COVID-19, Consumer Behavior and Inventory Management: A Study on the Retail Pharmaceutical Industry of Bangladesh

Abstract

Purpose - This paper proposes a thorough investigation of the impact of the COVID-19 Pandemic on consumer behavior and the inventory management of the retail pharmaceutical stores in Bangladesh. This study aims to explore the impact of the factors arising from uncertainty like coronavirus pandemic on the inventory management of retail drug stores across the country.Methodology - 208 pharmaceutical stores staff were surveyed using a 31-items structured questionnaire. As most of the respondents were not well educated the questions were delivered to them in the native language. Exploratory Factor Analysis, Confirmatory Factor Analysis (CFA), and Structural Equation Modeling (SEM) techniques were used to identify the significant factors. Findings - Results demonstrated that five factors namely, improved inventory management, market syndicate & price hike, easier online purchase, delayed delivery, and supply shortage were found significantly responsible for the inventory management disruptions in the retail drug stores of Bangladesh. Practical Implications - The identification of the factors impacting supply chain disruptions in the health and pharma industry may guide policymakers and pharma manufacturers to undertake necessary actions to overcome the accompanying challenges of the coronavirus pandemic. Originality - This study is the first attempt to assess the relationship between a pandemic like COVID-19 and the inventory management disruptions in the retail pharma industry in Bangladesh.