Willingness to pay for ORS/zinc kits

Location: Zambia

Client: ColaLife

Sector: Health

IDinsight service: Price Elasticity Assessment

Partners: Keepers Zambia Foundation

ColaLife
Mothers participate in an auction for Kit Yamoyo in Monze District, Zambia.

Background
Diarrheal disease is the third largest killer of children under the age of five in Zambia, killing roughly 15,000 children every year. Although the World Health Organization (WHO) has recommended oral rehydration salts (ORS) and zinc supplement treatments as a cost-effective and efficient way to manage it, UNICEF estimates that only 60% of those in Zambia with diarrhea are being treated with ORS.[i] One major barrier to uptake is lack of access to the simple treatment.

Interventions
ColaLife, a registered nonprofit in the United Kingdom, is working to bring rural and urban Zambians market access to affordable, easy-to-use anti-diarrheal kits containing a single course of ORS/zinc as well as soap. With funding from DFID and support from other partners, including the Ministry of Health and UNICEF Zambia, ColaLife is currently piloting and scaling up the various facets of bringing Kit Yamoyo to market: kit design and production, distribution, retail, and advertising.  To inform scale-up and pricing, ColaLife has engaged IDinsight to assess the price elasticity of demand for Kit Yamoyo in rural and urban areas

IDinsight Service
In 2013 and 2014, IDinsight utilized 4th-price “Vickrey” auctions to map the demand for Kit Yamoyo in rural Monze, Zambia and urban Copperbelt Province. We found that K5.00 (about US$0.90) stood out as a price point affordable to about a third of one relevant customer base—mothers with under-five children—without any advance saving or prior awareness of the product. The follow-up study in urban areas also examined demand for two alternative Kit Yamoyo product designs.

 


[i] Ministry of Health of Zambia. Demographic and Health Survey 2007. http://www.unicef.org.org/infobycountry/zambia_statistics.html