Health Services Marketing 1-3 Discussions
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chapter6slides.pptChapter 6
How Health Care Buyers
Make Choices
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This chapter is an introduction to the concept of marketing and health care.
LEARNING OBJECTIVES
What are the main stages in the consumer buying decision process?
What are the main characteristics, roles, and stages influencing the organization’s buying process?
LO1. What are the main stages in the consumer buying decision process?
- 4 key psychological responses that influence consumer response to marketing stimuli
- Motivation
- Freud - behavior is unconscious
- Maslow - human needs hierarchy
- Herzberg - satisfaction vs dissatisfaction
- Prochaska - Stages of Change
- Perception - Health Belief Model
- Learning - experience
- Memory - associations
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Key Words: psychogenic, motive, Freud, Maslow, Herzbegr, Prochaska, laddering, dissatisfiers, satisfiers, Stages of Change, perception, selective distortion, selective retention, health believe model, drive, cues, short-term memory, long-term memory, associative network memory model, nodes, links, brand association, memory encoding, memory retrieval
LO1. What are the main stages in the consumer buying decision process? (Cont)
- Buying Decision Process - captures full range of consideration that arise when a consumer faces a highly involving new purchase
- Problem Recognition
- Information Search
- Evaluation of Alternatives
- Purchase Decision
- Post-purchase Behavior
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Key Words: information neediness, heightened attention, active information search, low-involvement model, learning model, rational ma hypothesis, dissonance attribution model, personal, commercial, public, experiential, total set, awareness set, consideration set, choice set, belief, attitude, expectancy-value model, consumer involvement, attitude of others, anticipated situational factors, critical contact situation, perceived risk
LO2. What are the main characteristics, roles, and stages influencing the organization’s buying process?
- Three types of markets
- Business market - ie. making of a wheelchair
- Institutional market - ie. food supply to a hospital
- Government market - bureaucracy
- Three types of buying situations
- Straight rebuy - routine order from list
- Modified rebuy - change specifications
- New task - create something different
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Key Words: organizational buying, business market, institutional market, government market, straight rebuy, modified rebuy, new task, systems buying, prime contractor, systems contracting, buying center
LO2. What are the main characteristics, roles, and stages influencing the organization’s buying process? (cont)
- Roles in the purchase decision process
- Initiator
- User
- Influencer
- Decider
- Approver
- Buyers
- Gatekeepers
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Key Words: initiator, user, influencer, decider, approver, buyers, gatekeepers, key buying influencer, multilevel in-depth selling, price-oriented customer, solution-oriented customers, gold-standard customers, strategic-value customers
LO2. What are the main characteristics, roles, and stages influencing the organization’s buying process? (cont)
- Buy Phases (typical new-task buying)
- Problem recognition - discovered need
- General need description - what and how much
- Product specification - product value analysis
- Supplier search - list of qualified suppliers
- Proposal solicitation - request for proposal
- Supplier selection - choosing the best qualified
- Order-routine specification - final negotiations
- Performance review - is it working?
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Key Words: buy phases, buy grid, product-value analysis, request for proposal (RFP), customer value assessment (CVA), MRO items, blanket contract, stockless purchase plan, corporate expertise, corporate trustworthiness, corporate likeability, specific investments, opportunism
CONCLUSION
- Individual consumers’ choices are influenced by many things.
- Five roles are played out in the buying process.
- Organizations’ buying processes vary slightly depending on the type of purchase.
- Business relationships are a important, but risky.
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Key Words:
