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The sequence of the market-driven planning approach can best be summarized as:
The sequence of the market-driven planning approach can best be summarized as:
In a market-driven planning approach, market research occurs at what two points in the process?
In a market-driven planning approach, market research occurs at what two points in the process?
A nonmarket-driven planning approach can best be described as:
A nonmarket-driven planning approach can best be described as:
In a market-driven planning approach, the differential advantage is determined:
In a market-driven planning approach, the differential advantage is determined:
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In which stage of marketing evolution is the primary goal to ensure that the market recognizes the high-quality services an organization provides that provide great value to the community?
In which stage of marketing evolution is the primary goal to ensure that the market recognizes the high-quality services an organization provides that provide great value to the community?
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How does the market-driven approach help minimize costs?
How does the market-driven approach help minimize costs?
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A good target market is one that:
A good target market is one that:
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Which of the following is the most challenging stakeholder group for an organization to identify?
Which of the following is the most challenging stakeholder group for an organization to identify?
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Groups that provide necessary infrastructure, such as the media, but that do not engage in transactions with an organization are considered:
Groups that provide necessary infrastructure, such as the media, but that do not engage in transactions with an organization are considered:
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What is a major disadvantage when hospitals organize in a product line management approach?
What is a major disadvantage when hospitals organize in a product line management approach?
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In a clinical co-management structure, a hospital contracts with a group of physicians to provide daily management for an inpatient or outpatient component of a particular service line. What is the benefit of this type of structure?
In a clinical co-management structure, a hospital contracts with a group of physicians to provide daily management for an inpatient or outpatient component of a particular service line. What is the benefit of this type of structure?
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A hospital that develops a structure that is organized around referral physicians, corporations, and employee assistance personnel:
A hospital that develops a structure that is organized around referral physicians, corporations, and employee assistance personnel:
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What is one of the hallmarks of a market-driven culture?
What is one of the hallmarks of a market-driven culture?
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An engaged customer offers multiple benefits to an organization. Which of the following is not a benefit?
An engaged customer offers multiple benefits to an organization. Which of the following is not a benefit?
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In the relationship paradigm versus the traditional marketing paradigm, the sales focus is on:
In the relationship paradigm versus the traditional marketing paradigm, the sales focus is on:
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Some marketing experts have suggested that there is a fifth P to marketing, which is:
Some marketing experts have suggested that there is a fifth P to marketing, which is:
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The mission statement for an organization sets the broad direction for an organization.
The mission statement for an organization sets the broad direction for an organization.
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A foundation for resource and financial-based planning is developed through a SWOT analysis.
A foundation for resource and financial-based planning is developed through a SWOT analysis.
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The cost-based differential advantage is the hardest differential advantage to regain once it is lost.
The cost-based differential advantage is the hardest differential advantage to regain once it is lost.
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Trust is an essential differential advantage in the customer believing the price is fair.
Trust is an essential differential advantage in the customer believing the price is fair.
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Invisible value is the value that is built into a product or service.
Invisible value is the value that is built into a product or service.
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Sustaining innovations are those that might be viewed as incrementally new products or services.
Sustaining innovations are those that might be viewed as incrementally new products or services.
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The three attributes that are common to distributive innovations are that they tend to be cheaper, easy to get, and somewhat more expensive than existing alternatives.
The three attributes that are common to distributive innovations are that they tend to be cheaper, easy to get, and somewhat more expensive than existing alternatives.
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Large, established firms with the financial resources to innovate are the organizations that typically bring disruptive innovations to the market.
Large, established firms with the financial resources to innovate are the organizations that typically bring disruptive innovations to the market.
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When Intel places a sticker on computers showing that their chip is inside, they are demonstrating their visible value.
When Intel places a sticker on computers showing that their chip is inside, they are demonstrating their visible value.
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Evidence management is an organized approach to presenting capabilities.
Evidence management is an organized approach to presenting capabilities.
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Increasing sales of present products to present markets is a product development strategy.
Increasing sales of present products to present markets is a product development strategy.
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Taking new products to new markets is a diversification strategy.
Taking new products to new markets is a diversification strategy.
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Taking existing products to new markets is a market penetrations strategy.
Taking existing products to new markets is a market penetrations strategy.
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John Hopkins is working with a private hospital in China to establish a new cancer center. This approach is an example of the market penetration strategy.
John Hopkins is working with a private hospital in China to establish a new cancer center. This approach is an example of the market penetration strategy.
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A market penetration strategy can occur through a more aggressive pricing strategy or distribution strategy than a competitor.
A market penetration strategy can occur through a more aggressive pricing strategy or distribution strategy than a competitor.
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Many women's hospitals are now establishing specialized services for men as a market penetration strategy.
Many women's hospitals are now establishing specialized services for men as a market penetration strategy.
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A medical group deciding to build a hospital is an example of backwards vertical integration.
A medical group deciding to build a hospital is an example of backwards vertical integration.
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A health system has decided to create its own accountable care organization and be responsible for the health status of a group of patients. This is an example of a product development strategy.
A health system has decided to create its own accountable care organization and be responsible for the health status of a group of patients. This is an example of a product development strategy.
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In the pharmaceutical industry, one company often licenses its products to another so that the second firm can market the drug. This is referred to as a strategic affiliation.
In the pharmaceutical industry, one company often licenses its products to another so that the second firm can market the drug. This is referred to as a strategic affiliation.
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Reducing the number of services in the service line is referred to as divestment.
Reducing the number of services in the service line is referred to as divestment.
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A multispecialty group has many satellite locations. As the market changes in population distribution, the group decides to close some clinic locations. This strategy is referred to as retrenchment.
A multispecialty group has many satellite locations. As the market changes in population distribution, the group decides to close some clinic locations. This strategy is referred to as retrenchment.
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Harvesting is allowing a product to gradually decline by withdrawing support until there is little or no market demand.
Harvesting is allowing a product to gradually decline by withdrawing support until there is little or no market demand.
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In the BCG matrix, the underlying assumption is that cash flow and rate of return are closely related to sales volume.
In the BCG matrix, the underlying assumption is that cash flow and rate of return are closely related to sales volume.
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When growth is low but present value is high, the product is a cash cow.
When growth is low but present value is high, the product is a cash cow.
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Problem children have great growth potential but low market share.
Problem children have great growth potential but low market share.
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Revenues generated by stars should go to the cash cows.
Revenues generated by stars should go to the cash cows.
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Revenue that the cash cows generate should go to the problem children.
Revenue that the cash cows generate should go to the problem children.
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A key factor in the five forces model is the threat of new technology.
A key factor in the five forces model is the threat of new technology.
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When the cost of switching among providers is low, competition can be intense.
When the cost of switching among providers is low, competition can be intense.
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In health care, nurse practitioners and pharmacists represent the threat of new entrants.
In health care, nurse practitioners and pharmacists represent the threat of new entrants.
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The five forces model and the blue ocean strategy perspective both consider strategy in light of existing competitors.
The five forces model and the blue ocean strategy perspective both consider strategy in light of existing competitors.
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Red oceans represent the blood of companies fighting for market share among existing competitors.
Red oceans represent the blood of companies fighting for market share among existing competitors.
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In terms of the blue ocean perspective, new service innovations differ on two dimensions of the types of benefits offered and the price level.
In terms of the blue ocean perspective, new service innovations differ on two dimensions of the types of benefits offered and the price level.
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A market concentration strategy focuses on the most geographically concentrated group of customers.
A market concentration strategy focuses on the most geographically concentrated group of customers.
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Hospital ROI has been found to be related to market share.
Hospital ROI has been found to be related to market share.
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Specialty hospitals can be said to follow a niche strategy.
Specialty hospitals can be said to follow a niche strategy.
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Specialty hospitals could be said to follow a concentrated strategy.
Specialty hospitals could be said to follow a concentrated strategy.
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Johns Hopkins, a major academic healthcare organization located in Baltimore, Maryland, has multiple satellite clinics throughout the wider Washington D.C. metropolitan area. This strategy is a:
Johns Hopkins, a major academic healthcare organization located in Baltimore, Maryland, has multiple satellite clinics throughout the wider Washington D.C. metropolitan area. This strategy is a:
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Many women's hospitals are now offering specialized programs for men. This approach is an example of what type of strategy?
Many women's hospitals are now offering specialized programs for men. This approach is an example of what type of strategy?
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Scott & White Clinic in Texas and Aultman Hospital in Ohio have developed their own insurance products. These organizations have decided to pursue a strategy of:
Scott & White Clinic in Texas and Aultman Hospital in Ohio have developed their own insurance products. These organizations have decided to pursue a strategy of:
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Sharp Health Care has partnered with the CVS retail pharmacy chain to offer its services within CVS retail locations. This is an example of:
Sharp Health Care has partnered with the CVS retail pharmacy chain to offer its services within CVS retail locations. This is an example of:
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In a backward integration strategy, an organization becomes:
In a backward integration strategy, an organization becomes:
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When growth in existing markets is slow or regulatory changes make it risky to remain in existing markets, organizations tend to pursue which of the following growth strategies?
When growth in existing markets is slow or regulatory changes make it risky to remain in existing markets, organizations tend to pursue which of the following growth strategies?
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IBM has increasingly partnered with healthcare organizations interested in applying the Watson cloud technology for healthcare applications to assist physicians and researchers. For IBM, this approach is an example of which type of growth strategy?
IBM has increasingly partnered with healthcare organizations interested in applying the Watson cloud technology for healthcare applications to assist physicians and researchers. For IBM, this approach is an example of which type of growth strategy?
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Strategic alliances in which both corporate entities hold an equity position are:
Strategic alliances in which both corporate entities hold an equity position are:
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When there is a weak fit between a core business and a particular business line, organizations will typically follow what particular strategy?
When there is a weak fit between a core business and a particular business line, organizations will typically follow what particular strategy?
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Increasingly, many hospitals are having to close service lines when the market is too small or costly to serve, such as the case in mental health. This is an example of which type of strategy?
Increasingly, many hospitals are having to close service lines when the market is too small or costly to serve, such as the case in mental health. This is an example of which type of strategy?
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A pharmaceutical vice president has decided to gradually withdraw marketing and promotional support from a particular drug. She has instructed her sales force to no longer spend any time with physicians discussing this particular script, nor will any promotional support be provided. The number of generics competing against this formulary has increased, and the margins have declined precipitously. This is an example of:
A pharmaceutical vice president has decided to gradually withdraw marketing and promotional support from a particular drug. She has instructed her sales force to no longer spend any time with physicians discussing this particular script, nor will any promotional support be provided. The number of generics competing against this formulary has increased, and the margins have declined precipitously. This is an example of:
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In the BCG matrix, a marketing person can affect one of the two dimensions of this matrix as a function of their strategy. Which dimension could they possibly affect?
In the BCG matrix, a marketing person can affect one of the two dimensions of this matrix as a function of their strategy. Which dimension could they possibly affect?
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In the BCG matrix, revenues generated by stars should be reinvested into:
In the BCG matrix, revenues generated by stars should be reinvested into:
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A product would be considered a cash cow if: the product's market has matured, but the organization was able to retain its market share through the life cycle.
A product would be considered a cash cow if: the product's market has matured, but the organization was able to retain its market share through the life cycle.
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Which of the following is true of a service that is a problem child?
Which of the following is true of a service that is a problem child?
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Which of the following is not one of the four factors that affect the intensity of competition in Porter's Five Forces Model?
Which of the following is not one of the four factors that affect the intensity of competition in Porter's Five Forces Model?
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In terms of Porter's Five Forces Model, the formation of physician/hospital networks is an attempt to:
In terms of Porter's Five Forces Model, the formation of physician/hospital networks is an attempt to:
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The foundation of the 7-S framework is:
The foundation of the 7-S framework is:
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Suppliers can become a significant threat when they are able to:
Suppliers can become a significant threat when they are able to:
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On a continuum of strategic perspectives, the Blue Ocean strategy is most dissimilar to:
On a continuum of strategic perspectives, the Blue Ocean strategy is most dissimilar to:
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A product would be considered a cash cow if:
A product would be considered a cash cow if:
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Mass marketing is when an organization decides to treat the entire market as a:
Mass marketing is when an organization decides to treat the entire market as a:
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- Boutique medical practices in which patients pay a significant amount upfront to ensure that they have personalized concierge service with their doctor is an example of a:
- Boutique medical practices in which patients pay a significant amount upfront to ensure that they have personalized concierge service with their doctor is an example of a:
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- In health care, it has been found that hospitals with higher profitability tend to be those with:
- In health care, it has been found that hospitals with higher profitability tend to be those with:
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Environmental assessment involves the acquisition and use of information about events, trends, and relationships in the environment.
Environmental assessment involves the acquisition and use of information about events, trends, and relationships in the environment.
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The decline in buying power when prices rise faster than income is called inflation.
The decline in buying power when prices rise faster than income is called inflation.
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By the end of this decade, healthcare spending will reach almost 50% of the U.S. gross domestic product (GDP).
By the end of this decade, healthcare spending will reach almost 50% of the U.S. gross domestic product (GDP).
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Although almost half of all adults search the Internet for health information, most still seek out medical attention after doing so.
Although almost half of all adults search the Internet for health information, most still seek out medical attention after doing so.
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The reviews of hospital quality provided on social media sites such as Yelp do not relate in any way to real, objective hospital quality ratings.
The reviews of hospital quality provided on social media sites such as Yelp do not relate in any way to real, objective hospital quality ratings.
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As more women have entered the medical profession, the compensation gap between the genders has decreased substantially.
As more women have entered the medical profession, the compensation gap between the genders has decreased substantially.
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When price levels rise faster than income:
When price levels rise faster than income:
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is the money a consumer has remaining after taxes and paying for necessities.
is the money a consumer has remaining after taxes and paying for necessities.
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Healthcare costs as a percentage of the gross domestic product (GDP):
Healthcare costs as a percentage of the gross domestic product (GDP):
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Study Notes
Chapter 01 - Additional Quiz
- Market-driven planning approach sequence: Outside to inside to outside.
- Market research in market-driven planning: Occurs during needs assessment and strategy formulation.
- Nonmarket-driven planning approach: Internal to external.
- Market-driven planning differential advantage: Determined by market research.
Chapter Quiz - Additional Quiz
- Goal of high-quality service recognition stage: Ensuring the market recognizes the organization's high-quality services and value to the community.
- Cost minimization in market-driven approach: The organization only surveys limited consumers and avoids spending resources on services unlikely to succeed.
- Good target market characteristics: As homogeneous as possible.
Stakeholder Group Challenges
- Most challenging stakeholder group: Diffused.
Hospital Organization Disadvantages
- Product line management approach disadvantage: The product line manager juggles planning and operations, marketing plans and staff supervision, and may lack operational control of service delivery.
Hospital Structure Benefits
- Concierge Service Structure Benefits: Aligning physicians with organizational goals and reducing clinical costs.
Hospital Structure types
- Referral-based hospital structure type: Customer focused and market-oriented.
Market-Driven Culture Hallmark
- Market-driven culture markers: Awareness of competition and data-driven decision-making.
Engaged Customer Benefits
- Engaged customer NOT a benefit: Engaging in less online searches for similar services.
- Engaged customer benefits: Referring prospects, encouraging others to buy, and providing feedback.
Relationship Paradigm Sales Focus
- Relationship paradigm focus: Customer retention and exceeding expectations.
Fifth P of Marketing
- Fifth P of marketing: People, Public relations, productivity (Any of these can be considered).
Chapter 02 - Practice Activities
- Mission statement function: Sets broad direction for the organization.
- SWOT analysis purpose: Not for financial or resource planning.
- Hardest differential advantage to regain: Cost-based advantage.
- Essential differential advantage: Trust, in customer value in belief the price is fair.
- Invisible value definition: Value built into a product or service.
- Sustaining innovation: Incrementally new products/services.
- Distributive innovation traits: Cheaper, easy to obtain, sometimes more expensive than alternative options.
- Disruptive innovation sources: Larger, established firms with financial resources.
Chapter 02 - Practice Activities - Additional Questions
- Computers showing Intel chip sticker: Demonstrating their visible value.
- Organized approach to presenting capabilities: Evidence management.
- Increasing sales to existing markets: Not a product development strategy, but a diversification strategy.
- Taking existing products to new markets: Market penetration strategy (Correct).
- China hospital example: NOT market penetration (Correct).
- Aggressive pricing strategy example: Market penetration (Correct).
- Example of backwards vertical integration: A medical group builds a hospital (Correct).
- Accountable care organization example: NOT product development (Correct).
Chapter 02 Practice Activities - Additional Questions
- Licensing product strategy: Strategic affiliation (Correct).
- Reducing service line strategy: Divestment (Correct).
- Multispecialty group clinic locations closing: Retrenchment (Correct).
- Relationship between cash flow and return in BCG: Not closely related, (False).
- Cash cow characteristics: High present value, low growth.
- Problem child characteristics: High growth potential, low market share.
Chapter 02 - Practice Activities - Additional Questions
- Cash cow revenue destination: NOT to problem children (Correct).
- Key factor in Five Forces Model: Threat of new technology (Correct).
- Low switching costs relationship to competition: Intense competition likely (Correct).
- Health care examples for new entrants: Pharmacists and Nurse practitioners (Correct).
- Blue Ocean and Five Forces relationship: Does not consider competition (Corrected).
- Market concentration examples: Most geographically concentrated groups of customers (Correct).
- Hospital niche strategy example: Specialty hospitals (Correct).
- Specialty hospital strategy example: Concentrated strategy (Correct).
- Johns Hopkins satellite clinics strategy: Market development strategy (Correct).
Chapter 02 - Practice Activities - Additional Questions
- Women's hospital specializing programs for men: Market development strategy (Correct).
- Clinic development & insurance products: Product development strategy (Correct).
- Sharp Health Care and CVS partnership: Example of forward integration (Correct).
- Backward integration actions: Becomes its own supplier (Correct).
- Slow market growth and risk mitigation strategy: Diversification (Correct).
- IBM Watson cloud technology use: Expansion in diversification strategy (Correct).
Chapter 03 - Additional Quiz
- Environmental assessment definition: Acquiring and using info about events, trends and relationships in the environment.
- Buying power decline caused by inflation: True.
- Healthcare spending percentage of GDP trend: False.
- Healthcare spending in USA versus other countries: False.
Chapter 03 - Additional Quiz (updated)
- Healthcare expenditure causes: Technology, fragmented health insurance, pharmaceutical costs.
- Information access for medical attention: True - most still seek medical attention.
- State quality information availability: False - not widespread.
- Social media hospital ratings and reality: False - not objective.
- Gender pay gap: False, not significantly decreased.
- Majority US population composition: False - Not majority people of color.
- Inflation's impact: Pressure on reimbursement.
- Consumer spending after necessities: Disposable income.
- Healthcare cost percentage of GDP: Not a major component, but significant.
- Healthcare spending and US population health: No positive correlation (False).
- Consumer income components: Gross, discretionary, and disposable income.
- Surprise medical bills: Related to out-of-network care.
- Geotechnology trends: Improved efficiency and interaction.
- Insurance provider competitive scenario: Oligopoly (Correct).
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Test your knowledge on market-driven and nonmarket-driven planning approaches with this quiz. Explore stakeholder group challenges and advantages of different organizational strategies. Assess your understanding of high-quality service recognition and target market characteristics in hospital management.
