An analysis of consumer buying behaviour in retail pharmacies of South Africa

i

An analysis of consumer buying

behaviour in retail pharmacies of South

Africa

IP Carstens

orcid.org

0000-0003-0105-0723

Mini-dissertation submitted in partial fulfilment of the

requirements for the degree

Master of Business

Administration

at the North-West University

Supervisor:

Prof Christo Bisschoff

Graduation May 2018

ii Acknowledgements

I would like to take this opportunity to give special thanks to a few individuals for assisting m e in the com pletion of this m ini-dissertation:

• My lord, Jesus Christ for giving me the strength and discipline to complete this incredible qualification.

• My fantastic wife, Lani Carstens, for the support and understanding she gave m e through the past three years of this qualification.

• My incredible and beautiful daughters Anke and Lexie Carstens for all the special hugs and kisses when I needed it the m ost.

• My study leader and supervisor, Prof Christo Bisschoff for his support and guidance through the com pletion of this m ini-dissertation.

• Prof Annette Combrink for the language and technical editing of this mini-dissertation.

• Mrs Wilma Breytenbach at the statistical consultation services and the Potchefstroom cam pus, NWU for her guidance, tim e and analysis of the data and questionnaire.

• To both sets of parents for assisting our family in the past three years when we needed help watching the children while writing exam s, attending classes or just needing words of encouragem ent.

• My fellow syndicate group members for the great friendship and support over the past three years.

• My employers, Clicks and SPAR for the support and understanding while needing tim e off to com plete this m ini-dissertation and degree.

• To all the respondents that participated voluntarily, but completing the questionnaire.

iii Abstract

The retail pharm acy industry in South Africa has becom e an over-regulated sector after the 2004 inception of the single exit price system enforced by the Departm ent of Health. As a result, all pharm acies both independently and corporate-owned had to change their approach to growth their revenue. Prom otional usage has becom e an integral part of this industry with a specific focus on selling FMCG lines to gain m axim um gross profit from the revenue earned. In this study eight factors were identified all relating to prom otional activities in retail pharm acies in South Africa, each intended to determ ine whether they do in fact im pact on consum er behaviour in the stores. Two sections were used to accurate test the consum er behaviour in the stores. Firstly, attitudes towards a pharm acy that identified three factors nam ely discounts as prom otional tool, in-store prom otional activities and free sam ples and products. They explained a cum ulative variance of 52% and Cronbach Alpha scored above 0.6 for all three. Secondly, behaviour towards prom otional activity found five factors nam ely loyalty program m es and rewards, free gifts as prom otional tools, in-store dem onstrations, discounts and free offerings and prom otional buying behaviour. They can explain a cum ulative variance of 93.07% and four factors achieved Cronbach Alpha scores of above 0.7. These eight factors had high positive and negative correlations and will guide owners and m anagers in retail pharm acies in South Africa which prom otional activities to focus on to m anipulate consum er behaviour to the biggest extent possible.

Key words: Retail pharm acy, prom otional activity, consum er behaviour,

iv Table of Contents

1. CHAPTER 1: ORIENTATION AND PROBLEM STATEMENT ...1

1.1 Introduction ...1

1.2 Background to the study...1

1.3 Problem Statem ent...2

1.4 Research objectives ...4

1.4.1 General objective ...4

1.4.2 Specific objectives...4

1.5 Scope of the study...4

1.6 Research m ethodolody...5

1.6.1 Research approach, research design and research m ethods ...5

1.6.2 Research subjects...6

1.6.3 Sam pling and sample size ...6

1.6.4 Sam pling instrum ents ...7

1.6.5 Research procedure and approvals ...7

1.6.6 Statistical analysis ...7

1.6.7 Ethical considerations...8

1.7 Value-added and limitations ...8

1.8 Chapter division and layout of the study ...8

1.9 Chapter summary ...9

2. CHAPTER TWO: LITERATURE STUDY ... 10

2.1 Introduction ... 10

2.2 Marketing Priciples and Authority in Pharm acy ... 10

2.2.1 Offer and acceptance ... 12

2.2.2 Advertisem ent of price and price tickets ... 12

2.2.3 Puffing, warranties and misrepresentation ... 12

2.2.4 Bait m arketing ... 12

2.2.5 Inertia selling, negative option m arketing and unsolicited goods ... 13

2.3 Prom otional activities in term s of the Consum er Protection Act in South Africa 14 2.4 prom otional activity... 14

2.5 Types of prom otional activity currently in use ... 14

2.6 The Elements of Marketing Communication Mix ... 2019

2.7 Consum er behaviour... 2221

2.7.1 Models of consum er behaviour ... 2322

2.7.2 Internal factors influencing the decision-making process ... 2524

2.7.3 External factors affecting the decision-m aking process ... 2625

2.8 Chapter Summ ary ... 2726

3. CHAPTER 3: EMPIRICAL RESEARCH METHODOLOGY ... 2827

3.1 Introduction ... 2827

3.2 SCOPE OF THE Study and Perm issions ... 2827

3.3 Research approach ... 2928

3.3.1 Research design... 2928

3.3.2 Choice of research m ethodology ... 2928

3.3.3 Em pirical study ... 3130

3.3.4 Population and sample ... 3231

3.4 Statistical analysis ... 3433

3.4.1 Methods used ... 3433

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4. CHAPTER 4: EMPIRICAL RESULTS AND FINDINGS... 4140

4.1 Introduction ... 4140

4.2 Dem ographic PROFILE ... 4140

4.3 Factor Identification ... 4544

4.3.1 Kaiser-Meyer-Olkin Test of sam pling adequacy ... 4544

4.3.2 Factors identified in section C: Attitudes towards pharm acy... 4645

4.3.1 Factors identified in Section D: behaviour towards prom otional activities 4948 4.3.2 Correlations ... 5352

4.4 Chapter summary ... 5857

5. CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS ... 5958

5.1 Introduction ... 5958

5.2 Reseach OBJECTIVES ADDRESSED ... 5958

5.2.1 Research objective 1: ... 6059 5.2.2 Research objective 2: ... 6059 5.2.3 Research objective 3: ... 6160 5.2.4 Research objective 4: ... 6160 5.2.5 Research objective 5: ... 6261 5.2.6 Research objective 6: ... 6362 5.3 Conclusions ... 6362 5.4 Recommentations... 6463

5.5 Recommendations for future reseach ... 6564

5.6 Limitations... 6564 5.7 Summary ... 6665 6. LIST OF REFERENCES ... 6766 7. APPENDICES... 7473 7.1 Ethical Clearance... 7473 7.2 Questionnaire ... 7574

vi List of Figures

Figure 1: The role of m arketing communication in the m arketing m ix ... 2120

Figure 2: 4 Ps of m arketing... 2221

Figure 3: Engel, Blackwell and Miniard's consum er behaviour model ... 2524

Figure 4: Gender ... 4140

Figure 5: Age... 4241

Figure 6: Educational level ... 4241

Figure 7: Em ploym ent information... 4342

Figure 8: Incom e inform ation... 4342

Figure 9: Language ... 4443

Figure 10: People included in the basket ... 4443

Figure 11: Num ber of different loyalty cards used ... 4544

Figure 12: Pharm acies consumers shop in the m ost ... 6160

Figure 13: Pharm acies consumers prefer to shop in... 6261

vii List of Tables

Table 1: Qualitative versus quantitative research ... 3029

Table 2: Data collection steps ... 3332

Table 3: Keiser's measure of sam ple adequacy ... 3534

Table 4: Section C factors identified ... 3635

Table 5: Section C factor groupings ... 3736

Table 6: Section D factors identified ... 3736

Table 7: Section D factor groupings ... 3938

Table 9: Factors identitied for attitudes towards pharmacies... 4645

Table 10: Factor C1 discounts used as a prom otional tool ... 4746

Table 11: Factor C2 in-store prom otional activities ... 4847

Table 12: Factor C3 free sam ples and products ... 4847

Table 13: Factors identified in behaviour towards prom otional activity ... 4948

Table 14: Factor D1 loyalty programm es and rewards ... 5049

Table 15: Factor D2 free gifts as promotional tools ... 5150

Table 16: Factor D3 in-store dem onstrations ... 5251

Table 17: Factor D4 discounts and free offerings ... 5251

Table 18: Factor D5 prom otional buying behaviour... 5352

Table 19: Pearson Correlation Coefficients ... 5554

viii List of Abbreviations

Abbreviation Description

CPA Consum er Protection Act

DOH National Departm ent of Health

FMCG Fast Moving Consumer Goods

KMO Kaiser-Meyer Olkin

GP Gross Profit

MCA Marketing Code Authority

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1. CHAPTER 1: ORIENTATION AND PROBLEM

STATEMENT

1.1 INTRODUCTION

Prom otional activity is surely the m ost im portant variant in any retail business today. Retail pharm acy in South Africa has becom e an over-regulated industry and with this in m ind the pricing com petition in the sector is a significant factor for all retail ers. Corporate pharm acy chains with group buying power are taking over the industry from a fast-m oving consum er goods (FMCG) point of view, thus putting the independently owned pharm acies at serious risk. This study aim s to identify which prom otional activity has the m ost im pact on consum er buying behaviour to try and assist independent retailers with a better strategic approach on how they should approach their respective prom otional planning.

1.2 BACKGROUND TO THE STUDY

Retail pharm acy in South Africa is divided into m any different retail chains each with its own advantages and disadvantages. The two m arket leaders in term s of corporate pharm acies are Clicks and Dischem , each of which contributes to roughly 19% of the m arket share.

Independent, non-corporate pharm acy chains which include m ostly franchisees such as Link Pharm acy, AlphaPharm , The Local Choice and Pharm acy@SPAR contribute to 17% m arket share. All of these chains offer their franchisees the opportunity to be owner-operated and in doing so rem ain a business owner, but also have the benefit own group buying, discounts and m edical aid preferred provider services. There are still independent pharm acies in South Africa trading with their individual nam es and that are not part of any chains.

These options each aim s to find the correct balance between sales and profit. With regulated gross profit (GP) m argins and governm ent-prescribed single-exit prices (SEP) it is extrem ely difficult for m ost pharm acies to rem ain profitable without clever and consistent prom otional activity.

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Prom otional activity form s the bas is for any revenue drive and the aim of this study is to determ ine which prom otional activity has an im pact on consum er behaviour. This will then indicate where retail pharm acies in South Africa should focus their prom otional strategies to gain m axim um revenue.

1.3 PROBLEM STATEM ENT

In this study the im pact of prom otional activity on consum er behaviour will be m easured in retail pharm acies. The result of the study will then guide pharm acy retailer where to focus future retail pharm acy prom otional strategies.

There are num erous pharm acy chains in South Africa and the study will be aim ed at consum ers using all retail chains which will include corporate chains and independent pharm acies.

The m anagement of m any pharm acies com es with various requirem ents by the South African Pharm acy Council (SAPC). In South African Pharm acy, all pharm acists are registered with the South African Pharm acy Council (SAPC). The SAPC governs the profession by enforcing dispensing rules and guidelines. The m entioned rules are clear in the Good Pharm acy Practice (GPP) Manual (Office of the Registrar, 2010), Pharm acy Act 53 of 1975 Masango (2015) and the Medicines and Related Substances Act 101 of 1965 Tshabala-Msim ang (2010).

According to the GPP m anual the following rules are applicable when prescribing m edication Office of the Registrar (2010):

• Schedule 1 and 2 medicines can be dispensed without a prescription to custom ers by a pharm acist, pharm acist assistant and pharm acist intern. • Schedule 3 and 4 medicines can be dispensed when a prescription is provided

by the patient by a pharm acist, pharm acist assistant and pharm acist intern. • Schedule 5 medication can only be dispensed when an original prescription is

provided by the patient by a pharm acist, pharm acist ass istant and pharm acist intern.

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• Schedule 6 medication can only be dispensed on an original prescription not older than 30 days and only enough m edication can be provided for a 30-day period. This can only be done by a pharm acist and a pharm acist intern.

• These transactions and prescriptions need to be recorded and filed on the prem ises where the sale took place for a period of five years.

These are just a few dispensing requirem ents governing South African pharm acies. Each pharm acy has a registered responsible pharm acist with the SAPC and they are consistently audited to ensure that their respective pharm acies com ply with the rules and regulations as set by the SAPC.

The financial state of the business is another variable that needs to be considered. Medicine pricing in South Africa has been regulated by the governm ent and each product m ust adhere to the single exit price (SEP) set of this specific item . No distributor can sell the item s above the determ ined SEP. Pharm acies are only allowed to charge m ark-ups on the m edicine acquired within the boundaries set by the Departm ent of Health. The Minister of Health published a new draft set of dispensing fees in June 2009. These include, Grey (2009): Where the SEP was less than R100, the dispensing fee would not exceed R6 plus 36% of the SEP. For an SEP between R100 and R250, the dispensing fee would be R32 plus 10% of the SEP. For a SEP between R250 and R1000, the dispensing fee would be R45 plus 5% of the SEP. For a SEP of R1000 and m ore, the dispensing fee would be R65 plus 3% of the SEP. All these fees would include value-added tax (Gray, 2009).

The current requirem ent is that the m entioned prices are the benchm ark for a m axim um mark-up, but pharm acies can charge lower prices. Currently large corporate pharm acy chains charge the m inimum prices allowed, thus creating a scenario where the rem aining private independent pharm acies cannot keep their doors open unless they increase their prices closer to the m axim um allowed values. By doing this the independent pharm acies create a big price variance which the consum er m ust pay m ore if using their store. This is where the various franchise m odels provide assistance to the independent pharm acy business owners and where the specific m odel provided to the owner focuses on im proved buying and distribution so that the independent pharm acies could be price-com petitive.

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All of these regulations need to be considered when determ ining an array of m arketing and prom otional activity in the specific s tore.

A custom er satisfaction survey will also have to be conducted to determ ine whether the custom er was in fact triggered to buy the specific item s because of the prom otional activity.

1.4 RESEARCH OBJECTIVES

The aim of this study was to investigate the im pact of prom otional activity in pharm acies on revenue and custom er behaviour when m easuring the specific prom otional ranges or item s.

1.4.2 Specific objectives

The specific objectives of the current study were to:

1. Determ ine whether custom er satisfaction surveys indicate that the customer’s buying habits are affected by the prom otional activity.

2. Determ ine the types of prom otional activities preferred and used by the consum er.

3. Determ ine whether prom otional activity encourages consum ers to buy m ore. 4. Determ ine whether consum ers prefer to buy at specific pharm acy groups that

have increased prom otional activity.

5. Determ ine whether consum ers in pharm acies prefer loyalty program m es. 6. Draw conclusions and m ake recom mendations regarding buying behaviour to

m anagements of pharm acies.

The scope of the study is briefly outlined below.

1.5 SCOPE OF THE STUDY

This study involves principles of prom otional activity. The im portance of the study could be instrum ental in planning for future prom otional strategies taking into consideration the current success or failure of existing cam paigns.

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The study prim arily focuses on the consum ers of the various chains of com munity pharm acies in South Africa. The South African com m unity pharm acy industry is unique and has significant challenges, and with clear guidance with regards to prom otional strategy and revenue growth there could be a significant gain in profitability if done correctly. The focus is on the actions followed by consum ers in the various retail pharm acies in South Africa to determ ine which prom otional activities are m ore likely to increase revenue for the item s on prom otion.

The planned research m ethods are briefly outlined below.

1.6 RESEARCH M ETHODOLODY

In this section, the planned research m ethodology for conducting the study is outlined in two phases nam ely the literature review and the em pirical research study. Then in m ore detail the research approach, research design, sam pling technique and sample size are discussed as well. Finally, the research m ethods and m easuring instruments are described.

1.6.1 Research approach, research design and research methods

1.6.1.1 Phase 1: Literature review and sources

A detailed literature review was done on the pharm aceutical industry, prom otional m ethods and activity, governing of m arketing in retail, consum er behaviour and general im pact of prom otional activity on revenue. The consulted sources included:

1. Books and chapters in books, 2. Journal articles,

3. Dissertations, and 4. Internet sources.

Literature used for the research topic was accum ulated through using the internet with specific use of library searches of scientific journals on the theory and focusing on the South African context. The Google Scholar and EbscoHost facility available for use on the North-West University Library website was used to research references to various sources that included journals, books, chapters in books and previous dissertations.

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Som e of the applications utilised in EbscoHost included the Academ ic Search Prem ier, Business Search Prem ier, eBook Collection, E-Journals, Health Source – Consumer Edition and International Pharm aceutical Abstracts. While using this tool appropriate keywords were searched for, and advanced search filters were applied.

1.6.1.2 Phase 2: Em pirical study

For the purposes of the em pirical study a quantitative approach was used. The results are presented in num erical form at. Data was collected using an online survey to consum ers in the various pharm acy chains. The prim ary data was processed statistically to obtain results for interpretation. Descriptive statistics are presented in this study. The data analysis was exploratory. Survey questionnaires were tested for reliability.

1.6.2 Research subjects

1.6.2.1 Characteristics of study population and eligibility criteria

The target population involved the public with specific focus on consum ers shopping in the various retail pharm acies in South Africa.

Male and fem ale subjects older than 18 years of age of any race voluntarily participated in the survey.

Only surveys that were fully com pleted were included in the study.

1.6.3 Sampling and sample size

A convenience, non-probability sam pling approach was taken in the various pharm acy chains in South Africa for this exploratory study. This was done to ensure that respondents are consum ers in the pharm acy chains. This study could serve as a pilot study for further research in the pharm aceutical sector that could be m ore structured and targeted at a specific pharm acy group.

The target population (N) for this exploratory study was all consum ers in retail pharm acies in South Africa. Survey questionnaires were distributed as an online survey across the various retail pharm acy chains’ management as well as on social

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m edia using the Linked-In platform . There was no specific geographical area considered and the execution of the study was planned for August 2017.

1.6.4 Sampling instruments

The questionnaires were based on previous research done on prom otional activities in the retail sector. Industry knowledge from the researcher was applied in m ore detail to ensure that all avenues were tested in the South African retail pharm acy context. The survey was structured to test:

1. Basic dem ographic inform ation.

2. The consum ption of pharm acy. This was done to test the prevalence of visits to pharm acies and the com munication received.

3. The attitude towards prom otional activities. This was done to test the preference of shopping patterns.

4. The behaviours towards prom otional activities. This was done to determ ine what the consum er prefers with regards to prom otions in pharm acies.

1.6.5 Research procedure and approvals

This research project was subm itted to the Ethics Com mittee of the North-West University to consider for acceptance and approval. Approval was gained from the m anagements of the various pharm acy chains to distribute the survey in their stores. The Ethics Com mittee of the North-West University approved the research project with project num ber EMSPBS17/03/06-01/32.

The online survey using the Google Form s platform collected the data on an Excel spreadsheet.

1.6.6 Statistical analysis

The prim ary data was captured on an excel spreadsheet as recorded by the Google Form s platform . The data was then coded to allow statistical analysis and was tested for reliability. The data was then summarized, and descriptive statistics applied and

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displayed graphically. Factor analysis was done to determ ine com m on relationships between the various questions.

The statistical m ethods are detailed in Chapter 3.

1.6.7 Ethical considerations

The researcher is aware of plagiarism and understands the consequences of a transgression.

The research project was subm itted to the Ethics Com mittee of the North-West University for approval and on approval (project num ber EMSPBS17/03/06-01/32) the questionnaires were distributed to the potential respondents. The researcher is com m itted to ethical and scientifically sound research.

The researcher is fam iliar with the principles of Good Pharm acy Practi ce as well as pharm aceutical m arketing principles and guidelines. The respondents were informed that com pleting the survey was voluntary and that no details were recorded and therefore the study would rem ain anonym ous. Respondents were inform ed that the survey was intended for academ ic purposes only.

1.7 VALUE-ADDED AND LIM ITATIONS

Lim itations to the study were in the num ber of respondents. Custom ers of the various pharm acy chains were reluctant to com plete the survey and therefore the sam ple size was sm aller than initially anticipated. The data was exam ined for relationships and trends and com pared to the theory.

Revenue gains from previous and current prom otional activities are not freely available and the various pharm acy chains were not willing to disclose their respective revenue growth num bers.

1.8 CHAPTER DIVISION AND LAYOUT OF THE STUDY

Chapter 1: Orientation and problem statem ent Chapter 2: Literature review

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Chapter 3: Em pirical research m ethodology Chapter 4: Em pirical results and findings Chapter 5: Conclusions and recom mendations

1.9 CHAPTER SUM MARY

Chapter 1 provides the background to the study, the problem statem ent, the research objectives, the scope of the study, the research m ethodology and the value added as well as the lim itations.

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2. CHAPTER TWO: LITERATURE STUDY

2.1 INTRODUCTION

The purpose of the literature review is to create a clear understanding of customer behaviour and the various factors that historically im pact on buying habits and patterns. This study aim s to focus m ainly on the im pact of prom otional activities and m arketing on custom er behaviour in retail pharm acies and ultim ately the im pact on revenue once com pleted.

Retail pharm acy is an extrem ely regulated profession and due to the various restrictions put on this profession such as Single Exit Pricing (SEP) and restricted advertising of scheduled m edication, retail pharm acies find it very challenging to grow revenue and profitability. In the Medicines and Related Substance Control Act 101 of 1965, Tsabalala-Msim ang (2010) states that no person shall advertise any m edicine or scheduled substance for sale unless such advertisem ent com plies with prescribed requirements. Medicine is defined in the Act as “any substance or mixture of substances used or purporting to be suitable for use or m anufactured or sold in use of the diagnosis, treatm ent, m itigation, m odification or prevention of disease, abnormal physical or m ental state or the sym ptom s thereof in m an; or restoring, correcting or m odifying any som atic or psychic or organic function in m an and includes veterinary medicine” (Tsabalala-Msimang, 2010). In South Africa, the advertising of medicines from schedule 0 to schedule 1 is perm itted to the general public but the advertising of m edicines from schedule 2 to schedule 6 is not allowed under the Medicines Act and regulations (Marketing Code Steering Com mittee, 2008).

These regulations create an environm ent in retail pharm acies where only fast-m oving consum er goods (FMCG) and schedule 0 and schedule 1 m edication is perm itted to be advertised. Therefore, prom otional m aterial is limited to these item s.

2.2 M ARKETING PRICIPLES AND AUTHORITY IN PHARM ACY

The pharm aceutical health industry has agreed to incorporate the Marketing Code Authority (MCA) into the extrem ely regulated environm ent to ensure that fair and consistent principles are applied through the whole industry.

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Section 18C of the Medicines Act 101 of 1965 em powers the Minister, after consultation with the pharm aceutical industry and other stakeholders, to m ake regulations relating to the m arketing of m edicines, scheduled substances, m edical devices, including an enforceable Code of Practice, Marketing Cope Authority (2014). The com panies in the healthcare industry have agreed to subscribe to a code of practice for the m arketing of health products in South Africa based on the princi ple of self-regulation as set out in this Code. The enforcem ent of the Code will be entrusted to the MCA, Marketing Code Authority (2014).

It is vital to ensure that healthcare professionals and the public have access to the basic inform ation they need, that they have access to the health products they need and that health products are used and prescribed in such a way that will give the patients m axim um healthcare benefits. The ethical prom otion of m edicine, scheduled substances and m edical devices plays a m ajor role in this process and it m ust be regulated and adhered to. When m arketers in the pharm aceutical industry plan their cam paigns, they m ust m aintain high ethical standards and they m ust com ply with the applicable legal, regulatory and professional requirem ents. If the Code is followed it will ensure ethical prom otional practices are used when m arketers, dispensers, prescribers and users of health products both plan and execute prom otional activities (Marketing Code Authority, 2014).

The National Departm ent of Health (DOH) and the pharm aceutical industry are com m itted and responsible for providing the patient with affordable and quality healthcare in all of South Africa and while doing so m ust ensure that accurate inform ation on healthcare products is provided as part of the healthcare service. The health product trade associations have incorporated and adopted the MCA Code to show the industry’s commitment to the marketing of health products to both the public and healthcare professionals. While doing so they have also com mitted to ensure that m arketing is carried out in a responsible, professional and ethical m anner as prescribed by the MCA Code (Marketing Code Authority, 2014).

There are som e principles that could be deem ed unlawful if not followed and executed correctly while engaging in m arketing activities (Barnard and Scott, 2015):

12 2.2.1 Offer and acceptance

Com mon law in South Africa states that for the conclusion of a valid contract it must consist of a valid offer and a valid acceptance. It is , however, generally accepted that advertisem ents are not regarded as legally binding offers, but rather only an invitation to do business. Considering this in South Africa, the buyer m akes the offer and the contract com es into existence only once the offer has been accepted by the buyer (Barnard and Scott, 2015:3).

2.2.2 Advertisement of price and price tickets

Case law in South Africa argues that a price ticket should in general be treated as an offer and that any difficulties surrounding the specific price ticket should be covered by reading the appropriate tacit term s displayed on the price ticket (Barnard and Scott, 2015:3).

When considering the self-service environm ent in South African com munity pharm acy stores the offer and acceptance take place when the custom er tenders the price to the cashier and when the custom er takes the item off the shelf even while the price is m arked on the shelf. Nonetheless, deliberate advertising of the false price would be considered harm ful advertising in term s of the Consum er Protection Act.

2.2.3 Puffing, warranties and misrepresentation

A warranty refers to a statem ent m ade before or at the tim e of entering into a contract. Failure to com ply with the warranty is considered as a breach of the contract terms and in this case the consum er would be entitled to dam ages. A puff is sales talk where no reasonable person would consider it to be a serious statem ent and is not as a general rule seen as actionable. The statem ent is, however, not a puff when a representation turns into a credible statem ent and m ust be a statem ent of fact and not opinion (Barnard and Scott, 2015:4).

2.2.4 Bait marketing

This form of m arketing is also referred to as a ‘bait-and-switch’ tactic and is in many countries considered to be a type of deceptive advertising. This happens when a

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business or supplier m arkets a cheaper product to lure consum ers to the store but has no intention to sell the product at that price. When the consum er is in the store a m ore expensive alternative is presented to the consum er. The growth of the internet has significantly increased this form of m arketing and due to the platform used it is often difficult to conclusively prove that bait m arketing occurred. Bait m arketing is now prim arily governed by the Consum er Protection Act (CPA).

2.2.5 Inertia selling, negative option marketing and unsolicited goods

This is when a suppler supplies goods or services to a consum er without the consumer even having requested them . The supplier then relies on the inertia of the consumer to enforce the paym ent. Negative option m arketing is when the supplier m akes the offer to the consum er on the presum ption that an agreem ent will autom atically come into existence unless the consum er denies the offer m ade. The supply of unsolicited goods happens when prom otional activities for goods and services are m arketed or supplied to consum ers by platform s like door-to-door sales or em ail without prior request or consent by the consum er without arranging paym ent before. The general rule applied for this is that silence does not m ean consent (Barnard and Scott, 2015:4). For all prom otional cam paigns, there m ust be a clear understanding that the process m ust follow all ethical guidelines and m ust com ply with the MCA Code. Only once this is in place can the prom otional cam paigns be presented for execution in stores.

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2.3 PROM OTIONAL ACTIVITIES IN TERM S OF THE CONSUMER

PROTECTION ACT IN SOUTH AFRICA

Prom otional activities are described by Barnard and Scott (2015:5) as activities carried out by a supplier or provider to prom ote its product, service or brand. It also includes advertising or m arketing using platform s like television, radio and websites, personal sales which include a platform like door-to-door sales or prom otion products, services and brands by using newspapers, m edia or spons oring events. With this in m ind, the end goal of any prom otional activity is to increase the sales of goods and services as well as im proving brand awareness am ong consumers.

2.4 PROM OTIONAL ACTIVITY

What is prom otional activity? This is such a lose term that is easily used in daily routines and rhythm s.

Prom otional activity has m any explanations and various views are found when researching the topic. The m arketing guru Phillip Kotler defines marketing as “the science and art of exploring, creating, and delivering value to satisfy the needs of a target m arket at a profit. Marketing identifies unfulfilled needs and desires. It defines m easures and quantifies the size of the identified m arket and the profit potential. It pinpoints which segments the com pany is capable of serving best and its designs and promotes the appropriate products and services” (Cohen, 2011). Therefore, prom otional activity is essential to all consum ers and retail pharm acy is no exception.

2.5 TYPES OF PROM OTIONAL ACTIVITY CURRENTLY IN USE

The retail environm ent requires prom otional strategies that are focused on the specific consum er targeted and it is vital that the platform used is the correct path to the desired consum er. Digital prom otions are giving the m ore traditional retailers like pharm acies a run for their m oney and these traditional businesses then rely on customers physically visiting their stores for services offered and they need to ensure that their prom otional activities are value-adding and have the best chance of not only attracting custom ers, but rather keeping them as long-term shoppers. Marsan (2017) wrote an

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article about popular prom otions but with a specific focus on current successful ventures as used by various proven leaders.

Current prom otional activities used by successful com panies and leaders are briefly described below, Marsan (2017):

Offer delivery specials

The online offering for m ost corporate retail stores in South Africa is a m ajor threat to all pharm acy business - this includes corporate and independent retail pharm acies. Existing pharm acies m ust up their gam e to ensure that they rem ain com petitive. A great offering to use is delivery prom otions which will alleviate any concern a customer m ight have on getting their purchases hom e. This service will add value to the retai ler operation and will com bat the risk of losing custom ers to an online retailer or a local com petitor who does offer a delivery service (Marsan, 2017).

Optimize promotions online for local searches

Retail pharm acies that rely on foot traffic cannot survive by word of m outh and need to ensure that their custom ers can search for products and services in their area even without physically being in the store. With the help of localized digital m arketing the store can appear on top of online searches. It is im portant to ensure that location details, photos, directions and operating hours are included on a dedicated web and Facebook page (Marsan, 2017).

Further to this, according to Waters (2017), the use of local newspapers, trade journals and other publications should be used as well in conjunction with the online portals.

Offer customers discounts or coupons

In an article by Wong (2015) it is discussed that consum ers who buy som ething for the first tim e from an unfam iliar brand are intim idated when buying som ething for the first tim e at full price without having any personal experience with the item . When these item s are discounted, or a coupon or voucher is presented, the buyer’s attitude can be changed.

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Introduce promotional pricing for the consumers

According to Kahn (2016) there are a few popular prom otional pricing principles that can be used in the store:

• Markdowns mean that prices are reduced over a wide range of products for all custom ers. This is norm ally effective when backed up with advertising cam paigns.

• Loss leaders can be used when you know that certain products are in demand. These products are then sold at a steep discount to draw custom ers into the store. It is also a great tool to sell overstocked item s while increasing foot traffic. • Bundle pricing is a great way to create the perception of value for consumers.

Buy-one-get-one-free or three-for-two deals is a great tactic to m ake customers feel that they are getting m ore than what they are paying for.

Reward your customers with a loyalty programme

Rewards program m es are a com m on occurrence in retail stores and pharm acies are no exception in South Africa. Custom ers using a loyalty program m e are likely to return to the store twice as often. Rewards system s can be introduced and m anaged in various ways but once this is in place custom ers should return frequently (Marsan,2015). Loyalty can be exponentially increased with the addition of applications suitable for sm art phones. Kahn (2016) explains that the consum er can feel the sense of loyalty to a store that offers the convenience of a sm art phone application.

Target reviewers to gain traffic and reviews

For any new business, it is key to generate foot traffic and a good review from a key personality will boost any start. It will also drive traffic through the door and prepare the custom er for the fact that he/she will have a good experience (Marsan, 2017).

Take your show on the road

Som e retail stores do not have good trading locations, and this cannot be changed easily. For all stores raising awareness in a com munity is essential and the creation

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of a roadshow that can be taken and displayed at events, conventions and health days can m ake a significant different in generating foot traffic to the store (Marsan, 2017).

Offer the consumer free sampling

Wong (2015) holds the view that sam ple items do not cost m uch to produce, yet they are a m ajor contributor to additional revenue for retailers both online and offline. In a case where brands offer a risk-free proposition to custom ers, they could like the offering and could be im pressed by the use of the product and future sales can be generated as a result.

Bulk up your seasonal merchandising

Make sure that specially decorated seasonal and holiday displays are created to prom ote services and products throughout the year. These m ust be changed regularly as well to m ix it up and continue to create excitem ent. Make use of last-m inute displays at the counter and checkouts that also change m onthly (Marsan, 2017).

Start a blog to support your in-store products and specials

An estim ated 60% to 90% of in-store purchases are currently being influenced by online prom otions, so it is vital that stores like pharm acies run online prom otions to target m ore custom ers and drive foot traffic into their stores. The start of a blog where current and active prom otions are advertised can gain m ore exposure. This will reach a wider audience than norm al in-store prom otions and could add additional item s not advertised in store (Marsan, 2017).

Use technology to optimize your store’s layout and displays

The look and feel of a retail store is changing frequently and stores with older operating m odels will be surpassed by newer, m ore m odern concepts. Exam ples of technology available include the use of beacons in trolleys to track custom er m ovem ents to determ ine hot and cold zones. Retail data analytics and m odern inventory program m es will allow stores to m anage inventory in m ore detail and with real -time effect. Real-tim e inventory m anagem ent also allows for m ore detailed loss and shrinkage prevention m anagement (Marsan, 2017).

19 Have a strong online presence

Even though online presence is something commonly used by m ost businesses today it is still vital to continue using em ail and social m edia for continuous prom otions. Collect people’s email addresses so that you can offer them vouchers and discounts to com e back at a later stage (Marsan, 2017).

Partner with other local retailers

Partnering with other retailers in a centre could create awareness in the com m unity. Use the im age of keeping your friends close but your enem ies closer and pull together for local events and traditions, even if it is supporting the local school or celebrating a seasonal holiday (Marsan, 2017).

Use Point-of-Purchase (POP) displays

Kahn (2016) discusses some of the POP displays in use:

• Speed bumps are when items are strategically placed along the path to the checkout to entice im pulse buying.

• Dump bins are bins full of products also strategically placed in the store to get the consumer to “dig in” and find items that they would like while waiting to pay. • Free samples are again included as a great tool and will build demand for any

new products recently added to the store.

Use customer surveys to host a raffle

Creating a survey for custom ers could be a great way to add value to the store and whoever com pletes it will be entered to win prizes like exclusive discounts. This will create brand loyalty an also generate additional revenue. When discounts are provided people are likely to spend m ore m oney to safe for the future. Additionally, the survey will help the retailer to learn m ore about the store and the target m arket (Marsan, 2017).

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Host an event that addresses consumer scepticisms

Use a big event to ensure that the com munity the store trades in has no scepticism. In this event custom ers can be encouraged to bring products from com petitors and prices can be com pared, local experts and businesses can be invited to test samples of products, raffles can be run for free products and local newspapers can be invited for m axim um exposure and reviews. Then each of the attendees can be given vouchers for their return purchases -- this is som ething that online business cannot do, and the pharm acy retailer can grow their business in this way (Marsan, 2017).

Host a charitable drive in your store

Many charitable events can inspire the com munity you serve to participate and support the store, exam ples like a blanket drive can prom ote the spirit of giving where discounts are offered to each custom er who donates a blanket. By doing this, custom ers are drawn into the store and feet will increase while supporting a good cause (Marsan, 2017).

2.6 THE ELEM ENTS OF M ARKETING COMMUNICATION M IX

Marketing strategies are m ade up of various options and som e of these include advertising, public relations and publicity, personal selling and sales prom otion. All of these are targeted at a specific m arket and the com bination of these elem ents is called the m arketing com munication m ix and they are aim ed at m eeting the needs of this target m arket (Lam b et al., 2015:382).

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Figure 1: The role of marketing communication in the marketing mix

Source: Lam b et al. (2015:382) .

Marketing can broadly be described as the set of steps used to deliver value that can be rem embered by custom ers and can create a relationship with these custom ers as well as providing and generating benefits to the organization (Arm strong and Kotler, 2011:136). The m arketing m ix has a significant im pact on a business and in a study done by Bay et al. (2008) they confirm ed that when an organization applies the m arketing m ix to their business strategy, it will assist in increasing the sales and profit for the organization. The four elem ents of the m arketing m ix, nam ely price, product, place and prom otion are seen as controllable tools that will help significantly to refle ct the customer’s satisfaction (Shankar & Chin, 2011:269). Once the elements are all understood clearly the business providers will be able to influence potential and current custom ers to continue doing business but m ore im portantly becom e loyal custom ers (Wahab et al., 2016:369).

The m arketing m ix is seen as the m ost fundam ental concept that has to be clearly understood before an effective m arketing strategy can be developed. The m arketing

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m ix factors include product, place, price and prom otion and they all have significant im pact on purchasing decisions as per Azzadina et al. (2012:354).

Figure 2: 4 Ps of marketing

Source: Azzandina et al. (2012:354)

The m arketing m ix can be broken down into two im portant benefits (Londhe,2014:337). It is a vital tool used to highlight that the marketing manager’s job is a m atter of trading off the benefits of the com petitive strengths in the m arketing mix against the benefits of others.

1. It will help to reveal another dimension of the marketing manager’s job where they m ust allocate resources m ade available am ong various dem ands and com petitive devices of the m arketing m ix.

2.7 CONSUMER BEHAVIOUR

“The consumer, so it is said, is the king…each is a voter who uses his money as votes to get the things done that he wants done” (Samuelson, 2000:274). When reading this quote it is clear that the consum er is truly the king of the econom y and all m arketing decisions should be based on the behaviour of the consum er.

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In order to create value for the consum er and profit for the organization the m arketer needs to understand why consum ers behave in a certain way to a variety of products and services offered (Bray, 2008).

Consum er behaviour can be described as the behaviour that consum ers display in searching for, using, evaluating and disposing of products and services that they expect will satisfy their needs , according to Schiffm an and Kanuk (2004:56).

The consum er dictates the m arket with the behaviour trends that are used daily by all consum ers. Without these behaviours and trends no institution or organization would be able to predict or forecast consum er patterns or decisions. If the m arketer truly understands the behavioural trends of the consum er, the organization should be able to predict what decision the consum er will m ake.

2.7.1 Models of consumer behaviour

A m odel of consum er behaviour is described in Berm an and Evans (2001:168) as anything used to represent all or part of the variables of buying behaviour. These m odels indicate the structure of consum er behaviour and buying behaviour and how the decision-making process represents it.

2.7.1.1 Econom ic, sociological and inform ation processing models

There are various m odels explained in the literature, but Cosser and Du Toit (2002:47) explain how students in grade 12 m ake a choice on which higher education m edium they will attend by considering these m odels which are relevant to this study.

Economic models focus on the individual characteristics of consum ers and are based

on the concept that consum ers m aximise value by doing a cost-benefit analysis. There are various costs considered when m aking this decision like the cost of tuition fees, textbooks, cost of living and leaving friends and fam ily behind. These are weighed up against benefits like attending an institution with an im proved social life, high quality of sport program m es or better career opportunities , say Cosser and Du Toit (2002:48).

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Sociological models will influence student choice and they refer to fam ily,

background, academ ic ability, significant others, educational aspirations and m otivation to succeed, according to Cosser and Du Toit (2002:48).

Information processing models are a com bination of the above m entioned two

models and will include economic and social factors that influence a student’s decision-making process (Cosser and Du Toit, 2002:48).

2.7.1.2 The Engel, Blackwell and Miniard Consum er Behaviour Model

This m odel of consum er behaviour provides a com prehensive discussion of the possible influences of consum er behaviour and the im pact of these influences on the different stages of decision-making.

According to Berm an and Evans (2001:165) the Engel, Blackwell and Miniard m odel of consum er behaviour is m ade up of two different parts: five steps, which m ake up the process itself and the internal and external factors that will influence the process.

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Figure 3: Engel, Blackwell and Miniard's consumer behaviour model

Source: Hawkins et al. (2004:172)

2.7.2 Internal factors influencing the decision-making process

Demographics are described as the consumer’s personal information such as

gender, race and age.

Perception is described by Arnould et al. (2004:77) as a process by which people

select, interpret and organize sensory s tim uli into a m eaningful coherent picture for exam ple how students view a brand, service product, institution or degree in this scenario.

Learning is described by Schiffm an and Kanuk (2004:102) as the process by which

individuals acquire purchase and consum ption knowledge and experiences they apply to future related behaviour.

Motivation is explained by Arnould et al. (2004:77) as an internal stim ulus like hunger,

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how they interpret local content, m acro-environm ental factors and social networks within their own personal history, values and circum s tances.

Personality is described by Arnould et al. (2004:78) as the distinctive patterns of

thought, em otions and behaviour that will characterize each of the individual’s adaptations to the specific situations of his life. It will guide and direct the consumer’s behaviour.

Emotions are described by Peter and Olson (2005:217) as the strong relatively

uncontrollable feelings that affect general behaviour. These feelings occur when the environment, events or the consumer’s mental processes trigger physiological changes.

Attitudes are described by Peter and Olson (2005:217) as a process by which the

consum er elects inform ation in the environm ent to interpret and is seen as the point at which the consum er becom es conscious or aware of certain stim uli.

Lifestyle is described by Peter and Olson (2005:218) as the m anner in which people

conduct their lives, activities, opinions and interests.

2.7.3 External factors affecting the decision-making process

Culture is adaptive, dynam ic and patterned blueprints for action and interpretation that

enable a person to operate in a m anner acceptable to other m em bers of the culture, according to Arnould et al. (2004:78). It is also a study of all aspects of society.

Social class is the division of m em bers of a society into a hierarchy of distinct status

classes so that m embers of each class have relatively the sam e status and m embers of all classes have either m ore or less status , Schiffm an and Kanuk (2004:102). According to Peter and Olson (2005:218) social class is very im portant to organizations because people of different classes have different behavioural tendencies.

Reference groups can be described as groups whose presum ed perspectives,

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perspectives, attitudes or behaviour (Arnould et al., 2004:79). Exam ples are groups of friends, fam ilies, peers, teachers and other influential people.

Family is one of the reference groups with the m ost influence on decision-m aking. It

is the first group to which a person belongs to and usually m aintains the longest affiliation with them .

Marketing mix is im portant in persuading the consum ers to buy or use an

organization’s product (Schiffman and Kanuk, 2004:103). Institutions can influence students’ decision-making processes by making them aware of their needs, supplying inform ation and convincing them to purchase and use their service products. This is all done through the m arketing m ix and can include: price, prom otions, service product, place, process, people and physical evidence.

2.8 CHAPTER SUM MARY

Chapter 2 provides a literature study of the research project with specific focus on prom otional activity, consum er behaviour and the m arketing com m unication mix.

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3. CHAPTER 3: EMPIRICAL RESEARCH METHODOLOGY

3.1 INTRODUCTION

Chapter two discussed the basis of prom otions, m arketing com m unication and consum er behaviour in detail and this literature survey form s the building block of this study.

According to Bell and Brym an (2014:34) a research m ethod is broadly defined as a technique for collecting data. This process can involve specific instrum ents that can include various form s of application like a self-com pletion questionnaire, structured interview, structured interview schedule or participant observation where the researcher observes others. Additional m ethods that could be used are focus groups, observations, interpretations of docum ents and secondary data and internet research m ethods.

For this study an availability survey was used in both online and hard copy form at in an attem pt to answer the research questions. They were distributed am ongst retail pharm acy shoppers in South Africa. Survey research is com monly m ade up of a cross-sectional design to collect data by questionnaire or by structured interview on m ore than one case at a single point in tim e. This is done to collect data in quantitative or quantifiable form in connection with two or m ore variables which are then exam ined and processed to determ ine patterns of association, according to Bell and Brym an (2014:35).

In Chapter 3 an attem pt is m ade to present and explain in detail the reason for the suitability of the applied research design and m ethodology. The survey used for the collection of the data and the data analysis is discussed in detail.

This research paper is aim ed at adding value to the current knowledge on prom otional activity in retail pharm acies within the South African Retail Pharm acy sector.

3.2 SCOPE OF THE STUDY AND PERM ISSIONS

The em pirical investigation was lim ited to the South African Retail Pharm acy consum ers and focussed on consumers’ preferences with regard to promotional

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activity when shopping in retail pharm acies. Perm ission was received from the Head of Pharm acy of one of the retail pharm acy chains and the online survey was distributed am ongst their stores. Further to this , hardcopy surveys were distributed to m any other retail pharm acy groups for com pletion. The research respondents m ainly com prised retail pharm acy shoppers.

3.3 RESEARCH APPROACH

Research design is m ade up of various fram eworks used to collect and analyse data, Bell and Breym an (2014:78). The chosen design should enable the researcher to answer the research questions or hypothesis. The research design is seen as the fram ework developed to generate evidence that is suited to the set of criteria and the researcher’s research question. The set of criteria can include the reliability, replication, validity, trustworthiness and authenticity of the data.

There are five research designs and their variations , say Bell and Brym an (2014:81): 1. Experim ental and related designs such as quasi-experim ental,

2. Cross-sectional design which is the m ost common design used in the form of a social survey,

3. Longitudinal design and its various form s such as the panel study and the cohort study,

4. Case study design and 5. Com parative design.

For this research paper a cross -sectional method was followed with a social survey done in the form of an availability survey.

3.3.2 Choice of research methodology

There are various differences between the two types of research and som e of them are outlined below:

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Table 1: Qualitative versus quantitative research

Criteria Qualitative research Quantitative research

Purpose To understand and interpret

social interactions.

To test and hypothesize, look at cause and effect and m ake predictions.

Group studied Sm aller and not random ly selected.

Larger and random ly selected.

Variables Study of the whole, not

variables.

Specific variables studied.

Type of data

collected

Words, im ages or objects. Num bers and statistics.

Form of data collected

Qualitative data such as

open-ended responses,

interviews, participant observations, field notes and reflections.

Quantitative data based on precise m easurements using structured and validated data-collection instrum ents.

Type of data

analysis

Identify patterns features and them es.

Identify statistical relationships.

Objectivity and subjectivity

Subjectivity is expected. Objectivity is critical.

The Role of the researcher

Researchers and their biases m ay be known to participants in the study and participants characteristics m ay be known to the researcher.

Researchers and their biases are not known to the participants in the study and the participant characteristics are deliberately hidden from the researcher.

Results Particular or specialized

findings that are less generalizable.

Generalizable findings that can be applied to other populations.

Scientific m ethod Exploratory or bottom -up: the researcher generates a

Confirm atory or top-down: the researcher tests the hypotheses and theory with the data.

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new hypothesis and theory from the data collected. View of human

behaviour

Dynam ic, situational, social and personal.

Regular and predictable.

Most common

research objectives

Explore, discover and construct.

Describe, explain and predict.

Focus Wide-angle lens; exam ines

the breadth and depth of phenom ena.

Narrow-angle lens; tests a specific hypothesis.

Nature of

observation

Study behaviour in a natural environm ent.

Study behaviour under

controlled conditions; isolate causal effects.

Nature of reality Multiple realities; subjective. Single reality; objective.

Final report Narrative report with

contextual description and direct quotations from the research participants.

Statistical report with

correlations, com parisons of

m eans and statistical

significances of findings. Source: Johnson and Christensen (2008)

Quantitative research aim s to conduct a study where the relationship between one thing (an independent variable) and another (a dependent variable) within a population can be determ ined (Labaree, 2016). For this study quantitative research was considered the appropriate m ethod.

3.3.3 Empirical study

The research for this study followed a quantitative approach. This was done to create a survey that would test consum er behaviour in retail pharm acies in South Africa and in doing so elaborate on the current understanding of buying behaviours in the stores .

32 3.3.4 Population and sample

The research was conducted am ong consumers shopping in the various South African retail pharm acies. The sam ple size was based on the num bers of random responses received. The target population included consum ers of different ages, races, level of incom e, size of fam ily and preference of retail pharm acies.

3.3.4.1 The sam pling m ethod

For this study non-probability sam pling was used. Non-probability sam pling is defined by Bell and Brym an (2014:96) as a sam ple that has not been selected using a random selection m ethod. This im plies that som e units in the population are m ore likely to be selected than others.

A convenience sam pling approach was used for this study due to the researcher working in the retail pharm aceutical field and is well-known by m any the retail pharm acy chains. Convenience sam pling is used when the sam ple is available to the researcher by virtue of its accessibility, say Bell and Brym an (2014:96).

3.3.4.2 Techniques for data collection

There are various data-collection techniques available for use. Som e of them include, according to Chaleunvong (2009):

• Using available information, • Observing,

• Interviewing (face-to-face),

• Administering written questionnaires and • Focus group discussions.

For any collection process to be successful a sim ple logic needs to be applied to the process by using various steps outlined by JSI Inc. (2008):

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Table 2: Data-collection steps

Step 1 Identify and define the data elem ents: What data do you need to collect? Step 2 Identify the data sources: Where can you find the data you need?

Step 3 Data collection: How will you collect the data you need?

Step 4 Validation and data quality procedure: How do you know the data you get is good and will accurately reflect what you are trying to m easure?

Step 5 Data reporting: Who do you report it to, and how do you report the data you have?

Step 6 Com municating about the data: How do you use the data you have? Step 7 Using the data: How do you use the data you have to m ake

recom m endations?

3.3.4.3 The m easuring instruments

This study requires the use of a questionnaire as the preferred m ethod of collecting data, as by doing so it will enable the researcher to determ ine correlations between the various factors identified using factor analysis.

The survey was created to obtain inform ation from the respondents that included dem ographical inform ation and purchasing preferences in retail pharm acies in South Africa. The survey was designed to test four sections:

1. Part A: Dem ographic Data,

2. Part B: The consum ption of pharm acy, 3. Part C: The attitudes towards pharm acy and 4. Part D: Behaviour towards prom otional activity.

The survey was created using Google Form s and was distributed via em ail to various pharm acy chain m anagements for approval and distribution. The respondents included consum ers of varying dem ographics and shoppers from all the pharm acy chains.

The data was collected using the Google Form s application and reworked into a Likert scale for statistical analysis. The questionnaire had various different form s of questions, but the data intended for the Likert scale was designed on a five-point scale.

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This five-point scale gave the respondents five options to choose from for each question or statem ent:

• Strongly agree with a score of 1; • Agree with a score of 2;

• Neutral with a score of 3; • Disagree with a score of 4 and • Strongly disagree with a score of 5.

Sullivan and Artino (2013) write that Likert scales are frequently used in research to determ ine the outcom e of assessments. Developed by Rensis Likert in 1932 to m easure attitudes, it is norm ally used in a five- or seven-point ordinal scale where respondents rate the degree to which they agree or disagree with a given statem ent.

3.4 STATISTICAL ANALYSIS

The statistical analysis of the research data was done with the assistance of the statistical departm ent of the North-West University. The supervisor and statistical advisor agreed on the various statistical applications applied for this study. The interpretations and recom mendations were done using the results from the analysis done.

A Likert scale was used to group all data in categories and all responses were placed in tabular form .

3.4.1 Methods used

3.4.1.1 Descriptive statistics

Descriptive statistics were used in this study to illustrate the various traits of the population. It is m ostly used to describe the basic features of data like the sum mary statistics for scale variables and m easures of data, according to McHugh and Hudson-Barr (2003:113). In research studies where large am ounts of data are used, these types of statistics will help to m anage the data and can be presented in a sum mary table, says McPherson (2001:72).

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Descriptive statistics cannot clearly be found in either quantitative or qualitative research, and in m ost cases, utilize elem ents of both m ethods often within the same study. The term refers to a num ber criteria-like research questions, design and data analysis that will be applied to the chosen topic. Descriptive statistics are used to tell the reader what was studied while inferential statistics on the other hand try to determ ine cause and effect (AECT, 2001).

3.4.1.2 Kaiser’s measure of sample adequacy (MSA)

To determine whether a factor analysis may be appropriate, Kaiser’s measure of sam ple adequacy (MSA), which gives an indication of the inter correlations am ong variables, should be com puted. This index ranges from 0 to 1, reaching 1 when each variable is perfectly predicted by the other variables , say Hair et al. (1998:136). The m easure can be interpreted with the following guidelines :

Table 3: Keiser's measure of sample adequacy

0.80 m eritorious

0.70 m iddling

0.60 m ediocre

0 50 m iserable

< 0.50 unacceptable Source: Hair et al. (1998:136).

3.4.1.3 Factor analysis

This tool is useful when variable relationships for com plex concepts are investigated and it allows researchers to investigate concepts that are not easily m easured, says Rahn (2017). This tool also operates on the notion that m easurable and observable variables can be reduced to a sm aller num ber of variables that share a common variance and are unobservable. These unobservable factors are not directly m easured but are essentially hypothetical constructs that will be used to represent the variable tested, according to Yong and Pearce (2013:81).