Measurement of Pharmacy Saturation: Comparing Different Geographical Markets
Title:
Measurement of Pharmacy Saturation: Comparing Different Geographical Markets
Author:
Mahajan, Puneet Rappaport, Harvey M. Stevens, Robert E. Magoun, Aubrey Das, Sujit
Appeared in:
Health marketing quarterly
Paging:
Volume 10 (1993) nr. 3-4 pages 229-240
Year:
1993-08-04
Contents:
This research was conducted to facilitate the choice of entry in a geographic market for a potential pharmacy retailer. Data were obtained from secondary sources for 314 MSAs and PMSAs. The Index of Retail Saturation devised for grocery stores was redefined as the Index of Pharmacy Saturation (IPS). The national IPS average of $1,089,000 per store was deemed as the optimal level of saturation. The average pharmacy sales per person, the average pharmacy sales per household, and the number of pharmacies per 1,000 people were also found as useful measures of market saturation, while effective buying income and buying power index were not. In addition, areas with higher Percentage of elderly may already by saturated with pharmacies.