| dc.description.abstract | The importance of new product adoption has been widely proclaimed by managers and
academics and the pace of product adoption-related research has increased dramatically,
reflecting the importance of the area to many industries, including the pharmaceutical
industry. The study was guided by the following specific objectives: to determine the factors
influencing new product adoption by pharmaceutical wholesalers in Kenya; to establish the
barriers to new product adoption by pharmaceutical wholesalers in Kenya; and to determine
strategies adopted by pharmaceutical wholesalers to influence effectiveness of new product
adoption in Kenya.
A descriptive survey design was used to undertake the study. The population of interest in
this study was all the pharmaceutical wholesalers based in Nairobi and its environs whose
number stood at 30 as of December 31st 2009. There was one respondent from each of the
outlets. A census was undertaken since all pharmaceutical wholesalers solely involved in
wholesale business are located in Nairobi and its environs and have branches in other major
towns in Kenya. A semi-structured questionnaire was used to collect primary data from the
respondents. The questionnaire was pre-tested on six randomly selected respondents to
enhance effectiveness and hence data validity before being administered. Data pertaining to
the profile of respondents was analyzed by employing content analysis. In order to meet the
three objectives of the study, data was analyzed by employing descriptive statistics.
Computation of frequencies in tables, charts and bar graphs were used in data presentation. In
addition, standard deviations and mean scores were used to present information pertaining to
the study objectives. The information was presented and discussed as per the objectives and
research questions of the study.
The findings of the study show that the key factors influencing new product adoption by
pharmaceutical wholesalers in Kenya include: potential opportunities in the relevant product
class; price of the product/brand compared to competitors’ offerings; gross profit margin and
contribution margin of the product; potential profitability compared to others in the product
class; potential of the product to maximize profits; prior experience with the product vendor
in the market; organizational profit and sales objectives; and availability of the product to
maximize profits.
In view of the findings, the study recommendations include: the wholesale outlets should
consider enhancing buyer and supplier relationships in order to sustain a competitive edge
over other players in the industry; technology, information sharing and process integration
should be embraced to enable lowering of costs; and focus on fulfillment; customer
management; forecasting and planning; and procurement. | en |
