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Gini index

Gini index

Written by Sébastien MEIGE

Definition

The Gini index is a synthetic indicator of sales inequality (value or volume). It varies between 0 and 1.

It is equal to 0 in a situation of perfect equality where all pharmacies would achieve the same sales in the market under study.

Inversely, a Gini index equal to 1 would indicate the most unequal situation possible where a single pharmacy would achieve all the sales in the market.
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Mark

A decrease in the Gini index observed between two dates indicates an overall decrease in inequality. Conversely, a rise in the index reflects an overall increase in inequality.
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Example

Let's say overall pharmacy activity in all markets has a Gini index of 0.4 over a given period,
or a market under study has a Gini index of 0.7 over the same period.

Thus, over the period studied, the market studied shows more disparities than overall pharmacy activity.
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Terminology

The Gini index can be translated into English as Gini index.
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