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Consumer‐driven health care (CDHC) has been proposed to reduce the USA health care costs through greater free market economic exposure. The purpose of this paper is to review the USA health care system, insurance plans, and CDHC plan elements and assumptions regarding patients, service providers, and insurers, in order to identify research and social marketing needs of CDHC.

The paper is an assessment of literature from academic and practitioner communities.

Social marketing programs can contribute to preparing consumers and practitioners for CDHC. However, the degree to which CDHC can reduce health care costs is uncertain. More research is needed comparing CDHC plans with traditional plans and comparing CDHC enrollees with enrollees in other types of plans to determine the true benefits and costs of CDHC and to identify consumers' information needs. Research is needed into how to gather and provide understandable health care provider quality and cost‐effectiveness information, and into how current insurers can help consumers make effective CDHC decisions. Research is needed as to how CDHC is perceived by consumers, providers, and insurers, and the use of CDHC reimbursement accounts and their effect on behavior and costs. Research is also needed into which decisions can be made by consumers without specialized professional knowledge. Provider research is needed into outcome risk adjustments, how practitioners view CDHC, how willing practitioners are to participate in a more open‐free market, and how CDHC may affect professional practices.

Insights gained from this paper can contribute to social marketing program designs needed for practitioner and consumer acceptance and effective use of CDHC.

The purpose of this paper is to examine how limited care patients and comprehensive care patients differ in terms of consumers' behavior in the dentist selection process, in order to help healthcare providers and marketers better promote their practice depending on their patient type.

A survey of 1,150 dental school faculty private practice patients who recently chose their dentist was conducted and 221 responded. The respondents were divided to comprehensive care patients (n=120) and limited care patients (n=90) by self‐perceived need.

The comprehensive care patients were younger and more likely to be highly educated, have a healthcare related profession, and have private dental insurance (p<0.001). The comprehensive care patients were more likely to use information sources such as clinic website, the internet, and the insurance directory (p<0.05), while the limited care patients were more likely to use other dentists. Comprehensive care patients put more value on attributes such as, the dentist is in my insurance network and convenient physical location (p<0.05). In conclusion, comprehensive care patients and limited care patients differed significantly in characteristics and how and why they chose their dentist.

Healthcare marketers can use this study's findings to better promote their practice by selecting appropriate communication channels and focus on attributes that consumers value the most. It is important to apply different strategies to different consumer groups.

This chapter assesses the doctrine of reasonable interchangeability through the lens of the US Department of Justice’s (DOJ’s) successful effort to enjoin the megamerger of two of the largest national insurance companies, Aetna and Humana. The DOJ focused its challenge on the companies’ Medicare Advantage business, arguing that it is a separate product market from original Medicare and the merger would substantially reduce competition in the market for Medicare Advantage in many geographic markets across the country. The case turned on whether there was reasonable interchangeability between original Medicare and Medicare Advantage in the eyes of consumers. The judge relied on both practical indicia of interchangeability, including evidence of how likely Medicare beneficiaries were to switch between Medicare Advantage and Original Medicare, along with econometric evidence. The decision provides a useful roadmap of how a knowledgeable judge reviewing a merger will consider both Brown Shoe factors and econometric evidence in assessing reasonable interchangeability.

The purpose of this paper is to analyze the long-term impacts of health capital on economic growth in Singapore from 1980 to 2013.

Autoregressive distributed lag (ARDL)-ECM methodology and several diagnostic and specification tests were used to estimate the impact of health capital on economic growth on time series data covering the period 1980-2013.

The results confirm that health capital (measure by health expenditure per capita) positively and significantly affects Singapore’s economic growth in the long run. In addition, the equilibrium error correction coefficient lagged by one in the short-run is approximately 83.25 percent for all estimated variables, implying a considerably high speed of long-term adjustment to equilibrium following a short-term shock. Moreover, the Toda-Yamamoto’s Granger causality estimation reveals that there is a unidirectional causality from health expenditure per capita to GDP per capita.

The findings imply that Singapore’s economic growth could be improved significantly if expenditure on health capital is increased. This eventually would have a substantial impact on human productivity which leads to improved output per capita. Thus, policy makers and/or the government should strive to create institutional capacity to improve basic health service by strengthening the health institutions infrastructure that produces healthy and quality manpower.

Grounded on the premises that there are little or no studies on the impact of health capital on Singapore economy, this paper provides new evidence on the potential effect of health capital on Singapore’s economic growth over the last three decades. Also, this study explore the causal effect (unidirectional or bidirectional) between health capital and economic growth.

To minimize customer churn, many service providers offer consumers the option of automatic contract renewal at the end of a contract period. Such agreements are known as rollover service contracts (RSCs). This research quantifies the effect of RSCs and other related factors, such as incentives, on consumers' service choice decisions.

The study adopts choice-based conjoint analysis to assess the effect of RSCs on consumers' choices and to determine whether effect size varies when selecting a cell phone network or gym/leisure club provider, which represent lower-priced utilitarian and higher-priced hedonic services.

It was found that RSCs produce negative perceptions and intended behaviors for the majority of consumers across different product types. Nevertheless, as explained by social exchange theory, many individuals may be persuaded to enter into a RSC on the basis of reciprocity if they are offered an incentive such as a price discount or free product add-on.

In the marketing domain, this is the first comprehensive study to quantify the role of contract type among a range of other factors in consumers' decision-making when selecting a service. The authors' results offer context-specific implications for service marketers. First, RSCs are perceived more negatively in high-priced hedonistic categories, especially among those with lower incomes. Second, price discounts are more effective than product add-ons for motivating hedonic purchases, while product add-ons work better with utilitarian services.

This study aims to examine how the number of choices consumers have influences provider satisfaction, plan satisfaction and positive word-of-mouth (WOM) in the health insurance industry.

Partial least squares (PLS) and structural equation modeling (SmartPLS) was used to conduct multi-group analysis to analyze the structural models. Data were collected online using Amazon mechanical turk, resulting in 425 respondents.

This study finds that the number of choices consumers have impacts the strength of provider and plan satisfaction and positive WOM. Also, this study finds that provider satisfaction is generally more impactful than plan satisfaction when generating positive WOM.

This study extends reactance theory, satisfaction and WOM based on choice options to the health insurance industry where credence attributes are prevalent and the analysis includes two satisfaction constructs in the structural model, whereas multiple satisfaction constructs are often overlooked.

Tests, through a child care choice survey, a number of hypotheses put forward by Zeithaml concerning the process of consumer search for services. Finds that personal sources of information about services are far more important to buyers than are mass media sources, that consumers limit their search to one or two service providers, that price and physical attributes of services are less important in choice than experiential, abstract qualities, and that consumers do not generally switch providers voluntarily.

Recent evidence on consumer decision-making suggests that highly complex choice scenarios lead consumers to use simplistic decision heuristics, often resulting in suboptimal decision-making. This study aims to investigate the relationships among consumers’ primary information source, patient satisfaction and patient well-being, specifically focused on the search for mental health professionals. The selection of a mental health provider is of interest, because practitioners work from a highly diverse set of theoretical bases, may hold a wide range of different credentials and provide drastically different therapeutic approaches, therefore making the selection complex and difficult for consumers to self-navigate.

Three studies were undertaken, with data sampling from both patients of mental health services and practitioners.

Consumers selecting a provider based on self-performed searches, rather than receiving external input (referrals from physicians, relatives or friends), report lower satisfaction with their mental health provider. In turn, patient satisfaction positively impacts patient well-being. Practitioner data corroborate these findings, revealing that a large percentage of patients stem from a self-performed internet search, though mental health providers recognize that external referrals are likely to lead to better outcomes.

The results reveal the importance of understanding the consumer search and, particularly, the use of the internet as a search tool. The results present several implications for service providers, including the need to identify patients’ primary source utilized within an information search, as it can adversely impact patient satisfaction.

Service captivity is described as the experience of constrained choice whereby a consumer has no power and feels unable to exit a service relationship. This study aims to explore how positive service experiences can contribute to service captivity in the alternative financial services (AFS) sector for consumers experiencing financial vulnerability.

A total of 31 interviews were undertaken with Australian consumers of payday loans and/or consumer leases.

The authors reveal a typology of consumers based on their financial vulnerability and their experience with AFS providers. Then they present three themes relating to how the marketing practices of these providers create a positive service experience, and, in doing so, can contribute to service captivity for consumers experiencing financial vulnerability.

The benefits derived from positive service experiences, including accessible solutions, self-esteem, and a sense of control over their financial situation, contribute to the service captivity of some consumers, rendering alternative avenues less attractive.

AFS providers must ensure a socially responsible approach to their marketing practices to minimize potentially harmful outcomes for consumers. However, a systems-level approach is needed to tackle the wider issue of financial precarity. Policymakers need to address the marketplace gaps, regulatory frameworks and social welfare policies that contribute to both vulnerability and captivity.

This research extends the understanding of service captivity by demonstrating how positive service experiences can perpetuate this situation. Further, specific solutions are proposed at each level of the service system to address service captivity in the AFS sector.

Examines the relationship between consumer‐specific constructs and the size of consumer retail choice sets for four different types of retailers: convenience/quick‐stop stores, fast‐food outlets, health clubs and medical services. Includes in the analysis consumer experience, product class importance, brand‐decision importance, perceived risk, brand loyalty and demographics as predictors of the size of awareness, consideration/evoked and reconsideration set sizes. Finds that when comparing physical goods as opposed to service providers, the size of retail choice sets differs significantly and that consumer experience and reseller loyalty are important predictors of choice set size. Indicates that the size of a consumer’s choice set decreases as a retailer’s product offerings move along the continuum from pure physical goods to pure services. Identifies and discusses managerial and research implications of the results.