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College  of  Commerce  and  Business  Administration 

University  of  Illinois  at  Urbana-Champaign 


FACULTY  WORKING  PAPERS 
College  of  Commerce  and  Business  Administration 
University  of  Illinois  at  Urb ana-Champaign 


CONSUMERISM  AND  THE  BROADENED  MARKETING  CONCEPT 


Alan  R.  Andre as en 
Professor  of  Business  Administration 


#490 


Summary : 

As  marketing  moves  into  new  broadened  domains,  it  risks  the  criticism 
and  public  disfavor  that  dogs  it  in  its  traditional  business  milieu. 
This  paper  explores  several  alternative  measures  of  consumer  and 
practitioner  satisfaction  in  one  of  these  broadened  domains,  health 
care.  It  argues  that  evaluations  of  the  outcomes  and  process  of  marketing 
are  essential  if  marketing's  past  life  cycle  is  not  to  repeat  Itself 
in  this  new  area. 


•VI- 1  .' 


••'.i!- :   '.')".l  I.: 


Introduction 

Marketing  is  a  major  force  in  our  society.  By  subtly  matching  hetero- 
geneous supplies  and  demands  for  products  and  services,  it  serves,  as  one 
marketing  sage  has  put  it,  to  deliver  our  "standard  of  living."   During 

the  1930's  and  1940's,  there  were  many  who  questioned  whether  the  marketing 

2 
process  cost  too  much.   With  the  second  World  War  and  the  postwar  boom, 

marketing  flourished  with  only  rare  suggestions  that  it  was  less  than  a 

3 
wholesome  force  in  society. 

But  all  that  changed  in  the  early  1960's.  With  the  rise  of  Naderism, 
marketing  again  came  into  question,  but  this  time  on  two  different  grounds. 
First,  it  was  argued  that  marketing  was  not  really  delivering  products  and 
services  of  good  quality;  that  consumers  were  much  more  dissatisfied  than 
market  data  traditionally  showed.  The  support  given  to  Nader  airi  his  imi- 
tators was  offered  as  evidence  that  this  level  of  profound  dissatisfaction 

4 
did,  indeed,  exist. 

The  second  charge  against  marketing  was  that  not  only  were  its  outcomes 
less  than  desirable  for  the  society,  but  so  too  was  its  process.  Many  rose 
to  argue  that  the  advertisements  that  were  selling  toilet  paper  to  adults  or 
Farrah  dolls  to  kids  were  turning  society  into  manipulated  mush.   Others 
pointed  out  that  the  same  system  that  provided  credit  and  low  cost,  honestly 
promoted  products  to  the  white  middle  class  also  provided  deceptively  promoted 
products  sold  at  exhorbitant  costs  and  usurious  interest  rates  to  those  who 
have  the  misfortune  to  be  poor  and/or  members  of  racial  minorities. 

My  colleague,  Peter  Webb,  has  argued  persixasively  that  this  criticism 
of  marketing  was  (a)  inevitable  and  (b)  desirable.   The  criticism  was  in- 
evitable as  marketing  became  more  and  more  visible  as  business'  interface 


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-2- 

with  a  skeptical  world.  The  growth  in  per  capita  spending  power  meant  that 
more  consumers  spent  more  i;ime  on  the  material  dimensions  of  their  lives. 
This  forced  them  to  active.'.y  seek  out  more  contact  with  advertising,  sales- 
men, packages  and  the  like  to  make  purchase  decisions.  At  the  same  time, 
the  growing  ubiquity  of  television  and  other  media  in  our  leisure  lives 
meant  that  consumers  were  "forced"  to  have  more  passive  contact  with  this 
same  voice.  These  contact!},  I  would  argue,  became  not  only  more  frequent 
but  progressively  more  distasteful  as  increasingly  well-educated  consumers 
felt  vague  guilt  about  the  growing  inroads  that  both  materialism  and  tele- 
vision made  in  their  lives,.  Marketing's  increased  visibility  and  its 
direct  link  with  both  forces  made  it  a  natural  target  for  consumer  anger. 

But  the  criticism  thai:  arose  can  be  considered  a  very  healthy  sign, 
particularly  when  it  is  directed  back  at  business.   It  can  be  the  irritant, 
the  flashing  red  light,  that  causes  the  business  system  to  correct  itself 
and  the  consumer's  frustraf.ion  to  be  released.  However,  as  I  have  noted  in 
another  forum,  business'  present  use  of  this  self-corrective  and  frustration- 
relieving  feedback  mechaniiim  is  surprisingly  low.   Fifty-edght  percent 
of  all  problems  with  products  and  services  are  never  voiced  to  business. 
And,  further,  of  those  that;  are  voiced,  fully  44  percent  are  never  resolved 
to  the  consumer's  complete  satisfaction.  This  leaves  both  a  substantial 
vocal  group  of  unsatisfied  complainers  who  will  lead  the  chorus  of  anti- 
business  criticisms  and  a  tiecond  non-vocal  army  which  other  researchers 
have  described  as  a  "frusti'ated  and  even  possibly  an  alienated  group  of 

consumers  .  .  .  [i]n  frustiation,  .  .  .  direct [ing]  their  anger  toward  the 

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system,  viewing  both  busintiss  and  government  in  very  negative  terms." 


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-3- 


Andreasen  and  Best  have  proposed  that  one  solution  to  this  feedback  problem 

is: 

.  .  .to  market  the  complaint-handling  system  to  customers. 
Business  should  encourage  customers  to  speak  out  when 
things  go  wrong — and  make  it  more  convenient  for  them 
to  do  so.  Through  advertising,  point-of-sale  promotion, 
and  product  inserts,  business  can  tell  customers  that  it 
wants  to  know  when  things  go  wrong. 

This  feedback  can  not  only  reduce  consumer  frustration  but  improve  the 

information  management  has  to  correct  its  product  and  service  offerings. 

Broadening  Marketing 

It  is  a  curious  historical  phenomenon  that  just  at  the  point  in  time 
when  criticism  of  the  traditional  marketing  system  by  one  part  of  society 
is  most  virulent,  another  part  is  just  discovering  that  marketing  has  a  set 
of  tools  that  are  capable  of  having  profound  effects  on  such  crucial  domains 
of  our  quality  of  life  as  health  care, the  arts,  education  and  social  services. 
In  a  sense,  business*  whipping  boy  now  has  a  chance  at  redemption. 

But  history  can  repeat  itself.  As  marketing  becomes  more  and  more 
visible  as  a  tool  of  non-profit  administrators,  it  may  again  become  the 
lightening  rod  for  the  frustrations  of  those  whom  these  administrators  are 
trying  to  serve.  The  problem,  obviously,  is  to  avoid  this  seemingly  in- 
evitable outcome.  The  solution,  equally  obviously,  is  to  develop  feedback 
systems  that  will  allow  non-profit  administrators  to  improve  (a)  the  out- 
comes of  their  marketing  systems  and  (b)  the  process  whereby  marketing 
helps  deliver  those  outcomes.  If  marketing  is  to  continue  to  have  a  posi- 
tively valued  impact  on  these  key  life  quality  dimensions,  an  effective 
measurement  system  must  be  devised. 


iiTia  a  ni 


-4- 

The  remainder  of  this  paper  explores  several  of  the  key  measure  lent 
issues  raised  by  the  "broadened  marketing  concept"  with  particular  azten^ 
tion  to  health  care.  The  problems  of  evaluating  outcomes  and  process  ar 
discussed  independently. 

Evaluating  Health  Care  Outcomes 

To  make  the  discussion  concrete,  let  us  suppose  that  the  administrate 
of  a  federal  program  that  makes  grants  to  medical  clinics  for  diagnostic 
equipment  wishes  to  make  those  grants  at  least  in  part  on  the  basis  of  how 
good  patient  care  outcomes  are  at  various  clinics.  He/she  wish  to  see 
developed  what  Hunt  calls  "consumer  satisfaction/dissatisfaction"  (CS/D) 
measures   to  insure  both  that  clinics  are  rewarded  for  providing  good 
outcomes  and  that  the  clinics  themselves  get  adequate  feedback  to  c^ri-ect 
their  own  operations  and  to  reduce  customer  frustration. 

Elsewhere,   I  have  suggested  that  the  administrator's  first  choice 
is  to  specify  whether  he/she  wishes  the  clinics; 

1.  to  minimize  dissatisfactions  or  maximize  satisfactions;  in  neaiii 
care,  the  analogous  question  is  whether  one  merely  wishes  to 
minimize  the  frequency,  duration  and  seriousness  of  illness  or 
to  optimize  health; 

2.  accept  a  subjective  judgment  of  satisfaction  or  dissatisfaction: 
that  is,  should  the  patient  or  practitioner  be  allowed  merely 

to  tell  you  how  healthy  or  free  from  illness  the  patient  is;  oi 

3.  meas\ire  satisfaction/dissatisfaction  before  or  after  the  market ir 
has  had  a  chance  to  correct  any  dissatisfactions,  which,  of 
course,  presumes  some  system  for  handling  patient  complaiats. 


-5- 

The  alternative  measures  that  this  taxonomy  offers  in  business  are  outlined 
in  Figure  1.  In  the  main,  there  are  six  principal  kinds  of  measures: 

1.  Sales; 

2.  Repeat  purchasing  (versus  "brand"  switching); 

3.  Salesmen's  or  middlaBen's  opinions; 

4.  Consumer's  satisfactions; 

5.  Voiced  complaints;  and 

6.  Reported  problems. 
We  will  consider  each  In  turn. 

(1)  Sales.  Sales  at  first  evaluation  is  not  a  very  useful  measure  to 
test  the  effectiveness  of  health  care  systems,  although  it  has  the  advan- 
tage of  being  non-subjective  and  relatively  easily  and  frequently  measured. 
In  the  first  instance,  if  the  number  of  customer  visits  or  customer  revenues 
are  used  as  criteria  one  can  raise  the  question  as  to  whether  more  is  nec- 
essarily better  at  either  the  individual  or  societal  level.  If  individuals 
visit  the  clinic  more  often,  this  does  not  necessarily  mean  that  the  clinic 
is  doing  well  or  that  consumers  are  paying  more  attention  to  their  health. 

It  may  simply  mean  that  problems  are  not  being  resolved  satisfactorily  as 

12 
often  on  first  visits.    On  the  other  hand,  if  consumers  are  found  to 

be  spending  more,  particularly  per  visit,  this  may  reflect  one  of  two 

socially  undesirable  outcomes: 

"1.   It  may  indicate  a  greater  Krillingness  of  clinics  to  take 

advantage  of  price  inelasticities  in  a  market  where  most 

payments  are  by  third-party  insurers. 

2.   It  may  indicate  a  growing  use  of  laboratory  procedures  to 

hedge  against  malpractice  suits. 


In  either  case  it  means  that  the  nation's  health  bill  may  be  rising  unnec- 
essarily. In  neither  case  does  it  mean  that  consumers  are  healthier. 

One  useful  alternative  may  be  to  measure  the  number  of  customer 
visits  of  a  particular  type.  One  could,  for  example,  catalogue  the  fre- 
quency with  which  existing  patients  appear  for  full  or  partial  physical 
examinations  or  for  first  visits  for  various  ailments.   These  would  appear 
to  be  more  valid  indicia  of  improved  health  care  behavior. 

But  even  if  such  measures  were  developed,  they  only  seek  to  evaluate 
one  function  of  health  care  systems,  what  may  be  called  the  cmrative  func- 
tion. Visits  to  clinics  are  to  diagnose  or  cure  problems.  Yet  a  clinic 
coxild  be  performing  marvellously  if  it  had  a  superior  preventive  function, 
and,  therefore,  s eld  can  had  to  cure.  Many  of  the  marketing  activities  that 
pursue  the  preventive  function  may  be  secondary  to,  or  independent  of, 
clinic  visits.  Brochures,  posters,  mailers,  patient  education,  television 
talk  show  discussions,  and  other  public  information  activities  may  all 
serve  to  encourage  people  to  take  up  jogging,  stop  smoking,  practice 
breast  self-examination  or  to  take  their  medicine  (e.g.,  for  high  blood 
pressure).  Yet  these  are  exchanges  that,  unlike  curative  encounters,  do 
not  involve  money  changing  hands.   The  role  of  the  health  marketer  is 

to  get  the  customer  to  perceive  that  the  benefits  of  what  Kasl  and  Cobb 

13 
describe  as  "health  behavior"   exceed  the  costs.   Indeed,  the  product 

or  service  is  t3^ically  one  that  custcmers  administer  to  themselves! 

It  would  again  appear  highly  useful  if  health  care  systems  could 

develop  measures  of  "sales"  in  preventive  health  care,  e.g.,  patients 

taking  up  jogging  and  other  health  giving  acts.  Among  other  benefits. 


S<f3 


:?.-■■. 


-7- 

such  a  measurement  device  could  in  the  long  run  redirect  health  profes- 
sionals toward  more  preventive  marketing. 

(2)  Repeat  purchasing.  Hunt  has  argued  that: 

.  .  .intention  to  repurchase  is  an  excellent  composite 
measure  of  CS/D.   The  value  of  this  measure  is  that  it 
is  a  composite  measure  getting  at  all  the  influences 
affecting  the  decision  without  liaving  to  identify  those 
influences.  It  in  essence  says,  given  the  real  world 
and  your  psychological  world,,  what  evgr  they  may  be, 
what  choice  will  you  make  next  time. 

Repeat  visit  behavior  by  clinic  patients,  however,  is  not  a  very  good 
measure  of  performance  of  the  curative  function  primarily  because  of  the 
inertia  that  is  built  into  doctor-patient  relationships.  Choosing  among 
alternative  doctors  is  typically  not  an  activity  a  patient  undertakes  at 
each  visit  as  he  or  she  might  with  a  toaster  or  a  car  repair  shop  at  each 
repurchase.  In  part  this  is  because  many  patients  believe  that  the  effec- 
tiveness of  a  medical  doctor  in  both  a  psychological  and  medical  sense  is 
in  part  a  function  of  his/her  accumulated  knowledge  of  the  patient. 
Patients  are  reluctant  to  give  this  up  even  if  they  have  misgivings  about 
a  doctor.  Further,  they  fear  (incorrectly)  that  all  the  written  minutae 
of  their  history  (x-rays,  test  results,  etc.)  cannot  be  transferred,  thus 
incurring  further  costs  for  repeat  "work-ups"  along  with  the  aforementioned 
risk  that  without  these  records  a  misdiagnosis  is  more  likely. 

Then,  there  is  the  uncertainty  involved  in  any  switch  in  practitioner 
occasioned  by  the  basic  difficulty  of  acquiring  the  necessary  information 
to  make  an  informed  choice  among  doctors.  In  most  cOTtnaunities  (although 
there  are  exceptions),  the  marketing  system  does  not  make  it  easy  for  pa- 
tients to  shop  around.  Information  on  a  doctor^s  (or  clinic's)  training,  ex- 
perience or  even  prices  is  simply  hard  to  come  by  and,  thus,  a  known  mediocre 


.. •£»..' 


-8- 

medlcal  doctor  may  be  preferred  to  an  unknown  alternative.   In  sum,  until 
the  health  care  marketing  system  is  redirected  to  encourage  easy  choice 
and  uncomplicated  doctor-switching,  the  absence  cf  "brand -switching"  should 
not  be  considered  a  very  good  measure  of  the  curative  outcomes  of  health 
care  systems.  On  the  other  Iiandj  repeat  "purchasing"  measures  may  be 
very  useful  indicators  of  good  preventive  care  outcomes.  In  preventive 
health  care,  one  is  asking  people  to  engage  in  behaviors  that  Hochbaum 
has  described  as  "inherently  unpleasant,  inconvenient,  humiliating  and 

painful;  they  disrupt  old,  accustomed  living  habits;  and  they  necessitate 

]  5 
depriving  oneself  of  things  one  wants  and  enjoys."  "   Given  this  char- 
acteristic, Hochbaum  continues: 

In  the  health  area,  the  concern  with  use  after  "purchase" 
is  as  critical  as  and  even  more  critical  than  the  concern 
with  the  purchase  itself.  .  .  .  The  most  challenging,  most 
difficult,  most  perplexing  problem  is  not  how  to  sell  peo- 
ple on  health-supporting  practices,  not  even  how  to  get 
them  to  initiate  such  practices.  We  have  been  fairly 
successful  with  these.   It  is  to  persuade  and  help  them 
to  stick  with  new  practices,  to  keep^ these  up  conscien- 
tiously for  the  rest  of  their  lives. 

Again,  focus  on  this  measure  of  repeat  purchasing  appears  necessary  to 

assume  that  marketing  direct  its  efforts  toward  the  essential  preventive 

health  goal.  If  marketing  focuses  on  the  first  purchase,  this  may  lead 

to  greater  dissatisfaction  and  frustration  rather  than  less  as  consumers 

complain  that,  as  marketers  urged,  they  tried  to  quit  smoking  (exercise, 

brush  after  meals)  but  they  couldn't  stick,  to  it  (i.e.,  marketing  did  not 

follow  up),  rney  may  feel  badly  about  themselves  and,  as  in  marketing's 

business  domain,  take  it  out  on  the  marketing  community,  e.g.,  "Why  do 

they  keep  pushing  me  to  stop  smoking;  I  feel  guilty  enough  as  it  is?" 


-9- 

(3)  Salesmen's  ox-  middlemen's  opinions.  Can  one  ask  clinicians  about 
how  setisfled  their  patients  are?  The  answer  is  no  for  two  very  good  rea- 
sons. First,  the  nature  of  the  medical  practitioner's  job  is  one  that  re- 
quires that  they  be  very  confident.  People  who  must  make  daily  what  are 

often  life-and-death  decisions  about  other  human  beings  would  sink  Into 

37 
catatonia  if  they  regularly  questioned  their  skills  in  the  field. 

Second,  there  is  the  growing  problem  of  malpractice.   It  is  unrealistic 

to  expect  doctors  to  indicate  that  their  patients  are  less  than  fully 

satisfied  if  this  evaluation  is  to  be  written  dovm.  somewhere  (as  it  pre- 

stanably  should) .  Such  data  could  well  be  grounds  for  a  successful  future 

malpractice  claim. 

(4)  Consijmers'  satisfaction.  A  number  of  scales  have  been  developed 
in  recent  years  which  allow  consumers  to  report  how  well  they  are  satisfied 
with  the  products  and  services  they  liave  received.  Pfaff  and  Blivice  in 

particular  have  sought  to  develop  consumer  satisfaction  scales  applicable 

18 
to  public  services.    Such  scales  could  be  administered  annually  to 

19 
patients  of  various  clinics.  Hovjever,  as  Olander  has  pointed  out,   a 

problem  with  such  measures  is  whether  health  consumers  really  have  enough 

knowledge  to  make  the  appropriate  judgments.  Partly,  this  is  because  the 

medical  system  has  historically  been  less  than  candid  with  patients  about 

the  patients'  condition  and/or  the  medical  doctor's  frequent  uncertainties. 

There  are  sometimes  good  medical  reasons  for  this.  But  often  lack  of  candor 

is  designed  to  maintain  "face,"  to  prevent  time-consuming  debates  about 

appropriate  care,  or  to  prevent  malpractice  claims.  Thus  a  patient  may 

well  feel  fully  satisfied  with  a  clinic's  curative  function  when  this 

merely  reflects  the  practitiovier'e  ability  to  maintain  silence! 


"10- 

A  second  prob3.Qn  relates  to  standards.  Patients  may  not  really  fcaow 
whether  a  better  alternative  exists  Bomewhere.  The  difficulty  of  directly 
comparing  medical  doctors  has  already  been  mentioned.  A  second  type  of 
ignorance  is  at  the  systems  level.  Most  patients  have  little  familiarity 
with  alternative  health  care  systems.  In  North  America,  the  medical  pro- 
fession is  oriented  toward  cure  and  not  prevention.  In  other  countries, 
such  as  England  or  Scandinavia,  the  orientation  is  much  more  toward  pre- 
vention. Someone  who  Is  socialised  to  a  curative  system  may  be  very 
pleased  with  the  frequent  cures  without  questioning  whether  more  attention 

to  prevention  might  have  made  the  cures  unnecessary. 

20 
Then  there  is  the  matter  of  one's  expectations.  As  Oliver   and 

others  have  shown,  perception  of  system  performance  is  a  function  of  ex- 
pectations. It  may  well  be  that  a  given  clinic,  because  it  sets  and 
vigorously  advertises  its  high  standards,  may  liave  low  consumer  satisfaction 
ratingf3  while  having  superior  performance  in  some  objective  sense.  On  the 
other  hand,  it  may  be  that  the  medical  system  in  general  stresses  too  high 
standards.  If  patients  are  led  to  expect  the  latest,  best  equipment  in 
every  facility,  the  cost  to  society  in  duplication  may  be  excessive.  As 
Hunt  suggests,  reducing  expectations  may  be  good  public  policy: 

[Gjovemment  could  iixrease  satisfaction  just  as  well 
by  getting  consumers  to  lower  their  expectations.  At 
first  it  sotinds  silly,  but  with  the  conserver  society 
coming  fast  upon  us  it  may  be  critical  in  the  near 
future  to  find  ways  to  reduce  consumer  expectations 
because  increasing  product  quality  will  be  socially 
unacceptable. 

A  third  problem  is,  of  course,  that  patients  are  sometimes  unable 

to  judge  whether  curative  treatments  or  preventative  recommendations  are 

successful.  A  case  in  point  is  the  problem  of  educating  high  blood  pres- 


-11- 

sure  patients.  W:Lth  this  dit^eace  it  is  very  difficult  to  tell  whether 
a  treatment  is  working  since  the  disease  has  no  syiaptoms.   Thus  a  patient 
told  to  diet,  exercise  and  take  specified  piJla  may  not  feel  any  different 
froiD  one  who  did  not  follGbr  this  regime.  As  a  consequence  he  or  she  may 
well  feel  (mistakonly)  dissatisfied  with  the  medical  care  received. 

Finally,  there  is  a  basic  nsthodolgicai  probleic  with  satisfaction 
scales  that  may  b£;  especially  serious  xn   health  care.  Satisfaction  scales 
tend  to  ovrreport  disnatisfaction  because  they  often  reflect  inflationary 
factors.   Research  by  Andreasen  and  ^est  reported  that  when  people  were 
asked  how  saticfied  they  were  xvith  a  product  oc   service,  fourteen  percent 
of  those  who  were  dissatisfied  said  that  high  pr3.cc  was  their  only  prob- 
lem. That  figure  rises  to  slraost  nineteen  percent  for  those  dissatisfied 

22 
vrfth  medical  and  dental  care.    Tne.   latter  is  not  surprising  given  the 

very  rapid  increasie  in  heslth  care  costc  in  the  last  decade, 

(5)  Voiced  coisplalatfi,  A  technique  used  by  lafmy  businesses  to 

monitor  performance  is  to  rejy  on  the  complaints  that  naturally  come  to  it 

from  disgruntled  cu6to!E<5rj3  v^ho  choase  to  rp&ak  up  either  by  letter  or  In 

person.  And,  iijd€:edj.  i-an\  ulinlcs  ivad   hospitals  h&ve  sought  to  generate 

such  co3iplait;l.s  data  by  e.n rsbiifibin;/.  "pa Lieut  suvisory  boards."  "   A 

problem  noted  in  oxir   own  research  ovi  consutaar  coraplaiiitG,  however,  is  that 

voiced  ccBEplaJuts  imdcrraport  the  true  level  of.   dissatisfaction  since,  as 

noted  earj.ier,  vh^i   majority  of  all  nor.--pri.ce  problciffis  are  never  voiced. 

Kot  onI.y  do  they  under  rep  oil  probleas,  i..be>  present  a  distorted  picture  of 

^^®  JiXE££  °^  problfajce  that  actualJ.y  exist  .iiiice  some  types  of  complaints 

are  more  likely  to  he  voiced  thars  others. 


-12" 

Our  study  sxiggests  that  or.  bot.h  coimtSj  complaints  data  may  be 
especially  unsatisfactory  in  the  medical  field.  First »  we  found  tliat  77 
percent  of  all  mcciical  and  dental  problerao  were  unvoiced.  For  such  an 
jjaportant  isBue  to  most  consumers,  this  rate  of  voicijig  Is  exceedinjjiy 
low.  Second,  our  research  in  general  showed'  that  the  kinds  of  problems 
that  did  get  voiced  were  those  where  the  problems  were  important  and/or 
had  a  hi^h  likel.Lhood  of  resolution.  While  medical  problems  are  impor- 
tant, they  were  not  very  likely  to  be  resolved  satisfactorily.   Our  data 
showed  thet  consumerc  v;ho  did  voice  their  jaedical  and  dental  complaints 
felt  that  the  ccKiplainta  were  satisfactorily  resolved  only  34.5  percent 
of  the  tiioe,   (THils  was  the  second  lowest  figure  in  the  entire  study,) 
This  result  laay  well  accurately  reflect  the  considerable  inapproachability 
the  laedical  profession  has  assiduously  cultivated  over  the  years. 

A  third  featiure  of  the  types  of  problemn  that  were  not  voiced  vas 
that  they  were  wliat  were  called  ".-judgment"  probleas.  These  vrere  the  eases 

where  ".  .,  .deficiencies  [were]  complicated  or  ambiguous,  and  therefore 

25 
relatively  dlffi(;ult  to  perceive  clearly  fxnd  state  with  assurances." 

It  is,  of  course.,  just  those  tynpcts   of  problems  with  which  aedical  encounters 

abound.  Consumers  who  are  unsure  of  their  grounds  in  a  liighly  sophisticated 

and  arcane  subjectt  as  laedjcine  are  underntandably  reluctant  to  challenge, 

even  indirectly,  the  usedical  high  priests, 

^^^  Report??  of  probleas.  My  own  experience  strongly  argues  for  the 

use  of  date  geneiated  from  consumers  in  surveys  on  the  probleras  they  have 

26 

encountered  \^th  goods  or  services  as  the  best  measure  of  curative  outcome. 

Such  treasures  overcome  the  ovfitreporting  bias  of  simple  satisfaction  scales 
and  the  underreporting  bias  and  distortions  of  consumer  complaints  data. 


-13- 

(discussed  above).  In  our  research,  the  rate  at  which  Tuedical  or  dental 
care  problems  involving  non-price  issues  were  laentioned  was  fifteen  per- 
cent. Given  coiisunjer  ignorance  in  this  area,  this  figure  is  undoubtedly 
low  and  I  would  argue  vigorously  for  consumer  education  in  evaluatijng 
medical  care.  StJLil,  survey  reports  of  probieaas  are  at  present  probably 
our  best  measure  of  curative  outcomes. 

Measures  About  Process 

We  have  already  seen  that  a  major  defect  of  the  health  care  marketing 
process  in  that  consumers  seldom  liave  ade<juate  information  to  evaluate 
the  care  they  are  receiving.  While  in  t-he  short  run  consumer  expectations 
can  be  suppressed  by  practitioners  to  keep  them  satisfied,  in  the  long 
run,  however,  adequate  information  is  essential  if  customer  suspicion  and 
frustration  is  to  be  reduced  and  if  the  self -correcting  potential  of  an 
open  marketplace  is  to  be  actualized, 

A  second  requirement  for  the  process  to  work  well  is  that  it  become 
more  consumer  oriented.  Tliere  is  considerable  evidence  that  in  curative 

settings  practitioners  are  frequently  not  very  much  concerned  vlth  con- 

27 
suiaer  xntereets.    And  severnl  authors  have  pointed  out  that  even  in 

preventive  contexts,  health  care  specialists  take  the  view  that  they  know 
what  is  best  for  consumers;   it  then  become-s  marketing's  task  to  con- 
vince consumers  to  adopt  the  system's  view.  As  FJexner  puts  it: 

One  of  the  major  reasons  that  preventive  health 
care  has  a  relativelj'  low  priority  among  consumers 
Is  that  all  concerned  entities  .  .  .  have  placed 
too  little  emphasis  on  the  intended  recipients  of 
the  product — the  consumers,  their  motivations, 
and  the  'benefits  tltat  attract  them  to  certain  be- 
haviors. 


-14- 

It  Is  just  the  kind  of  pifjduction  orientation  that   characterized  conciiercial 
marketing  of  40  years  ago.     A  measure  then  of  progress  in  tha  health 
ffiarketing  process  is  tTie  e35:teiit  to  vhich  medical  practit."ix>ners  begin  to 
adopt  the  perspectivee,  particularly  i.n  preventive  health  care,    tlwt 
change  programs  will  only  be  raasimally  ffuccessf  u3   when  they  begin  with 
consuff>er  neede  and  wants. 

The  product*-as~givcin  approach  of  laost  health  care  profp.sBionals 
naturally  le^de  to  heavy  emphasis  on  advertising  and  promotion  to  achieve 
behavior  change.     Kaedless  to  a&y^   this  /approach  snay  be  entirely  appro- 
priate to  riiany  preventive  health  care.  raarketiiT.g  programs.     But  even  here 
there  is  a  danger.     As  ?foriarty  notes:      "Preventive  health  care  behavior 
in  some  cases  'hap.  only  long  run  and  uncertain  outcoifies  for  the  xndivid-oal. 
Advertising  elates  of  a  more  healthy  life  associated  with  specific  changes 
in  behavior  will  have  to  be  dncttmented.    ,    ,    ."'        Monitoriiig  of   the 
truthfulness  of  health  care  promotion  therefore  would  also  seem  ianportant 
if   the  marketing  process  is  not  to  receive  a  black  e5'e  in  this  nen; 
broadened  context. 

And  just  as  we  shovtld  be  co'Acerned  aiiout  the  product  and  promotion 
eleaentK  of   the  health  care  sarkefcing  mix,   so  should,  we  be  concerned 
about  price  and  dietribfation.     As  noted  earlier f    there  is  very  little 
price  competition  in  health  eare^      In  partj    thio  is  because  often  the 
products  are  liot  coapsrafcle.     But  this  is  not  alvreiys  the  case,   and  if 
marketing  is  to  be  effectiv-e  this  elemeni:  too  rouBt  becoioe  more  open  and 
flexible. 

Finally,   one  should  note  th/-  djj^ficulties  business  ruarketers  have 
hat  by  not  pajing  heed  to  tha  coi^cerns  of  vhat  1  have  called  ''disadvan- 


■  f    :> .'  I  \.  *  >  ju  i  , 


-15-- 

33 

t-aged  consumers."    '    Adftouate  heaith  care  is  soen  by  ir^aiiy  ^r  a  ^igjit 

of:  &11  :mdividualB  in  na  affi<j6*.nt  socieliy.     Health  iiiar):etej.'s  are  in  most 

caoeB  already  sfcnsj.tized  to  the  prohlems  of   t-Jje  disadvantaged  and  are 

Bttecking  the©.      It  is,    however,   not:  impossible   that:  the  white  middle 

claes  uedictl  eetaW.ishKsnt   (like  the  white  middle  class  constjmer  es- 

tabllehasent)  icey  not  be    i^bII  attuned  to  the  needs  of   the  disadvantaged. 

Thus,   11   the  process  is    to  be  TelatlVGly  free  fros?  criticisiB  \-f?.  nnst 

he  Bute  not  only  to  keep  the  overall  level    of.  satisfaction  high  but 

ensure  that  this  satiafaE-tion  is  ecuitably  distributed  across  all  pop-- 

ulation  groups  at  riok» 

The  final  pro'bieta  sEBrl^tere  should  be  ae.usltlve  to  is  not  to  ov&T" 

proBiice  its  coiitrihutionB  to  its  ntltar  wajor  pnhilcj    the  henJth  care 

practitlonere  therasftives-     Ghan:berlaj3i  puts  it  wftli: 

Gar  corttern  should  be  tkaf.  viiarketlaj?  will  not  be 
equipped  to  fulfill  trie  forpectations  of   the  ht-altb 
)irot'esB5.onale«     Such  expect^'-.tions  tosy  he  ezeggerateci 
beyond  the.  capRbilities  of  lusrketltig  practitiocers. 
The  aarketer  who  achic-vee  n  j.5  per.cent  chatsge  iu 
consumer  behavior  Tdll  very  likely  be  viewed  as  a 
failure  by  heaith^profesBioDala  expecting  99  per- 
cent compliance,  ■ 

If  vv.  do  Rot  jsonitor  the  health  profe-ssiontl's  ejrpectations  and  our 

accoiapliehaients,  ve  rnv  the  difitJjact  risk  that  they  too  will  see  UJarJceting 

an  a  source  of  deception «     As  coie.  health  marketer  told   the  authors 

"Marketing  to  rrtany  health  professionals  aieane  putting  balls  and 

vhlf.tlee  on  ecmie  very  bsfiic  SiesssgeB,"     For  them,  raarketing^G    (i-nevitable.) 

failure  to  make  large  gaiiis  taay  indelibly  iabc;!  :it  ss  just  anotlier  health 

laanagemenfc  fad-— or  worpcjt  a  con  job  by  r.orie  ixrory  tower  acadesnicR. 


5:oip&  ReBa&rc"b  Replications 

We*  are  clee.vly  a  long  way  Iroj.  being  ablle   l:o  rjecBure  theisa  luarketlnf; 
outrome   amd  prc>f.e.8«i  variabl&e.     At   tht-  coi^sumer.   lti!'el  j,  ve  need  to  laiov  a 
goad  dcfel  rjor«  rbout  how  Indiviclualo  fcvaiu&te  medicRl    cBrt.      Ke  need   to 
know  fheli"  'Know3ed.ge  of  the  j-yfjtea  aiict   its.  siternatives;  x-»hat  i:beir  nx- 
pectatiorts  ar&  cf  cacb  iie&lth  fcacoiinter  and  wnal;  they  know  of  the  he&3.1.}i 
sypLeai  tiS  K  wTc'.oJ.e.     Vie  need  to  l:now  v)n  pP.Tcexvea  probiesus  and  v.i}jo  acta 
on  theiii  &ud  vhy.     We  need  t.o  know  what  practitioners  f.hink  of  mcxiuitijig 
aiid  what  their  expectations  are  ni   its  periorHaacfe.     And  finally  wc  nsieo 
to  know  vshst  will  cliange  the/ie  vsiiahles.  ±ii  h  iavorahle  direction. 

Trife  fieveloicijcnt  of  JuiitriEnentf.  sue  rel^ited  methodologies   to  assess 
consoBTsr  e.ud  prf.ctitioner  sstlsfactiouc-;  vrJ.th  he&lth  cere  outcoraftt.  and   thf 
laari-jsting  proceiis  tlist  brings  irh&ih  /should  occupy  ovt    attention  for  nctvex&l 
yearfj,      Cvxt^iiii.y  these  are  critir^;]    ieBuefi  if  marketing  is  to  serve  its 
fu3J   pi.tQntiai  in  iJiiproviug  the  quality  of  lifo  in  this  and   aiM-ilui: 
hrofcde.nc'>3  doissirlna . 


-1'/- 


t:isfDJ3orRS 


5:947.   p.    l.'i&.. 

2,     r&ul  U-,  'i";tfv7srt-,  J.    Pr€'-ritir.ic  I>0'Khurf;ts   wDt  h  the  ft.f;KislftX'.ce  of 

Loyis  yieltij   lioeg>  Dli.Lvi butlw^  Tliq  HucuV      (Rev:  Yorl'/.      Iventiet}! 

Centurv  Timd,,   l&SiOV 

?,.  Set,  fc-r  exatiiplej,  llu^hford  K.  'fcrr=iaj%  ■'%\iiild  You  Vnut  ^oui'  Datsg'titer 
i:o  Tfenry  ts  'Jfafketing  '/-Jan?''  Journsl  .of;  *fisr kei;^iipg^,  Voj  .  31  (Jau,u3r.v.> 
3;&{v;),   KufflbBi-  1,  ^.p,  a -5,         '  " 

^i.     Mark  Y,.  'Kauel,    Tbo  J'oli^ics^^fjf  Cofcai/juer  J^^^ttict  ion..      (ItidJ&nBpolif-j 
yht  Bobbi'.-frlerriii  Ccu.,   ItTc'.  ^  :ml)T"' 

f«^      Evelyii  Kaye,   Tmj  KetDl'iy  G^ij.dfe   to  C'-xi'j/iraii^e  Ueli.evi.Kiorj    (Nev-  York; 
PsTmlhtov.  Ik>o1-.Kj    2  9/^). 

6.  /i.laii  l\,  Mi&roi-.BeTi^  "Vne  J>i:o^.&vanli'j^fi6  QortF-tfOier  (ViP-v  York;  Tne  Vrir.t'. 
Prees»   1P75)..  "    "  " 

7.  AJciiii  R.  .jfitwireaswi  aDC'  /.orthur  ik^st ,  "'-{ioi'SOiUf-rs  C;oisp:i.R5.v\-"Doei;  BxisloGsr 
Rftsponfl?"  llsrvard  -fiUBivest.  Kc}^£*i<  Voutm;e;  SS^  Thia&c.r.   4,    (July- 

P.     ReK  H.  AterJjjntlj    Kfbf;rt  0,   We.j.Ti.aRnr;  nnd  Jiioe  'wxlli-fs.,   "DiopstiRfie-S 

iO,     K,   Kfcith  Siwnt,,    "Cfc/j!;      •i'i\'>  I'n-'grajr  'PJ:fim.;3  5:sB  anil   T^nJiuttioi-  P.erfipetll^'e," 
jii  Bevej-lf-e  Jii.  Aodereors   yec^.)     ^^Ysiu£€^ jl^^ J>jr)S]^t^  Vol.   lil. 

(Cincijruiat:i:     Asisos'ifctioxi  for    Coii<ra:ct-.r  'keBcai-cl^   197  6") ,.   j>p.    ZS^^-i&Ot 

XI,     Al<m  11.  .;A.r«<5re&Ciet\j,   "A  Te^onoaiy  ci!  CouEsveuvr  Si.(ria£ac:t.'j.on/DiyKat:icf&etJ:or! 
M'ttaiUUTftfe.,"  .Tonrif&l  _oi"^  C!ouf.-.uaar  Af-f  air s^t  Voitane  l?j    Ilucibp-r  2j    (V'Jntej:', 
i&7?),  5.p.   11-24. 

i2J,^     TJio  eD.ajoj5y  o^  -C:3r   repsiLrK  i.fc  fipprc»pri/i(  e.     On'.-,  v^ojud  certainly  not 
j3w!cri.b.4?  iiT;  liici-ftase  lu  visdtt-.  to  tlit  i?epfcir  sLcjjj  at-  a   slpn  tbat 
■ctAre  vreie  bciijig  ludJ.t  .better   ot  ^   uecBBjiEilly,,    i'iiett  people  ware  ftaV.iug 
better  cere  nf,  rb,eKt. 

.15.     Staul&iov  a-^fiJ  and  fiafiuey  Coiibj    '*H£ftlth  Bebr.vJ.ai ,    Ilinef;£  Behavior 
.a.T(«3  Jiick-^.'olt'  Bfch&v.ior,"  •/irr.hiv^es^o^^^KavjxonE.^^  Voliisae. 

3.2   (I^ebruarv..    1966).5   pp,    246-266  £m6  Voltvce  22   (hprllf   1966),   pp.. 


-18- 


14.  H.  Keith  Hunt,  "CS/D:  Bits  and  Pieces"  in  Ralph  L.  Day  (ed.). 
Consumer  Satisfaction,  Dissatisfaction  and  Complaining  Behavior 
(Bloomington,  Indiana:  Department  of  Marketing,  School  of  Business, 
Indiana  University,  1977),  p.  39. 

15«  Godfrey  M.  Hochbaum,  "A  Critical  Assessment  of  Marketing's  Place 
In  Preventive  Health  Care,"  in  Philip  D.  Cooper,  William  J.  Kehoe 
and  Patrick  E.  Murphy  (eds.).  Marketing  and  Preventive  Health  Care; 
Interdisciplinary  and  Interorganizatlonal  Perspectives  (Chicago: 
American  Marketing  Association,  1978),  p.  5. 

16.  William  J.  Nolen,  The  Making  of  a  Surgeon  (New  York;  Random  House, 
Inc.,  1970). 

17.  Hochbaum,  same  reference  as  15  above,  p.  6. 

18.  Martin  Pfaff  and  Sheldon  Blivice,  "Socioeconomic  Correlates  of  Consumer 
and  Citizen  Dissatisfaction  and  Activism,"  in  Day,  same  reference  as 

In  14,  pp.  115-123. 

19.  Folke  Olander,  "Consumer  Satisfaction — A  Skeptic's  View,"  in  H. 
Keith  Hunt  (ed.)  Conceptualization  and  Measurement  of  Consumer 
Satisfaction  and  Dissatisfaction  (Cambridge,  Mass;  Marketing 
Science  Institute,  1977),  pp. 

20.  Richard  L.  Oliver,  "A  Theoretical  Reinterpretation  of  Expectation 
and  Dlsconfirmatlon  Effects  on  Posterior  Product  Evaluation; 
Experiences  in  the  Field,"  in  Day,  seune  as  in  reference  14,  pp. 
2-9. 

21.  Hunt,  same  as  reference  14,  p.  41. 

22.  Andreasen  and  Best,  same  as  reference  7. 

23.  Edmund  Rlcci,  Bardin  Nelson  and  Robert  Pecarchlk,  "The  Consumer 
Movement  in  Health  Care,"  paper  presented  at  the  American  Sociological 
Association  annual  meetings,  Montreal,  Canada,  August  5,  1974. 

24.  Andreasen  and  Best,  same  as  reference  7. 

25.  Arthur  Best  and  Alan  R.  Andreasen,  "Consumer  Response  to  Unsatisfactory 
Purchases:  A  Survey  of  Perceiving  Defects,  Voicing  Complaints  and 
Obtaining  Redress,"  Law  and  Society  Review,  Voltme  11,  Number  3, 
(Spring,  1977),  p.  709. 

26.  Andreasen,  same  as  reference  11. 

27.  It  is  recognized  that  Increased  competition  is  not  favorably  regarded 
in  the  medical  community.  However,  the  trend  is  in  this  direction 
with  the  advent  of  generic  drug  prescribing  and  advertising  of  basic 
medical  services. 


-19- 


28.  See,  for  example,  Hochbaiun,  same  as  reference  15  and  M.  Venkatesan, 
"Preventive  Health  Care  and  Marketing:  Positive  Aspects,"  in  Cooper, 
Kehoe  and  Murphy,  same  reference  as  in  15,  pp.  12-25. 

29.  William  A.  Flexner,  "By  Choice  A  Limited  Government  Role,"  in  Cooper, 
Kehoe  and  Murphy,  same  reference  as  in  15,  p.  64. 

30.  Mark  Moriarty,  "Advertising  Preventive  Health  Care:  Informational, 
Persuasive,  Ethical?"  in  Cooper,  Kehoe,  and  Murphy,  same  as  in 
reference  15,  p.  57. 

31*  Andreasen,  same  as  reference  6. 

32,  Robert  M.  Chamberlain,  "Is  Marketing  Too  Stigmatized  to  be  Effec- 
tively Accepted  in  Preventive  Health  Care,"  in  Cooper,  Kehoe,  and 
Murphy,  same  as  in  reference  15,  p.  58. 


M/C/75