Consumers ' Usage and Adoption of E-Pharmacy in India: Mallika Srivastava
Consumers ' Usage and Adoption of E-Pharmacy in India: Mallika Srivastava
Consumers ' Usage and Adoption of E-Pharmacy in India: Mallika Srivastava
https://www.emerald.com/insight/1750-6123.htm
Adoption of
Consumers’ usage and adoption e-pharmacy
of e-pharmacy in India
Mallika Srivastava
SVKM’s Narsee Monjee Institute of Management Studies, NMIMS University,
Bangalore, India, and
Madhur Raina Received 23 January 2020
Revised 1 July 2020
Symbiosis International (Deemed University), Pune, India Accepted 23 September 2020
Abstract
Purpose – This paper aims to identify and empirically validate the various factors for adoption, usage and
intention to recommend e-pharmacy for purchasing medications by consumers.
Design/methodology/approach – Based on constructs from well-established theoretical models, the
technology acceptance model, extended unified theory of acceptance and use of technology and self-
determination theory, a model was proposed for the study. The model was validated with a sample size of 184
respondents using partial least squares method and factor analysis to establish and validate relationships
among the various identified constructs.
Findings – The results show that performance expectancy, effort expectancy, social influence and hedonic
motivation have a positive co-relation with adoption of e-pharmacy and the intention to recommend. The
results depict that gender and educational background have no correlation toward adoption and intention to
recommend e-pharmacies for purchasing medicines in India.
Research limitations/implications – This research comes along with a geographic limitation of the
sample size. The research was conducted in an urban suburb city of Bengaluru, India.
Practical implications – At an academic level, this research will provide interesting insights for
exploring adoption and usage intention of consumers toward e-pharmacy. At a managerial level, this
empirically supported study will provide insights into the relationship among the various constructs and the
consumers’ motivation toward adoption and usage intention of e-pharmacy.
Originality/value – This research is the first of its form which uses constructs from the technology
acceptance model, extended unified theory of acceptance and use of technology and self-determination theory
in the online healthcare space to understand consumer usage behavior.
Keywords Healthcare, e-pharmacy, Health service quality, Acceptance, Adoption intention,
Intention to recommend, Usage intention
Paper type Research paper
1. Introduction
The internet has revolutionized our lives, communication, and even purchasing behaviors
and practices. With an increase in access to the internet, its application in the areas of
healthcare is also intensifying. It is estimated that roughly 4.5% of all internet searches
worldwide are related to healthcare queries or information (Das and Faxvaag, 2014). Not
confined to this, today’s consumers use internet not merely for reclaiming healthcare
information, but even for self-diagnosis and attaining various other healthcare-related
services and products (Lanseng and Andreassen, 2007).
International Journal of
Pharmaceutical and Healthcare
Marketing
© Emerald Publishing Limited
1750-6123
Source of Funding: This is a self-funded research study. DOI 10.1108/IJPHM-01-2020-0006
IJPHM In brief, e-pharmacy or online pharmacy refers to trading of medications via a website
and distributing them directly to the consumers (Karahoca et al., 2018). The effortless access
to internet, awareness toward digital literacy, the shift from the physical doctor-patient
interaction to self-diagnosing and an integrated e-commerce supply chain has fueled the
growth of e-pharmacies in the recent years[4]. However, studies have shown that risks such
as counterfeit medications are linked to the purchase of medications online. As per Frost and
Sullivan, the e-pharmacy market in India is projected to reach US$3,657m (INR 25,000
crores) by 2022, thus demonstrating a huge potential in improving access and adherence to
medications for the population.
The research paper is structured as follows. Foremost the literature on online healthcare,
technology acceptance model (TAM), extended unified theory of acceptance and use of
technology (UTAUT2), self-determination theory (SDT) and the eHealth Literacy Scale
(eHEALS) is discussed. This is followed by the hypothesis formulation and proposed model
and then followed by the research methodology used in this study. The consequent sections
include data analytical and findings of the study and conclude with the theoretical and
practical implications.
2. Background
In the recent times, e-health has emerged as an evolving industry. The usage of electronic
health information and services through the internet and mobile technology is commonly
referred to as e-health. These online services allow consumers to acquire the various
healthcare support and facilities by using blogs, online communities and integrated
technology platforms including online healthcare consultation. With the use on online
purchasing platform’s consumers are able effectively manage and improve their and their
family’s healthcare needs and requirements (Harbour and Chowdhury, 2007; Song and
Zahedi, 2007; Cho et al., 2013). Such services also help consumers by rise above the
geographic and cost limitations which have been seen to be associated with the conventional
health information channel (Harbour and Chowdhury, 2007; Xiao et al., 2014). This change
from the traditional to the internet-based healthcare services has enabled consumers to
comprehend the various prevailing health conditions and develop a proactive approach
toward their health (Rains, 2007). Nevertheless, there exists a hesitation associated with the
usage of such services which has an impact on consumer acceptance and usage pattern.
Researchers have argued that online related health information does lack credibility and the
expertise of providers of such information has been questionable (Dutta-Bergman, 2003;
Lemire et al., 2008). Consumers have also reported hesitation to use online health
information and services due to fear of misuse of personal confidential details (Bansal and
Gefen, 2010; Beldad et al., 2010).
Online pharmacies or e-pharmacy can be defined as the process of buying and selling
majorly pharmaceutical medicines over the internet and delivering through the e-commerce
supply chain. Medicines can be classified either as prescription medicines, which require a
doctor’s prescription to be dispensed or non-prescription medicines, commonly known as
over – the – counter medicines – which do not require a physician’s prescription.
The usage of e-health related information and its related e-services require special
attention because these are critical to the decision-making process in respect to the consumer
context. Rains (2007) mentioned in his research that the perceived usefulness of information
acquired from the various e-health searches is an interdependent to an individual’s
perceptions and behavior. In the current scenario, a consumer’s involvement with the online
health services is a combination of his health-related behavior and his intention toward the
e-service usage behavior (Mou et al., 2016). The researcher discusses the Health Belief Model
(1950) which discusses about four beliefs, namely, perceived susceptibility, perceived Adoption of
severity, perceived benefits and perceived barriers. As per the model, an individual’s health e-pharmacy
behavior is governed by either of the above or is a combination of them. Similar, e-services
rendered by other industries, the use of online services for health information necessitates a
consumer’s willingness to engage with the provider either through a platform or technology
applications of an e-service. Existing research literature (Egea and Gonzalez, 2011; Bansal
and Zahedi, 2008) related to online health service asserts that usage of e-services influenced
by a consumer’s trust, belief and perceived usefulness of the e-service.
In this research study, we propose an integrated research model using the constructs
from the existing theories of TAM, extended unified theory of acceptance and use of
technology UTAUT2, SDT to empirically validate the consumer data for acceptance,
usability and intention to recommend e-pharmacy for purchasing medicines. This model
covers constructs of performance expectancy, effort expectancy, social influence, hedonic
motivation and impact of intention to recommend. Gender, age and educational background
have been considered as demographic variables which could have an impact on behavioral
intention. Figure 1 provides the representation of the proposed research model.
Researchers, Wong et al. (2014) mention that the UTAUT2 by Dennis et al. (2003) is one
of the most vigorous models currently in use for amplification of consumer technology
acceptance and use. For this research, we have considered UTAUT2 as the foundation
theory with antecedents of behavior use and intention, namely, performance expectancy,
effort expectancy, social influence and facilitating conditions at the core of proposed model.
The UTAUT2 is talked about as one of the theories which has a strong empirical backup (Im
et al., 2011).
The SDT is an empirically validated theory which interprets behavior as a component of
conscious or non-conscious motives (Ryan and Deci, 2017). SDT as explained by
motivational theorists develops on the concept that all individuals can either be extrinsically
or intrinsically motivated to perform certain action (Davis, 1992). Thus, being one of the
most comprehensive structure for explaining motivation, wellness and the relationship
between the two14. Intrinsic motivation is the drive and aspiration of an individual to
Figure 1.
Proposed research
model
IJPHM achieve a task, which is self-driven and not influenced by any external influences. The
outcome of intrinsic motivation assures an individual pleasure and satisfaction, post
completion of the task. Extrinsically motivated individuals perform a task because of its
alleged rewards, values and benefits distinctive from the activity itself (Mitchell and Biglan,
1971). Over and above, researchers Davis et al. (1992), explained that extrinsic motivation is
highly externally reinforced. Up till now, studies using SDT to understand motivation in
participatory behaviors leading to value creation is not significantly available in existing
literature (Osei-Frimpong, 2017). The two main extrinsic motivators suggested by
researchers (Davis, 1989), include perceived ease of use and perceived usefulness. These two
factors have reported to have direct impact on consumers’ intention for usage of a system
(Osei-Frimpong, 2017). Perceived usefulness is an individual’s belief that using a specific
information system will increase his/her performance, whereas perceived ease of use is the
users’ expectation that the specific information system will be effortless in usage
(Thompson et al., 1991).
The TAM is based on the theory which propounds that an individual’s usage of the
system is predicted by his/her intention to use an information technology system which is
inclined toward his/her internal attitude and belief of using a system. Furthermore, these
internal beliefs are seen as motivational factors for an individual that help drive the
individual to accomplish their goals (Maclnnis et al., 1991).
The concepts of e-health literacy have laid the foundation for the development of
“eHEALS” which is an instrument designed to evaluate consumers’ skills associated with
usage of information technology in healthcare and thereby assisting decision-makers in
planning their healthcare promotional strategies (Norman and Skinner, 2006). This eight-
item tool has been developed to understand consumers’ perception on ease and ability at
finding, comprehending and application of the information gathered electronically on their
health issues. The researchers identify the need to apply the eHEALS to additional
populations’ categories and confirm relationship among e-health literacy and their levels of
technology expertise.
Furthermore, research has suggested that health service quality is a determining factor
for the satisfaction of health services and customers’ behavioral intention (Davis, 1989). This
theory can be extended to delivery of e-services as well. Research findings have suggested
that the perception of quality of health services can be categorized into four categories,
namely, interpersonal, technical, administrative and environment (Dagger et al., 2007). For
developing a scale for e-health service quality, a number of scholars have recommended it to
be a blended approach of combining and synthesizing of existing literature with precise
healthcare concerns. Eysenbach et al. (2002) in their research concluded that the quality of
information related to the consumers available on the internet can be classified into
accuracy, completeness, readability, design, disclosures and references. Further, Bliemel and
Hassanein (2007) in their study mention that content quality and technical competency of
the website are the determinants of consumers’ satisfaction for online healthcare
information. Researchers Mukherjee and McGinnis (2007), in their study, reported that
security and privacy of patient data help-built trust among the consumers with regard to the
e-health services. Thus, the major concerns of consumers for any e-health service include
privacy and confidentiality, as also argued. To conclude, Hadwich et al. (2010) in their
research identified process, potential and outcomes qualities as the seminal parameters to
measure e-health service quality.
The rationale of the current study is to contribute and intensify our understanding
acceptance, usability and intention to recommend e-pharmacies for purchasing medicines in
India. From a theory-building perspective, the study uses the TAM and UTAUT2 to reflect
on consumers’ adoption and usage to information technology and identify the impact of Adoption of
online healthcare information/service. In addition to this, this study includes constructs from e-pharmacy
the SDT to better explain the association between these constructs (intrinsic and extrinsic
motivation) and their impact on consumers’ usage and adoption of e- pharmacy. In this
study, the researchers have also looked at constructs from e-health service quality to
measure and evaluate customer’s perception on the quality of any e-health services.
H2. Effort expectancy has a positive effect on behavioral intention to adopt online
pharmacy to purchase medicines.
3.2.3 Social influence. At the initial stages of adoption of a new technology or platform, prior
research has shown that social influence does have a positive impact (Teo and Pok, 2003).
Past empirical research have also validated the fact that intention to use new information
technology platform is positively impacted by social influence (Miltgen et al., 2013; Gao et al.,
2015), thus, the following hypothesis:
H3. Social influence has a positive effect on behavioral intention to adopt online
pharmacy to purchase medicines.
3.2.4 Hedonic motivation. This refers to the pleasure a consumer derives from while
adopting or using a new technology or platform (Venkatesh et al., 2012). Past research
studies have shown that hedonic motivation directly impacts the user’s technology adoption
intention in different contexts. Thus, we propose the following hypothesis:
IJPHM H4. Hedonic motivation has positive effect on behavioral intention to adopt online
pharmacy to purchase medicines.
3.2.5 User’s intention to recommend. Existing research literature support the theory that
users who have an advanced level of intention to adopt a novel information technology
platform or application are expected to become avid adopters (Leong et al., 2013) and are
inclined and motivated to recommend the technology to others (Miltgen et al., 2013). Thus,
we hypothesize that:
4. Research methodology
4.1 Item development
To validate the proposed model; the researchers conducted an online structured survey
which integrated constructs from the established theories under study. All the items were
selected from existing theories with inconsequential modifications in wordings to fit the
online pharmacy framework.
Constructs Source
Performance expectancy, effort expectancy, social influence, hedonic motivation and age
were found to be statistically significant in elucidating the behavior intention toward
adoption of e-pharmacy for purchasing medicines. The model explains a 42.7% of variance
in behavioral intention associated with e-pharmacy adoption with respect to performance
expectancy, 24% with respect to effort expectancy and 34% with respect to hedonic
motivation. However, the impact with respect to social influence was very less which
accounted for only 6% variance. Subsequently, the behavioral intention to adopt also proved
to be positively impacting the intention to recommend as the p-value was 0.013, thus
supporting H1 to H5 and H7. The results mentioned that gender and education do not
IJPHM significantly influence the behavioral intention to adopt as their p-value was much higher
than the significance level of 0.05, thereby not supporting hypotheses H6 and H8.
6.5 Conclusions
This research presents a mixed and divided response where customers did prefer buying
medications from brick and mortar shop; however, we did see a rising trend of using online
pharmacies for purchasing of medicines among the younger populations. Lack of awareness
regarding the benefits of using the online pharmacy emerged as a thought for discussion.
Thus, there is a need to demonstrate the use and benefits of using e-pharmacies along with
enhanced instruction to the customers. The customers largely appreciated the “home
delivery” of the online purchased medicines and would prefer to order online in cases of
acute illness.
The results suggest the e-pharmacy application to be easy to use. Respondents further
mentioned that developing trust toward the e-vendor is a crucial factor, and thus they
believe the quality of information provided and ease of navigating through the e-pharmacy
would help develop trust toward the e-vendor. Availability of obsolete and imprecise
information would generate a fear of mistrust in the minds of the customers.
If we look at the customer buying process with regard to the purchasing medicines
online, the customers were of the opinion that to make the buying process smooth and hassle
free, guidance must be provided by the e-vendor throughout the buying/purchasing process.
Also, the instructions must be easy to realize and quick resolution of any errors. However,
not to underestimate the requirement of providing up to date information about the
available medicine and any promotional offers. Some of the respondents appreciated the Adoption of
flexibility and power they can demonstrate while using these online portals. They feel e-pharmacy
empowered in such a case where they can select their preferred brand of medicine and add to
the shopping cart as when compared to a physical shop where the pharmacist intervenes in
the selection process.
Some of the respondents demonstrated apprehension in using the online pharmacy as
they perceived it to be time-consuming. In such a case, the e-vendor or marketers need to
ensure that if at all during the buying process, the customer gets jammed, there is smooth
access to a pharmacist, physicians or the customer support desk; else there is a high chance
of the buying process being terminated. Thus, the e-vendors or marketers need to promote
e-pharmacy as a “positive” platform for purchasing medicines which is least time-
consuming.
As per the results of the study, some respondent’s despite of being able to access the
online pharmacy, were not able to comprehend the medical information, thus representing
poor e-health literacy skills. Also, there were some respondents who were unable to even
find an online pharmacy due to poor literacy skills. In such a case, the marketers or
e-vendors can improve the visibility of their website through improved strategies of
keyword and search engine optimization.
The concept of online pharmacies continues to spread as increasing number of consumers
are moving toward internet as an alternate medium for gathering healthcare information and
purchasing pharmaceutical products. To increase the benefits and decrease the risk of e-
pharmacies, a two-level approach can be adopted. The first level should focus on stricter
regulations regarding regulating the online sale and distribution of pharmaceutical
medicines. The policymakers should evaluate all the possible legal and regulatory risks
associated with usage on e-pharmacy and suggest effective measures to manufactures and
consumers to minimize any potential risk. From a user perspective, the second approach
should focus on increasing the health literacy rate among the users and making them aware
about the information privacy issues which are related with the use of online pharmacy. Over
the course of the research, we observed the main reason for the consumers to purchase
pharmaceutical medicines is the low price offers promoted the e-pharmacies. The e-
pharmacies also allow consumers to purchase and make orders from the comfort of their
homes. These e-pharmacies also offer engaging healthcare information over their websites
which also attracts the consumers to visit such online pharmacies. For the repeat purchase
consumers of e- pharmacy, the consumers prefer to purchase from an already tried and tested
e-pharmacy, however, they do weigh against the prices and promotional offers offered by
other online pharmacies, before making their purchasing decision. In an overall sense, the
intention to adopt e-pharmacy is a summation of a consumer’s attitude toward the e-
pharmacy service as a whole and perceived benefit and ease of use of e-pharmacy.
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Corresponding author
Mallika Srivastava can be contacted at: [email protected]
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