Ei Phyu Zin, MMM-016, 1st Batch

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YANGON UNIVERSITY OF ECONOMICS

DEPARTMENT OF COMMERCE
MASTER OF MARKETING MANAGEMENT PROGRAMME

MARKETING MIX, CUSTOMER SATISFACTION AND


CUSTOMER LOYALTY OF SHWE SEE SEIN PHARMACY

EI PHYU ZIN
MMM (1st BATCH)

AUGUST, 2023
YANGON UNIVERSITY OF ECONOMICS
DEPARTMENT OF COMMERCE
MASTER OF MARKETING MANAGEMENT PROGRAMME

MARKETING MIX, CUSTOMER SATISFACTION AND


CUSTOMER LOYALTY OF SHWE SEE SEIN PHARMACY

A thesis submitted as a partial fulfillment towards the requirements for the degree of
Master of Marketing Management (MMM)

Supervised by: Submitted by:

Dr. Aye Thu Htun Ei Phyu Zin


Professor Roll No. 16
Department of Commerce MMM (1st Batch)
Yangon University of Economics Yangon University of Economics

AUGUST, 2023
ACCEPTANCE

Accepted by the Board of Examiners of the Department of Commerce,


Yangon University of Economics, in partial fulfilment for the requirements of the
Master Degree, Master of Marketing Management.

BOARD OF EXAMINERS

---------------------------
(Chairman)
Prof. Dr. Tin Tin Htwe
Rector
Yangon University of Economics

---------------------------- ----------------------------
(Supervisor) (Examiner)
Dr. Aye Thu Htun Dr. Tin Tin Htwe
Professor Professor / Head
Department of Commerce Department of Commerce
Yangon University of Economics Yangon University of Economics

--------------------------- -----------------------------
(Examiner) (Examiner)
Dr. Thynn Thynn Myint Dr. Phu Pwint Nyo Win Aung
Professor Associate Professor
Department of Commerce Department of Commerce
Yangon University of Economics Yangon University of Economics

AUGUST, 2023
ABSTRACT

The objectives of the study are to examine the effect of marketing mix activities
on customer satisfaction and to analyze the effect of customer satisfaction on customer
loyalty at Shwe See Sein Pharmacy. In this study, marketing mix activities include five
elements that are product, place, price, promotion and people. The descriptive and
quantitative research method are applied to achieve these objectives. Primary and
secondary data are employed in this study. Target population of the study is the
customers who buy the products from Shwe See Sein Pharmacy. Sample size of the
study is (386) customers randomly selected in this study. Structured questionnaires with
Five-point Likert scale is used to get the primary data. Regression analysis proved that
all marketing mix activities, except promotion have positive and significant effect on
customer satisfaction. The study found that place has the highest significant effect on
customer satisfaction followed by product, people, and price. Moreover, linear
regression analysis revealed that there is a direct and significant effect of customer
satisfaction on customer loyalty towards Shwe See Sein Pharmacy. The study reveals
that customer satisfaction leads to customer loyalty towards the pharmacy. Since place
has the largest significant effect on customer satisfaction in the Shwe See Sein
Pharmacy, the owner of the pharmacy should develop the convenient places for parking
and security of the customers’ motor cycles and bicycles. Moreover, the pharmacy
should develop effective and efficient delivery system for its customers to be more
convenient.

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ACKNOWLEDGEMENTS

First of all, my deepest thanks to Dr. Tin Tin Htwe, Rector of the Yangon
University of Economics, for providing me with the necessary resources and guidance
as a student in the Master of Marketing Management Programme.
I would like to express my gratitude to Professor Dr. Tin Tin Htwe, Professor &
Head of Department, Department of Commerce of the Yangon University of
Economics for allowing me to undertake this research as part of my Master of
Marketing Management.
I am also deeply thankful to Prof. Dr. Thynn Thynn Myint, the Programme
Director of the MMM Programme and a Professor in the Department of Commerce, for
her dedicated efforts, valuable contributions, and constant encouragement throughout
the Master of Marketing Management Programme.
I would like to express the deepest sincere thanks to my supervisor, Professor
Dr. Aye Thu Htun, Department of Commerce. I will never forget her kind helps and
supports for all guidance, opinions and lectures. She always encourages me to do thesis
and kindly guided and supported to successfully accomplishment of my thesis.
Furthermore, I wish to extend my genuine thanks to all of the professors,
associate professors, lecturers of Department of Commerce, Yangon University of
Economics for their valuable lectures, guidance and their supports during this study. In
addition, I would like to say thanks to staff and faculty members in the Department of
Commerce who have provided me with any support and advice during academic years.
Especially, I would like to thank the Shwe See Sein Pharmacy and all
respondents for giving their valuable time in answering the research survey question.
Last but not least, I want to express my gratitude to my family, my staff and
friends for their helps and support, kindness, patience and encouragement to finish this
thesis.

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TABLE OF CONTENTS

Page
ABSTRACT i
ACKNOWLEDGEMENTS ii
TABLE OF CONTENTS iii
LIST OF TABLES v
LIST OF FIGURES vi

CHAPTER 1 INTRODUCTION 1
1.1 Rationale of the Study 2
1.2 Objectives of the Study 4
1.3 Scope and Method of the Study 4
1.4 Organization of the Study 4

CHAPTER 2 THEORETICAL BACKGROUND 5


2.1 Concept of Marketing Management 5
2.2 Marketing Mix 7
2.3 Customer Satisfaction 15
2.4 Customer Loyalty 17
2.5 Previous Studies 18
2.6 Conceptual Framework of the Study 21

CHAPTER 3 PROFILE AND MARKETING MIX ACTIVITIES OF


SHWE SEE SEIN PHARMACY 23
3.1 Health Care Industry in Hinthada 23
3.2 Profile of Shwe See Sein Pharmacy 25
3.3 Marketing Mix Activities of Shwe See Sein Pharmacy 27

CHAPTER 4 ANALYSIS ON MARKETING MIX ACTIVITIES,


CUSTOMER SATISFACTION, CUSTOMER LOYALTY 33
4.1 Research Design 33
4.2 Reliability Analysis of Variables 36

iii
4.3 Respondents Perception on Marketing Mix, Customer 37
Satisfaction and Customer Loyalty of Shwe See Sein
Pharmacy
4.4 Correlation Analysis of Marketing Mix Activities, 45
Customer Satisfaction and Customer Loyalty
4.5 Multiple Regression Analysis on the Marketing Mix, 47
Customer Satisfaction and Customer Loyalty of
Shwe See Sein Pharmacy

CHAPTER 5 CONCLUSION 50
5.1 Findings and Discussions 50
5.2 Suggestions and Recommendations 51
5.3 Need for Further Research 52

REFERENCES
APPENDICES

iv
LIST OF TABLES

Table No. Particular Page


4.1 Demographic Data of the Respondents 35
4.2 Reliability Analysis of Variables 37
4.3 Respondent Perception on Product 38
4.4 Respondent Perception on Price 38
4.5 Respondent Perception on Place/Distribution 40
4.6 Respondent Perception on Promotion 41
4.7 Respondent Perception on People 42
4.8 Customer Satisfaction 43
4.9 Respondent Perception on Customer Loyalty 44
4.10 Relationship between Marketing mix and Customer Satisfaction 45
4.11 Pearson’s Correlation between Customer Satisfaction and 46
Customer Loyalty
4.12 Multiple Regression Analysis of Marketing Mix on Customer 47
Satisfaction
4.13 The Effect of Customer Satisfaction and Customer Loyalty 49

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LIST OF FIGURES

Figure No. Particular Page


2.1 Twelve Ps of the Marketing Mix 8
2.2 Effects of Service Marketing Mix (7Ps) on Customer Satisfaction 18
and Customer Loyalty of Medical Aesthetic Clinics in Thai
2.3 Effect of Marketing Mix on Customer Satisfaction and Loyalty 19
PT.TIKI Padang Branch (Courier Service Company) in Indonesia
2.4 Effect of Marketing Mix on Customer Satisfaction and Loyalty 20
in the Hospitality Industry of Ethiopia
2.5 Conceptual Framework of the Study 21
3.1 Organization Structure of Shwe See Sein Pharmacy 26

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CHAPTER I
INTRODUCTION

Pharmacies are a form of health service facility for the community, with the
rapidly increasing number of pharmacies having a positive impact on the community,
that is being able to compare prices from one pharmacy to another so that each
pharmacy can provide better services at competitive prices. Competition for
pharmacies, whether privately or publicly owned, is becoming more common. This
makes the pharmacy business more competitive, including Shwe See Sein Pharmacy.
Marketing is one of the most important things a business can do. Not only does
marketing build awareness but it can also increase sales, grow businesses and engage
customers. Marketing encompasses not only determines customer needs; it also helps
create customer need.
Marketing is the most effective way to communicate value proposition to
customers in a fun and interesting ways. Without marketing, business may offer the
best products or services in industry, but potential customers wouldn’t know about it.
Without marketing, sales may crash and companies may have to close. Marketing has
a lot of strategies how they reach to the customers; marketing mix are the very basics
strategies in any kind of marketing. It is the key process of researching, promoting and
selling products or services to the target market. Marketing builds not only brand
awareness but also increases sales, grow businesses and engage customers.
Marketing has a lot of strategies how they reach to the customers; marketing
mix are the very basics strategies in any kind of marketing. A traditional marketing mix
is made of the four Ps: price, product, promotion, and place. Booms and Bitner (1981)
who dealt with service marketing expanded into 7Ps that include people, process, and
physical evidence. In addition to traditional marketing (4Ps), among 7Ps, people are all
in human actors who play a part in service delivery including pharmacy shop. It is
important, therefore, to pay particular attention to the quality of employees and to
monitor their performance. People is the essential for any business especially pharmacy
shop to success. People are being recognized as an important resource and immense
training is offered to them to enable better value delivery. Thus, this study emphasizes
on (5Ps) which are product, price, place, promotion and people.

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Nowadays, in all industries, customer is king since they have many options.
Customer satisfaction is a corporate activity that focuses on creating value for
customers, anticipating and managing their expectations, and showing the capacity and
responsibility to meet their demands. Customer satisfaction is one of the key factors for
creating competitive edge.
Customer loyalty is described as a deep-seated internal commitment that leads
to future repurchase or patronization of a favored product or service, despite external
circumstances that may trigger switching behavior. When customer satisfactions and
customers loyalty acquire, the products can be sustainable in the market with high-
shared market and can improve business with high profit.
After decades of isolation, Myanmar has attracted investors to develop
infrastructure and supply products and services for the economic development.
Myanmar Pharmaceutical industry is growing and according to the local research agency,
Myanmar total pharmaceutical spending has been increasing 11% every year, and it is
expected that pharmaceutical market value will reach to US$ 1.1 billion by year 2023.
Thus, Myanmar pharmacy increase year by year in Myanmar including Hinthada. Shwe
See Sein Pharmacy was established in 2007. Shwe See Sein Pharmacy is the second
largest shop in Hinthada which is trying to expand shop by meeting customer demand.
With the expansion of the shop and competitiveness of its nature, it is very interesting to
understand which marketing factors can bring customer satisfaction and maintain to get
loyal customer in pharmacy. Thus, this study focuses to investigate the effect of
marketing mix on customer satisfaction toward customer loyalty, this research uses five
Ps: Product, Price, Place/Distribution, Promotion and People.

1.1 Rationale of the Study


Marketing is the importance for the business, because if can make business
success or failure. All the business success or failure and sustainable are based on
marketing strategies. Sales cannot grow without marketing strategies. Marketing is
essential when launching new product and building trust and maintain relationship with
customers. Marketing strategies are important in building brand, maintain the brand
image and satisfy your customers. When customers have satisfaction and trust on the
products, customers become loyalty on the product. Marketing mix is the basic essential
strategy to build relationship with customers after market penetration. Customer

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satisfaction and loyalty are the most important aspects of running a successful business,
so the marketing mix was thoroughly investigated in this study.
The pharmaceutical sector is one part of the larger healthcare sector in whole
country. Myanmar has experienced significant economic growth in various business
sectors before 2021. Among these business sectors, not only manufacturing industries
but also the service industries become important part of the growing economy.
Healthcare sector is emerging to be one of the strongest industries to present time, and
with the Covid 19 pandemic, private hospitals and clinics as well as pharmaceutical
industry become very important in providing access to better medicines and services
for a larger part of the population. With the expansion of the industry and
competitiveness of its nature, it is very interesting to understand which marketing
factors can bring customer satisfaction and maintain to get loyal customer. Therefore,
customers satisfaction is the most important things for every product. Where there is
customers satisfaction, customers’ loyalty automatically follows. When customer
satisfaction and customers loyalty acquire, the products can be sustainable in the market
with high-shared market and can improve business with high profit.
In pharmacy shop, marketing mix is the basic essential strategy to build
relationship with customers. The reason why selecting Shwe See Sein Pharmacy to
analyses its marketing mix practices is that it is providing access to better medicines
and services with good quality product and affordable price.
This study covers marketing, customers satisfaction and customer loyalty
toward pharmacy insight for provide company to understand their marketing from
marketing mix perspective, if it needs any improvement by considering the competitor
marketing strategy and current marketing situation. Distributors can get the information
of how much they have coverage on the researched area and are there any issues on
their coverage areas. In addition, it helped the employees to be familiar with the specific
marketing mix element practice to overcome emerging challenges in Shwe See Sein
Pharmacy.
In addition, foreseeing the relationship between marketing mix and customer
satisfaction and loyalty will enable to analyze and plan for future marketing plan as
customers’ needs and wants are changing every day. For the researcher it gives deep
knowledge and experience in this field of study. It would be used as an input for further
studies in this area.

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1.2 Objectives of the Study
The objectives of the study are:
(1) To identify the marketing mix activities of Shwe See Sein Pharmacy.
(2) To analyze the effect of marketing mix on customer satisfaction of Shwe See
Sein Pharmacy.
(3) To analyze the effect of customer satisfaction on customer loyalty of Shwe See
Sein Pharmacy.

1.3 Scope and Methods of the Study


This study mainly focuses on marketing mix activities five Ps: product, price,
place/distribution, promotion, and people services, customer satisfaction and customer
loyalty. The other elements of the marketing mix from seven Ps are not included in this
study. This study emphasizes on Hinthada city. In this study, as the population in
unknown, Cochran formula in applied to identify the sample size. The descriptive and
quantitative research methods are applied to achieve the objectives. According to
Cochran formula (1977), it is known that sample size of this study is (386) respondents.
This study uses of both primary and secondary data. To get the primary data, these
respondents are selected by using simple random sampling method. Secondary data is
collected from related text books, theses, previous published research papers,
documents, and relevant websites.
In this study, structured questionnaires using five points Likert scales are
distributed to customers. A five-point Likert scale starts with 1 (Strongly disagree) to 5
(Strongly agree). Secondary data is collected from related text books, theses, previous
published research papers, documents, and relevant websites. Data collection period is
from 1st May to 30th June. As the statistical tools, linear regression and multiple
regression analysis are used in this study.

1.4 Organization of the Study


This study consists of five chapters, Chapter one presents introduction which
involves rationale of the study, objectives of the study, scope and methods of the study
and organization of the study. Chapter two describes the theoretical background,
previous studies, and conceptual framework of the study. Chapter three discusses the
profile and marketing mix activities of Shwe See Sein Pharmacy. Chapter four analyzes
the effect of marketing mix on customer satisfaction and customer loyalty. The final

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chapter five contains conclusion that includes findings and discussions, suggestions and
recommendations, and need for further research.
CHAPTER II
THEORETICAL BACKGROUND

The chapter is composed by five parts. The first part involves concept of
marketing management. The second part involves marketing mix which includes
product, price, place, promotion and people. The third part involves concept of
customer satisfaction and customer loyalty. The fourth part describes the previous
research studies about how marketing mix relate with customer satisfaction and
customer loyalty and the final part presents conceptual framework of the study.

2.1 Concept of Marketing Management


Nowadays, marketing is mentioned as one of the crucial elements in the success
of an organization. More than just selling and advertising, marketing of today must be
understood in the new sense of satisfying customer needs (Kotler and Armstrong,
2014). Marketing is the social process by which individuals and organizations obtain
what they need and want through creating and exchanging value with others (Kotler
and Armstrong, 2010). According to the American Marketing Association (1988),
Marketing is the process of planning and executing the conception, pricing, promotion,
and distribution of ideas, goods, and services to create exchanges that satisfy individual
(customer) and organizational objectives. Marketing is the process of designing,
positioning, promoting and distributing a product or service in such a way that
consumers see value in it. The role of marketers is often to increase brand awareness
and loyalty, attract new customers and retain existing ones, ultimately driving more
sales revenue for their company (America Marketing Association, 2012).
According to Kotler and Armstrong, (1996), Marketing is the business function
that identifies customers’ needs and wants, determines which target markets the
organization can serve best, and designs appropriate products, services, and programs
to serve these markets. Marketing is a process used to promote a product, service,
business, or brand. The main purpose of marketing is to increase the demand or value
of a particular product, service, business, or brand to the general public. Kotler and
Armstrong (2006) define marketing as a social and managerial process by which

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individuals and groups obtain what they need and want through creating and
exchanging value with others. In addition, marketing pinpoints which segments of
consumers are capable of serving best and it designs and advances the suitable products
and services.
Marketing, more than any other business function, deals with customers.
Marketing is the delivery of customer satisfaction at a profit. The two-fold goal of
marketing is to attract new customers by promising superior value and to keep current
customers by delivering satisfaction. Every company depends on an effective marketing
program to fulfill customers’ needs. Marketing is a process of finding out what the
customer wants and meeting those requirements.
Kotler & Keller (2016) describe marketing as a social activity that facilitates the
movement of goods and services in an economy from the producer to the customer
while also advancing the objectives of the organization and being able to satisfy
consumer demand. Similar to this, businesses must understand how to modify their
marketing plans and other aspects of their marketing mix to appeal to a broad audience.
These businesses also need to understand how to modify the product, pricing,
promotion, and location to account for all of the marketing mix aspects.
Marketing management is the management of the marketing activities in an
organization and includes management of the processes of planning, organizing,
directing, motivating, coordinating, and controlling. It is the process of satisfying the
needs and wants of the customers of the organization. Marketing management is an
important function of the organization since it brings the organization closer to its
customers and consists of establishing a marketing orientated organization with the
emphasis on the customer. It is a core component in the organization’s success.
The American Marketing Association defines Marketing Management is the
process of planning and executing the conception, pricing, promotion, and distribution
of ideas, goods, and services to create exchanges that satisfy individual and
organizational goals. Marketing management takes place when at least one party to a
potential exchange thinks about the means of achieving desired responses from other
parties. Thus, marketing management as the art and science of choosing target markets
and getting, keeping, and growing customers through creating, delivering, and
communicating superior customer value (Kotler & Keller, 2012). According to Gamble
& Gilmore (2013), marketing management is a broad concept that includes social
processes, incurring implications not only for itself, but also for the roles of the parties

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directly involved in the marketing process. Kotler & Armstrong (2014) define
marketing management as the art and science of choosing target markets and building
profitable relationships with them.

2.2 Marketing Mix


Marketing seeks to maximize the return on investment in the production and
sales of a product or service. The formulation of a marketing mix depends on the nature
of the activities of the organization and the nature of the targeted market. It must be put
together in such a way as to enable the organization to meet its customers’ needs and
wants (Sashi 2012). The marketing mix concept works as a tool used by an organization
to survive in a competitive environment. Marketing mix is one of the most important
and fundamental concepts, associated with the marketing-process. They apply it
systematically in their industries. Kotler and Keller (2012), stated marketing mix as a
technique used by a corporation to persuade customers to buy their product in order to
generate money.
Marketing mix is the set of characteristics and benefits the company choses to
stimulate the desired response in the target market. Neil Borden (1964) stating that
many companies could use the framework to increase the likelihood of their success
when advertising their products. McCarthy (1960) was the first to propose the four Ps
of marketing - price, promotion, product, and place (distribution) - as the most common
variables used in developing a marketing mix. According to McCarthy (1960),
marketers have four variables that they can use when developing a marketing strategy
and writing a marketing plan. Marketers widely agreed in the late 1970s that the
Marketing Mix needed to be updated. Booms and Bitner (1981) developed the Extended
Marketing Mix which added three new elements to the 4 Ps Principle. The extended 3
Ps are People, Process and Physical Evidence. This enabled the expanded Marketing
Mix to include products that are services rather than just physical items. After many
years, marketing professionals define the extended Ps according to the products or
services such as 8Ps, 11Ps, 12 Ps, 13 Ps and 14 Ps. According to Scott Berg (2019),
twelve Ps of the marketing mix are shown in the following Figure (2.1).

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Figure (2.1) Twelve Ps of the Marketing Mix

Product
Price

Payment
Place

Purpose

Promotion
12 Ps of Marketing

Persona
People

Performance
Packaging

Positioning
Process

Source: Berg, (2019)

Product, Price, Promotion, and Place are the four elements that are traditionally
included in what is called the Marketing Mix. The marketing mix was originally defined
as the "4 Ps" - Product, Price, Promotion, and Place. Here the product, or service, is
something that meets a particular market demand or requirement. The product must be
available in the right place through proper distribution. It must be priced at a rate that
the customer is willing to pay. Lastly, it has to be promoted through the optimum use
of various marketing channels utilizing many strategies. For service businesses, a fifth
"P" - People was more recently added. This study will focus on five Ps among twelve
Ps of the marketing mix for the product according to (Berg, 2019).

2.2.1 Product
The first element in the marketing mix is the product. There any combination of
the goods and services offered to satisfy the needs and wants of consumers. Products

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can be classified into two main categories that can be touched and cannot be touched.
Thus, products that can be touched include things like books, chairs, televisions,
medicine and other objects that can be held. but when a product is not apparent to the
human eye that product is a service that cannot be touched. A product as defined by
Armstrong and Kotler (2006) is anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a want or need.
Kotler (2008) defined the product as anything that can be offered to a market
for attention, acquisition, use, or consumption that might satisfy a want or need.
According to Kotler and Keller (2016), the product is something that can be offered to
a market for attention, owned and worn or taken in order to meet the wishes or needs
of the user. Various aspects and elements of the product must be taken before they
decided to purchase to ensure satisfaction after buying any product. According to
Armstrong and Kotler (2010), the factors to be taken into account by the manufacturer
before producing a product which includes diversification of products, product design,
product features, product brands, product size, packaging, reliability and assurance after
purchase products.
Simple definition of a product is the goods-and-services combination the
company offers to the target market (Armstrong & Kotler, 2010). Product refers to an
item or items the business plans to offer to customers. The product should seek to fulfill
an absence in the market, or fulfill consumer demand for a greater amount of a product
already available. Before they can prepare an appropriate campaign, marketers need to
understand what product is being sold, how it stands out from its competitors, whether
the product can also be paired with a secondary product or product line, and whether
there are substitute products in the market.

2.2.2 Price
The second element in marketing mix is price. Price refers to how much the
company will sell the product for. When establishing a price, companies must consider
the unit cost price, marketing costs, and distribution expenses. Companies must also
consider the price of competing products in the marketplace and whether their proposed
price point is sufficient to represent a reasonable alternative for consumers. Price as a
fee of producing, delivering and promoting the product charged by the company
(Kotler, Wong et al. 2007). Price can be stated as the rated value of a valuable product

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which is up for exchange; some outline it as the amount of cash paid for the product
(Kotler and Keller 2005).
Price is simply the amount of money that consumers are willing to pay for a
product or service. In price setting, companies estimate customer reactions to possible
prices. Companies should also estimate the preferable profit margin and possible
discounts in the future. Companies must be aware of legal restrictions on pricing. The
price is the amount charged for a product. Factors to keep buying, suspend or cancel
the purchase directly influenced by the price of a product.
Generally, the price is a marketing aspect which is flexible in where it can be
changed quickly. According to the researchers, they said the price is a factor influencing
customer satisfaction. However, users also use price as a gauge to see the quality of a
product. For those who want more expensive product quality and reliability. Depending
on the product, consumers prefer to buy products at a cheaper price with the quality and
the criteria that they need.
The amount of money must pay to obtain the product to customers (Armstrong
& Kotler, 2010). Kotler suggested the element of price includes factors such as list
price, discount, allowance, payment period, and credit term. It is also defined by Ray
Wright, (2004) as the value (usually measured in monetary terms) at which the seller
agrees to sell a product or service to the buyer and the value at which the buyer agrees
to purchase. Price is an integral part of the marketing mix and should never be discussed
and set in isolation as it was suggested by (Ray Wright in Business-in-Business
Marketing, 2004) that the idea of price can be set according to internal costing and
external costing. Meaning price must not always only reflects the cost internally
(production cost, overhead cost, etc) but also reflects the external cost point of view
(customer perceived value of the product, type of product, market valuation in monetary
terms, channels of distribution, etc).

2.2.3 Place
Place is an essential component of a marketing mix. According to Kotler (1997),
place includes the various activities a firm undertakes to make their product accessible
and available to target customer. Additionally, place represent the location where a
product or service can be found for consumption use. It is often referred to the
distribution channel. The firm will decide when, where and how to deliver services
customer (lovelock and wright, 2002). This factor is defined by Armstrong and Kotler

10
(2006) as a set of interdependent organizations that caters to the process of making a
product available to the consumers. Hirankitti et al., (2009) considers place as the ease
of access which potential customer associates to a service such as location and
distribution.
Place refers to the distribution of the product. The key considerations as place
include whether the company will sell the product through a physical storefront, online,
or through both distribution channels. Place refers to having the right product, in the
right location, at the right time to be purchased by consumers. An organization should
pay attention to place decisions, because of the importance of the product and
consumption occurring at the same time and at the same place; a place that provides all
information of customer, competition, promotion action, and marketing task. It should
pay attention to how it can deliver the product at the right time and at the right place,
and which channel should be used to deliver the product (Copley, 2004).
The channel of distribution, a group of intermediaries, is used to put goods
properly. Manufacturers, wholesalers, and retailers all work together to form the
distribution channel. These organizations are involved in the process of making a good
or service available for consumption or usage. Goi (2009) defines it as any way in which
consumers can get the products or services. Location factors also play a role in
influencing consumer purchasing decisions in buying a product. It is important to
ensure the functioning of product distribution channels to deliver products to target
consumers. Among the criteria for the location of choice among consumers and is close
to them go. Accordingly, the selection of appropriate locations needs to employers
because a wrong decision can lead to failure in business. A good location can guarantee
the arrival and attract many users to change the shopping patterns and purchase. tasks
of distribution.
Place refers to the physical distribution of the product though different channels.
Channel of distribution is responsible to transfer the product from the manufacturing
site to the hands of consumers. This place is one of the components of the marketing
mix and includes distribution channels, warehouse facilities, mode of transport,
location, classification, accumulation, logistics and inventory management (Singh &
Management 2012). The location is commonly referred to as the distribution channel
(Rasmussen, Wood et al., 2007). Distribution channels cover all activities that
contribute to delivering a product or service to a customer. These channels help to
advertise, sell and distribute its products to end buyers such as resellers, body

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distribution companies, marketing service agents and financial intermediaries (Kotler,
Armstrong et al., 2012). Implementing marketing strategies does not depend solely on
production objectives, pricing or promotion. This involves a successful delivery
process, which allows the company to achieve the available capacity to deliver products
in the right place and at the right time.

2.2.4 Promotion
Promotion, the fourth P, is the integrated marketing communications
campaign. Promotion is the element in the marketing mix of organizations that serve
to inform, persuade and remind the market of the product in the hope of influencing
the feelings, beliefs and behavior of consumers. The goal of promotion is to
communicate to consumers that they need this product and that it is priced
appropriately. Promotion includes a variety of activities such as advertising, selling,
sales promotions, public relations, direct marketing, sponsorship and word of mouth
(word-of mouth). Through the campaign, marketers can attract the attention of
consumers and give them information about products to enhance consumer buying
interest. Promotion is important in sales, as a way to reach consumers with information
about products. It is also an alternative to bring awareness to the users of the existence
of a product. When the product is known, it is increasing consumer demand for products
and increase product sales.
Promotion is an element in the marketing mix which is also important because
it is a means of communication to the customer to promote product awareness, product
knowledge, product attributes and benefits and persuade the customer to buy the
product. It provides the stimulus to which customers’ will response. Armstrong and
Kotler (2010) the elements of promotion were the different activities, such as sales
promotion, advertising, sales force, and public relationship. Sometimes the company or
organization offers benefits like discount, bonus and samples to customer during the
promotion time (Kotler, 2004). Promotion is defined as sales promotion, advertising,
personal selling, public relations and direct marketing. A communication program is
important in marketing strategies because it plays three vital roles: providing needed
information and advice, persuading target customers of the merits of a specific product,
and encouraging them to take action at specific.
Promotion is one of the most powerful components of a marketing mix. This
means forcing the company to contact the target market by identifying the needs of the

12
target segment to purchase the products. Advertising concept includes all marketing
activities used to announce, persuade, and remind the target market about a company
and its products or services to create a positive image in the customer’s mind (Sidhanta
and Chakrabarty 2010). In the same text, (Kotler and Armstrong 2012) defined
advertising as human activity based on a communication process that could be
indirectly operated through personal sales points or advertising messages through the
media. Experienced copywriters can often increase the response rate from advertising
by 500 percent by simply changing the headline on an advertisement. Even small
changes in advertising can lead immediately to higher sales.
According to Armstrong & Kotler (2010), advertising can directly influence the
purchase behavior decision. It does this by creating awareness, providing product
information and helping consumer determine the worth and quality of the product, thus
helping them to decide on the best purchase option. Also, that promotion can be defined
by as a planned stimulus technique that conveys positive information about products,
services, companies, ideas, etc. to the attention-grabbing audience. The goal of
marketing communications is to increase the understanding of marketing information
and to influence a company’s acceptance of its offerings (Nwokocha, Nwankwo et al.
2020).

2.2.5 People
The final P of the marketing mix is people. People are the most important
element of any service or experience. According to Zeithaml (2013), people are all
actors who play a role in service providers so that they can influence customer
satisfaction. People, in the marketing mix, refers to anyone directly or indirectly
involved in the business side of the enterprise. That means anyone involved in selling
a product or service, designing it, marketing, managing teams, representing customers,
recruiting and training. The elements of people are company employees, consumers and
other consumers in the service environment. The success of service providers in
satisfying customers requires human elements, including: face to face interaction with
customers. It would be useful to mention that employee attitudes play an important role
in differentiating service industry. Serving customers with a smile, full of courtesy,
courtesy, understanding customer problems, etc. has a positive impact on influencing
customer satisfaction.

13
Anyone who comes into contact with customers will make an impression, and
that can have a profound effect — positive or negative — on customer satisfaction. The
reputation of the brand rests in the people’s hands. The people must be appropriately
trained, well-motivated and have the right attitude. It is essential to ensure that all
employees who have contact with customers are not only properly trained, but also the
right kind of people for the job.
In Booms and Bitner’s (1981) service marketing mix, ‘people’ include people
who are directly or indirectly involved in the trade of the product or service. These are
mainly customer contact employees (contact center employees, representatives,
account managers, etc.), customers, personnel and management. It is mainly the
customer contact employees who are the face of the organization and they translate the
quality into a service. They are the ‘service’ providers on account of their occupation
or entrepreneurship. They include for instance stylists, hair dressers, teachers, trainers,
coaches, gardeners, lawyers, contact center employees, etc. They deliver a physical
service with a visible result. Service companies are thoroughly aware that they must
effectively manage the customer contact employees in order to monitor the quality of
the service with respect to attitudes and behavior. This is very important in service
companies because there might be a large variable in the performance of the customer
contact employees in relation to the result of the service delivered. The quality of a
service between service companies and customer can vary very strongly in addition to
other important factors. The lack of homogeneity in services creates difficulties for
service companies. Delivery of services often occurs during an interaction between a
customer and contact employees. Attitude and behavior of an employee create a
perception of the service as experienced by the customer (customer perception). This
perception may be either positive or negative. It is even more important because it can
influence customer satisfaction and in turn the customer’s purchase intentions. (Booms
and Bitner, 1981).
Personnel are keys to the delivery of service to customers. In addition, according
to Magrath (1986) customers normally link the traits of service to the firm they work
for. Personnel are also considered as the key element in a customer centered
organization as well as a way to differentiate variables with product, services, channel,
and image (Kotler, 2000). Achievement of a customer-orientation is not possible if
there is no cooperation coming from the personnel (Judd, 2001). The interaction is
important because it influences customer perception. In other words, the actions of all

14
the personnel normally influence success of action and function of an organization and
with more communication, training, skills, learning, and advice they will achieve to
display the optimum value of the product and the company.

2.3 Customer Satisfaction


Since Cardozo's (1965) foundational study of customer effort, expectations, and
satisfaction, customer satisfaction has been a prominent issue in marketing practice and
academic research. Despite several attempts to measure and explain consumer
satisfaction, there appears to be no consensus on how to define it (Giese and Cote,
2000). In their book on marketing management, Kotler and Keller (2012) give a more
extensive description of customer satisfaction, defining it as "a person's feeling." As a
result of comparing the results to expectations, customer satisfaction may be
characterized as a feeling of pleasure or disappointment. Customer satisfaction is also
a corporate activity that focuses on creating value for customers, anticipating and
managing their expectations, and showing the capacity and responsibility to meet their
needs.
Consumer satisfaction has been linked to service quality by some writers
(Gerpott et al., 2001; Kim et al., 2004), but it has also been linked to customer
perceptions of products and services by others (Anderson et al., 1994). Customers have
their own set of expectations, and if the performance falls short of those expectations,
the customer will be dissatisfied; on the other side, if the performance exceeds those
expectations, the customer will be delighted.
There are at least two separate approaches to consumer satisfaction, one is
transactional and the other is cumulative. Transaction-specific satisfaction provides
particular diagnostic information about a single product or service experience (Lam et
al., 2004). Cumulative customer satisfaction, on the other hand, is an overall assessment
based on the total purchase and consumption experiences with a product or service over
time (Anderson, Fornell, & Lehmann 1994), which is more fundamental and useful in
predicting a consumer's subsequent behavior and a firm's past, present, and future
performance than transaction – specific consumer satisfaction.
Customer satisfaction in marketing management itself has a very specific
meaning. Satisfaction is a response to customer satisfaction assessment on the
fulfillment of needs, desires, expectations and objectives selected in accordance
assuming satisfaction, perceived, fun and met various demands. Expectation

15
disconfirmation theory explains that satisfaction is a discrepancy fulfilling the needs
and desires continued gap between the expectations, with the desired goal.
Customer satisfaction is a perception. Perception is defined as the process by
which an individual select, organizes and interpret stimuli into a meaningful and
coherent picture of the world. In other word, perception is the process through which
an individual selects, organizes and interprets the information the receives in order to
do something that makes sense. Consumer perceptions can determine the success or
failure of a business.
Customer satisfaction, a business term, is a measure of how products and
services supplied by a company meet or surpass customer expectation. In a competitive
marketplace where businesses compete for customers, customer satisfaction is seen as
a key differentiator and increasingly has become a key element of business strategy.
The four key steps for successful marketing are identified as understanding the
customer, making value for customer, communicating the value to target market, and
making it easy for the customer to buy.
Customer satisfaction is defined as a post consumption evaluative judgment
concerning a specific product or services. It is the results of an evaluative process that
contrasts pre-purchases expectations with perception of performance during and after
the consumption experience. (Oliver,1980). Satisfaction is the consumer’s fulfillment
response. It is a judgment that a product or services feature, or the product or service
itself, provides a pleasurable level of consumption related fulfillment. (Mary Jo Bitner,
2013). Customer satisfaction is the customer’s evaluation of a product or service in term
of whether that product or service has met the customer’s needs and expectations.
Failure to meet needs and expectation is assumed to result in dissatisfaction with the
product or service.
In tight competitive conditions, finding new customers requires greater cost and
time than maintaining the existing customers. The company spends five times new
customers rather than maintaining existing one (Kotler & Keller, 2009). One of the
switching barriers that can be performed to maintain the customers is by building or
growing customer satisfaction. Highly satisfaction customers make repeat purchases,
are less price sensitive, remain customers longer and talk favorably to others about the
company and its product. In conclusion, customer satisfaction is defined as a result of
customer’s evaluation to the consumption experience with the services. However, the

16
customer has different level of satisfaction as they have different attitudes and
perceived performance form the service.
For many years, customer satisfaction has been considered a significant
antecedent of loyalty. In this regard, Fornell (1992) asserted that great customer
pleasure is the primary reason of strong customer loyalty. Furthermore, Hong and Goo
(2004) investigated whether customer satisfaction and loyalty are significantly and
positively related, and found satisfaction is a precondition for loyalty in a variety of
businesses. According to Samaan Al., (2015), customer satisfaction has a positive
impact on customer loyalty.

2.4 Customer Loyalty


Customer loyalty is defined as a deep-seated internal commitment to repurchase
or re-patronize a chosen product or service in the future, despite environmental
circumstances that may promote switching behavior (Kotler& Keller, 2012). Customer
loyalty is vital in business since it allows a firm to keep consumers while enhancing its
financial performance and ensuring its survival. It is the primary motive for a business
to keep its clients. Customers should feel more than happy, and simply satisfying them
may not be enough; it must result in loyalty. As a result, customer loyalty is seen as a
significant goal of many selling tactics, as well as an underlying strategic marketing
goal (Jacoby and Chestnut 1978).
Based on Kotler and Keller's (2012) idea, researchers employ a variety of
metrics to evaluate consumer loyalty. Repeat purchases, frequency of purchases, and
consumer brand preference may all be used to determine this. However, the most often
used loyalty measuring instruments contain two dimensions: repurchase intention and
attitudinal propensity (Pritchard et al., 1999). Furthermore, measuring customer loyalty
using the behavior dimension typically necessitates the right mix of both attitudinal and
behavioral traits (Soo K Kang, 2015). The marketing mix has a positive and significant
direct effect on customer satisfaction and customer loyalty, according to Achmad M.
and Sugeng P. (2018), who conducted a study on budget hotel customers in DKI Jakarta
province and discovered that customer satisfaction has a positive and significant direct
effect on customer loyalty.

17
2.5 Previous Studies
Various previous research scholars and marketing professionals claimed that
marketing mix has impact on customer satisfaction and customer loyalty. By the same
token there are undeniable number of empirical and theoretical ground mentioning the
relationship between customer satisfaction and customer loyalty. Several researchers
studied the effect of marketing mix on customer satisfaction and customer loyalty.
Phusist, K (2015) studied “the Effects of Service Marketing Mix (7Ps) on
Customer Satisfaction and Customer Loyalty of Medical Aesthetic Clinics in Thai” as
shown in Figure (2.2).

Figure (2.2) Effects of Service Marketing Mix (7Ps) on


Customer Satisfaction and Customer Loyalty of Medical Aesthetic
Clinics in Thai

Marketing Mix
Product

Price

Place/ Distribution
Customer Customer
Promotion Satisfaction Loyalty

Participant Effects
of Service
Physical Evidence
Effects of Service
Process Effects
Marketing Mix of
Service Marketing
(7Ps) on Customer
Mix (7Ps) onand
Satisfaction
Source: Phusist, K (2015)
Customer Loyalty
Customer
Satisfaction
Effects and
of Service
There Loyalty
Customer are two objectives in his study. They are: to explore how the service
Marketing Mix
Effectsonmix
marketing
(7Ps) ofCustomer
Service
(7Ps) has an effect on customer satisfaction of medical aesthetic clinics,
Marketing Mix
andSatisfaction
to explore and
how the customer satisfaction has an effect on customer loyalty to
(7Ps) on Customer
Customer Loyalty
medical aesthetic
Satisfaction clinics. To achieve these objectives, (400) customers are randomly
and
Customer
selected Loyalty
from the clinics. The results showed that three factors, namely Promotion, People,
and Physical Evidence, had a significant positive influence on Customer Satisfaction.
However, four factors, which are Product, Price, Place, and Process, did not affect customer
satisfaction. Customer Satisfaction does have a positive, significant relationship to
Customer Loyalty.

18
Marlina, D. et al. (2018) studied “the Effect of Marketing Mix on Customer
Satisfaction and Loyalty PT.TIKI Padang Branch (courier service company)” in
Indonesia as shown in Figure (2.3).

Figure (2.3) Effect of Marketing Mix on Customer Satisfaction and Loyalty


PT.TIKI Padang Branch (Courier Service Company) in Indonesia

Marketing Mix
Product

Price

Location
Customer
Satisfaction Customer Loyalty
Promotion

Employee

Physical Evidence
Effects of Service
Process Mix
Marketing
Satisfaction
(7Ps) and
on Customer
Customer Loyalty
Satisfaction and
Source: Marlina, D. et al. (2018)
Customer Loyalty
Effects of Service
A sample of 200 respondents who are consumers of PT. TIKI Padang Branch is
Marketing Mix
selected
(7Ps) to
onget the data. Their results showed that products, promotions, employees had
Customer
Satisfaction
a positive and and
significant effect on customer satisfaction PT.TIKI Padang Branch.
Customer Loyalty
Price, location, process, and physical evidence did not have a positive and significant
effect on customer satisfaction PT.TIKI Padang Branch.
Gebremichael and Dhillon (2020) studied “the effect of Marketing Mix on
customer satisfaction and loyalty in the hospitality industry of Ethiopia”. In that study
the independent variables are marketing mix 7Ps, mediation factor is customer
satisfaction and dependent variables is customer loyalty as shown in following Figure
(2.4).

19
Figure (2.4) Effect of Marketing Mix on Customer Satisfaction and Loyalty in
the Hospitality Industry of Ethiopia

Independent Variables Dependent Variable

Product Customer Satisfaction

Price

Promotion

Place

People Customer loyalty

Process

Physical

Source: Gebremichael & Dhillon (2020)

According to their findings, marketing got significant positive impact on


customer loyalty. Additionally, it was discovered that customer satisfaction had a
favorable and statistically significant impact on customer loyalty. As a result, statistical
research revealed that while marketing mix had a considerable impact on customer
loyalty, it was unable to account for customer satisfaction by using Structural Equation
Model. Additionally, customer loyalty is positively and statistically associated with
customer satisfaction.

20
2.5 Conceptual Framework of the Study
Conceptual framework of this study which is presented in Figure (2.5) is
developed based on the literature review, concepts, and previous studies.

Figure (2.5) Conceptual Framework of the Study

Marketing Mix

Product

Price
Customer
Customer Loyalty
Place/ Distribution Satisfaction

Promotion

People

Source: Own Compilation constructed on Previous Studies (2023)

The conceptual framework in Figure (2.5), expressed the relationships among


marketing mix, customer satisfaction and customer loyalty. The framework explored
the relationships of two dependents variables and five independents variables. The two
dependents variables were customer satisfaction and customer loyalty. The five
dependents variables were product, price, place/distribution, promotion, and people.
The framework suppose that marketing mix has direct influence on customer
satisfaction and customer satisfaction directly influences customer loyalty.
Working Definitions
Product refers to pharmaceutical products including traditional medicines that is sold
by Shwe See Sein Pharmacy.
Price means an amount of money charged for a pharmaceutical product that sold at
Shwe See Sein Pharmacy to its customers.
Place refers to the locations of Shwe See Sein Pharmacy to access target customers
when they buy pharmaceutical products. Shwe See Sein Pharmacy distributes its
products in a place that is easily accessible to its potential buyers.

21
Promotion intends to increase sales revenue as well as to increase the awareness about
a product or the brand or the pharmacy.
People means the staff of Shwe See Sein Pharmacy who help with selling the products,
contribute to pharmacy positive image, and to solve the problem of customer.
Customer satisfaction refers to a positive feeling on store atmosphere and decoration,
variety of medicines to make selection, and price with good quality and so on.
Customer loyalty refers to positive relationship between the pharmacy and its customers
that can provide repeated purchase, continue to purchase the products from pharmacy
and recommend others to buy the pharmacy products.

22
CHAPTER III
PROFILE AND MARKETING ACTIVITIES OF
SHWE SEE SEIN PHARMACY

This chapter comprises three parts. The first part describes the background of
Health Care Industry in Myanmar and the profile of Shwe See Sein Pharmacy. The
second part mentions the marketing activities was operated by Shwe See Sein
Pharmacy.

3.1 Health Care Industry in Hinthada


The healthcare industry is one of the fast growing, high potential sectors that
needs reform, extension, and improvement to ensure better healthcare facilities so as to
prevent the outflow of patients to other countries. Pharmaceutical industry is one of the
best sectors of the industry because of its contribution to keep the global population
healthy by bringing down disease burden to the world. Pharmaceutical industry is
intense capital and technology driven industry because of the intrinsic complexities like
developmental challenges for new drugs, regulatory challenges for commercialization,
huge capital requirement, longer gestation period, delay in return on investments and
frequent changes in disease trends. This industry has been contributing to both human
and financial health of the world.
The pharmaceutical sector is one part of the larger healthcare sector which
incorporates all the drugs, medicines, tonics and injections needed for treatment and
health improvement. The key to health and wellness in Myanmar also lies in access to
medicines manufactured in one of the neighboring ASEAN nations or far off European
countries. The era of globalization has helped many Myanmar Pharmaceutical
companies to expand operations beyond traditional medicine. Changes in regulatory,
patent and market trends will drive opportunities for generic drugs and hence very big
opportunities for Myanmar pharmaceutical companies in local markets. Myanmar relies
heavily on India, Thailand, Philippines, France, U.S., and China, for pharmaceutical
products.
The country’s public health sector accounts for 86 percent of total healthcare
services, with 1,152 public hospitals accommodating 56,700 beds. International Non-
Governmental Organizations and local Non-Governmental Organizations such as the

23
Myanmar Red Cross Society, the Myanmar Maternal and Child Welfare Association,
civil society organizations and community-based organizations, including ethnic health
organizations, also deliver public healthcare services. There are more than 250 private
hospitals across the country. Private hospitals operate primarily in the larger cities and
provide selected services to rural areas. In addition, there are approximately 200 private
specialist clinics, more than 5,000 private general clinics, and 800 private dental clinics,
according to a report by the Department of Medical Services. While public health
expenditure ranks one of the lowest in the region, private healthcare sector expenditures
are gradually increasing due to rising demand, mainly from the expanding middle-class
population under the prior democratic government. Despite the economic impact of the
coup, private healthcare expenditures are expected to increase in light of growing
healthcare awareness.
Myanmar has a very competitive pharmaceutical market compared to other
ASEAN countries, and the market is attracting a growing number of foreign
pharmaceutical companies and is dominated by imports. Myanmar imports about 80
percent of pharmaceutical products from other countries. Local supplies are mainly
produced by the state-owned Myanmar Pharmaceutical Factory. According to a local
market research agency, Myanmar’s total pharmaceutical spending has been increasing
11 percent every year, and it is expected that the pharmaceutical market value will reach
$1.1 billion by 2023. There are more than 100 pharmaceutical distributors currently
operating in Myanmar. Switzerland’s Diethelm Keller Siber Hegner (DKSH) and
Thailand’s Maxxcare are leading the distribution channels. Other drug
distribution/pharmaceutical brands such as Zuellig, Abbott, Bayer, Eisai, GSK, J&J,
Novartis, Pfizer, Roche, Sanofi, and Servier are in the market. In addition, there are
many generic brands from India, China, Bangladesh, Pakistan, Thailand, and Vietnam,
with significant market shares. The market itself is very price sensitive, and Intellectual
Property Rights (IPR) remain a concern. Counterfeit products are prevalent, and
stricter regulation and enforcement are needed to stop illegal sales.
Pharmaceutical companies in Myanmar use distribution channels as a way to
communicate with their customers through distribution points and to reach them at the
right time and in the right place. According to (Szopa and Pękała, 2012), there are many
benefits with delivery locations such as moving products from the production location
to the required areas, providing information to customers about products and services
and improving products and services.

24
3.2 Profile of Shwe See Sein Pharmacy
Shwe See Sein Pharmacy is a full-service pharmacy located in Hinthada. It was
established in 2007 as own family business. Shwe See Sein Pharmacy commenced as a
small firm with own few capitals. Now, Shwe See Sein Pharmacy can expand one
wholesale business and two retail businesses in Hinthada. Shwe See Sein wholesale
pharmacy is located in near market and two retail pharmacies are located in downtown
area of Hinthada. Shwe See Sein Pharmacy arranged to buy the products easily with
affordable price and convenient location for all customers. The target wholesaler of
Shwe See Sein pharmacy are nurses, doctors, physicians and retail businesses.
Shwe See Sein Pharmacy sell many of foreign imported medical products as
well as traditional local made products. The products are tablets, capsules, tablet, syrup,
injection or ointment and lotions. Most of the customer in Shwe See Sein Pharmacy
prefer to take traditional medicine because they believe on traditional medicine. Shwe
See Sein pharmacy is truly unique as a pharmacy that offers the best in technology and
services to meet the needs of their customers.
At Shwe See Sein Pharmacy, glucose testing and blood pressure testing are
available. In addition to traditional prescription drugs and vitamins, there are many
other drugs available. The business is run by 15 employees, including 3 pharmacists.
Shwe See Sein wholesale pharmacy has nine staffs and retail pharmacy has three staff
of each in Hinthada. Figure (3.1) presents the organization structure of Shwe See Sein
Pharmacy. The pharmacy provides information/explanation about each product chosen
by consumers. Pharmacists take pride in not only dispensing products but providing
important medical information to patients.

25
Figure (3.1) Organization Structure of Shwe See Sein Pharmacy

Owner

Manager

Branch 1 Branch 2 Branch 3

Finance Pharmacist Pharmacist Pharmacist

Casher Sale Staff Casher Casher

Sale Staff Delivery Sale Staff Sale Staff

Source: Shwe See Sein Pharmacy, 2023

26
3.3 Marketing Mix Activities of Shwe See Sein Pharmacy
The objective of pharma marketers is to place the proper product in the right
place, at the proper price and at the appropriate time and right service. The 5 P’s of
marketing, price, placement, product, promotion and service people are essential to
running a successful health care business. When a successful pharmaceutical company
engages in marketing mix activities, the weightage to be given to each marketing
element is critical.
3.3.1 Product
Product in the Shwe See Sein Pharmacy is subject to the regulations of the Drugs
and Cosmetics Act. Therefore, medicine packaging, particularly prescription drugs,
must follow specific guidelines. This includes composition declaration, the direction of
use, warnings, etc. Brand name, quality, product line, dosages, indications, efficacy,
tolerability, packaging, patient compliance are main consideration factors of product in
Shwe See Sein Pharmacy. The product's importance in the pharmaceutical marketing
mix can be driven by a flagship product or brand equity to reliable and meet the
customer need. In Shwe See Sein Pharmacy, offer tangible and intangible. For example,
a product can be physical good (tablet, syrup, or capsules) or a service (medical
consultation). Product line is the set of products with similar features and marketing
needs.
A product can be in the form of tablets, capsules, tablet, syrup, injection or
ointment and lotions. This is the major determinant factor when a product is chosen for
use for treating a patient. E.g. tablet might be preferred for adult patient, syrup for
children, an injection when quick action is required an ointment for skin diseases or
localized pain. Shwe See Sein Pharmacy sold foreign imported product and local made
(traditional medicine).
Most of the customer in Shwe See Sein Pharmacy prefer to take traditional
medicine because they believe on traditional medicine. This is because those medicines
have been followed for generations and continues to be popular, more in remote rural
areas where there is no easy access to western (allopathic) medicines. According to
statistics provided by the World Health Organization, nearly 75% of Myanmar's
population still uses traditional medicines for healing and wellness. Nevertheless, the
preference of western medicine over the traditional one is getting higher because
traditional ones cannot be used for serious diseases and western medic ions are getting
more efficient and more assessable.

27
Shwe See Sein Pharmacy strives to continue to maintain the quality of the
products offered, one of which is by storing drugs and medical devices following
dosage types, alphabetically, and first in, first out (FIFO) first expired, first out (FEFO)
rules. In addition, Shwe See Sein Pharmacy also pays attention to the temperature and
temperature of the storage location of drugs and medical devices according to the type
of use, so that the quality of the product is maintained until later it will be handed over
to consumers. The drug given is always in good condition, such as not damaged
packaging, does not change color, and does not expire. Shwe See Sein Pharmacy also
offers various types of drugs and their uses, so consumers can choose according to their
wants, needs, and purchasing power.
Shwe See Sein Pharmacy also provides information/explanation about each
product chosen by consumers. Shwe See Sein Pharmacy consumers generally buy OTC
(Over the Counter) drugs such as vitamins/multivitamins, ulcer drugs (antacids,
Mylanta, promaag), cough medicines for children or adults, as well as medicines needed
for self-medication that can be obtained without a doctor's prescription.
Product storage is placed on shelves and glass cabinets/display cases that are
safe and easy for consumers to see are arranged according to FIFO (First In First Out)
and FEFO (First Expired First Out) systems. FIFO means products that arrive early are
sold early, and FEFO means products with an earlier expiration date should be sold
earlier as well. The products offered at these pharmacies vary so that when consumers
are looking for the desired product or drug they are always available. This means that
consumers do not need to look to other pharmacies to buy the products or drugs they
are looking for. The quality of the products provided is also very good with undamaged
packaging.

3.3.2 Price
There are so many pricings strategy but not the same meaning for this. Shwe
See Sein Pharmacy has controlled the price for its customers, even though the price is
not stable due to exchange rate changes. Shwe See Sein uses only penetration pricing
such as traditional medicines. Sometimes the customers the compare the price with
competitors, Shwe See Sein adjust the price as much as it can but. Shwe See Sein only
skimming price for high quality original products.
Price is an important of the Myanmar pharmaceutical industry including Shwe
See Sein Pharmacy. Price, although an important part of the marketing mix, is

28
somewhat dependent on the disease. Customers may choose not to compromise
preference over price in case of major illnesses. In the case of over-the-counter
products, pricing is of significance. Successful companies, particularly those with a
global market, often engage in competitive pricing to ensure an edge in the market.
Generally, price is the value attributed to a product of service. Consumers perceive the
price as a mix of product quality, functionality, expected benefits, and competitors'
prices. Shwe See Sein Pharmacy develops the habit of continually examining and
reexamining the prices of the products and services they sell to make sure they're still
appropriate to the realities of the current market.

3.3.3 Place
The place component of the marketing mix means a heavy reliance on an
aggressive sales force. Distribution is one of the most important business activities as
it ensures the visibility and availability of the particular product in the market. Shwe
See Sein Pharmacy is distributed in many ways depending on the type of customer:
doctors, retail shop.
Using Indirect is linked to a traditional medicine that is currently popular
online. This traditional medicine is a real cure for people with paralysis. Due to strong
advertising and good digital marketing, the medicine gained popularity and sales
increased. On the page, Shwe See Sein Pharmacy in Hinthada town advertised that it is
available at one store. Shwe See Sein became famous for giving.
A product is not important to the consumer, if it is not available when and where
it is wanted described that most producers do not directly sell their goods to the final
users or the end users; between this two, it stands a set of intermediaries performing a
variety of functions, these intermediaries constitute a marketing channel. Storage
conditions for pharmaceutical products in Shwe See Sein Pharmacy was compliance
with the recommendations of the manufacturer. Shwe See Sein Pharmacy is key to
ensure quality of all pharmaceutical products and storage areas was designed or adapted
to ensure appropriate and good storage conditions and clean and dry and maintained
within acceptable temperature limits.
The location of pharmacies is easily accessible using transportation such as
public and private transportation, and access to pharmacies that are easy to pass makes
it easier for consumers to meet the needs of the medicines needed. Shwe See Sein
Pharmacy also has a large parking lot, making it easier for consumers when buying

29
drugs. In addition, the location of the pharmacy is located on the side of the road and
the pharmacy signboard is visible also makes it easier for consumers to find the location
of the pharmacy. Buildings of Shwe See Sein Pharmacy have the function of security,
comfort, and convenience in providing services to consumers as well as protection and
safety for all people including people with disabilities, children, and the elderly.

3.3.4 Promotion
The promotion carried out is more attractive than other pharmacies, so
consumers are more interested in buying drugs at the Shwe See Sein pharmacy. The
role of the marketing mix is to generate mutually beneficial exchanges with the target
market through the information that educates, persuades, and reminds them of the
benefits of an organization or product, promotional variables consisting of attractive
advertisements, purchase gifts, and discounts also grow consumer interest and
consumption power towards the product.
Shwe See Sein Pharmacy offers promotional products such as notepads, pens,
bags, and umbrellas. During the Covid period, while the price of masks is rising, we
distribute masks to health workers without charge. When the price of masks goes up,
we make donations for those who can't afford to buy them. At Shwe See Sein Pharmacy,
as a monthly promotion, midwives are provided by the health department to assist
pregnant women. Birth expenses are covered for mothers who cannot afford them.
Appropriate promotional media can affect people's consumption patterns of a product.
Shwe See Sein Pharmacy outlines the various aspects regarding promotion
within the pharmacy. This includes defining the platforms that can be used for
promotion and the prohibitions. Printed promotional materials, including
advertisements, is a promotion of choice in the pharmacy. Apart from the brand's name,
these materials contain information like active ingredients, dosage, date of production,
precautions, side-effects, manufacturer information, etc. Promotion is the process of
marketing products to customers. Shwe See Sein Pharmacy promotion includes
personal selling (detailing), advertising, sales promotions, and online promotion.
Promotion includes all the ways they tell their customers about the products or
services and how they market and sell to them. Shwe See Sein Pharmacy continually
experiment with different ways of advertising, promoting, and selling their products
and services. Gifts to healthcare professionals is another marketing tool that is unique
to the pharmacy. There are prohibitions on the gifting of cash or cash equivalents and

30
personal effects to healthcare professionals. Moreover, At Shwe See Sein Pharmacy,
medical samples are also allowed as a means of marketing initiative.
Sales representatives are frequently the only source of information about
medicines in Shwe See Sein Pharmacy where there may be as many as one
representative for every five doctors. In Pharmaceutical Industry doctor is a major role
player, who speaks on behalf of the company and makes decisions by prescribing the
medicines, and also influences to other doctor prescription behavior, which is a critical
factor for the Pharmaceutical Companies. Shwe See Sein Pharmacy combines both
“push” and “pull” strategies in their promotional efforts. The “push” strategy, which
relies primarily on personal selling and sales promotion as a means to “push” a product
through the marketing channel.
The pharmaceutical market is dominated by personal selling (detailing) as the
most effective element of promotional mix. Detailing on the pharmaceutical market
implies sales calls by pharmaceutical sales representatives (PSR) to physicians in their
surgeries. During the call, the PSR may leave drug samples and some gifts of small
value, primarily memorabilia bearing the name of the company or the drug promoted.
Drug samples are commonly used strategies to get doctors to prescribe those drugs.
OTC drugs can be promoted to final consumers, which is a result of the fact that these
are used for conditions where self-treatment is possible, have comparatively clear and
brief package inserts, and a significant amount of information and long experience in
the use of these drugs guarantee safety and effectiveness.

3.3.5 People
Human resources are one of the important factors in marketing, therefore factors
that affect the competence of human resources must be managed properly to increase
effectiveness, efficiency, development, friendliness and maintain high performance in
an organization to win the competition. The variables of human resources studied are
the level of employee friendliness, reliability in service, attractive appearance, and good
knowledge of the product. Human resources at Shwe See Sein Pharmacy are already in
the very good person, both in terms of explanation and appearance. Shwe See Sein
Pharmacy is known to have implemented the people aspect well. Shwe See Sein
Pharmacy employees use neat clothes and look attractive than other. Shwe See Sein
Pharmacy employees who are friendly and patient in serving to consumers.

31
Shwe See Sein Pharmacy employees have knowledge of the purpose of the
therapy, how it works, how to use it appropriately, the possibility of benefits and risks,
how the drug compares to other available treatment alternatives or the decision not to
treat, and relative cost-effectiveness to make an informed decision. Moreover, Shwe
See Sein Pharmacy employees have good knowledge of the drug products and medical
devices sought. In addition, Shwe See Sein. Pharmacy employees have done good
service, so consumers feel satisfied with the services provided.

32
CHAPTER IV
ANALYSIS ON MARKETING MIX, CUSTOMER
SATISFACTION, AND CUSTOMER LOYALTY

This chapter describes the data analysis of the effect of marketing mix activities
on customer satisfaction and then, the effect of customer satisfaction on customer
loyalty of Shwe See Sein Pharmacy in Hinthada. This section comprised of five
sessions. The first session represents the demographic factors of respondents with
descriptive data. The second session describes with reliability analysis of the marketing
mix, customer satisfaction and customer loyalty. The third session comprises of
respondent’s perception on marketing mix, customer satisfaction and customer loyalty.
The fourth session presents the correlation analysis between marketing mix activities
(product, price, place, promotion and people), customer satisfaction and customer
loyalty. The final session includes multiple regression analysis result the effect of
marketing mix activities on customer satisfaction and customer loyalty of Shwe See
Sein Pharmacy.

4.1 Research Design


This study aims to examine the marketing mix of Shwe See Sein Pharmacy, to
analyze the effect of marketing mix on customer satisfaction toward customer loyalty
and to investigate the effect of marketing mix on customer satisfaction toward customer
loyalty of Shwe See Sein Pharmacy in Hinthada. Both primary data and secondary data
are used in this study. Quantitative research method is used is this study. The target
population is the customers who buy the medicines from Shwe See Sein Pharmacy.
Since the population is unknow, Cochran formula (1977), is utilized in this study. It is
known that sample size of this study is (386) respondents. To get the primary data, these
respondents are selected by using simple random sampling method. In this study,
structured questionnaires using five points Likert scales are distributed to customers. A
five-point Likert scale starts with 1 (Strongly disagree) to 5 (Strongly agree). Secondary
data is collected from related text books, theses, previous published research papers,
documents, and relevant websites.

33
The following is the calculation of the sample size for a 95% interval.

z2
n = 4 e2
(1.96)2
n=
4(0.05)2
= 384.16
n = sample size
p = the population proportions
e = acceptable sampling error (e=0.05), 95% confidence level
z = 1.96

The data collected is analyzed using the Statistical Package for Social Sciences
(SPSS) version 26, reliability test, descriptive statistics, and multiple regression
analysis as well as linear regression analysis are used.

4.1.1 Demographic Characteristics of Respondents


Demographic factors of respondents are evaluated in this section by describing
the frequency and percentage. Furthermore, respondents are requested to select one
answer from a list of given options. In this study, demographic characteristics of the
respondents are characterized into gender, age, marital status, education level,
occupation, monthly income in Myanmar Kyat (MMK) which can be seen in the
following Table (4.1).

34
(4.1) Demographic Data of the Respondents

Descriptions Frequency Percentage


Total 368 100.0
Male 162 42.0
Gender
Female 224 58.0
Single 153 39.6
Marital Status
Married 233 60.4
Under 20 Years 29 7.5
21 - 30 Years 112 29.1
Age
31 - 40 Years 182 47.1
Above 40 Years 63 16.3
High School 63 16.3
Undergraduate 43 11.1
Education level Graduate 185 47.9
Postgraduate 85 22.1
Others 10 2.6
University Student 42 10.9
Government Staff 38 9.8
Occupation Company Staff 169 43.8
Own Business 49 12.7
Dependent 88 22.8
300,000 MMK and below 115 29.8
300,001 – 500,000 MMK 135 35.0
Monthly Income
500,001 – 700,000 MMK 38 9.8
(MMK)
700,001 – 900,000 MMK 14 3.6
900,001 and above 84 21.8
Source: Survey Data, 2023

According to the above Table (4.1), it shows that both female and male
respondents use Shwe See Sein Pharmacy and percentage of female higher than
percentage of men to buy the medicine. Due to marital status, it was indicating that
married customers were higher than the usage of single customers because married
customers need to buy the medicine for their family than the single customers. In order
from highest to lowest age group, the 31 to 40 age range was the highest age group and
21-30 years old was the second highest age group followed by the above 40 age range

35
and under 20 years age range. Among them, under 20 years age range is the lowest age
group. According to the results, old age customers are more facing the health problem
such as illness, cold, cough, headache, stomachache etc.
In education Level, of respectively are graduate, follow by postgraduate, high
school, undergraduate. Therefore, the respondents are collected from the various level
of customers in the area. According to the data, all five types of occupation level are
coming to pharmacy, and company staff is significantly higher and dependent is the
second highest level. In general, various sectors of occupation level contributed to use
medical product. By studying education level, it could be seen that the respondents who
earning between 300,001 MMK and 500,000 MMK were the majority of the total
respondents. Most Shwe See Sein Pharmacy users are private company employees with
high income level and mainly come from graduated. Summarizing the demographic
information of the respondents, it is found that most respondents have high education
with high income. According to the results, the most of respondents are between 31- 40
years age group and 21-30 years age group and female who have a good knowledge in
health because they have high education with high salary of normal income that can
spend more on their healthcare.

4.2 Reliability Analysis of Variables


This is the process of measuring the consistency or repeatability of a scale.
Internal consistency can be measured as Cronbach’s alpha value and this is usually used
by researchers. Cronbach’s alpha value can be used to determine the questionnaires to
be reliable for further data analysis stage.
This study is based on a total of seven variables, which are classified according
to their relationship, which is marketing mix as independent variable that includes five
activities which are Product, Price, Place/Distribution, Promotion and People. The other
two are customer satisfaction and customer loyalty as dependent variable. In this study,
variables and measure items can be described as reliabilities of the variable: product is
measured with six items, price with five items, place with six items, promotion with six
items, people with six items, customer satisfaction with nine items and last, customer
loyalty is measured with thirteen items. The Cronbach alpha value is applied to analyze
the reliability of the variables and it’s shown in Table (4.2) below.

36
Table (4.2) Reliability Analysis of Variables
Sr. No. Variables No. of Items Cronbach Alpha Value
1 Product 6 0.739
2 Price 5 0.846
3 Place 6 0.848
4 Promotion 6 0.842
5 People 6 0.841
6 Customer Satisfaction 9 0.836
7 Customer Loyalty 13 0.844
Source: Survey Data, 2023

The results of the reliability for each factor in this study are presented in above
Table (4.2). According to the results of Cronbach Alpha value of the variables in order
from the highest to the lowest, it showed that the Cronbach’s alpha values of
Place/Distribution, Price, Promotion, People and Product are 0.848, 0.846, 0.842, 0.841
and 0.739 respectively which are considered as good and acceptable reliability for these
independent variables. Moreover, Cronbach’s alpha values of customer satisfaction and
customer loyalty are 0.836 and 0.844 respectively which are good and acceptable
reliability. Since items of each variable are consistent and reliable because Cronbach’s
alpha value are greater than 0.7. This could be assumed that all variables are good and
acceptable in this study.

4.3 Respondents Perception on Marketing Mix, Customer Satisfaction and


Customer Loyalty of Shwe See Sein Pharmacy
Before analyzing the data, descriptive statistics is used to describe the
relationship between pairs of variables. Descriptive statistics includes the mean values
and standard deviation of the items. By looking at the maximum and minimum point,
the interval that will be used as a scale can be determined.
Questionnaire Scales
Maximum score = 5
Minimum score = 1
Interval = (Maximum – Minimum) / (Total) = (5-1)/ 5 = 0.8
According to (Bowling, 1997), the mean value for Five-Point Likert Scale items were
interpreted as follow;

37
The score among 1.00 – 1.80 means very low
The score among 1.81 – 2.60 means low
The score among 2.61 – 3.40 means moderate
The score among 3.41 – 4.20 means high
The score among 4.21 – 5.00 means very high
As descriptive statistics, the mean and standard deviation values on the
perception levels of marketing mix, customer satisfaction and customer loyalty of Shwe
See Sein Pharmacy are calculated and measured in this section.

4.3.1 Respondent Perception on Product


The following Table (4.3) describes the respondent perception on product of
Shwe See Sein Pharmacy. There are six items in product activity of marketing mix.

Table (4.3) Respondent Perception on Product


Sr. Mean Standard
Descriptions
No. Value Deviation
1 Shwe See Sein Pharmacy offers high quality medicine. 3.86 .723
2 Shwe See Sein Pharmacy offers several brands to 3.90 .739
choose from in a category.
3 Purchased products from Shwe See Sein Pharmacy are 4.02 .871
usually found in good condition.
4 Shwe See Sein Pharmacy products have various 3.76 .911
package sizes.
5 Shwe See Sein Pharmacy offers good shelf life time 3.75 .848
product.
6 Shwe See Sein Pharmacy has good brand name and 3.91 .770
image.
Overall Mean 3.87
Source: Survey Data, 2023

According to Table (4.3), since overall mean value of product is 3.87, most of
the respondents perceived that the pharmacy carried out high level in product factor.
Among product items, according to the results, statement of offering several brands to

38
choose from in a category has the maximum mean value 4.02 while making the good
shelf life time product has the minimum mean value with 3.75.

4.3.2 Respondent Perception on Price


To identify the customer perception on price of Shwe See Sein Pharmacy, the
following questions are asked to customers and scores are calculated. There are five
items in price activity. The mean and standard deviation values of each item are shown
in Table (4.4).
Table (4.4) Respondent Perception on Price
Sr. Mean Standard
Descriptions
No. Value Deviation
1 Affordable and reasonable price for its various items 3.88 .700
2 Having a lower price if I buy additional similar items 3.80 .712
3 Receiving value for the money when buying and 3.74 .751
using the product
4 Checking the prices at any moment if I purchase 3.48 .835
online
5 Shwe See Sein Pharmacy products even prices are 3.63 .871
increasing.
Overall Mean 3.71
Source: Survey Data, 2023

Table (4.4) indicates that the maximum mean value is 3.88 that the statement:
“Affordable and reasonable price for its various items” whereas the minimum mean
score, 3.48 is for the statement, “Checking the prices at any moment if I purchase
online”. According to the overall mean value 3.71, indicating that the respondent’s
perception on price is a high level. Therefore, customer perceived that Shwe See Sein
Pharmacy carried out high level activities for affordable and reasonable, lower price,
and value for their customers.

39
4.3.3 Respondent Perception on Place/Distribution
In this study, six items are development to measure the customer perception
concerning the place/distribution activity carried out by Shwe See Sein Pharamacy. The
mean and standard deviation values of each item are shown in Table (4.5).

Table (4.5) Respondent Perception on Place/Distribution


Sr. Mean Standard
Descriptions
No. Value Deviation
1 Being able to buy Shwe See Sein Pharmacy products 4.12 .875
in nearest place with customers
2 Locating the Shwe See Sein Pharmacy at easy and 3.80 .833
convenient locations.
3 Being available products of Shwe See Sein Pharmacy 3.77 .908
from online.
4 Arranging to buy products in rural area. 3.60 .921
5 Shwe See Sein Pharmacy has an effective and 3.83 .796
efficient delivery system
6 Making Pharmacy’s layout to find it easy for 3.96 .963
customers what they need.
Overall Mean 3.85
Source: Survey Data, 2023

According to the results, the maximum mean value is 4.12, the minimum mean
value is 3.60, and the overall mean value is 3.85. As indicated in Table (4.10) the
statement of “Being able to buy Shwe See Sein Pharmacy products in nearest place with
customers” had the maximum mean value whereas “Arranging to buy products in rural
area” had the minimum mean value. All items measuring place/distribution activity
conducted by the pharmacy is in the range of high-level agreement of the respondents.
Therefore, the pharmacy carried out high level the place/distribution activity to be
available the products for their customers.

40
4.3.4 Respondents Perception on Promotion
In this study, customer perception on promotion activity is measured by six
items. The mean value, standard deviation, and overall mean of each item are illustrated
in Table (4.6).

Table (4.6) Respondent Perception on Promotion


Sr. Descriptions Mean Standard
No. Value Deviation
1 Having seasonal promotion 3.90 .907
2 Preferring discount promotion 4.03 .912
3 Attracting to purchase through advertising 3.92 .918
4 Preferring FOC gift promotion 3.73 .774
5 Attractive Brochure/ Flyer 3.83 .732
6 Attracting of membership card 3.70 .792
Overall Mean 3.85
Source: Survey Data, 2023

Table (4.6) results show the statement on “Preferring discount promotion” has
maximum mean value with 4.03 while the statement on “Attracting of membership card”
has minimum mean value with 3.70. These two values are in the range of high level
(3.41-4.20). Moreover, since overall mean value is 3.85 the pharmacy carried out high
level promotion activity.

4.3.5 Respondent Perception on People


Customers’ perception on people activity conducted by Shwe See Sein
Pharmacy is measured by six items. In this study, the respondents were requested to
rate their agreement level. Table (4.12) shows mean values, standard deviations and
overall mean value relating the people activity of the pharmacy.

41
Table (4.7) Respondent Perception on People
Sr. Mean Standard
Descriptions
No. Value Deviation
1 Making good handle with customer complaint and 3.98 .769
inquiry.
2 Dressing up neat and tidy. 3.93 .781
3 Having well knowledge to explain about medicine. 3.93 .775
4 Providing clear explanation on their products 4.16 .747
5 Having good communication skills with customer. 4.11 .771
6 Ensuring effective problem solution 3.73 .809
Overall Mean 3.97
Source: Survey Data, 2023

According to Table (4.7), “providing clear explanation on their products” has


maximum mean value with 4.16 while “ensuring effective problem solution” has
minimum mean value is 3.73. These maximum and minimum mean values are in the
range of 3.41-4.21 that is high agreement level. In addition, the overall mean of the
people activity is 3.97 which means that respondents highly agree on people activity
carried out by the pharmacy. Therefore, it can be stated that the staff of Shwe See Sein
Pharmacy have high level of competency to handling the complaint and inquiry,
knowledge, good communication skill and so on.

4.3.6 Respondents Perception on Customer Satisfaction


After analyzing the marketing mix (5Ps), customer satisfaction is analyzed by
ten questions. These questions are asked to customers to determine the level of their
satisfaction. The customer satisfaction on Shwe See Sein Pharmacy with mean value
and standard deviation is presented in Table (4.8).

42
Table (4.8) Customer Satisfaction
Sr. Mean Standard
Descriptions
No. Value Deviation
1 Shwe See Sein Pharmacy provides satisfaction because 3.65 .731
of appealing store atmosphere and decoration.
2 Shwe See Sein Pharmacy provides satisfaction because 3.88 .724
it can give me benefit for my health and live.
3 Shwe See Sein Pharmacy provides satisfaction because 3.91 .768
I can get variety of medicines to make selection.
4 Shwe See Sein Pharmacy provides satisfaction because 3.68 .811
of reasonable prices with good quality.
5 Shwe See Sein Pharmacy provides satisfaction because 3.73 .746
of product’s good package design.
6 Shwe See Sein Pharmacy provides satisfaction because 3.90 .768
it has several seasonal promotions.
7 Shwe See Sein Pharmacy provides satisfaction because 3.85 .793
of its staff competency, knowledge and services.
8 Shwe See Sein Pharmacy provides satisfaction because 3.75 .718
they can explain clearly when I ask about their
products.
9 I am satisfied with Shwe See Sein Pharmacy because it 3.78 .801
has good reputation and image.
Overall Mean 3.79
Source: Survey Data, 2023

According to the above Table (4.8), most of the respondents highly agree with
all the statements on customer satisfaction because all the mean values are in the range
of 3.41 to 4.20. However, among these statements, the statement on “satisfaction with
variety of medicines to make selection” provides the highest satisfaction to the
customers and the statement on “satisfaction with appealing store atmosphere and
decoration” has the lowest satisfaction. As an overall, customers have a high
satisfaction level on Shwe See Sein Pharmacy.

43
4.3.7 Respondents Perception on Customer Loyalty
To measure the loyalty level of the customers, thirteen questions to are asked to
its respondents in this study. The following Table (4.9) shows the mean value and
standard deviation of customer loyalty of Shwe See Sein Pharmacy.

Table (4.9) Respondent Perception on Customer Loyalty

Sr. Mean Standard


Descriptions
No. Value Deviation
1 I will buy products/services from Shwe See Sein 3.69 0.797
Pharmacy because it is the best choice for me.
2 Shwe See Sein Pharmacy products and services for my 3.87 0.795
health and life long in future.
3 Even there are no promotion activities, choose Shwe See 3.75 0.766
Sein Pharmacy.
4 I will continue to use Shwe See Sein Pharmacy products 3.52 0.862
if its prices increased somewhat.

5 Buying Shwe See Sein Pharmacy products even there is 3.26 0.897
no promotion program.
6 Shwe See Sein Pharmacy as first choice in the next few 3.45 0.827
years.
7 I will write positive reviews on social media about Shwe 3.37 0.802
See Sein Pharmacy.
8 I will continue to buy products from Shwe See Sein 3.77 0.700
Pharmacy because employees rarely make mistakes on
my order.
9 I will continue to buy from Shwe See Sein Pharmacy 3.77 0.698
because it has the convenient location to buy easily for
health problem.
10 I recommend others to buy Shwe See Sein Pharmacy. 3.76 0.675

11 I say positive things about Shwe See Sein Pharmacy to 3.71 0.741
other peoples.
12 When I see reduce price of products from other 3.16 1.048
pharmacies, I will not try it.
13 I consider myself to be a loyal patron of the Shwe See 3.63 0.844
Sein Pharmacy.
Overall Mean 3.59
Source: Survey Data, 2023

44
According to the above Table (4.9), most of the respondents are highly agree
with all the statements of customer loyalty since all the mean values are at the range
between 3.41 to 4.20. Among these statements, the statement of “I will use Shwe See
Sein Pharmacy products and services for my health and life long in future” has the
highest mean values whereas the statement of “when I see reduce price of products from
other pharmacies, I will not try it” has the lowest mean value. As an overall mean value,
since it is in the range of high agreement level, the customers of the pharmacy are highly
loyal at Shwe See Sein Pharmacy.

4.4 Correlation Analysis of Marketing Mix Activities, Customer Satisfaction


and Customer Loyalty
Correlation is the statistical technique that can show whether and how strongly
pairs of variables are related. If the value is positive, it means that as one variable gets
larger, the other gets larger. If the value is negative, it means that as one variable gets
larger, the other gets smaller. Correlation analysis is used to investigate the relationship
between the independent variables and the dependent variable in this study. The
marketing mix elements, including product, price, place, promotion and people are
independent variables while customer satisfaction is dependent variable for second
objective of this study.

Table (4.10) Relationship between Marketing mix and Customer Satisfaction


Pearson
Sr.
Variables Correlation P-Value
No.
Coefficient
1 Product 0.903*** 0.000
2 Price 0.863*** 0.000
3 Place 0.800*** 0.000
4 Promotion 0.605** 0.014
5 People 0.844*** 0.000
Source: Survey Data, 2023
*** and ** Correlation is significant at the 0.01 and 0.05 level (2-tailed).

According to the resulted data described in the Table (4.10), all of the marketing
mix variables are positively related to customer satisfaction. Therefore, all correlation

45
coefficients were observed to be statistically significant. Pearson Correlation Coefficient
of product, price, place, promotion and place are 0.903, 0.863, 0.800, 0.605 and 0.844
respectively. All of the marketing mix variables have significant correlation and with
customer satisfaction. According to the correlation matrix, there was a strongest
positive relationship between product and customer satisfaction, r = .903, p = 0.00
meaning that the strength of correlation between these two variables was the strongest
among other variables. Therefore, satisfaction level of the customers will be increased
when the pharmacy carries more marketing mix activities especially product.
In addition, Table (4.11) describes the Pearson’s correlation between customer
satisfaction and customer loyalty.

Table (4.11) Pearson’s Correlation between Customer Satisfaction and


Customer Loyalty
Pearson’s Correlation
Sr. No. Variable P-Value
Coefficient
1. Customer Satisfaction .799** .000
Source: Survey Data, 2023
* * Correlation is significant at the 0.01 level (2-tailed)

According to the resulted data described in the Table (4.11), customer


satisfaction was positively related to customer loyalty. Moreover, P value was .000
which presented that the correlation was significant at one percent level of significant.
Therefore, the correlation coefficient was observed to be statistically significant .
Customer satisfaction had positive relationship with customer loyalty as the
value of P was less than 0.01, and the correlation value r between pairs of variables
was .799 that meant the strength of correlation was strong. It can be concluded that the
relationship between customer satisfaction and customer loyalty were significantly
correlated to each other. Thus, when customer satisfaction is improved, customer
loyalty will be increased.

46
4.5 Multiple Regression Analysis on the Marketing Mix, Customer Satisfaction
and Customer Loyalty of Shwe See Sein Pharmacy
Multiple regression analysis is used to examine the effect of marketing mix
activities on customer satisfaction as well as the effect of customer satisfaction on
customer loyalty. Regression analysis is a technique for determining the statistical
relationship between two or more variables where a change in a dependent variable is
associated with, and depends on, a change in one or more independent variables.

4.5.1 Multiple Regression Analysis of Marketing Mix and Customer Satisfaction


In order to find out the effect of marketing mix (5ps) on customer satisfaction
of Shwe See Sein Pharmacy, multiple linear regression model is used to analyze the
findings of survey collected from 386 respondents. Regression analysis is done in SPSS
software in order to find out the effects of marketing mix activities on customer
satisfaction. In this analysis, product, price, place, promotion and place are regarded as
independent variables and Customer Satisfaction as the dependent variable. Table
(4.12) shows the effects of marketing mix activities on customer satisfaction of Shwe
See Sein Pharmacy.

Table (4.12) Multiple Regression Analysis of Marketing Mix on Customer


Satisfaction
Unstandardized Standardized
Independent
Coefficient Coefficient
Variables t Sig. VIF
B Std. Error Beta
(Constant) .538 .062
Product .428*** .133 .433 3.218 0.000 2.591
Price .091** .037 .125 2.486 0.039 3.689
Place .475*** .155 .508 3.064 0.000 1.312
Promotion .326 .067 .367 4.865 0.171 2.387
People .187** .065 .173 2.876 0.010 4.802
R .890
R Square .792
Adjusted R .789
Square
F 289.612*** (P = 0.000)
Source: Survey Data, 2023
a. Predictors: (Constant)
b. ***Significant at 1 percent level, **Significant at 5 percent level
c. Dependent Variable: Customer Satisfaction

47
According to Table (4.12), it is found that the value of F is 289.612 and the P
value is 0.000. In this study, multi-collinearity problem does not exist because the
values of VIF are less than 10. It can be assumed that the model of the study is fit and
it is concluded that conducting all marketing mix variables have positively and
significant effects on customer satisfaction (p= 0.000< 0.01). Adjusted R-squared is a
statistical measure of how close the data are in the fitted regression line and is also
known as the coefficient determination or the coefficient of multiple determinations for
multiple regression. Adjusted R-squared is 0.789 which indicated that all marketing
mix variables could explain 78.9% of the variations with customer satisfaction.
Multiple regression analysis revealed that product, price, place and people had
significant and positive effects on customer satisfaction. However, promotion had no
significant effect on customer satisfaction.
According to the regression results, product has second largest positive and
significant effect on customer satisfaction. It shows that the degree of customer
satisfaction would increase by 0.428 times for every unit change in product when all
other variables are constant. Therefore, product is one of the important factors to
increase customer satisfaction.
Furthermore, price is a least significant and positive effect on the pharmacy
customer satisfaction. The coefficient for price is 0.91 and shows that the amount of
customer satisfaction would increase by 0.91 times for every unit change in price when
all other variables are constant. This implies that price has positively and significant
effect on customer satisfaction at 5 % significant level.
Concerning the place activity in marketing mix activities, place has the strongest
positive and significant effects on customer satisfaction at the pharmacy. This implies
that place has positive and significant effect on customer satisfaction at 1% significant
level. Since the coefficient for price is 0.475, the amount of customer satisfaction would
increase by 0.475 times for every unit change in place when all other variables are
constant
People has also a significant effect on customer satisfaction at the pharmacy.
The coefficient for people is 0.187 and shows that the amount of customer satisfaction
would increase by 0.187 times for every unit change in people when all other variables
are constant. This implies that people (staff of the pharmacy) have a positive and
significant effect on customer satisfaction at 5% significant level.

48
As an overview, according to the regression analysis, all observed activities lead
to increase the customer satisfaction at Shwe See Sein Pharmacy in Hinthada, Myanmar
except promotion activity. Particularly, place activity has the largest effect on pharmacy
customer satisfaction whereas price activity has the lowest effect on pharmacy customer
satisfaction.
Furthermore, the effect of customer satisfaction on customer loyalty was
analyzed by using simple linear regression analysis as shown in Table (4.13).

Table (4.13) The Effect of Customer Satisfaction and Customer Loyalty


Unstandardize Standardized
Independent d Coefficient Coefficient
t Sig. VIF
Variables Std.
B Beta
Error
(Constant) .295 .100 2.938 .004
Customer Satisfaction .871 .026 .862 33.296 .000 1.000
R 0.862
R Square 0.743
Adjusted R Square 0.713

F 1108.631*** (P = 0.000)
Source: Survey Data, 2023
a. Predictors: (Constant)
b. ***Significant at 1 percent level
c. Dependent Variable: Customer Loyalty

According to Table (4.13), it was found that the value of F was 1108.631 and
the value of P was 0.000. It can be assumed that the model of the study was fit and it
was conducted that conducting customer satisfaction had positively and significant
effects on customer loyalty (P = 0.000 < 0.01). R Square was a statistical measure of
how close the data were in the fitted regression line and was also known as the
coefficient determination or the coefficient of single determinations for simple linear
regression. R Square was 0.743 which indicated that customer satisfaction could
explain 74.3 percent of the variations in the customer loyalty. As an overview, customer
satisfaction contributes to enhance the customer loyalty at Shwe See Sein Pharmacy in
Hinthada, Myanmar.

49
CHAPTER V
CONCLUSION

The study is conducted with the aim of analyzing the influences of marketing
mix elements (5 Ps): Product, Price, Place/Distribution, Promotion and People on
customer satisfaction toward customer loyalty. Based on the results of the data analysis,
this chapter contains findings and discussion, suggestions and recommendations, as
well as the need for further research.

5.1 Findings and Discussions


The primary data needed for this study is collected from 386 respondents
selected by using simple random sampling method. Summarizing the demographic
information of the respondents, it is found that most respondents have high education
with high income. According to the results, the most of respondents are between 31- 40
years age group and 21-30 years age group and female who have a good knowledge in
health because they have high education with high salary of normal income that can
spend more on their healthcare.
According to descriptive analysis, among five marketing mix activities, most
respondents perceived Shwe See Sein Pharmacy carried out high level of marketing
mix activities. Particularly, they have highest perception level on people activity among
marketing mix activities.
According to the correlation results, all of marketing mix factors are positive
related with customer satisfaction at significant level. Therefore, when the pharmacy
increases its marketing mix activities, the satisfaction level of customers will increase.
And then, in analyzing the relationship between customer satisfaction and customer
loyalty at Shwe See Sein Pharmacy, customer satisfaction is positive and strong
relationship with customer loyalty at significant level. It means that customer
satisfaction and customer loyalty were significantly correlated to each other. Thus,
increases in customer satisfaction leads to increase in customer loyalty.
Through regression analysis, the results shown that all marketing mix variables
except promotion have the significant positive effect on the customer satisfaction.
Moreover, there are significant and positive effects of product people and price and
people on customer satisfaction in Shwe See Sein Pharmacy. It indicates that product,

50
place, people, and price lead to increase customer satisfaction of See Sein Pharmacy.
Among these, place is the most highly significant effect on customer satisfaction
followed by product, people and price elements.
In this study, place has the largest effect on customer satisfaction in Shwe See
Sein Pharmacy because of being able to buy its products in nearest place with
customers, and making Pharmacy’s layout to find it easy for customers what they need.
Product has the second largest effect on customer satisfaction because it has good brand
name and image and offers wide range of brands and a variety of medicines. Similarly,
people element has the third largest effect on customer satisfaction because staff of the
pharmacy provide clear explanation on the products, have good communication skill,
and make good handle with customer complains and inquiry. Price element has also an
effect on customer satisfaction in Shwe See Sein Pharmacy because of offering
affordable and reasonable prices and offer lower price that its competitors.
According to regression analysis, customer satisfaction has a significant effect
on customer loyalty towards Shwe See Sein Pharmacy. In today's highly competitive
business world, customer loyalty is one of the elements of the key to business success.
customer satisfaction leads to customer loyalty towards Shwe See Sein Pharmacy.

5.2 Suggestions and Recommendations


As product has a significant and positive effect on customer satisfaction, the
pharmacy should provide several packaging sizes, continue to offer good shelf and life
time products, and high-quality medicines.
As price has also an effect on customer satisfaction at Shwe See Sein Pharmacy,
the pharmacy should continue to provide value for the money to its customers, and
affordable and reasonable price to its customers. In addition, the Shwe See Sein
Pharmacy’s pricing factors need to be evaluated and re-evaluated from time to time.
The price is just right for the current market conditions. It is recommended that prices
should be readjusted from time to time to meet customer needs and market prices. That
is, customers consider price as an indicator of product quality. The pharmacy should be
made cautious when setting prices because customers are accepting that high prices
represents high product quality, whereas low prices indicate low product quality.
Customers may believe that a lower price is achieved by reducing costs and product
quality in order to maintain profit margins. Managers should avoid frequent price cuts

51
or a consistent low-price strategy if possible because they anxiety the reduce perceived
quality and product image.
Since people element has significant and positive effect on customer satisfaction
of, the staff should continue to provide clear explanation on pharmacy products.
Moreover, owner of the pharmacy should ensure to provide effective problem solution
to its customers. Moreover, proper and regular trainings should be provided to its staff
for improving their communication skills and getting up date knowledge about the
pharmaceutical products.
Since place has the largest significant effect on customer satisfaction of the
Shwe See Sein Pharmacy, the owner of the pharmacy should develop the convenient
places for parking and security of the customers’ motor cycles and bicycles. Moreover,
the pharmacy should develop effective and efficient delivery system for its customers
to be more convenient. Nowadays, delivery of the products is very important for all
organization due to Covid-19. Therefore, the See Sein Pharmacy should pay more
attention for on time delivery when customers order its pharmaceutical products
According to the findings, promotion has no significant effect on customer
satisfaction. Due to the business nature, promotion activities do not affect and
significant on customer satisfaction because customers are not relied on promotion for
their health problem and they are immediately use medicine for illness and health issue.
The See Sein Pharmacy should conduct and assess market research to identify
marketing mix related problems inherent in its distribution in order to augment sales
and increase customer satisfaction.

5.3 Needs for Further Research


This study focuses on marketing mix, customer satisfaction, customer loyalty
under marketing subject. Moreover, the study only emphasizes on one pharmacy in a
city. Therefore, the effect of marketing mix activities on customer loyalty through
customer satisfaction in Myanmar Pharmacy Industry should be made. Additionally,
marketing strategies and other marketing mix elements affecting the customer
satisfaction and customer loyalty at pharmacy should be conducted as a further study.
Moreover, consumer behavior on pharmaceutical products should be conducted as
another study. Since marketing field is important in all businesses to improve their sale
performance and to thrive, marketing mix activities and its performance of other
industries such as manufacturing and service industries should be made as further study.

52
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APPENDIX
SURVEY QUESTIONNAIRE
Marketing Mix, Customer Satisfaction and Customer Loyalty of Shwe See Sein
Pharmacy

I am a student of Master of Marketing Management Programme at Yangon University


of Economics. I am doing the research on “Marketing Mix, Customer Satisfaction
and Customer Loyalty of Shwe See Sein Pharmacy”. Please respond to the following
questions by ticking the best fitting choice. All the information collected through the
questionnaire will be confidentially kept and used for academic purpose only. Please
kindly give a few minutes of your time to answer these questions. Thank you advance
for your participation and valuable time.

Section (A): Demographic Characteristics of Respondents


Please place a tick (√) in the box to represent your answers.
1. Gender
 Male  Female
2. Marital Status
 Single  Married
3. Age (Years)
 Under 20  21 – 30  31 – 40  Above 40
4. Education Level
 High School  Undergraduate  Graduate
 Postgraduate  Others: Please Specify ____________
5. Occupation Level
 University Student  Government Staff  Company Staff
 Own Business  Dependent
6. Monthly Income (Kyats)
 300,000MMK and below  300,001 - 500,000MMK
 500,001 - 700,000MMK  700,001 – 900,000MMK
 900,001MMK and above
7. Frequency of Visit to Pharmacy Store
 Daily  Once a week or more  2 - 3 times a month
 once a month  Every 2- 3 month  2 - 3 times a year
8. Frequency of Purchased Per Month

□ 1-5 times □ 6-10 times □ 11-15 times □Above 15 times


9. The Types of Products Purchased R
 Drugs  Vitamins /food supplements  Medical equipment
 Personal care
10. Reason for Visiting Pharmacy (Multiple Choice)
 Chronic disease  Current disease □ Consultation with a pharmacists
 Preventive action in accordance with potential disease
 Purchase of medical devices  Purchase of other medical products

Section (B): Marketing Mix, Customer Satisfaction and Customer Loyalty


This section is seeking your opinion regarding Marketing-Mix (5 Ps) and Customer
Satisfaction, Customer Loyalty of the Shwe See Sein Pharmacy. For each statement,
please indicate to which extent you feel it is agreeable or disagreeable. Please make a
Tick (√) one of the following questionnaires, indicating your answer.
1 = Strongly Disagree, 2 = Disagree, 3 = Neutral, 4= Agree, 5= Strongly Agree
Product

Sr.
Statements 1 2 3 4 5
No.
1 Shwe See Sein Pharmacy offers high quality medicine.
2 Shwe See Sein Pharmacy offers several brands to
choose from in a category.
3 Purchased products from Shwe See Sein Pharmacy are
usually found in good condition.
4 Shwe See Sein Pharmacy products have various
package sizes.
5 Shwe See Sein Pharmacy offers good shelf life time
product
6 Shwe See Sein Pharmacy has good brand name and
image.
Price
Sr.
Statements 1 2 3 4 5
No.
1 The price of Shwe See Sein Pharmacy product is
affordable and reasonable price for its various items.
2 I can get a lower price if I buy additional similar items.
3 I receive value for the money when buying and using the
products.
4 I can check the prices at any moment if I purchase
online.
5 I always use products even prices are increasing.

Place
Sr.
Statements 1 2 3 4 5
No.
1 I can buy Shwe See Sein Pharmacy products in nearest
place with customers.
2 Shwe See Sein Pharmacy is situated at easy and
convenient locations.
3 I can buy available product of Shwe See Sein Pharmacy
from online.
4 I can buy Shwe See Sein products in rural area.
5 Shwe See Sein Pharmacy has an effective and efficient
delivery system
6 Shwe See Sein Pharmacy’s layout to find it easy for
customer what they need.
Promotion
Sr.
Statements 1 2 3 4 5
No.
1 Shwe See Sein Pharmacy has seasonal promotion.
2 Shwe See Sein Pharmacy prefer discount promotion
3 Advertising of Shwe See Sein Pharmacy products is
attracting to me purchase.
4 I prefer FOC (gift) promotion.
5 I buy products because of the redeem voucher/ flyer.
6 I buy products because I have a member card.

People
Sr.
Statements 1 2 3 4 5
No.
1 Staff of Shwe See Sein Pharmacy can good handle with
customer complaint and inquiry.
2 Staff of Shwe See Sein Pharmacy are always dress up
neat and tidy.
3 Staff of Shwe See Sein Pharmacy have good knowledge
to explain about medicine
4 Staff of Shwe See Sein Pharmacy provide clear
explanation of their products.
5 Staff of Shwe See Sein Pharmacy has good
communication skills with customer.
6 Staff of Shwe See Sein Pharmacy ensure effective
problem solution.
Section (C): Customer Satisfaction and Customer Loyalty
This section is seeking your opinion regarding Customer Satisfaction and Customer
Loyalty of Shwe See Sein Pharmacy. For each statement, please indicate to which
extent you feel it is agreeable or disagreeable. Please make a Tick (√) one of the
following questionnaires, indicating your answer.
1 = Strongly Disagree, 2 = Disagree, 3 = Neutral, 4= Agree, 5= Strongly Agree

Customer Satisfaction
Sr.
Statements 1 2 3 4 5
No.
1 Shwe See Sein Pharmacy provides satisfaction because
of appealing store atmosphere and decoration.
2 Shwe See Sein Pharmacy provides satisfaction because
it can give me benefit for my health and live.
3 Shwe See Sein Pharmacy provides satisfaction because
I can get variety of medicines to make selection.
4 Shwe See Sein Pharmacy provides satisfaction because
of reasonable prices with good quality.
5 Shwe See Sein Pharmacy provides satisfaction because
of product’s good package design.
6 Shwe See Sein Pharmacy provides satisfaction because
it has several seasonal promotions.
7 Shwe See Sein Pharmacy provides satisfaction because
of its staff competency, knowledge and services.
8 Shwe See Sein Pharmacy provides satisfaction because
they can explain clearly when I ask about their
products.
9 I am satisfied with Shwe See Sein Pharmacy because it
has good reputation and image.
Customer Loyalty
Sr.
Statements 1 2 3 4 5
No.
1 I always use products/services from Shwe See Sein
Pharmacy because it is the best choice for me.
2 I will use Shwe See Sein Pharmacy products and
services for my health and life long in future.
3 Even there are no promotion activities, I will choose
Shwe See Sein Pharmacy.
4 I will continue to use Shwe See Sein Pharmacy products
if its prices increased somewhat.
5 I will buy Shwe See Sein Pharmacy products even there
is no promotion program.
6 I always consider the Shwe See Sein Pharmacy as first
choice in the next few years.
7 I will write positive reviews on social media about Shwe
See Sein Pharmacy.
8 I will continue to buy products from Shwe See Sein
Pharmacy because employees rarely make mistakes on
my order.
9 I will continue to buy from Shwe See Sein Pharmacy
because it has the convenient location to buy easily for
health problem.
10 I recommend others to buy Shwe See Sein Pharmacy.
11 I say positive things about Shwe See Sein Pharmacy to
other peoples.
12 When I see reduce price of products from other
pharmacies, I will not try it.
13 I consider myself to be a loyal patron of the Shwe See
Sein Pharmacy.

Thank You for Your Participation and Valuable Time

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