J.D. Power and Associates Reports: Flat-Rate Pricing for Generic Prescriptions May Lead to Higher Satisfaction Among Pharmacy Customers
Posted on: Thursday, 25 September 2008, 09:00 CDT
WESTLAKE VILLAGE, Calif., Sept. 25 /PRNewswire/ -- Pharmacy customers who participate in flat-rate generic prescription pricing programs have considerably higher levels of satisfaction, compared with customers who don't participate in these programs, according to the J.D. Power and Associates 2008 National Pharmacy Study(SM) released today.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a)
The study, now in its second year, measures customer satisfaction with pharmacies in two segments: brick-and-mortar and mail order. Covering retail chain stores, supermarkets and mass merchandisers, the study examines seven key factors that contribute to customer satisfaction for brick-and-mortar pharmacies: non-pharmacist staff; store convenience; medication availability and information; layout and design; cost competitiveness; remote ordering convenience; and pharmacist. Five factors are measured for the mail order segment: ordering convenience; delivery convenience; medication availability and information; cost competitiveness; and customer service representative.
Satisfaction among brick-and-mortar pharmacy customers who participate in flat-rate prescription pricing programs averages 826 on a 1,000-point scale, compared with 817 among customers who don't participate in these programs. Nearly one-fourth of pharmacy customers participate in a "$4 generic" or similar flat-rate prescription pricing program, with the greatest participation rate among customers 44 years and older.
"Flat-rate generic prescription pricing programs are becoming increasingly popular among pharmacies," said Jim Dougherty, executive director of the healthcare practice at J.D. Power and Associates. "While low price alone is not a guarantee of satisfaction, customers find these programs especially appealing because of the low prices, and pharmacies may be able to attract new and repeat customers with the simplicity of the programs."
Study results by segment are: Chain Pharmacies Medicine Shoppe ranks highest with an index score of 873. Mass Merchandiser Pharmacies Target ranks highest with an index score of 847. Supermarket Pharmacies-West Ralphs ranks highest with an index score of 854. Supermarket Pharmacies-Midwest Hy-Vee ranks highest with an index score of 842. Supermarket Pharmacies-Northeast Wegmans ranks highest with an index score of 850. Supermarket Pharmacies-South Publix ranks highest with an index score of 879. Mail Order Pharmacies Prescription Solutions ranks highest with an index score of 864.
The study finds that customers 65 years and older account for 26 percent of mail order prescriptions, compared with 18 percent of prescriptions filled at brick-and-mortar pharmacies. Among customers in this age group who use mail order pharmacies, satisfaction averages 861, compared with 835 among customers 55 to 64 years old and 799 among customers 18 to 54 years old.
"Health insurance and Medicare Part D have driven more seniors to utilize mail order pharmacies to obtain medications for managing chronic conditions, and these mail order pharmacies can improve customer experiences by making the ordering process quick and easy," said Dougherty. "The mail order industry already has a large share of older customers, and that share should continue to grow as the baby boomer generation ages. As this industry changes and expands, companies will need to respond appropriately to ensure customers remain satisfied."
The 2008 National Pharmacy Study is based on responses from 15,163 consumers who filled a new prescription or refilled a prescription during the three months prior to the survey period. The Web-based study was fielded June through August 2008.
Customer Satisfaction Index Ranking Chain Segment (Based on a 1,000-point scale) Pharmacy Index Score J.D. Power.com Power Circle Ratings For Consumers Medicine Shoppe 873 5 Health Mart 840 4 CVS/Pharmacy 815 3 Chain Segment Average 805 3 Walgreens 799 3 Rite Aid 789 3 Longs Drugs 775 3 Duane Reade 691 2
Included in the study but not ranked due to small sample size are: Aurora Pharmacy, Discount Drug Mart, Fred's, Kerr Drug, Kinney Drugs, Medicap Pharmacy, Sav-More, Snyders Drug, Thrifty White and USA Drug.
Mass Merchandiser Segment (Based on a 1,000-point scale) Pharmacy Index Score J.D. Power.com Power Circle Ratings For Consumers Target 847 5 Kmart 842 5 ShopKo 837 4 Meijer 833 4 Sam's Club 831 4 Costco 813 4 Mass Merchandiser Segment Average 802 3 Wal-Mart 779 2 Included in the study but not ranked due to small sample size is Pamida. Supermarket Segment - West (Based on a 1,000-point scale) Pharmacy Index Score J.D. Power.com Power Circle Ratings For Consumers Ralphs 854 5 Fry's 827 4 West Segment Average 815 3 Vons 810 3 Albertsons 807 3 Safeway 803 2
Included in the study but not ranked due to small sample size are Bashas' and QFC.
Supermarket Segment - Midwest (Based on a 1,000-point scale) Pharmacy Index Score J.D. Power.com Power Circle Ratings For Consumers Hy-Vee 842 5 Kroger 827 3 Midwest Segment Average 822 3 Jewel-Osco 814 3 Giant Eagle 806 2 Cub Foods 790 2
Included in the study but not ranked due to small sample size is Dominick's.
Supermarket Segment - Northeast (Based on a 1,000-point scale) Pharmacy Index Score J.D. Power.com Power Circle Ratings For Consumers Wegmans 850 5 ShopRite 841 4 Stop & Shop 822 3 Northeast Segment Average 817 3 Hannaford 804 3 Giant Eagle 777 2
Included in the study but not ranked due to small sample size are A&P and Acme.
Supermarket Segment - South (Based on a 1,000-point scale) Pharmacy Index Score J.D. Power.com Power Circle Ratings For Consumers Publix 879 5 Kroger 846 3 Winn-Dixie 844 3 South Segment Average 842 3 H-E-B 832 3 Safeway 805 2 Giant 773 2 Mail Order Segment (Based on a 1,000-point scale) Pharmacy Index Score J.D. Power.com Power Circle Ratings For Consumers Prescription Solutions 864 5 Express Scripts 845 4 Medco 833 3 Caremark/CVS 828 3 Mail Order Segment Average 824 3 WellPoint/nextRx 820 3 Wal-Mart Pharmacy/ Mail Service 804 3 Walgreens Health Initiatives Inc. 804 3 CIGNA Pharmacy Management 803 2 Rite-Aid Health Solutions 763 2
Included in the study but not ranked due to small sample size are Aetna Rx Home Delivery and Drugstore.com.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional information is available at http://www.mcgraw-hill.com/.
Media Relations Contacts: Scott Merritt John Tews Brandware Public Relations J.D. Power and Associates Atlanta, Ga. Troy, Mich. (770) 649-0880 ext. 302 (248) 312-4119 smerritt@brandwaregroup.com john.tews@jdpa.com
No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. http://www.jdpower.com/corporate
Photo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-aAP Archive: http://photoarchive.ap.org/PRN Photo Desk, photodesk@prnewswire.com
J.D. Power and Associates
CONTACT: Scott Merritt of Brandware Public Relations, +1-770-649-0880,ext. 302, smerritt@brandwaregroup.com, for J.D. Power and Associates; or JohnTews of J.D. Power and Associates, +1-248-312-4119, john.tews@jdpa.com
Web site: http://www.jdpower.com/http://www.mcgraw-hill.com/
Source: PRNewswire
Related Articles
- CenterPoint Energy Receives High Ranking in J.D. Power 2009 Customer Satisfaction Study
- Gateway Ranks Number One in Technology Business Research Customer Satisfaction Study
- Orbit International's Power Units Segment Receives Additional Order in Excess of $625,000 for Oil and Gas Exploration
- Orbit International's Power Units Segment Receives New Orders in Excess of $750,000
- Orbit International's Power Units Segment Receives New Orders in Excess of $1,000,000; Bookings From Segment's Commercial Division Up 23% From Prior Year
- Orbit International's Power Unit Segment Receives New Orders in Excess of $800,000; New Order Enters Production Phase With Potential to Continue Through 2011
- Orbit International's Power Unit Segment Receives New Orders in Excess of $450,000
- The Customer Respect Group Announces Third Quarter 2005 Results of Online Customer Respect Study of Largest Airline, Travel Firms
- Largest North American Telecommunications and Networking Firms Ranked on How They Treat Online Customers in Second Quarter 2005 Online Customer Respect Study
- High-Tech Firms Cited for Open, Honest Online Policies But Poor Privacy, Responsiveness Traits in Fourth Quarter 2004 Online Customer Respect Study
 |
 |
User Comments (0)
RSS Feeds