Brand Loyalty and Customer Retention Among Pharmaceutical Distributors in Lagos State, Nigeria

Abstract

Studies on brand loyalty posit that customers are motivated by factors external and internal to them. The former deals with items driven by brand makers and intermediate partnership; the latter is driven by cognitive and behavioral disposition. Against this backdrop, the study was conducted to examine moderating role of physician and pharmaceutical distributors in customer brand loyalty in Ikeja-Lagos. The study adopted descriptive survey, 25 sample size and qualitative method. Key informant interviews and semi structure interview were used as instrument of data collection. Study population consisted of middle class residents, who were brand customers, and pharmacy stores. Moderating role of physicians and brand customers in pharmacy stores were dominantly influenced by doctor’s prescriptions, history of illness, satisfaction and trust. Purchase intention of customers was driven by attachment and commitment to doctor’s brand prescription. Satisfaction predicted trust. Brand medicine which offered satisfaction was retained whether or not the price changed upward. Trust for brand depended on consistent satisfaction and this significantly predicted loyalty. Pharmacy distributors had little capacity to change purchase intention. Brand decision was predicted by moderating role of physician. This study recommended that the role of physicians should be mainstreamed in brand patronage in pharmaceutical distribution. Loyalty to brand was predicted by customer knowledge of efficacy in disease history. Physician intervention was valued by customers.