scholarly journals The impact of quality on hospital choice. Which information affects patients’ behavior for colorectal resection or knee replacement?

Author(s):  
David Kuklinski ◽  
Justus Vogel ◽  
Alexander Geissler

Abstract Quality competition among hospitals, induced by patients freely choosing their hospital in a price regulated market, can only be realized if quality differences between hospitals are transparent, understandable, and thus influence patients’ hospital choice. We use data from ~145,000 German patients and ~ 900 hospitals for colorectal resections and knee replacements to investigate whether patients value quality and specialization when choosing their hospital. Using a random utility choice model, we estimate patients’ marginal utilities, willingness to travel and change in hospital demand for quality improvements. Patients respond to service quality and specialization and thus, quality competition seems to be present. Colorectal resection patients are willing to travel longer for more specialized hospitals (+9% for procedure volume, +9% for certification). Knee replacement patients travel longer for hospitals with better service quality (+6%) and higher procedure volume (+12%). However, clinical quality indicators, often difficult to access and interpret, barely play a role in patients’ hospital choice. Furthermore, we find that competition on quality for colorectal resection is rather local, whereas for knee replacement we observe regional competition patterns.

2020 ◽  
Vol 30 (Supplement_5) ◽  
Author(s):  
D Kuklinski ◽  
J Vogel ◽  
A Geissler

Abstract Quality competition among hospitals, induced by patients freely choosing their hospital in a price regulated market, can only be realized if quality differences between hospitals are transparent, understandable, and thus influence patients' hospital choice. We use data from ∼145,000 German patients and ∼900 hospitals for colorectal resections and knee replacements to investigate whether patients value quality and specialization when choosing their hospital. Using a random utility choice model, we estimate patients' marginal utilities, willingness to travel and change in hospital demand for quality improvements. Patients respond to service quality and specialization and thus, quality competition seems to work. Colorectal resection patients are willing to travel longer for more specialized hospitals (+9% for procedure volume, +9% for certification). Knee replacement patients travel longer for hospitals with better service quality (+6%) and higher procedure volume (+12%). However, clinical quality indicators, often difficult to access and interpret, barely play a role in patients' hospital choice. Furthermore, we find that competition on quality for colorectal resection is rather local, whereas for knee replacement we observe regional competition patterns. Consequently, future quality transparency initiatives need to entail the development and publication of understandable outcome quality indicators (e.g. patient reported outcome measures). Moreover, clinical quality indicators need to be explained and presented more intuitively. Key messages Quality competition among hospitals is beneficial for all participants in the health care system. Our paper reveals the quality information that is decisive in the patient’s decision making process. Accessibility and comprehensibility of quality information plays a large role in its impact on patient hospital choice. Thus, policy makers need to raise quality transparency and patient emancipation.


Author(s):  
Peter Sivey ◽  
Yijuan Chen

Quality competition between alternative providers is an increasingly important topic in the health economics literature. This literature includes theoretical and empirical studies that have been developed in parallel to 21st-century policies to increase competition between doctors or hospitals. Theoretical studies have clarified how competitive markets can give healthcare providers the incentive to improve quality. Broadly speaking, if providers have an incentive to attract more patients and patients value quality, providers will raise quality until the costs of raising quality are equal to the additional revenue from patients attracted by the rise in quality. The theoretical literature has also investigated how institutional and policy parameters determine quality levels in equilibrium. Important parameters in models of quality competition include the degree of horizontal differentiation, the level of information about provider quality, the costs of switching between providers, and the time-horizon of quality investment decisions. Empirical studies have focused on the prerequisites of quality competition (e.g., do patients choose higher quality providers?) and the impact of pro-competition policies on quality levels. The most influential studies have used modern econometric approaches, including difference-in differences and instrumental variables, to identify plausibly causal effects. The evidence suggests that in most contexts, quality is a determinant of patient choice of provider, especially after greater patient choice is made available or information is published about provider quality. The evidence that increases in competition improve quality in healthcare is less clear cut. Perhaps reflecting the economic theory of quality competition, showing that different parameter combinations or assumptions can produce different outcomes, empirical results are also mixed. While a series of high-quality studies in the United Kingdom appear to show strong improvements in quality in more competitive areas following pro-competition reforms introducing more choice and competition, other studies showed that these quality improvements do not extend to all types of healthcare or alternative measures of quality. The most promising areas for future research include investigating the “black box” of quality improvement under competition, and behavioral studies investigating financial and nonfinancial motivations for quality improvements in competitive markets.


Author(s):  
Vinayak Deshpande ◽  
Pradeep K. Pendem

Problem definition: We examine the impact of logistics performance metrics such as delivery time and customer’s requested delivery speed on logistics service ratings and third-party sellers’ sales on an e-commerce platform. Academic/practical relevance: Although e-commerce retailers like Amazon have recently invested heavily in their logistics networks to provide faster delivery to customers, there is scant academic literature that tests and quantifies the premise that convenient and fast delivery will drive sales. In this paper, we provide empirical evidence on whether this relationship holds in practice by analyzing a mechanism that connects delivery performance to sales through logistics ratings. Prior academic work on online ratings in e-commerce platforms has mostly analyzed customers’ response to product functional performance and biases that exist within. Our study contributes to this stream of literature by examining customer experience from a service quality perspective by analyzing logistics service performance, logistics ratings, and its impact on customer purchase probability and sales. Methodology: Using an extensive data set of more than 15 million customer orders on the Tmall platform and Cainiao network (logistics arm of Alibaba), we use the Heckman ordered regression model to explain the variation in customers’ rating of logistics performance and the likelihood of customers posting a logistics rating. Next, we develop a generic customer choice model that links the customer’s likelihood of making a purchase to the logistics ratings provided by prior customers. We implement a two-step estimation of the choice model to quantify the impact of logistics ratings on customer purchase probability and third-party seller sales. Results: We surprisingly find that even customers with no promise on delivery speed are likely to post lower logistics ratings for delivery times longer than two days. Although these customers are not promised an explicit delivery deadline, they seem to have a mental threshold of two days and expect deliveries to be made within that time. Similarly, we find that priority customers (those with two-day and one-day promise speed) provide lower logistics ratings for delivery times longer than their anticipated delivery date. We estimate that reducing the delivery time of all three-day delivered orders on this platform (which makeup [Formula: see text] 35% of the total orders) to two days would improve the average daily third-party seller sales by 13.3% on this platform. The impact of delivery time performance on sales is more significant for sellers with a higher percentage of three-day delivered orders and a higher spend per order. Managerial implications: Our study emphasizes that delivery performance and logistics ratings, which measure service quality, are essential drivers of the customer purchase decision on e-commerce platforms. Furthermore, by quantifying the impact of delivery time performance on sales, our study also provides a framework for online retailers to assess if the increase in sales because of improved logistics performance can offset the increase in additional infrastructure costs required for faster deliveries. Our study’s insights are relevant to third-party sellers and e-commerce platform managers who aim to improve long-term online customer traffic and sales.


2019 ◽  
Vol 4 (2) ◽  
pp. 34
Author(s):  
Priyo Wismantoro ◽  
Fika Dwiyanti

Business banking is a service business based on principles of trust and t5he customer is a major asset. Under conditions of business competition among banks strict bank that has resulted in only a competitive advantage (compatative advantage as well as a competitive advantage) who can reach the highest position in the eyes of cusmers or the public. Competitive advantage can be obtained from the quality of customer servicr, so the focus on customers (customer focus), responsive to the development of customer desires and continuously innovate is an acitivity that can be done to anticipate the cimpetitive conditions. In this case, the bank should always evaluate the quality of service given to customers and is reflected in the level of customer satisfaction obtained. Rate the quality of service branch of bank syariah mandiri bogor whole is still under service, because it still was below expectations, this is evident also that the general level of service is still not meeting customer expectations, because the level of hope (expectation0 the customer is generally higher than the level of performance (perfromance) or perception(perception)customer.        Empathy dimension of service quality dimensions are most critical or have any impact on the most powerful influence on the level of satisfaction. In this case, the willingness og bank syariah mandiri branch bogor provide individual attention in serving its clients is crucial. Empathy dimension attributes inclide individual attention, operational time , personal attention, giving interests, and understand the needs. These attributes is the main priority of service quality improvements are intensive and comprehensive.           Customer service strategy to be implemented by the management of bank syariah mandiri in perspective five dimensioris of service quality(tangibles, realiability,responsiveness, assurance and empathy) looks not optimal. In an effort to provide the best service (service excellence) and focus to the customer(customer focus), then the customer satisfaction can be obatained with significantly improved and the improvement of quality of serivice aspects and impticalions of the strategy need to be consldered


2020 ◽  
Vol 2 (1) ◽  
pp. 1-5
Author(s):  
Ammar Ahmed ◽  
Rafat Naseer ◽  
Muhammad Asadullah ◽  
Hadia Khan

In this competitive environment, organizations strive to satisfy their customer by providing best quality service at affordable and fair prices with a view to enhance their revenues. To achieve the objective of revenue maximization, organizations strive to identify the factors that help them in retaining their customers. Drawing from the signalling theory of marketing, the current study proposes a novel conceptual model representing the impact of service quality with food quality and price fairness on customer retention in restaurant sector of Pakistan. The paper underlines an important arena of knowledge for academicians as well as organizational scientists on the subject. On the basis of literature available on the variables understudy, the present study forwards eight research propositions worthy of urgent scholarly attention. The conceptualized model of the present article can also be viewed significant in unleashing further avenues for the restaurant management entities, policy makers and future researchers in the domain of managing in the service sector businesses.


2017 ◽  
Vol 9 (1) ◽  
Author(s):  
Debby Arisandi

<p>Purpose- In the GSM seluler telephony sector, the main condition for protecting the subscriber base is to win customer to be loyalty, a key necessity for the maintenance of a brand loyalty in the long term. To achieve this aim, service quality must be measured and identified. This paper’s aim is to measure the effects of service quality towards brand loyalty on DTAC seluler service provider. This study will explore the relationship between service quality and brand loyalty in the seluler service industry.</p><p>Design/methodology/approach- The main research target sample covered 200 seluler phone users in Prince of Songka University, Hatyai campus. Field research was conducted. The questionnaire was formed by a synthesis of existing constructs in relevant literature. Reliability tests, descriptive statistic, and regressions analyses were performed to both confirm scale reliability and answer the research questions. The data were analysed by moderated regression analysis to test the hypotheses.</p><p>Findings- The findings of this study show that an overall service quality directly affects brand loyalty. Network quality, customer service, pricing structure and billing system are the service quality dimensions that have significant positive influence on brand loyalty, which in turn has a significant positive impact on brand loyalty 43,5%. Therefore, it plays a crucial role in winning customer loyalty.</p><p>Originality/value- It is of great importance for seluler operators in a mature market such as that of Thailand, to understand what the drivers of brand loyalty are. The present study produced useful findings, which can be utilized by seluler service provider managers, in their effort to develop and implement successful brand loyalty strategies. With respect to the findings, pricing structure has the most importance than others dimensions of service quality which provides positive outcomes on brand loyalty, not only in the present but also in the future. So, the effect of pricing structure on brand loyalty becomes greater than the effect of others dimenstions of service quality. Therefore, any GSM operator who wishes to preserve its existing subscriber base should concentrate on winning its subscribers’ loyalty, especially for DTAC.</p>Keywords- Seluler Services, Brand Loyalty, Service Quality


Author(s):  
Eman Al-erqi ◽  
◽  
Mohd Lizam Mohd Diah ◽  
Najmaddin Abo Mosali ◽  
◽  
...  

This study seeks to address the impact of service quality affecting international student's satisfaction towards loyalty tothe Universiti Tun Hussein Onn Malaysia(UTHM). The aim of thestudy is to develop relationship between service quality factor and loyalty to the university from the international students’ perspectives. The study adopted quantitative approach where data was collected through questionnaire survey and analysed statistically. A total of 246 responses were received and found to be valid. The model was developed and analysed using AMOS-SEM software. Confirmatory factor analysis (CFA) function of the software was to assessed the measurement models and found that all the models achieved goodness of fit. Then path analysis function was used to assessed structural model and found that service qualityfactors have a significant effect on the students’ satisfaction and thus affecting the loyaltyto the university. Hopefully the outcome form this study will benefit the university in providing services especially to the international students.


2018 ◽  
Vol 77 ◽  
pp. 1-14 ◽  
Author(s):  
Na Wei ◽  
Dong-Seok Cho ◽  
Earl L. Reid ◽  
Hae-Young Lee
Keyword(s):  

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