Consumer preferences for private hospital facilities in South Africa
Date
2011-03-22
Authors
Browner, Neil
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Abstract
The South African private healthcare industry has grown since the advent of a
full democracy in South Africa (UNDP, 2007) and research into the end
consumer choice preferences for private hospital facilities has yielded useful
insights.
This study looks at the end consumer choice preferences of the private
hospital industry in South Africa. It is designed to aid private hospital facility
managers with regards to decision making around strategic, marketing and
expansionary decisions. Operational factors were intentionally excluded from
this study, being outside the scope of the research.
The research problem explores both tangible and intangible attributes that
contribute to consumer decision making in those using purely private hospital
facilities, on a walk-in, non-emergency basis. These attributes were identified
from the literature review and comprised facility quality, location, price, access
from the tangible side; and staff competence, staff attitude and brand
recognition from an intangible perspective.
Data was collected by means of a snowball, online questionnaire, which was
designed on the basis of choice-based conjoint analysis. There were a total of
132 respondents of which 93 had valid responses. The questionnaire was first
subjected to a qualitative pilot phase in which personal interviews were
conducted by the researcher in order to screen and validate the questionnaire.
Respondent’s demographics were widespread across most demographic
groups recorded. Due to limited responses from certain demographic groups,
however, this research has limited applicability for the lower income brackets,
the elderly and those without medical insurance cover. Data was then
analysed using applicable software, interpreted and placed into context.
Key findings from this research are that tangible and intangible attributes
account for an almost equal proportion of the decision making criteria, with
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staff competence, facility quality and location having the highest importance
scores overall. Lowest importance scores for decision making attributes were
for staff attitude and access, with price and brand ranking in the middle.
Different demographic groups had statistically significant differences in
attribute importances, namely across age groups with regards to staff
competency, brand and price; across gender groups with regards to staff
competency facilities and price; income brackets across staff competency,
location and brand; and finally across those with dependants versus those
without across staff competency and brand. This means that private hospital
facility managers may have to tailor their strategic, marketing and
expansionary plans according to their target markets.
The underlying key finding that emerged from this research study was that,
private hospital facility manager’s top priority should be making sure that the
end consumer has absolute confidence in the hospital staff, followed by
having high quality facilities and assuring location is taken into account when
formulating strategic, marketing and expansionary strategies. If resources are
limited they should be first channelled in these areas, although the other
attributes examined in this research study do play a role and may be
differentiating factors should all else be equal.
Description
MBA - WBS
Keywords
Hospitals, Private, Consumer preferences