Chapter 6 How Health Care Buyers Make Choices

1. Chapter 6 How Health Care Buyers Make Choices This chapter is an introduction to the concept of marketing and health care.This chapter is an introduction to the concept of marketing and health care.

2. 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?

3. 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 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 retrievalKey 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

4. 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 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 riskKey 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

5. 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 Key Words: organizational buying, business market, institutional market, government market, straight rebuy, modified rebuy, new task, systems buying, prime contractor, systems contracting, buying centerKey Words: organizational buying, business market, institutional market, government market, straight rebuy, modified rebuy, new task, systems buying, prime contractor, systems contracting, buying center

6. 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 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 customersKey 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

7. 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? 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, opportunismKey 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

8. 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. Key Words: Key Words: