Private Healthcare Industry in India and its Consumer Behavior

Introduction

One of the problems in the developing countries is the level of health care and its associated facilities. Because of the appearance of poverty that rotten the governmental policies and regulations, the health care quality and continuous promotion are duly affected. The officials are focused on too many things that the budget is declared insufficient for all their projects. However, because of the existence of the foreign investments, the developing countries are slowly making the progress and already in the path towards the continuous development and economic success, leaving no one behind.

Background and Problem Statement

Recently, the healthcare sector in India adopted the technological changes and innovation processes to make it possible for the IT powered services. With the support coming from their skillful and empowered healthcare providers, there is a significant change in the hospital services. The clinical functions that are under the computerization process and administration are considered one of the best applications of the globalization in the industry (Virk, Khan, and Kumar, 2006). Due to the continuous changes in healthcare sector such as the recognizable good healthcare services, it created a great impact in the level of consumer behavior. Because of the increasing cost of healthcare services, there are increasing numbers of people who cannot avail the promise of quality healthcare services. In the exploration of the past studies, the adoption of technologies that pushed the development also became the underpinning reason in the healthcare infrastructure and network.

Research Aim and Objectives

The main aim of the study centers in the investigation of consumer behavior particularly in the Private Healthcare Industry in India. In order to achieve the best results and organize it well, there are three important objectives that the study should supply. First is to determine the recent changes that created a great flow in healthcare services. Second is to recognize the various applications of healthcare services that increase its level of approach in the patients and thereby, compare the application of the healthcare services. And third is to discuss the existing governmental policies that bounds to control the continuous increase in healthcare services and products.

Literature Review

Many organizations like the Wockhardt Hospital Group and Apopllo Hospital Group implemented the IT in the healthcare industry. The introduction of the technological standards increases the operational budget of the respected hospitals (Virk, Khan, and Kumar, 2006). Apparently, it is reported than an average Indian consumer spending has increase from US$ 133.60 in 1992-93 to US$ 350.74 in 2002-03. And on the parcel of medical and healthcare spending has increased from 3.5 per cent to 8.5 per cent of total expenditure over the same period, a compound growth rate of 19.71 per cent (Chennai, 2005). The problem now centers on how will the Indian consumers maintain the level of spending if there is a continuous increase, makes it impossible to acquire the equitable, affordable and quality health care (SEARO, 2010). It became more challenging for the consumers since the economy is not fully recovered from the impact of global recession. The India, however, is considered to be at their utmost control over the industrialization taking the slow recovery path which allows the businesses to redirect the attention and strategizing. In the aspect of healthcare, the consumer behavior draws changes through the use of two decision processes, particularly in the adoption of goods. It centers in the rational problem-solving process, when the consumer becomes aware of the problem and then looks for a solution and; the rational innovation, when the consumer becomes aware of the innovation before he recognizes the problem (Campbell, 2006).

Methodology

The suggested method in the study is the utilization of survey and interview among the two of private hospitals in India – Wockhardt Hospital, which is a tertiary care hospital group, and Apollo Hospitals group, which is recognized as the leading private hospital group in the country. In the first phase of the study, the survey will be implemented on the facilities of both hospitals. The participants were likely the patients and out-patients. The questionnaires that will use as the main material of the survey will be in a form of Likert Scale that effectively measure the appeal of healthcare services among the consumers. In the second phase of the study is the use of interview, which the participants are the healthcare providers and managers of the hospital. The knowledge that can be gained through the interview centers on how the people will assess their performance in the healthcare industry. However, the study is looking forward to create a comparison between the private hospitals to draw the conclusion on what is the best hospital that can deliver the quality of healthcare and services.

References:

Campbell, M., (2006) “Consumer Behaviour and Contraceptive Decisions: Resolving a Decades-long Puzzle”, Journal of Family Planning and Reproductive Health Care, 32(4), Accessed 21 June 2010, from http://bixby.berkeley.edu/wp-content/uploads/2010/05/Consumer-behaviour-contraceptive-decisions-10.06.pdf

Chennai, M., (2005) “Product Market Study: Consumer Behavior in India”

SEARO, (2010) “Health Insurance in India: Current Scenario”, Social Health Insurance Regional Overview in South-East Asia, Accessed 21 June 2010, from http://www.searo.who.int/linkfiles/social_health_insurance_an2.pdf

Virk, P., Khan, S., & Kumar, V., (2006) “India HIT Case Study”, The National Bureau of Asian Research, Accessed 21 June 2010, from http://www.pacifichealthsummit.org/downloads/HITCaseStudies/Economy/IndiaHIT.pdf

Impact of Advertisement on Consumer Buying Behavior

Introduction

As being incorporated or associated with the marketing process, advertising finds its position in every organization. Advertising can be defined as another strategy as an approach towards competitive advantage. Various advertising concepts are in the stream of the media and papers but still there is a little evidence that advertising can significantly help the organization boosts its performance. In terms of sales, it is true that the application of the marketing and its associate strategies can gain the consumers’ trust and loyalty, and in return, can enjoy the benefits of the market share.

Background of the Study

Many businesses explore various options in order to achieve the success. From the traditional research and development, to the training of the people, and the intervention of the various technologies, there is no doubt that organizations are trying make a difference against the other. Obviously, the organizations’ actions towards the threats and challenges in globalization enable the propellers and the people to work to meet their corporate objectives and long-term goal. However, the simple marketing concept is viewed by the business analysts as an effective strategy if the organization is planning to gather and/or keep the loyalty of the consumer. The use of the advertising within an organization is interestingly growing and various researches value its importance as an important factor that can influence the buying behavior of the consumers.

Rationale

The interest paid by the past researchers on the function of the advertising in the organization is considered as one reason of the study. In addition, maintaining and extending the purpose of the advertising from the simple operation of the organization creates the similar interest. If the idea on how powerful the advertising can be, the organization can find its own place in the market and can play with the other competitors.

Research Objectives

The first objective of the study is to understand the role of advertising within the organization and as part of the marketing. The second objective is to determine the level of influence that the advertisements can create to manipulate or influence the buying behaviors of the consumers. And the third objective is to set other functions of advertisement aside from meeting the trust and loyalty of the consumers.

Research Questions

The study understands the various point-of-views of the business leaders and marketers regarding the application of the advertising in their organization. In this case, the study prepared several questions that can help the study meet its own objectives.

1. What the factors that usually contributes to the buying perception and behavior of the consumers?

2. What is the common goal of advertising?

3. What are the recognized faces of advertising within the organization and to the consumers?

Literature Review

The role of advertisement changes unto what the organization wants them to do. There were times that an organization use the advertising to help them survive from the impacts of economic trends. Still, the economists views that the advertising plays a significant effect on the consumer behavior. And in a long process, the advertising can lead the organization to competition. Based on the understanding regarding the advertising, the approach rooted in the organization’s search for the right answer on the effects of the competition. Consequently, the accepted basic role of the advertising is to provide the consumers with the right amount of information regarding the product or services, which is related to the objective of the competition and that is to deliver the consumer satisfaction. In this view, the level of advertising affects the consumer who is the focus of the organization (Park, 1996). Based on the previous studies regarding the consumer behaviors, there are three influential factors that affect the consumer decision when buying. They are enumerated as external influences, internal influences and the marketing influences in which the advertising, product promotion, and pricing technique are found. Definitely, the marketing activity such as advertising affects both internal and external behavior of the consumer. Most especially, the consumers’ perceptions are influence through the exposure such as seeing an advertisement; attention which means that the consumer recognizes the advertisement; awareness which is common if the advertisement involves some humor; and the retention that keeps or stays in the mind of the consumer (Chen and Lee 2005). Advertisements also affect the knowledge by giving information, attitude, personality, lifestyles of the consumers, and the culture of the consumer. The concept of advertising makes it possible to involve the consumers which greatly affect the buying decisions of the consumers (Tsai, Liang, and Liu, 2007).

References:

Park, D., 1996. Advertising and the Meaning of Competition [Online] Available at: http://www3.ntu.edu.sg/nbs/sabre/working_papers/24-96.pdf [Accessed 17 March 2010]

Chen, W., & Lee, C., 2005. The Impact of Web Site Image and Consumer Personality on Consumer Behavior, International Journal of Management, Vol. 22, No. 3.

Tsai, M., Liang, W., & Liu, M., 2007. The Effects of Subliminal Advertising on Consumer Attitudes and Buying Intentions, International Journal of Management, Vol. 24, No. 1