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Abstract
This article introduces the development of the online pharmacies in China and analyzes the marketing mix
strategies of product, price, place and promotion, which are widely implemented by online pharmacies
(n 44) in China. The perception and acceptance of consumers toward marketing mix of online pharmacies
in China by software SPSS 13.0 is also surveyed in this study. Lastly this article builds a marketing mix model
of online pharmacies and derives seven common factors from the 37 marketing mix factors, namely, personal
sales and service, payment method channel, price, sales promotion, OTC drugs and health foods, non-drugs
and advertising.
Keywords
Online pharmacies, marketing mix, exploratory factor analysis
Sundry Items 19
Fertility Products 36
Sexual Products 44
Medical Devices 43
Health Foods 43
Western Medicines 44
0 5 10 15 20 25 30 35 40 45 50
Coupon 13
Group purchase 10
Membership benefit 35
Discount 44
0 5 10 15 20 25 30 35 40 45 50
Price strategies of the 44 qualified online 44 qualified online pharmacies offer hotline, 33
pharmacies. In total, 44 qualified online pharmacies offer online service, 5 offer online pharmacists,
offer discount, 35 offer membership benefits, 10 offer 11 offer online message, 24 offer health information,
group purchases and 13 offer coupons. Figure 2 shows 25 offer free delivery, 44 offer free returns; 32 offer
the price strategies of 44 qualified online pharmacies. sales list, 44 offer hot-sale recommendation, 32 offer
new product recommendation, 34 offer brand monop-
Place strategies of the 44 qualified online oly; 44 offer animated advertising and 27 offer related
pharmacies. In all, 43 qualified online pharmacies websites recommendation. Figure 4 shows the promo-
allow online payment, 38 allow bank deposits, tion strategies of the 44 qualified online pharmacies.
12 allow postal remittances, 37 allow cash on delivery,
17 allow cash-and-carry and 6 allow deposit payment. Research methods and questionnaire
Figure 3 shows the place strategies of 44 qualified
design
online pharmacies.
The preceding discussion shows the statistics and ana-
Promotion strategies of the 44 qualified online lysis of marketing mix of the 44 qualified online phar-
pharmacies. Personal selling and service, sales pro- macies in China. A questionnaire was designed to
motion and advertising were concerned. About explore the consumers acceptance for the elements
Su et al. 95
Deposit payment 6
Cash-and-carry 17
Cash on Delivery 37
Postal Remittances 12
Bank Deposits 38
Online Payment 43
0 5 10 15 20 25 30 35 40 45 50
Animated advertising 44
Brand monopoly 34
Hot-sale recommendation 44
Sales list 32
Free returns 44
Free delivery 25
Health information 24
Online message 11
Online pharmacists 5
of the marketing mix of online pharmacies which are First, the acceptance of consumers for the elements
widely used by the 44 qualified online pharmacies of product (A1 to A11) includes western medicine
from the consumers perspective. Then an exploratory (prescription drugs), Chinese traditional medicine
factor analysis was done to build a marketing mix (prescription drugs), western medicine (OTC drugs),
model of online pharmacies. Chinese traditional medicine (OTC drugs), prepared
The questionnaire was based on 5-point Likert slices of Chinese crude drugs, medical devices, health
scale ranging from Agree to Disagree. The ques- foods, cosmetics and toiletries, sexual products, fertil-
tionnaire included two main sections. One was the ity products, and sundry items.
consumer survey, whose purpose was to find out the Second, the acceptance of consumers for the elem-
consumers Internet experiences, the situation of ents of price (B1 to B6) includes discount, member-
online shopping and online drug purchases. The ship benefit, group purchase, and coupon.
other was the elements survey, whose purpose was to Third, the acceptance of consumers for the elem-
find out the consumers acceptance for the marketing ents of place (C1 to C8), includes online payment,
mix of online pharmacies. bank deposits, postal remittances, cash on delivery,
96 Journal of Medical Marketing 13(2)
cash-and-carry, deposit payment, phone card pay- Table 1. Demographic characteristics of the respondents,
ments and insurance card payment. N 393
Fourth, the acceptance of consumers for the elem- 1. Internet experience
ents of the promotion (D1 to F3) includes personal Less than 1 year 5%
selling and service, sales promotion and advertising. 1 to 2 year 7%
Personal selling and service includes hotline, online 3 to 4 year 53%
service, online pharmacists, online physicians, More than 5 year 35%
online message, email consultation, health informa-
2. Online shopping experience
tion, free delivery, and free returns. Sales promotion Never 8%
includes sales list, hot-sale recommendation, new
Occasional 64%
products recommendation, brand monopoly, and
Often 28%
gifts presentation. Advertising includes animated
advertising, email marketing, and related websites 3. Whether have visited any qualified online pharmacies
in China
recommendation.
Yes 9%
No 91%
4. Whether have purchased drug online
Yes 2%
Data analysis and factor analysis
No 98%
Data collection
In China, there are more than 194 million online shop-
pers, and most of them are young consumers. More
and more consumers are keen on online shopping, but
Sample frame
few consumers know any online pharmacy and have About 88% of the respondents had Internet experi-
experience of buying drugs online. We selected some ences of over 3 years, and 92% of the respondents
medicine, pharmacy undergraduate and graduate stu- had experiences of online shopping. The respondents
dents who are appropriate to be selected as question- had certain knowledge about medicines and experi-
naire respondents, because most of them have ence of online shopping, so they could respond well
medicine background and online shopping experience, for the elements of marketing mix of online pharma-
and can understand the questionnaires very well. cies. In all, 92% of the respondents had never
A total of 500 questionnaires were distributed, and visited any website of qualified online pharmacies in
386 questionnaires were returned, the response rate China, and 98% of the respondents had never bought
was 77.2%. 58 questionnaires were eliminated due to drugs online, which showed that online pharmacies
data deficiency, the final sample was therefore made were unusual for most consumers, and the marketing
up of 328 respondents, and the effective rate was mix of them needed continuous exploration and val-
85.0%. Factor analysis was used to identify the under- idation. Table 1 shows the details of the sample
lying factors. frame.
First the missing value was dealt. Among the 328
effective questionnaires, 35 of them had a small
amount of missing data, and the lack rate was
Analytical techniques
10.7%. Of the 40 items, single item was missing for Analysis of reliability. Reliability analysis (Cronbachs
4 cases at the most, the maximum missing rate of alpha and Corrected Item Total Correlation, CITC)
single item was 1.0%. All of the 13,120 data points, was conducted to test the reliability of collected data.
76 of them was missing, and the missing rate The alpha coefficient was 0.932, which was considered
was 0.58%, much lower than 510%,4 the lack of acceptable as an indication of reliability for basic
proportion was somewhat acceptable. The missing research.
data was checked and no significant regularity was The CITC of most measured value were higher
found, the data was missing randomly and would than 0.4 and decreased after deleting the item which
not influence the research. Since the miss rate was implied the reliability decreases. The CITC values of
low, and the data were missing randomly, the effects A1, A2 and A11 were significantly less than 0.4, the
of different treatment methods of missing values were alpha coefficient of the dimension increased after
very similar; the maximum likelihood method would deleting A1 or A11, but it did not change after deleting
not influence the analysis result very much. So the A2. So A1, A2, and A11 were deleted; the CITC
missing data was dealt by the maximum likelihood values of all measured values were above 0.4, and the
method. alpha coefficient of the dimension increased from
Su et al. 97
Product 0.778
A1 Western medicine (Prescription) 2.28 1.107 0.263 0.780
A2 Chinese traditional medicine (Prescription) 2.44 1.145 0.309 0.775
A3 Western medicine (OTC drugs) 3.59 1.031 0.446 0.759
A4 Chinese traditional medicine (OTC drugs) 3.51 1.049 0.505 0.752
A5 Prepared slices of Chinese crude drugs 3.57 1.008 0.574 0.745
A6 Health foods 3.90 .943 0.546 0.749
A7 Cosmetics and toiletries 3.88 .992 0.414 0.762
A8 Medical devices 3.47 1.154 0.518 0.749
A9 Sexual products 3.76 .977 0.464 0.757
A10 Fertility products 3.44 1.200 0.540 0.746
A11 Sundry items 3.81 1.209 0.218 0.787
Price 0.906
B1 Discount 4.20 0.856 0.731 0.892
B2 Membership benefit 4.20 0.851 0.784 0.882
B3 Group purchase 4.12 0.993 0.774 0.883
B4 Discount up to certain amount 4.08 0.972 0.793 0.878
B5 Coupon 4.07 0.983 0.745 0.889
Place Payment 0.896
C1 Online payment 4.34 0.860 0.676 0.884
C2 Bank deposits 4.00 0.983 0.728 0.878
C3 Postal remittances 3.89 1.071 0.722 0.878
C4 Cash on delivery 4.35 0.848 0.576 0.892
C5 Cash-and-carry 3.90 1.060 0.702 0.880
C6 Deposit payment 3.64 1.100 0.691 0.881
C7 Phone card payments 3.71 1.106 0.706 0.880
C8 Insurance card payment 3.99 1.030 0.625 0.888
Promotion Personnel selling and service 0.892
D1 Hotline 4.34 0.840 0.646 0.881
D2 Online contact staff 4.43 0.783 0.777 0.869
D3 Online pharmacists 4.40 0.843 0.749 0.871
D4 Online physicians 4.33 0.896 0.698 0.876
D5 Online message 4.38 0.815 0.745 0.871
D6 Health information 4.34 0.868 0.557 0.889
D7 Free delivery 4.40 0.826 0.641 0.881
D8 Free returns 4.34 0.918 0.565 0.889
Promotion Sales promotion 0.914
E1 Sales list 3.80 1.134 0.715 0.908
E2 Hot-sale recommendation 3.65 1.164 0.842 0.882
E3 New commodities recommendation 3.61 1.170 0.852 0.879
E4 Brand monopoly 3.73 1.156 0.783 0.894
E5 Gifts presentation 3.75 1.127 0.711 0.908
Promotion Advertising 0.704
F1 Animated advertising 3.48 1.139 0.525 0.610
F2 Email marketing 3.47 1.144 0.599 0.509
F3 Related websites 3.92 0.982 0.450 0.696
Su et al. 99