Florida National University
HSA-6163 Planning and Marketing in Health Services Administration: Assignment Week 2
Student PowerPoint Presentation: Chapters 3 and 4
Objectives: The presentation assignment has several goals. It requires students to apply concepts
from Marketing, dealing with demanding patients, and creating office videos in Healthcare
Institutions. The process of creating a video will allow students to practice closing the
advantages, and the potential subject of the video for the office and choosing specific topics to
take the opportunity to educate, a skill they will be using as Healthcare Administrators. In
addition, presenters learn as they teach others and contribute multiple critical perspectives to
class discussions.
Format and Guidelines: The student will create a PowerPoint Presentation from Chapters 3
and 4 of the Textbook related to Week 2 (Choose your desired topic from these chapters). The
Presentation should have a minimum of 12 slides, including the Title Page, Introduction,
Conclusion, and References.
The student must use other textbooks, research papers, and articles as references (minimum 3).
EACH PAPER SHOULD INCLUDE THE FOLLOWING:
1. Title Page: Topic Name, Student Name
2. Introduction: Provide a brief synopsis of the meaning (not a description) of the topic you
choose, in your own words
3. Content Body: Progress your theme, and provide Material, illustrations, and diagrams to
explain, describe and clarify the topic you choose.
4. Conclusion: Briefly summarize your thoughts & conclusion to your critique of the
articles and Chapter you read.
5. References: The student must use other textbooks, research papers, and articles as
references (minimum 3).
ASSIGNMENT DUE DATE:
The assignment is to be electronically posted in the Assignments Link on Blackboard no later
than noon on Sunday, March 12, 2023
Dr. G
Florida National University
HSA-6163 Planning and Marketing in Health Services Administration: Assignment Week 2
Student PowerPoint Presentation: Chapter 9 to 16
Grading Sheet
Student Name __________________________________
Category
Possible Points
Presentation style and content.
3
Distributed bibliography w/ 3
additional readings
2
Inclusion of diverse content
Pictures, Graphic, etc.
2
Length: Minimum 12 slides
1
Required Format
2
TOTAL
10
Dr. G
Date_____________________
Actual Points
ASSIGNMENT GRADING SYSTEM
Dr. G
A
90% – 100%
B+
85% – 89%
B
80% – 84%
C+
75% – 79%
C
70% – 74%
D
60% – 69%
F
50% – 59% Or less.
Chapter 4
Buyer Behavior
Chapter 4 Objectives
1. Understand the process of consumer and industrial
decision making.
2. Recognize the internal and external factors that
influence consumer decision making.
3. Identify alternative strategies to affect consumer
decision making.
4. Appreciate the different nature of organizational
buying and its implication for marketing strategy.
Learning Objective 1
• Decision-making model
– Consumer decision-making process
1. Problem recognition
2. Internal search
3. External search (factors affecting external search: benefits
relative to cost, locus of control, actual and perceived risk)
– Alternative evaluation
• Evaluative criteria (determinant attributes)
1. Purchase
2. Post-purchase evaluation
Learning Objective 1
• Consumer decision models
– Compensatory (multi-attribute model)
– Non-compensatory model (one attribute choice)
• Post-purchase evaluation
– Cognitive dissonance and decision freedom
Learning Objective 2
• Alternative decision-making sequences
– High vs. low involvement
• Level of consumer’s personal investment of purchase
• Consider risk, cost, social implications
– Degree of effort expended in moving from internal
to external search, and extensiveness of external
search
Learning Objective 2
• Alternative decision-making sequences (cont.)
– Routine decision making
• Brand loyalty
– Complex decision making
• High involvement, extended search
– Limited decision making
• Low involvement
• Over-the-counter pharmaceutical purchases
EXHIBIT 4-3 Consumer Decision Making
and Involvement
Data from Henry Assael, Consumer Behavior and Marketing Action, 5th ed., 1995, p. 152.
Learning Objective 3
• Psychological influences
– Motivation
– Attitudes
– Lifestyles
• VALS, PRIZM
– Learning
– Perception
– Selective exposure, selective comprehension,
selective retention
• Perceived risk
Learning Objective 3
• Sociocultural influences
– Family life cycle
• Modified life cycle
• Family decision making
• See Exhibit 4-6.
• Social class
• See Exhibit 4-7 for social class distinctions.
– Reference group
– Culture and subculture
Learning Objective 4
• Industrial buyer behavior
– Employers are huge customers.
• Occupational medicine
• Benefits purchasing
• Physician services
Learning Objective 4
• Industrial buyer behavior (cont.)
– Organizational differences
• Number of organizations
• Demand variations
– Derived demand
• Greater total sales volume
• Geographical concentration
• Professional buying
Learning Objective 4
• Industrial buyer behavior
– Organizational differences (cont.)
• Buying center
• Negotiation variations (frequency and complexity)
• Vendor solicitation
• Close buyer-seller relationships
Learning Objective 4
• Industrial buyer behavior (cont.)
– Buying process
• New task buying
• Modified rebuy
• Straight rebuy
Learning Objective 4
• Industrial buyer behavior
– Buying process (cont.)
• The buying center
– Initiators
– Users
– Influencers
– Gatekeepers
– Deciders
– Buyers (approvers)
Summary
• Buyer behavior that results in purchase is a multistage process involving problem recognition, search,
evaluation, purchase, and post-purchase evaluation.
• Post-purchase evaluation is a critical component of
buyer behavior. Organizations should assess whether
customer expectations are confirmed or disconfirmed
by their interactions with the service or use of the
product.
Summary (cont.)
• Consumer decision making depends to a large degree
on the amount of consumer involvement in the
purchase. The level of involvement is related to the
degree of risk and the extent of search behavior.
• The consumer decision-making process is affected by
several influences: motivation, attitudes, lifestyles,
learning, and perception.
Summary (cont.)
• Individual behavior is related to the stage a person is
in his or her life cycle. As the composition of the
typical family has changed, so have the traditional
stages of the life cycle been modified.
• Within the United States, there are several distinct
social classes, each of which reflects norms of
behavior, attitudes, and values.
Summary (cont.)
• Culture is recognized as the transmission of attitudes,
values, and norms from one generation to the next.
Within the United States there is a growing
emergence of several distinct subcultures that
influence buying behavior.
• Organizational buying behavior is characterized by
the number of companies, demand variations, sales
volume, professionalism of the buyer, and geographic
concentration.
Summary (cont.)
• A major defining characteristic of organizational
buying behavior is the buying center, which involves
many individuals at different levels and positions
within the firm.
• There are three variations of industrial buying: new
task, modified rebuy, and straight rebuy.
Chapter 3
The Environment of
Marketing Strategy
Chapter 3 Learning Objectives
1. Understand the impact of the five environmental
forces on organizational strategy.
2. Explain how social and economic forces affect
marketing strategy.
3. Describe the impact of technology on health care
organizations’ survival and competitive
environment.
4. Know the major regulatory requirements that must
be followed when formulating health care marketing
strategy.
Introduction
• Environmental scanning for potential impact
on the organization’s target market is
conducted to assess trends in each of the five
major environmental forces.
– Economic, technological, social, competitive, and
regulatory
• Then, the health care organization can
appropriately adjust its marketing mix strategy.
Learning Objective 1
• Five major environmental forces
–
–
–
–
–
Economic
Technological
Social
Competitive
Regulatory
Learning Objective 1
• Why are these forces important?
– Method to continually scan environment
– Conducted to assess trends over a period of years
– To know what needs to be done to appropriately
adjust to the marketing mix strategy
Learning Objective 2
• Economic forces
– Inflation
• Decline in the buying power when price levels rise
farther than income
– Consumer income
• Gross income: Total amount earned by a person or
family in 1 year
• Disposable income: Amount left after taxes to spend
on basic needs
• Discretionary income: Amount left after taxes and
basic needs for recreation or entertainment
Learning Objective 3
• Technology drives the industry.
– Impacts health care with improved quality but has
cost implications
– Impacts information for clinicians and
administrative staff
– Affects consumer behavior with search on the Web
– Transparency has increased due to technology.
• Regulatory
• Self-motivated
• Third parties
Learning Objective 2
• Social factors
– Demographics
• Population—aging population is growing.
• Health care organizations responding to aging
marketplace
FIGURE 3-11 Population 65 Years Old and Older by
Size and Percentage of Total Population
Carrie A. Werner, “The Older Population, 2010
Census Briefs,” United States Census Bureau (November 2011), https://www.census.gov/prod/cen2010/briefs/c2010br-09.pdf
Learning Objective 2
• The family
– Marriage rates in United States at historic lows
– Divorce rates falling except among Boomers
Learning Objective 2
• Social factors
– Geographic shifts
• People are moving west while population in the East
remains about the same.
• Population increasingly suburban
Learning Objective 2
• Social factors (cont.)
– Racial and ethnic distinctions
•
•
Minority percentage growing
Over 12% foreign born
Learning Objective 2
• Social factors (cont.)
– Culture
• Roles of men and women
– More women working outside the home and heads of
households
– Women more active searchers of health information on the
Web
– Changing providers
• More females are prominent in health care positions
(physicians, physician assistants).
• Salary disparity exists between male and female
clinicians.
Learning Objective 2
• Social factors (cont.)
– Changing attitudes
• Complementary or alternative medicine
• Concern for health and fitness
• Movement beyond a “sickness” model in health care
FIGURE 3-18 Most Common CAM Therapies
Used by Adults
National Center for Complementary and Alternative Medicine,
“The Use of Complementary and Alternative Medicine in the United States,” National Institutes of Health (2008),
https://nccih.nih.gov/sites/nccam.nih.gov/files/camuse.pdf
Learning Objective 3
Learning Objective 4
• Regulatory factors
– Competition
– Pricing
– Distribution
– Promotion
– Self-regulation
– HIPAA
Learning Objective 4
• Competition
– Antitrust legislation against monopolies
• Clarifications of FTC “safety zones”
– Product legislation–trademark protection
– Mergers
• Herfindahl-Hirshman index
• Health care competition
– Accountable health plans
– International competition
Learning Objective 4
• Future of medical tourism
– Transparency and reference pricing
– Domestic medical tourism
Learning Objective 4
• Pricing
– Has several regulations that relate to
reimbursement
– Discounts are allowable.
– Price fixing not specifically illegal according to the
Sherman Act, but considered illegal overall
Learning Objective 4
• Distribution
– Exclusive dealing—illegal to require buyer to
handle only products of one manufacturer and not
competitors
– Requirement contracts
– Tying arrangements
Learning Objective 4
• Promotion
– FTC forbids deceptive or misleading advertising
and unfair business practices.
– FTC can order a company to conduct corrective
advertising.
Learning Objective 4
• Self-regulation
– Gifts must be nominal.
– Educational items and patient care items should
be used in the marketing process to avoid
enticements.
Summary
• Marketing strategy must be developed in response to
and in concert with the broader macro environment;
economic, technological, social, competitive, and
regulatory forces can all determine the effectiveness
of any organization’s marketing program.
• In recent years, the rise in the cost of medical care has
slowed. Health care reform, high deductible health
care plans, and health savings accounts are alternative
insurance forms making consumers view health care
as a product to purchase.
Summary (cont.)
• Health care is a technologically driven industry. New
technological advances dramatically affect the institutions
and providers who deliver health care and determine how
that care is delivered. The Internet and wireless will
dramatically affect how patients interact with their health
care providers.
• The changing demographics of the U.S. population
represent significant opportunities for health care
providers. The fast-growing segment of older consumers
are major utilizers of health care services and products.
Baby boomers are often attracted to alternative medical
approaches.
Summary (cont.)
• Changing marketplace demographics related to
gender, ethnicity, and race require health care
providers to be more responsive to the needs and
concerns of diverse consumers.
• The competitive market can be defined as either a
pure competition, a monopolistic competition, an
oligopoly, or a monopoly. The differences represent
the number of sellers in the marketplace.
Summary (cont.)
• The prior movement to managed care is now returning
to a fee-for-service market. Inpatient admissions are
rising and outpatient surgeries continue to grow.
• A wide variety of federal and state regulations exist that
affect each aspect of the marketing mix. Mergers and
acquisitions have been of great concern for regulators.
• The issue of provider referrals is also highly regulated.
• HIPAA regulations also impact the marketing activities
and communications that can be conducted without a
patient’s consent.
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