Chapter 11

Which of the following has been a major contributing factor to the growing bad debt issue among U.S. hospitals over the past 20 years?

A hospital-centric health system that operates clinics within school systems might be said to have integrated:

Which entity in the distribution channel can form a vertical marketing system?

In which of the following is production and distribution combined within one vertical marketing system?

In which of the following is there coordination between channel members but not common ownership?

Administered vertical marketing systems occur when one member of the channel:

An administered vertical marketing system is best represented by which of the following programs?

When a tertiary care organization opens primary care satellites, it can be said to be integrating:

Kaiser, a large multispecialty clinic, made the strategic decision in some of their locations to open and operate their own hospitals. In this instance, Kaiser was integrating:

When members on the same level of the distribution channel have agreements to perform certain functions for the distribution channel, it is a(n):

The disintermediation paradigm involves the:

When a middleman links the end user to the provider, it is considered:

Channel conflict can be:

If an orthopedic group decided to open its own freestanding surgical center, the hospital CEO would view this as a source of what type of conflict?

An anesthesiology group is under contract to staff a hospital's anesthesiology service. It believes it can provide coverage by having a provider to the operating room for an emergency surgery within 15 minutes. The hospital wants a 5- to 10-minute standard for the anesthesiologist to be present. This difference in understanding responsibilities represents what type of conflict?

The organization or entity in the channel who can dictate policies to others in the channel is referred to as the channel:

Manufacturers tend to be channel commanders when:

When there are a large number of suppliers and a large number of entities who distribute the product to the end user, the channel commander tends to be:

Walmart tends to be a channel commander because it has a:

In metropolitan areas where there are a large number of community hospitals all offering a relatively similar array of clinical services, the channel commander may well be the:

Which of the following is not a source of power?

Using a threat to force a member of the channel to engage in a particular action or behavior is implementing which form of power?

MD Anderson is well known for its diagnosis and treatment of cancer. In this instance, the organization might be said to have which form of power?

Value-based reimbursement is based on what source of power?

Which of the following is not one of the three criteria that define a true retail market?

As transparency has increasingly been a factor in health care, which aspects of a true retail market has it impacted?

The retail positioning matrix has which two major dimensions to configure retailers?

Cincinnati Children's Hospital would be in which quadrant of the retail positioning matrix?

In the retail mix, the goods and services components refer to:

Offering consumers the opportunity to pay with a credit card provides the value of possession utility.

Use of the eReferral system has been growing because of efficiency and cost per referral.

The Internet of Things can result in greater disintermediation within health care.

Some rehabilitation facilities will help shape and design orthotic devices for patients as needed. In this instance, these organizations are adding the middleman value of form design utility.

To accept risk-sharing contracts, it is important for health systems to assure clinical standardization as a necessary strategy.

Form utility is actually changing the product or altering its form to better fit the needs of the customer.

Organizations establish hybrid channels to broaden market coverage.

In designing the ideal channel, middlemen are not needed and can always be replaced, because they add little value.

The middleman can always be eliminated, but the functions they provide cannot be; they just shift.

Functional shifting is the concept that different middlemen can always perform different functions as required by the manufacturer.

Companies such as Google and Facebook provide medical care to their employees on-site. This is an example of functional shifting.

Parents using a CellScope app and otoscope attachment demonstrate the principal of the wheel of retailing.

Soda is distributed in selective distribution intensity.

In deciding the level of distribution intensity for any product or service, the key determinant is how much effort the consumer will spend in searching for the product or service.

When a manufacturer wants greater control over how a product is displayed in a retail environment, the optimum distribution intensity strategy is selective.

Gunderson Lutheran Clinic in Wisconsin has primary care clinics in almost 30 locations throughout the state. This distribution intensity strategy might be considered intensive.

The Hospital for Special Surgery in New York City is well known for orthopedic care. It has a couple of locations in New York and in Florida. This level of distribution intensity would be considered exclusive.

Vertical marketing systems describe the independent levels of the channel of distribution when they operate at optimum efficiency in distribution of goods or services.

A vertical marketing system is when functions in the channel performed by the intermediary are integrated at the most optimum point for efficiency.

A hospital has decided to develop and operate primary care satellite clinics. This is an example of backward integration in the channel of distribution.

A major tertiary center has decided to open several ambulatory clinics in the region as well as primary care satellites throughout the state in which it operates. This is an example of forward integration.

When an organization that operates at some level in the channel of distribution moves to a level that is closer to the customer, this move can be described as forward integration.

With a corporate vertical marketing system, production and distribution of a product are combined under one entity.

An administered vertical marketing system is when channel partners coordinate programs for the distribution of a product or service but there is not common ownership.

Many hospitals are now operating walk-in clinics within supermarkets and discount chains. This would be an example of a corporate vertical marketing system.

Integrated delivery systems in which care is coordinated and delivered at the appropriate level of intensity might be considered a vertical marketing system.

Many hospitals have a physician–hospital organization in which physicians and hospitals collaborate with third parties to contract for patient care. This entity might best be described as an administered vertical marketing system.

Urgent care centers operated at airports but staffed and managed by nearby university academic centers are an example of franchised vertical marketing systems.

Cooperatives are agreements among channel members who exist on the same horizontal level of the channel of distribution.

Franchising is a form of vertical marketing system.

Reintermediation in the healthcare channel would be represented by a company such as Zocdoc.

Channel conflict can be indirect or direct.

Horizontal conflict occurs when there is conflict between two members of the channel at the same level.

When a group of orthopedists establishes their own surgery center and the hospital’s CEO and board of trustees are upset with the medical group, this is an example of horizontal conflict.

Domain conflict is when two parties have a different understanding of the goals and objectives to be accomplished.

When the physicians in a community and the hospital administration try to outsmart each other in terms of strategic moves, this might be considered a stage of “felt” conflict.

The channel commander is the largest member in the channel.

If a manufacturer pays large margins, this can lead to it becoming a channel commander.

An insurance company threatens to pull its contract from a large medical group if its rates are not accepted. Most of the medical group’s patients have this insurance provider. The insurance company is using referent power.

A structural sign that health care is evolving to a true retail market is that retail centers set to receive health care are now appearing nationally.

The fact that intermediaries help align supply and demand and that there are more engaged consumers along with restructured prices indicate a true retail market.

On the demand side of a true retail market, companies are now providing incentives for consumers to engage in healthy behaviors.

In the retail positioning matrix, the ideal position is a high value-added, broad product line.

The decision of the goods and services as well as the distribution and communication component an organization bundles is the retail mix.

New retail forms always enter the market and replace existing forms by having a broader array of services; this is referred to as the wheel of retailing.

In the wheel of retailing concept, over time as a new entrant evolves, it adds services, raises margins and prices, and leaves itself susceptible to new entrants.

Many urgent care clinics are now adding specialty clinics within their facilities. This demonstrates the underlying principle of forward integration.

Flashcard

Term

Definition

Hint

Memory Tip

Testing Effect

Active Retrieval

One Concept per Card

Progressive Learning

Atomic Concepts