Chapter 3 & 4 - Healthcare Economics PDF

Mass marketing is when an organization decides to treat the entire market as a: 1. group of people with very different needs. 1. heterogeneous group of patients. 1. group of patients who want to purchase the same services. 1. None of these is correct. ANSWER: C 22. Boutique medical practice...

Mass marketing is when an organization decides to treat the entire market as a: 1. group of people with very different needs. 1. heterogeneous group of patients. 1. group of patients who want to purchase the same services. 1. None of these is correct. ANSWER: C 22. 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: 1. mass marketing strategy. 1. high-income strategy. 1. market concentration strategy. 1. market elite strategy. ANSWER: C 23. In health care, it has been found that hospitals with higher profitability tend to be those with: 1. lower market share in niche markets. 1. higher market share. 1. more technological investments. 1. **Chapter: Chapter 03 -- Additional Quiz** 1. True or False? Environmental assessment involves the acquisition and use of information about events, trends, and relationships in the environment. ANSWER: False   2. True or False? The decline in buying power when prices rise faster than income is called inflation. ANSWER: True 3. True or False? By the end of this decade, healthcare spending will reach almost 50% of the U.S. gross domestic product (GDP). ANSWER: False  4. True or False? Healthcare spending in the United States is higher than in all Western countries except Germany, and health outcomes are higher. ANSWER: False  5. True or False? Higher healthcare expenditures in the United States are attributed to technology, the fragmented health insurance system, and pharmaceutical costs. ANSWER: True   6. True or False? Although almost half of all adults search the Internet for health information, most still seek out medical attention after doing so. ANSWER: True   7. True or False? The vast majority of states are doing well in terms of either price or quality transparency information provided to consumers. ANSWER: False  8. True or False? 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. ANSWER: False  9. True or False? As more women have entered the medical profession, the compensation gap between the genders has decreased substantially. ANSWER: False  10 True or False? The majority of the U.S. population is now composed of people of color. ANSWER: False 1. When price levels rise faster than income: 1. the result is pressure on reimbursement. 1. it is referred to as deflation. 1. it is referred to as inflation. 1. significant cost pressures occur. ANSWER: C 2.  is the money a consumer has remaining after taxes and paying for necessities. 1. Net income 1. Discretionary income 1. Disposable income 1. Gross income ANSWER: A 3. Healthcare costs as a percentage of the gross domestic product (GDP): 1. is a significant proportion of the total GDP. 1. although large, is not a major component of the GDP. 1. has remained relatively flat since the 1980s. 1. has fluctuated rather dramatically each decade, from a high percentage to a relatively small proportion of the GDP. ANSWER: A 4. Compared to other Western economies, the United States spends more on health care. What is the outcome of this high spending on health care? 1. The U.S. population, on average, is healthier than that in other countries. 1. Life expectancies are lower than average compared to other OECD states. 1. The dollar return is greater with better mortality for all ages, except children younger than 5 years. 1. The United States is the healthiest Western population based on dollars spent per capita. ANSWER: B 5. Consumer income is composed of: 1. discretionary, gross, and defined income. 1. defined, gross, and determined income. 1. grand, gross, and discretionary income. 1. gross, discretionary, and disposable income. ANSWER: D 6. The amount of money a consumer has left after paying for food, clothing, and shelter is referred to as: 1. gross income. 1. discretionary income. 1. defined income. 1. disposable income. ANSWER: D 7. Surprise medical bills are: 1. bills for care that the patient did not understand that they were receiving. 1. bills for lab tests that the patient did not know were being ordered. 1. bills for care that was received from physicians who were not within the patient's health insurance contracted network. 1. bills for care received that the insurance company refuses to cover. ANSWER: C 8. Geotechnology will increasingly allow: 1. companies to track pandemics more efficiently. 1. seniors to age in place by signaling their movements. 1. encourage interactions between communities. 1. All of these are correct. ANSWER: B 9. In many metropolitan markets, the insurance provider competitive scenario could best be described as: 1. monopolistic competition. 1. pure competition. 1. a monopoly. an oligopoly. ANSWER: D  **Chapter: Chapter 04** 1. True or False? After women search for healthcare information, they engage in conversations with their physicians regarding their findings as it affects their own care and that of their families. Ans: False  2. True or False? Physicians have been under increasing pressure to provide care that they deem inappropriate in order to receive positive ratings in the postpurchase evaluations patients post on the websites of the doctors' institutions and in social media forums. Ans: True  3. True or False? Almost half of all Google-related searches are health related. Ans: False 4. True or False? A parent has taken her child to a new pediatric group. After leaving, she wonders if she made the right choice in going to this particular medical practice. This would be an example of the parent experiencing cognitive dissonance. Ans: True  5. True or False? Some healthcare organizations have started alumni organizations for their past patients. This approach is a strategy to reduce psychological risk. Ans: True  6. True or False? Choosing between two competing alternatives where the one not chosen is priced slightly lower but the one chosen is slightly higher in quality is referred to as cognitive dissonance. Ans: False 7. True or False? Decision freedom is the principle of being able to choose from many competing brands and not being restricted to just a few. Ans: False  8. True or False? Journey maps are created from the perspective of the organization to map how it delivers care to the patient or customer. Ans: False  9. True or False? Deciding which surgeon to choose for a triple-bypass procedure would be considered a limited decision-making process. Ans: False  10. True or False? Choosing a health plan for one's family can be a high-involvement decision. Ans: True 11. True or False? Routine decision-making can involve both low- and high-involvement purchase situations. Ans: True  12. True or False? Because of the complexity of healthcare situations, consumers often rely on heuristic cues for decision making. Ans: True  13. True or False? Brand loyalty is when the consumer chooses the same product or service for high- involvement situations. Ans: False  1. True or False? When physicians were tiered on the lower level by the insurance company, it had the dramatic effect of damaging patient loyalty to those doctors. Ans: False  2. True or False? Men use their social networks and their families in complex decision-making situations for health care. Ans: False  3. True or False? Architecture of participation refers to patients who willingly participate in clinical trials and share their experiences on a website that others can read. Ans: False  4. True or False? Nudging is a core tactic in the Health Belief Model. Ans: False 5. True or False? Over-the-counter pharmaceutical purchases can be characterized as a limited decision-making situation. Ans: True  6. True or False? Wellness programs would be positioned as a lower order in Maslow's hierarchy of needs. Ans: False  7. True or False? Attitudes are one's enduring cognitions or feelings. Ans: True 8. True or False? It is essential for marketers to understand consumers' attitudes because individuals always act on their attitudes. Ans: False  9. True or False? VALS measures consumers' value systems and is a useful tool for assessing social values. Ans: False  10. True or False? In the VALS system, achievement-oriented individuals are heavily influenced by the actions and approval of others. Ans: True  11. True or False? "Birds of a feather flock together" is the principle behind the Potential Rating Index by Zip Marked (PRIZM) system. Ans: True  12. True or False? PRIZM is like VALS and is based on attitudes. Ans: False 13. True or False? The foundation of PRIZM is demographics, media habits, and psychographics. Ans: False 14. True or False? The changes in a person's behavior as a result of past experiences are referred to as learning. Ans: True  15. True or False? Learning occurs as a result of stimulus, drive, cue, response, and reward. Ans: False 16. True or False? Delineation is the ability to determine differences between stimuli. Ans: False 17. True or False? A patient has a positive experience in a hospital's emergency department and then assumes that the inpatient care may also be good. This is an example of generalization. Ans: True  18. True or False? A consumer pays attention only to the advertisements for the medical group that they go to on a regular basis. This is an example of selective comprehension. Ans: False  19. True or False? Interpreting information consistent with one's attitudes and beliefs is selective comprehension. Ans: True  20. True or False? Financial, social, performance, and physical risks can all be perceived risks in the purchase of a product. Ans: True  21. True or False? Trust in one's physician can reduce the risk or fear a person may have in a situation. Ans: True 22. True or False? The family life cycle for most everyone is a static process where individuals go through six distinct steps from when they are single as young adults to when they are widows or widowers. Ans: True  23. True or False? The modified family life cycle is the stages a person passes through from birth through the death of a spouse. Ans: False  24. True or False? In syncratic decision making, the woman tends to dominate the decision making for family-related issues. Ans: False  25. True or False? An example of an autonomous decision-making framework is when a husband or wife makes decisions independently. Ans: True  26. True or False? Social class divisions in society are relatively unstable. Ans: False 27. True or False? A dissociative reference group is one that an individual used to belong to but no longer does. Ans: False  28. True or False? Physicians in solo practice tend to adopt new drugs quicker than those in group practices. Ans: False 29. True or False? The more visible a product or service is in use, the more influential the reference group influence is on consumer choice. Ans: True  30. True or False? Hispanics make up the largest ethnic minority group in the United States. Ans: True 31. True or False? The Hispanic population continues to grow because Latinos continue to come from Mexico at an increasing rate. Ans: False  32. True or False? The largest concentrations of Hispanics are in California and Florida. Ans: False 33. True or False? As company size increases, the likelihood of offering health insurance to their employees is increasingly likely to decline. Ans: False  34. True or False? Industrial buyer behavior differs from consumer behavior because the demand is derived. Ans: True  35. True or False? In derived demand, the demand for one product or service is correlated with another product or service. Ans: False 36. True or False? In industrial markets demand tends to be price elastic. Ans: False 37. True or False? Industrial markets often differ from consumer markets in that the buyers are more geographically concentrated and have greater total sales volume. Ans: True  38. True or False? The major difference between consumer buyers and industrial buyers is that in industrial buying there are purchasing requirements. Ans: False  39. True or False? Industrial buyers often have a buying center that requires many people across the organization to be involved in the purchase. Ans: True  40. True or False? Organizations buy as frequently as consumers. Ans: False 41. True or False? In industrial buying situations, the initiator is usually the key decision maker in the buying group. Ans: False  42. True or False? New task buying in industrial situations is similar to modified problem solving in consumer decision making. Ans: False  43. True or False? A company buying paper clips or other office supplies would be doing a straight rebuy buying process. Ans: True  44. True or False? The buying center typically has individuals playing the following roles: users, influencers, gatekeepers, controllers, and deciders. Ans: False  45. True or False? Influencers are individuals both inside and outside the organization who affect the final decision of the buying center. Ans: True  46. True or False? Gatekeepers are individuals who control information flow to the buying center. Ans: True 1. In what type of industry is the internal search process often sufficient for the consumer to move on to the purchase stage? 1. Products that are purchased infrequently 1. Products that are shopping goods 1. Luxury products that the consumer has seen a lot on television 1. Products that are purchased frequently Answer: D 2. Purchases that involve significant risk, such as the selection of a neurosurgeon, are typically referred to as being: 1. referral driven. 1. high involvement. 1. multiattribute. 1. routine. Ans: B 3. An extended search is often warranted in which type of decision situation? 1. Low involvement 1. Limited decision making 1. Complex 1. All of these are correct. Ans: C 4. In health care, limited decision making often occurs in which type of purchase situation? 1. Going to a walk-in clinic for a minor medical problem 1. Purchasing an over-the-counter pharmaceutical product 1. Going to a primary care visit 1. None of these is correct. Ans: B 5. Which of the following would be an effective strategy for a medical group to reduce postpurchase dissonance? 1. Call the patient a day later to ask if the visit went well and whether they would like a nurse to follow up if they have questions. 1. Run local ads in the paper and online stating, "A recent survey finds that 99% of our patients are satisfied with the care they receive at our group." 1. Ask the patient at the billing desk if everything went well today at their visit. 1. Send out an online survey to the patient the same day as their appointment. Ans: A 6. The Health Belief Model is based on two factors: 1. individuals want to find information to stay well and people will pay for good care. 1. individuals want to avoid illness and people believe that taking a specific action will lead to getting better. 1. access to good care and the willingness of individuals to comply with physicians' instructions. 1. people will pay for care and individuals will comply with physicians' instructions. Ans: B  7. Which of the following is true of loss aversion? 1. A person is more sensitive to getting something, such as better health, than the loss of money. 1. A person wants to avoid losing money rather than gain better health. 1. A person reacts to an immediate loss even if it is small, as opposed to a long-term gain that may be large. 1. A person accepts losses whenever they occur. Ans: C 8. An example of is when individuals turn to sites like diabetesconnect.com that harness collective intelligence. 1. synergistic disease management 1. collective population management 1. the wisdom of crowds 1. the wisdom of collective health Ans: C 9. The goals or needs that propel an individual to action are: 1. wants. 1. perceptions. 1. motivations. 1. desires. Ans: C 10. Maslow developed his hierarchy of needs to: 1. demonstrate the importance of safety. 1. explain why all individuals do not value health. 1. show that one need is more important than others. 1. explain why people behave differently. Ans: D 11. Which of the following is true of consumer attitudes? 1. It gives marketers a direct link to consumers' purchase behaviors. 1. It gives marketers an understanding of consumers' evaluative ratings. 1. It gives marketers an understanding of the consumers' evoked set. 1. It may not relate to consumers' purchase intentions. Ans: D 12. Which of the following is used to develop geodemographic profiles of consumers? 1. VALS 1. PRIZM 1. Attitude, interest, and opinion (AIO) questions 1. Attitude analysis Ans: B 13. Learning is the result of which five factors? 1. Drive, stimulus, cue, reward, recognition 1. Drive, reinforcement, purchase, reevaluation, response 1. Drive, stimulus, cue, response, reinforcement 1. Drive, motivation, perception, reinforcement, involvement Ans: C 14. Past reinforced behavior extended to other stimuli is referred to as a(n): 1. conclusion. 1. learned pattern. 1. extended decision. 1. generalization. Ans: D 15. Because of \_, consumers are exposed to a large number of messages but do not attend to all of them. 1. selective memory 1. selective retention 1. selective perception 1. selective exposure Ans: C 16. Interpreting information from advertisements in a manner that is consistent with one's beliefs is: 1. selective comprehension. 1. selective retention. 1. selective perception. 1. selective processing. Ans: A 17. Repetition in advertising is implemented to counter the problem of: 1. selective perception. 1. selective retention. 1. selective comprehension. 1. selective exposure. Ans: B 18. In health care, taking medications for treatment of epilepsy has been a problem that relates directly to the concept of: 1. social risk. 1. financial risk. 1. physical risk. 1. compliance risk. Ans: A 19. Adherence to treatment by a patient is affected by: 1. financial risk. 1. trust in the physician. 1. social risk. 1. trust in the medication's efficacy. Ans: B 20. In the traditional family life cycle, over time, family decision making becomes: 1. a shared responsibility. 1. the sole responsibility of one spouse. 1. dominated by either the husband or wife based on areas of specialization. 1. disorganized. Ans: C 21. In the traditional family life cycle, as the wife's income rises, her influence in family decision making tends to: 1. decrease due to her increased work responsibilities. 2. increase with her income outside the home. 3. not change significantly. 4. increase if she is a professional but decrease if she is a blue-collar worker. Ans: B 22. Which of the following is not one of the three ways in which a reference group can affect a person? 1. Offering information 1. Providing rewards for specific behavior 1. Enhancing an individual's self-image 1. Reducing cognitive dissonance Ans: D 23. The reference group to which one does not wish to belong to is referred to as: 1. aspirational. 1. membership. 1. dissociative. 1. nonparticipative. Ans: C 24. A reference group's influence is most significant when a(n): 1. reference group is large. 1. product is visible. 1. aspirational group is very attractive. 1. product cannot be evaluated objectively. Ans: B 25. The more necessary a product is: 1. the more important reference group influence is. 1. the less important aspirational group influence is. 1. the more important membership group influence is. 1. the less important reference group influence is. Ans: D 26. In industrial markets, demand is often derived, which means that demand for the product or service is derived: 1. directly based on the buyer's needs. 1. from the demand for another product or service. 1. based on the major buyer. 1. from reimbursement or patient insurance. Ans: B 27. An insurance company decided to decrease insurance premiums. It saw no significant increase in the number of subscribers. In this instance, the demand might be described as: 1. price inelastic. 1. demand elastic. 1. demand inelastic. 1. price elastic. Ans: A 28. A major complexity of trying to market a product or service to an organization with a buying center is that: 1. it is difficult to identify who is in the buying center. 1. it is often hard to establish an appointment with each person in the buying center to make a sales presentation. 1. companies will often not reveal who is in the buying center and who is ultimately involved in the final purchase decision. 2. each person in the buying center has a different set of criteria on which they are judging the product or service. Ans: D 29. In industrial purchasing situations, straight rebuy is often handled by: 1. purchasing agents. 1. gatekeepers. 1. deciders. 1. users. Ans: A 30. Purchasing office supplies through an office supply company like W.H. Mason would be an example of an industrial purchase situation that is a: 1. modified rebuy. 1. straight rebuy. 1. new rebuy. 1. low-involvement buy. Ans: B