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CHAPTER FOUR: DATA ANALYSIS, PRESENTATION AND INTERPRETATION OF FINDINGS
4.1 Introduction
This chapter outlines a summary of the data captured by the research and used statistical techniques to present the findings. The data was analyzed quantitatively and qualitatively using several paragraphs according to each of the variables studied.
4.2 Quantitative Analysis and Findings
The analysis and presentation illustrated in this chapter are based on the data collected through the questionnaires issued to the respondents. The use of percentages in the analysis of the data and presentation is evident.
4.2.1 Response Rate
Out of 12 questionnaires issued, 12 of the questionnaires were returned duly filled. This presents a 100% intended sample size. However, two pharmacies declined to participate in the survey which means out of 14 engagements with potential respondents, 85.7% of the targeted respondents responded positively in the study while 14.3% declined to participate.
4.2.2 Personal Details
The study collected data about personal details of the respondents.
4.2.2.1 Gender
In this study, 25% of the respondents were female while 75% of the respondents were male.
4.2.2.2 Age of the Respondents
The study indicated that 33.3% of the respondent were below the age of 25, 33.3% were between 25-30 years of age, 25% were between 31-35 years of age while 8.4% respondents were above 36 years of age.
4.2.2.3 Level of Education
The study indicated that 16.7% of the respondents were O-Level holders, 50% were holders of a college Diploma, 33.3% were holders of a university Degree while 0% of the respondents were holders of either a Masters or PHD.
4.2.2.4 Average Numbers of Years Worked in Pharmacies
The study indicated that 50% of the respondents have worked in the pharmacy sector for less than 2 years, 33.3% for between 3-5 years, 16.7% for between 6-8 years and 0% of the respondents have worked in this sector for over 9 years.
4.2.3 Effects of Ordering Cost on the Pricing of Medicines in Pharmacies in Nyeri Town
The study indicated that 16.7% of the respondents asserted that ordering cost highly affected the pricing of medicines in pharmacies in Nyeri Town while 75% of the respondents felt that ordering cost moderately affected pricing of medicines in pharmacies in Nyeri Town and 8.3% of the respondents felt that ordering cost slightly affected the pricing of medicines in pharmacies in Nyeri Town.
4.2.4 Effects of Purchasing Policy on the Pricing of Medicines in Pharmacies in Nyeri Town
The study indicated that 33.3% of the respondents asserted that purchasing policy highly affects the pricing of medicines in pharmacies in Nyeri Town while 25% of the respondents felt that purchasing policy moderately affects the pricing of medicines in pharmacies in Nyeri Town and 41.7% of the respondents felt that purchasing policy slightly affected the pricing of medicines in pharmacies in Nyeri Town.
4.2.5 Effects of Lead Time on the Pricing of Medicines in Pharmacies in Nyeri Town
The study indicated that 8.3% of the respondents asserted that lead time highly affected the pricing of medicines in pharmacies in Nyeri Town, 58.4% asserted that lead time moderately affected the pricing of medicines in pharmacies in Nyeri Town and 33.3% of the respondents felt that lead time slightly affected the pricing of medicines in pharmacies in Nyeri Town.
4.2.6 Effects of Buyer-Supplier Relationship on the Pricing of Medicines in Pharmacies in Nyeri Town
The study indicated that 16.7% of the respondents asserted that buyer-supplier relationship highly affected the pricing of medicines in pharmacies in Nyeri Town while 58.3% of the respondents asserted that buyer-supplier relationship moderately affected the pricing of medicines in pharmacies in Nyeri Town and 25% of the respondents felt that buyer-supplier relationship slightly affected the pricing of medicines in pharmacies in Nyeri Town.
4.3 Qualitative Data Analysis
From the research findings, the majority of the respondents indicated that ordering cost moderately affected the pricing of medicines in pharmacies in Nyeri Town. They were of the opinion that high ordering cost depended on the suppliers who make the the price to escalate due to rapid changes in ordering cost such as currency exchange rates in the case of imported medicines, hense, medicines may be expensive or less expensive. High ordering costs by pharmacies forces customers to opt for generic medicines which are less expensive and also courier charges to transport medicines from various sources filter down to the price consumers pay for medicines. Pricing factors include manufacturing cost, market price, competition, market conditions and the quality of the product.
The study revealed that the majority of the respondents felt that purchasing policy slightly affects the pricing of medicines in pharmacies in Nyeri Town. They were of the opinion that numerous gate keepers in the procurement process leads to high prices as payroll of salaries to workers increase. Long bureaucratic procedures costs the pharmacy time thus leading to overstocking and higher holding costs. A pharmacy is able to operate with better consistency if both its internal and external workings have proper purchasing policy in place.
From the research findings, the majority of the respondents indicated that lead time does moderately affect the pricing of medicines in pharmacies in Nyeri Town. The respondents indicated that lead time affects the pricing of medicines if those medicines are of short expiry dates or those medicines are not fast moving from the shelves of the pharmacy (medicines can spend upto 12 months or more on pharmacy shelves). Other respondents felt that lead time has no effect at all due to short lead time of less than a day from suppliers or suppliers of imported medicines holding sufficient stocks of imported medicines with the same short lead times. They also stated that stock-outs on account of lead times were rare. Lead time depends on a number of factors like, from the time it takes to manufacture medicines to the speed of the delivery system.
From the results of the study, the majority of the respondents indicated that buyer-supplier relationship moderately affected the pricing of medicines in pharmacies in Nyeri Town. The respondents noted that if a supplier sells medicines at a high price, it will affect the buyers capability to purchase those medicines, as this would have caused the pharmacy to raise the price of medicines at the retail level. Others felt that it does not affect the price of medicines in any way as the ability to negotiate better prices from different suppliers will determine how cheap or expensive the medicines will be sold. Suppliers that build meaningful relationships with pharmacies are best pisitioned for the future, when competing solely based on prices will no longer be a viable strategy.