Professional Documents
Culture Documents
Presented By
Naveen Varada
Ph.D. Scholar (2015-16)
ID: 1226516002
GSIB, GITAM University
Introduction:
Primary concern of hospitals has been producing services, rather than servicing markets. Average Hospital occupancy was 70 %
Yr 1990 USA
nationwide.( American Hospital Associations Report)
Average Hospital occupancy was 66.1% nationwide and in Yr 2005 the hospital occupancy rate was 63 %.
Transformation of health service industry from Producers market ------ Buyers market
Reasons: Tremendous inventions in Human Drug industry, Fast recovery services, Trend towards out-patient Treatment.
Yr 1999- USA
Leads to Customer oriented service offers- room, food, parking, friendly hospitality , customized health plans-- Advertisement
to survive in business and make competitive advantage.
Norton Healthcare Kosair Childrens Hospital Inc. (NHKCH) --- Louisville, Kentucky State, USA ---- only full service childrens
hospital in Kentucky state.
Expanded its services to pediatric intensive care - offered child-friendly environment--- red wagons for child transportation, book
Yr 2000 NHKCH
& video library, play rooms on all patient floors, extra bed for guardian or parent, child life.
Leader in market share in the region IN in-patient admissions, outpatient visits, ER visits and Total surgeries.
NHKC hospital wants to enter into maternity services to increase business and awareness among customers.
Yr 2006- NHKCH NHKCH felt that Product line Marketing Approach is appropriate to get success in maternity hospital services.
The hospital has the capability to establish a maternity line, but uncertain about How to market the maternity line.
NHKCH would like to undertake a marketing research to find a solution.
Research Methodology:
Sample size : 270 respondents from Kentucky state
Period of study : Yr 2006-2007
Data collection method: Collected primary data by survey method using Semi-structured questionnaire contains few closed ended
questions and one open ended question .
2. To explore the factors that influence customers in selecting a hospital for delivery.
3. To determine whether significant difference exist across hospitals with respect to selection of hospital .
Hypothesis:
1. There is no relationship existing between perfect maternity facility and Age, marital status, Education level & Income.
(Perfect Maternity Facility Includes Integrated operations, Pre-birth classes and Post-birth classes)
2. Hospitals are showing similarity with respect to factors that influence selection of hospital for delivery.
3. Familiarity of features of maternity services is independent to the variables - Loyalty towards Hospital, Convenience of Related Services,
1) H0 : There is no relationship existing between Integrated operation and Age, marital status, Education level & Income.
Ha : There is significant relationship existing between Integrated operation and Age, marital status, Education level & Income.
2) H0 : There is no relationship existing between Pre-birth classes and Age, marital status, Education level & Income.
Ha : There is significant relationship existing between Pre-birth classes and Age, marital status, Education level & Income.
3) H0 : There is no relationship existing between Post birth-classes and Age, marital status, Education level & Income.
Ha : There is significant relationship existing between Post birth-classes and Age, marital status, Education level & Income.
Chi-square test:
Testing hypothesis about the significant association between variables.
Cross tabulation between Perfect maternity facility (Integrated operation, Pre-birth classes and Post birth-classes) versus Age, Marital status,
Education level and Income range of household.
Frequency Tables:
P-value (0.000) is less than the significance level (0.05), we have to accept the Alternate hypothesis. So, there is a significant relationship between
Pre-birth classes and Age, marital status, Education level & Income.
P-value (0.000) is less than the significance level (0.05), we have to accept the Alternate hypothesis. So, there is a significant relationship between
Post-birth classes and Age, marital status, Education level & Income.
Since the P-value (0.000) is less than the significance level (0.05), we have to accept the Alternate hypothesis. Thus, we have to
conclude that there is a significant relationship between Perfect maternity facility and Age, marital status, Education level & Income.
2. To explore the factors that influence customers in selection of a hospital.
Factor analysis:
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .883 KMO measure indicates appropriateness sample data to do factor analysis
Approx. Chi-Square 2797.848
Bartlett's Test of Sphericity df 45
Sig. .000 Bartletts test tests whether correlation matrix is identity matrix or not
KMO measure = 0.883( lies between 0.5-1.0) , indicates 88.3% of common variance in between variables and factor analysis is an appropriate
technique to do analysis.
Bartlett's Test of Sphericity showing significance (0.000) < 0.05, indicates that the data do not produce an identity matrix.
Eigenvalue indicates proportion of variance explained by each factor. First three factors have Eigenvalue more than 1. So these three factors
have retained in final solution.
The cumulative percentage for three factors is 88.887%. i.e., 88.887% variance has to be explained by these three factors.
Scree plot: Three factors are on the steep slope of the Scree plot. So these three should be retained in the model.
Factor 1 consists of variables 7 variables: Reputation of Hospital, Quality of care, Advice from doctor, advice from friends, Friendliness of
staff, maternity facilities and Nursery facilities. - (Reputation Factor)
Factor 2 consists of variables 2variables: Advertisements and Maternity insurance.---------- (Promotion Factor)
Factor 3 consists of variables 1variable: Distance from home ( Very convenient ).---------- (Distance Factor)
3.To determine whether significant difference exist across hospitals with respect to selection of hospital
Hypothesis:
H0 : All hospitals are showing similarity with respect to factors that influence selection of hospital for delivery .
Ha : There is significant difference across hospitals with respect to the factors that influence selection of hospital for delivery .
H0 : B= C= D= E= F= G= H= I= nhkch
Ha : Not all j s are not equal ( j= B,C,D,E,F,G,H,I,NHKCH)
ANOVA
Sum of Squares df Mean Square F Sig.
Reputation of Hospital Between Groups 567.061 8 70.883 210.920 .000
Within Groups 87.713 261 .336
Total 654.774 269
Quality of Care ( Medical Technology) Between Groups 552.741 8 69.093 152.747 .000
Within Groups 118.059 261 .452
Total 670.800 269
Distance from Home Between Groups 110.048 8 13.756 81.378 .000
Within Groups 44.119 261 .169
Total 154.167 269
Advice from Doctor Between Groups 611.150 8 76.394 162.498 .000
Within Groups 122.702 261 .470
Total 733.852 269
Advice from Friends Between Groups 583.698 8 72.962 274.051 .000
Within Groups 69.488 261 .266
Total 653.185 269
Advertisements Between Groups 231.854 8 28.982 131.251 .000
Within Groups 57.632 261 .221
Total 289.485 269
Friendliness of Staff Between Groups 603.417 8 75.427 491.548 .000
Within Groups 40.050 261 .153
Total 643.467 269
Maternity Facilities Between Groups 549.855 8 68.732 190.219 .000
Within Groups 94.307 261 .361
Total 644.163 269
Nursery Facilities Between Groups 545.763 8 68.220 138.444 .000
Within Groups 128.612 261 .493
Total 674.374 269
Maternity Insurance Between Groups 216.115 8 27.014 115.285 .000
Within Groups 61.159 261 .234
Total 277.274 269
Means Plots:
Preference of Hospital with respect to factors that influence selection of hospital for delivery
Hospital B, Hospital C and Hospital F have competitive advantage over other hospitals with respect to nursery facilities, maternity facilities,
Doctors advice and reputation.
Quality care, Advice from friends and Friendliness of staff have second preference.
4.To explore the variables impacting familiarity with features of maternity services.
R square: 0.810 i.e., 81% of variation in dependent variable explained by all independent variables.
Adjusted R-square: 0.807 i.e., 80.7% of variation happened in dependent variable explained by those independent variables actually
affect the dependent variable.
Durbin-Watson value: value 2.025 is around 2.00. Indicating there is no auto correlation in independent variables.
ANOVA Value : .000 , indicates there is significant difference among independent variables.
The co-efficient values for Loyalty towards hospital, High quality care are 0.521 and 0.550 respectively .
P-value of loyalty towards hospital is (0.521) > 0.05 ( 95% of significance level) and P-value of Quality care (0.550 )> 0.05
so these two independent variables are not explaining much about the variance in dependent variable i.e., 'familiarity of features of maternity services.
P-value (0.00) < 0.05 ( 95% of significance level) , for remaining three independent variables , indicates that they are explaining variance
happened in dependent variable familiarity of features of maternity services.
Regression model:
Familiarity of features of services (Y)= 2.613+ 0.782 ( Convenience of related services) - 0.390(Full maternity services) - 0.228 (very convenient)
Multiple linear Regression :
Model Summaryb ANOVAa
Sum of Mean
Model Squares df Square F Sig.
Adjusted R Std. Error of 1 Regression 462.954 3 154.318 377.715 .000b
Model R R Square Square the Estimate Durbin-Watson Residual 108.676 266 .409
1 a
.900 .810 .808 .639 2.030 Total 571.630 269
a. Predictors: (Constant), Very Convenient, Full Maternity Services, Convenience of Related a. Dependent Variable: Familiarity with Maternity Services
Services b. Predictors: (Constant), Very Convenient, Full Maternity Services,
b. Dependent Variable: Familiarity with Maternity Services Convenience of Related Services
Coefficientsa Interpretation:
Adjusted R-square: 0.808 i.e., 80.8 % of variation explained
Unstandardized Standardized Collinearity
Coefficients Coefficients Statistics
Model B Std. Error Beta t Sig. Tolerance VIF Durbin-Watson value: value 2.03. No Auto correlation.
1 (Constant) 2.867 .517 5.542 .000
Convenience of Tolerance statistics are greater than 0.20
.779 .059 .607 13.159 .000 .336 2.976
Related Services VIF statistics are less than 5.00. So No Multicollinearity effect.
Full Maternity
-.389 .054 -.276 -7.200 .000 .485 2.063 In this model importance to very convenient factor is slightly
Services increased.
Very Convenient -.250 .055 -.158 -4.512 .000 .580 1.724
a. Dependent Variable: Familiarity with Maternity Services Regression model:
Familiarity of features of services (Y)= 2.867+ 0.779( CRS) -
Old regression model: 0.389(FMS) - 0.25 (VC)
Familiarity of features of services (Y)= 2.613+ 0.782 ( CRS) - 0.390(FMS)-0.228 (VC)
Inference:
From Chi-square analysis : 50% of respondents are not interested in Integrated operation. 90% of respondents are not interested
Pre-birth classes and 95 % of respondents are not interested in post-birth classes.
From Factor Analysis :There are three factors ( Reputation , promotion and Distance) addressing 88.887% of customers consideration
while selecting a hospital for delivery.
From ANOVA: Hospital B,C and F individually (40% preference) have good at maternity facilities, nursery facilities, doctors advice and
high reputation. Along with these above factors, NHKCH should also consider Distance from home factor to make competitive in the
maternity hospital market.
From Regression: Customers were chosen hospitals , those offered related maternity services and nearer to their home than
hospitals offering full maternity services ( Hospital charges may be a limiting factor ).
Conclusion:
1. NHKCH can market its maternity line through product line approach by offering related maternity services and nursery services
instead of full line maternity services.
2. While expanding their hospital business NHKCH should consider Distance, as an important factor.
3. NHKCH should concentrate on promoting their features of maternity services through Local doctors instead of advertisements.
Yes, Marketing Research can address and generate solution for NHKCH s Ailment.
Questions
and
Suggestions
THANK YOU