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Gini index

Gini index

Sébastien MEIGE avatar
Written by Sébastien MEIGE
Updated over a year ago

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.

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.

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.

Terminology

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

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