Prepare an article analysis utilizing the template containing the following information:
a) Citation of the article using CORRECT APA format,
b) summarizing paragraph of the article
c)three themes from the article,
d) two quotes complete sentences from the article using the APAformat for quoting others’ work ande) several paragraphs discussing the article’s relevance tohealthcare and why it is relevant. REFEREED ARTICLE
ENTIFYING N E W PATIENT
PROSPECTS: EEEICACY OE USAG
SEGMENTATION
For some health care services, usage-based segmentation schemes
can he wasteful and ineffective.
By Dan Sarel and Howard Marmorstein
s the competition
and other external
pressures on providers of health
care services intensifies, service providers’ ability to
continue to generate income, or
even survi\e, may require that
they make greater use of the
available fixed capacify by stimulating increased demand for their
services. However, when promoting programs wifh low market-penetration rates, health care
providers must go beyond the
usage-based segmentation appr’oach frequently applied in consumer marketing and develop an
understanding of the latent
demand among non-users. By
developing an understanding of
why this portion of the potential
patient base does not use the services available, marketers can
a\oid the misallocation of
resources that is likely fo occur if
A
EXECUTIVE HIGHLIGHTS
• liven though there is intuitive appeal \n identifying
the user profile for a given service and then targeting
similar nonusers, this approach can be very misleading when marketing health care services with low
market penetration.
• If usage segmentation is employed without checking
other indicators of latent demand and perceived barriers to use, significant misallocation of tiiarketing
resources is likely to occur,
• Confidentiality and embarrassment can be significant
barriers to use by segments that are excellent patienf
prospects. In this study of mental and behavioral care,
females and non-whites were found to be more concerned with confidentiality than were members of the
user group,
instead of fhe besf prospects. In
addition to challenging the rationale underlying usage-based segmentation, we wanted to highligbt the problems associated
with identifying new prospects
for health care services thai ha\’e
achieved relatively low market
penetration and are typically
adopted by the ultimate consumer (rather than through a
physician referral).
Tenuous Links
The links between providing
high-qualit)’ service, stimulating
positi\’e word-of-mouth behavior,
and obtaining new customers are
• Lack of awareness can be a much bigger impediment
very tenuous for a wide variety of
to adoption than negative attitudes. Health care marhealth care services, particularly
keters need to design communications that not only
those with low market penetraincrease awareness and familiarity for services with
tion and where the purchase decilow market penetration, but also address other issues
sion
is made by the ultimate conof concern to highly receptive segments.
sumer. It is interesting to note the
they base their targeting on user rrrwrBrrrrrBrrBrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrri^^
^^^^^^^^•rai^^^HBrrrrrrrrrrrrrrH variety of health care services and
profiles,
situations in which consumers
receive
no
meaningful
social
information as input to the pur’Hiis point is starkly made in a study w e conducted in 1993
chase decision, A prospective service buyer is unlikely to ask for
on the efficacy of usage-based segmentation in promoting seradvice from another consumer if there is a stigma attached to the
vices for mental and behavioral car-e. Lack of awareness rather
problem. If privacy is an issue, a person who previously has
than negative attitudes proved to be a much bigger factor in low
received treatment is likely to discourage the prospective buyer
usage, and marketing programs directed at segments of current
from inquiring. In still other situations, the consumer may simusers fended to reach people with low interest in the services
38
Spring 1996 —Vol. 16, No. 1
ply not know of an acquaintance who has used an available service provider, if there is a pressing need ft)r treatment, the consumer may not have time to acquire information from others
about potential providers.
Clearly, expanding the market for services with low le\’els
of market penetration and interpersonal communication cannot be acc 55 years
I – Black
J – Hispanic
K – White
L – < $35,000
M - $35,000-60,000
N - > S60,000
tation failed to identify correctly
mmmm the consumer groups who vv^ould
be most and least likely to adopt
the service at hand, one needs to
examine the specific reasons for
low usage among the respective
consumer groups. Exhibit 5
reports nonusers’ familiarity
with the available mental health
care program along three key
demographic characteristics.
These data show statistically significant differences by sex, race,
and age, l-emales and blacks
reported a significantly lower
level of familiarity with the available program.
These lower levels of familiarit v explain why blacks a n d
females, though interested when
informed about the program, displayed lower usage rates.
Moreover, the data help explain
why the nonadopters within the
major user groups of whiles and
males ma\’ nt)t be the best
prospects for expansion efforts.
Precisely because the nonadopters within these groups
already manifest a high level of
awareness of the service, lack of
usage by these individuals can be
attributed to their low interest
level rather than lack of familiarity. The latter obstacle to adoption
is much more readily overcome
through appropriately targeted
marketing communications.
Many health care services
with low market penetration
tend to be characterized by low
levels of visibility, interpersonal
* There is no significant relationship hetween group usage rate and future
communication,
and consumer
interest among nonusers.
^^^^______^__^_^_^__
awareness. To the extent that low
prior usage by a demographic
segment is due to low awareness
rather than a negative attitude toward the service or some
usage rate and future interest among nonusers across the demoother obstacle, nonadopfers within the low usage groups may
graphic groups examined. The corresponding multivariate
be equally good or better prospects than the nonadopters withanalysis examines this .same relationship. Only 17% of the
in the high usage groups.
respondents in (he highest prioritv target group expressed high
Further insight is gleaned by examining obstacles to adopfufure interest in the service; con\’ersely, 31 % of the respondents
tion other than low awareness. Consumers’ concern about the
in the lowest priority target group appeared in the high interest
confidentiality associated with receiving the service was identisegment.
fied in the exploratory phase of this research as an important
Reiving on usage-based segmentation to identify the best
barrier to adoption and was incorporated in the study. The
prospects among nonusers may be deficient for this health care
lower half of Exhibit 5 reports the percentage of nonusers who
program, Nonusers who are interested in trying the service are
indicated concern about confidentiality along key demographnot necessarily similar demographicaily to pasf users. Blacks
ic characteristics. This demonsfrates that females and nonand females, for example, ha\’e not exhibited strong usage
whites are more concerned about confidentiality than their
rates in the past but were found to be very important prospects
demographic counterparts and helps explain why their past
based on the interest analysis. Traditional analysis based on
usage rate is low while their potential interest in the service is
user profiles would have missed fhese groups and recomhigh. These findings support the need to go beyond usage segmended fargeting groups that were much less interested.
mentation both to identify the proper target and to design
Barriers to Usage. To understand why usage-based segmen-
42
Spring 1996 —Vol. 16, No. I
EXHIBIT 5
Lack of Familiarity and Concern about Confidentiality as Barriers to Usage
Nonusers’ familiarity with the mental health care program
Demographics
Race
Sex
Age
Female
Male
Black
Hispanic
White
55
Unfamiliar
24.8%
16.4%
27.8%
27.3%
17.5%
31.3
17.8
16.3
Somewhat familiar
62.2
66.9
58.3
62.0
66.7
58.0
67.1
64.5
Very familiar
13.1
16.7
13.9
10.6
15.9
10.7
15.1
19.1
100%
100%
100%
100%
100%
100%
100%
100%
2_
X^ = 14.59
t
i^= 25.39
P< .01
Nonusers' concern about confidentiality
Demographics
Race
Sex
Concerned
Age
Female
Male
Black
Hispanic
White
55
12.2%
7.2%
12.8'M)
11.1%
4%
8.1%
15%
8.7%
x' = 5.61
p
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