Path Analysis of Determinant Factors Influencing Purchasing Decisions among Community Pharmacists in Nigeria using Structural Equation Modeling
Abstract
Author(s): Theophilus Ehidiamen Oamen, and Oamen Sophia Omorenuwa
Community pharmacists (CP) are custodians of medicines, and this raises the bar as far as ensuring the availability of affordable and quality medicines is concerned. Generally, convenience-of-supply process, favorable procurement costs associated with supply chain, optimum product-quality, service-quality from suppliers, and prospect-of-business profitability, are key considerations guiding procurement decisions. Albeit generic, there is the need to investigate how decision factors and specific demographic factors influence buying decisions of procurement pharmacists. A cross-sectional correlational study that used structured questionnaires administered to CP using mixed-sampling techniques in three metropolitan states in Southwest, Nigeria. Data was analyzed using SPSS-25 and AMOS-23. Descriptive statistics and inferential statistics were used at a p-value of ≤0.05. A response rate of 88.4% was achieved representing 398 respondents out of 450 questionnaires distributed. The majority were males (54.5%, 217) and females (45.5%, 181). Path analysis model revealed that.33% of the dependent variable (Purchasing decision) was explained by the independent variables (decision factors). Purchasing decision (outcome variable) is positively correlated with convenience, product-quality, and service-quality at p<0.01. But negatively correlated to competitivepricing and profitability at p<0.01. A causal relationship between decision factors and purchasing decisions showed that product-quality had the highest coefficient (0.300), followed by convenience (0.246), costadvantage (-0.231), profitability (-0.135), and the lowest, service-quality (0.036). Type of business model, gender, and ownership systems were differentiators in the path model. The study suggests more focus on quality-of-service provided by vendors. CP should ensure products are obtained at favorable prices to ensure lower costs for patients and improve business profitability.
