Factors Influencing the Purchasing Decision within a Hypercompetitive and Hyperlocalized Market: The Case of the Chilean Pharmacies Market

Abstract

The study identifies the qualitative and quantitative variables that influence a consumers’ pharmacy store selection within a hypercompetitive market. The market studied is also characterized by the hyperlocation of multiple store brands in a relatively close distance.

In addition, the study investigates the average distance a consumer walks from their point of origin to the store. Qualitative results indicate that emotional and rational influences differ by age group; however, all groups expect high quality service. Quantitative results indicate store selection is influenced by the perception of lowest prices, service, product assortment and frequent buyer discounts. Loyalty was found to be linked to age of the customer. Finally, consumers willing to compare prices are more likely to walk longer distances. Loyalty reduces such distances by approximately twenty percent.