STRUCTURAL EQUATION MODEL FOR FACTORS AFFECTING CUSTOMER ENGAGEMENT AND CUSTOMER DEVOTION TO COMMUNITY PHARMACY

Abstract

This study aimed to develop a model for explaining the relationship among professional pharmacy services, perception about pharmacist, perceived quality of pharmacy structure, marketing mix and pharmacy customer devotion via pharmacy customer engagement. Self-administered questionnaires were sent to a purposive sampling of 420 pharmacy customers from 28 community pharmacies in 7 districts of Bangkok and vicinity area during February and April 2016. Results from structural equation modeling (SEM) showed that perceived quality of pharmacy structure, perception about pharmacist and marketing mix had no direct effect to pharmacy customer devotion. However, perception about pharmacist and marketing mix showed indirect effect to pharmacy customer devotion via pharmacy engagement (β = 0.27 and 0.55 respectively). Pharmacy engagement had a strong association with pharmacy customer devotion (β = 0.95). In subgroup analysis of pharmacy customers receiving high professional pharmacy services, it was found that perception about pharmacist was the only factor showing direct effect to pharmacy customer devotion (β = 0.19) and demonstrating indirect effect to pharmacy customer devotion via pharmacy engagement (β = 0.34). Marketing mix had no direct effect to pharmacy customer devotion but showed indirect effect to pharmacy customer devotion via pharmacy engagement (β = 0.31). Perceived quality of pharmacy structure had no direct and indirect effect to pharmacy customer devotion. With regards to the subgroup analysis of pharmacy customers receiving low professional pharmacy services, only marketing mix show indirect effect through pharmacy engagement (β = 0.70). The findings manifested perceived quality of pharmacy structure had no influence on pharmacy customer devotion. Pharmacy engagement was a very important mediator for pharmacy customer devotion. It can be concluded that the use of high professional pharmacy services and positive perception about pharmacist can increase both pharmacy engagement and pharmacy customer devotion more effectively than the use of marketing mix strategy. It helped retain loyal customers and create a long term impact for community pharmacy business.