (24%) YES
NO

70 (76%)

Figure 11: All required medicines at one store/website

Inference: To find out whether consumers get all required medicines from a single
store or have to go to multiple stores to obtain the same, the respondents were
enquired on those lines. A majority (76 percent) of the respondents stated that a single
store or website sufficed their medicinal requirements. A small percentage of the
respondents i.e. 24 percent indicated that they had to visit multiple stores for buying
medicines in their case.

23
5.2.4 HOME DELIVERY OF MEDICINES

HOME DELIVERY OF MEDICINES

12 (13%)

YES
NO

80 (87%)

Figure 12: Home delivery of medicines

Inference: Around 87 percent respondents perceive that home delivery of medicines

would be a major factor propelling the increase in acceptance of online shopping of
medicines. According to them, this would be considerably helpful for the patients/end
users as it would reduce their dependency on other persons for the purchase of
medicine.

24
5.2.5 AVAILABILITY OF BETTER PRICE

AVAILABILITY OF BETTER PRICE

15 (16%)

YES
NO

77 (84%)

Figure 13: Availability of better price

Inference: Lower prices of products is also perceived as one of the biggest

advantages of switching to 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.

25
5.2.6 CHOICE OF DELIVERY, TIME AND LOCATION

CHOICE OF DELIVERY, TIME AND

LOCATION

24 (26%) YES
NO

68 (74%)

Figure 14: Choice of Delivery, Time and Location

Inference: Around 74 percent of the respondents agreed that convenience in choosing

the date, time and location for the delivery of orders would improve the acceptability
of e-pharmacy in the market, leading to more takers for this value added service.

26
5.2.7 QUALITY OF MEDICINES

QUALITY OF MEDICINES

24 (24%)
YES
NO

68 (74%)

Figure 15: Quality of medicines

Inference: Quality of medicines on offer happens to be a crucial determinant for

attracting more and more consumers. Around 26 percent of the respondents think that
quality of medicines, which is a key aspect having considerable ramifications on the
health of people, would be compromised if medicine is traded online. However, a
majority of the respondents i.e. 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.

27
5.2.8 E-BILL TRACKING AND REIMBURSEMENT

E-BILL TRACKING AND REIM-

BURSEMENT

25 (27%) YES
NO

67 (73%)

Figure 16: E-bill tracking and reimbursement

Inference: Approximately 73 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.

28
5.2.9 CERTIFICATION FOR LEGITIMACY

CERTIFICATION FOR LEGITIMACY

YES
28 (30%)
NO

64 (70%)

Figure 17: Certification of legitimacy

Inference: Registration of e-pharmacies with the regulatory authorities like drug

control authority would enable the customers to differentiate among the e-pharmacies.
According to our survey, 70 percent respondents think that proper guidelines and
certification of e-pharmacy stores by competent authorities would increase the base of
online medicine shoppers. The remaining 30 percent respondents are of the opinion
that proper licensing and certification will not boost the market share of e-pharmacy.

29
  Perceived Issues in E-Pharmacy

5.2.10 PROBLEMS FACED DURING ONLINE TRANSACTIONS

PERCEIVED PROBLEMS DURING

ONLINE TRANSACTIONS
50%
40%
30%
20%
10% PERCEIVED PROBLEMS DUR-
ING ONLINE TRANSACTIONS
0%

s
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on

Pri rs
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Figure 18: Perceived problems during online transactions

Inference: 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. 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.

30
5.3 SECTION 3 – Offline Pharmacy Retail

 Consumer opinion and perception towards offline pharmacy

5.3.1 NEED TO VISIT MULTIPLE PHARMACIES

NEED TO VISIT MULTIPLE PHAR-

MACIES

44 (48%) YES
NO

48 (52%)

Figure 19: Need to visit multiple pharmacies

Inference: It is important to assess the aspect of consumers not being able to find all
the required medicines at one particular pharmacy and therefore, having to go through
the inconvenience of visiting multiple pharmacies. In order to get a view on this
aspect, the respondent consumers were asked about their experience as regards the
need to visit multiple pharmacies for medicines. In response, around 52 percent
respondents reported that they have to visit multiple pharmacies to buy medicines.

31
5.3.2 DIFFERENCE IN MEDICINE PRICE AMONG PHARMACIES

DIFFERENCE IN MEDICINE PRICE

AMONG PHARMACIES

YES
30 (33%) NO

62 (67%)

Figure 20: Difference in medicine price among pharmacies

Inference: Pricing is another sensitive issue for customers and their past experience
on it needs to be analyzed. To ascertain the same, the respondents were asked if they
have been through occasions where they were charged different prices for the same
medicine at different pharmacies. A significant 67 percent of the respondents
indicated towards differences in prices of medicines at different outlets.

32
5.3.3 AVAILABILITY OF QUALIFIED PHARMACIST

AVAILABILITY OF QUALIFIED
PHARMACIST

12 (13%)
YES
NO
IN SOME STORES

30 (33%) 50 (54%)

Figure 21: Availability of qualified pharmacist

Inference: Further, 33 percent of the consumers reported the unavailability of

qualified pharmacists to dispense medicines at pharmacies, whereas more than half
the respondents i.e. around 54 percent were of the opinion that they found qualified
personnel dispensing medicine at the retail outlets they visited.
Counselling on areas such as dosage, administration, side-effects, etc. of medicines is
an extremely important aspect to understand the level of service received by buyers at
medical stores. From the above it can also be inferred that a few respondents don’t get
proper counselling about the administration of medicines at their preferred medical
stores.

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5.3.4 SALE OF MEDICINES WITHOUT PRESCRIPTION

SALE OF MEDICINES WITHOUT

PRESCRIPTION

YES
42 (46%) NO

50 (54%)

Figure 22: Sale of medicines without prescription

Inference: On assessing the extent of distribution of medicines strictly on the

production of valid prescriptions by the buyers at the counter, it was found that 54
percent respondents get medicines without any prescription as against 46 percent who
said that they do not get medicines or other pharmaceutical products without valid
prescriptions. The sale of medicines without prescription is a market norm according
to half the respondents.

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5.3.5 GETTING PROPER BILL FOR MEDICINES

PROPER BILL FOR MEDICINES

32 (35%) YES
NO

60 (65%)

Figure 23: Proper bill for medicines

Inference: In order to determine if the sale of generic or over the counter drugs is
accompanied by proper bills with batch numbers and expiry dates of medicines, the
respondents were asked if they receive the same during purchase of medicines from
the stores they visit. Around 35 percent reported that they do not get bills with batch
number and expiry date for their purchases, while more than 60 percent respondents
reported that they receive the same.

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5.3.6 HOME DELIVERY OF MEDICINES ON ORDERING OVER CALL

HOME DELIVERY OF MEDICINES

9 (10%)

YES
NO
FROM SPECIFIC STORES
45 (49%)
38 (41%)

Figure 24: Home delivery of medicines

Inference: To increase sales and retain customers, some chemists provide a value
added service of taking orders over phone. In order to determine to what extent was
this trend prevalent in the market, the respondents were asked if they received such
added services. Nearly half the sample reportedly have received such services,
whereas 41 percent have never been provided home delivery service by their
respective chemists as per the responses.

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5.3.7 SUBSTITUTE/ ALTERNATIVE MEDICINE OFFERED

SUBSTITUTE/ ALTERNATIVE MEDICINE

OFFERED

YES
31 (34%) NO

61 (66%)

Figure 25: Substitute/ alternative medicine offered

Inference: Normally, it is a practice (intentionally or in 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, 66 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 whereas 34
percent could not recall any such offer.

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5.3.8 PRICE DIFFERENCE ON SUBSTITUTE/ALTERNATIVE MEDICINE

Price Difference on Substitute/Alternative

Medicine

Cheaper
34 (37%) 39 (42%) Costlier
Of same price

19 (21%)

Figure 26: Price difference on substitute/alternative medicine

Inference: Further, on enquiring about any variations in the price of the alternate
brands of medicine offered by the pharmacist to customers, it was observed that 42
percent of the respondents found the alternate brands to be cheaper in price, 37
percent found the alternate brands to be 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.

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 SUMMARY & CONCLUSION

A total of 92 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 35 years. Off all the surveyed respondents,
87 percent were males whereas the remaining 13 percent were females. Majority (84
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.

6.1 MEDICINE BUYING BEHAVIOUR OF CONSUMERS

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 60 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 (67 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 83
percent). The monthly expenditure incurred over medicine by 86 percent of the
respondent consumers is up to INR 5000.

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6.2 ONLINE vs OFFLINE PHARMACY RETAIL STORE
Majority of the respondents reported that they have to visit multiple pharmacies to
buy medicines due to unavailability of medicines in a store or because of the shop
being closed whereas a majority of the respondents stated that a single store or
website would suffice their medicinal requirements and would be a major benefit for
consumers. There have also been instances where individuals were charged different
price for the same medicine at the retail store near them whereas majority of the
respondents are of the opinion that low prices, discounts and savings on purchases are
a big feature that attract consumers towards e-pharmacy.
Unavailability of qualified pharmacists to dispense medicines at pharmacies has
emerged as another major issue as reported by the consumers and respondents don’t
get proper counselling about the administration of medicines at their preferred
medical stores whereas online stores are mostly certified and have quick cross check-
up appointments on placing orders. They also provide with free consultation services.
The sale of medicines without prescription seems to be a market norm as reported by
half the respondents and some of the sample consumers reported that they do not get
bills with batch number and expiry date for their purchases. In case of online
purchase, the sale of medicines without a prescription is a rare case scenario and the
respondents have been provided with proper bills with batch number and expiry date
for their purchases. Home delivery has been another issue of concern. In case of
offline pharmacy, majority of the respondents are not provided with the service of
home delivery where as respondents perceive that the value added services like easy
access to time, date and location along with home delivery of medicines would be a
major benefit propelling the increase in acceptance of online shopping of medicines.
It has also been observed that respondents are likely offered with substitutes of the
medicine and are of usually a cheaper price.

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6.3 E-PHARMACY – A WAY AHEAD
92 percent of the respondents showed inclination towards online purchase of their
medicinal requirements in the near future. While majority of the respondents have
started the practice of ordering online, we see there has been a major rise in it in the
recent times. Further, consumers above the age of 30 have shown the highest intent to
use e-pharmacy in the future. Also, majority of the respondents currently buying
medicines for chronic diseases have shown the inclination to accept e-pharmacy in the
future. Majority of the respondents think that e-pharmacy will be more convenient as
compared to the existing mode of purchase they are using.
Majority 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
and have agreed that convenience in choosing the time and location for the delivery of
orders would improve the acceptability of e-pharmacy in the market. Majority 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. 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.
Thus, it can be inferred that in the near future, e-pharmacy in India is likely to take a
hike over the offline pharmacy retail stores making it more convenient for the
consumers.

6.4 LIMITATIONS OF THE STUDY

 Time Constraints: The research is based on the response collected within a span of
30 days.
 In-sufficient Sample size: The research has been carried out using only 92 sample
responses.
 The use of statistical tools is limited.


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 REFERENCES

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 ANNEXURE
The Questionnaire circulated is hereby attached.

A QUESTIONNAIRE ON CONSUMERS OPINION AND PERCEPTION

TOWARDS ONLINE AND OFFLINE PHARMACY RETAIL STORE

Please fill in all the details and select the required as per your preference.

NAME - _____________________________

SECTION 1
Demographic characteristics
1. AGE -
o Below 35 years
o 35 years – 60 years
o 60 years or above
2. GENDER –
o Male
o Female
3. Do you prefer Online Shopping?
o Yes
o No

Medicine buying behaviour

4. How frequently do you buy medicines?
o Once in 15 days
o Once in a month
o Once in 3 months
o Once in 6 months
o Others
5. What are the different sources used by you to buy medicines?
o Personally visit medical stores

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 o Personally order medicines over the internet
o Place orders for medicine over telephone call
o Someone else visits medical stores

6. Do you buy medicines for chronic diseases like BP, Diabetes, Asthma, etc?
o Yes
o No
7. What is the monthly expenditure incurred by you on medicines?
o Less than 1000
o 1000 to 2500
o 2500 to 5000
o 5000 to 10000
o 10000 or above

SCTION 2
E-Pharmacy (Online Pharmacy Retail)
1. Do you consider e-pharmacy in future?
o Yes
o No
2. Do you think it is convenient to order medicines online using a mobile
application?
o Yes
o No
3. Are all the required medicines available in a single store/website?
o Yes
o No
4. According to you, does home delivery of medicines act as a major factor
propelling the increase in acceptance of online shopping of medicines?
o Yes
o No
5. Can “Availability of Better Prices” be considered as an advantage to switch to
e-pharmacy?

45
 o Yes
o No

6. The acceptability of e-pharmacy increases with the choice of preferred date,

location and time?
o Yes
o No
7. Do you agree to the statement – “Quality of medicines donot decline on
ordering online”?
o Yes
o No
8. E-Bill tracking and reimbursement on cancellation of orders area a plus point
for resorting to e-pharmacy?
o Yes
o No
9. Do you think that proper guidelines and certification of e-pharmacy stores by
competent authorities would increase the base of online medicine shoppers?
o Yes
o No
10. What are the problems faced during online transactions?
o Requirement of the Prescription
o Delay in receiving the medicines
o Time consuming process
o Quality issues
o Inconvenience in placing orders
o Price issues

SECTION 3
Offline Pharmacy Retail
1. Do you need to visit multiple pharmacy retail stores due to unavailability of
medicines in one or any other such issue?
o Yes

46
 o No

2. Do you find a difference in medicine price among pharmacies?

o Yes
o No
3. In your opinion is a qualified pharmacist available at all stores?
o Yes
o No
o In some stores
4. Are you provided with medicines without a valid prescription at the store?
o Yes
o No
5. Do you receive proper bills with batch number and expiry date for your
purchase?
o Yes
o No
6. Are you provided with the value added benefit of home delivery on placing
orders over phone from the retail store?
o Yes
o No
o From specific stores
7. Have you ever been offered with an alternative/substitute of the medicine by
pharmacist at the store?
o Yes
o No
8. What is your opinion on the difference in price of the alternate/substitute
medicines?
o Cheaper
o Costlier
o Of Same Price

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Thank you for sparing your time and helping me with my research paper.

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