Factors Influencing the Purchasing Decision
within a Hypercompetitive and Hyperlocalized
Market: The Case of the Chilean Pharmacies
Market
Leopoldo G. Arias- Bolzmann, Hector Hevia and Francia Shurmann
CENTRUM Católica’s Working Paper No. 2015-10-0017
DOI: http://dx.doi.org/10.7835/ccwp-2015-10-0017
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.