Effect of Pricing Strategy on the Performance of Pharmaceutical Distributors in Nairobi County, Kenya
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Date
2024
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International Journal of Social Science and Humanities Research
Abstract
The pharmaceutical industry's poor performance can be attributed to the high levels of domestic and
international competition it is subjected to from raw material importers and finished product manufacturers.
Reforms such as generic strategies on performance, standardizing protocols and practices in the pricing and delivery
of pharmaceutical and non-pharmaceutical supplies, and lowering the barriers to entry for pharmaceutical
companies are needed to ensure that Americans have access to low-cost medical products without having to sacrifice
their financial stability. Therefore, pharmaceutical distributors need to strategize ways to increase their edge over
foreign competitors. Therefore, this study seeks to investigate the effect of pricing strategy on the performance of
pharmaceutical distributors in Nairobi County, Kenya. This investigation utilized a descriptive design as its research
strategy. For this study, 45 drug wholesalers from Nairobi County were the subjects. The CEOs, GMs, and
marketing managers of the pharmaceutical distribution corporations made up these distributors. The study's
methodology included polling Nairobi-based drug wholesalers. The study used a structured questionnaire to achieve
this goal. For reliability and content validity, Cronbach's alpha was used. The primary method of data collection for
the study was to conduct interviews with managers. The data was coded and then analysed using SPSS, Version 22.0.
We determined the association between the dependent and independent variables by employing regression and
correlation analysis. The findings indicate a robust relationship between pricing and performance. The study
concludes that implementing an effective pricing strategy can help pharmaceutical distributors in Nairobi County,
Kenya, gain a competitive advantage and increase their market share. The study recommends that the firms should
conduct thorough market research to understand the demand and supply dynamics of pharmaceutical products in
Nairobi County. This includes analyzing the pricing strategies of competitors, identifying customer preferences, and
assessing the purchasing power of different customer segments.
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