Impact of advertisement on organizational performance in the pharmaceutical industry, the mediating role of customer care.

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AUGUST, 2016
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The Ghanaian pharmaceutical industry is facing increasing challenges brought about by the effect of globalization and market liberalization in Ghana. The local pharmaceuticals producers and distributors are confronted with crucial obstacles concerning serious competition from counterfeits to imported pharmaceuticals products from china and Asia. The market share of local pharmaceuticals companies has therefore dropped to 30% and still threatened with the influx of many foreign companies. The study therefore focused on investigating the impact of advertisement in the organizational performance in the pharmaceuticals industry, the mediating role of customer care. The quantitative study was therefore conducted on a total respondent of 120 using questionnaires. The study employed two –stages sampling procedures to select the respondent from total population of the study. Stage 1 involved stratification whereas stage 2 involved simple random sampling by balloting. The study revealed that there is positive effect of the advertising practices of Tobinco Pharmaceutical Limited (TPL) on both operational and financial performance. The study also revealed that advertisement partially mediated the relationship between the customer care practices of TPL and operational performance. Similarly, advertisement partially mediated the relationship between the customer care practices of TPL and financial performance. However, this mediation effect was found to be not significant. Therefore, the mediation role of advertisement in the relationship between customer care and performance depends on the type of performance dimension. Based on these results the study suggests improvement in the customer care practices of the company and higher level of advertising practices.
A thesis submitted to the Department of Marketing and Corporate Strategy, College of Humanities in Social Science in partial fulfillment of the requirement for degree of masters of business administration (Marketing Option).