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Segmenting hospitals for improved management strategy.

N K Malhotra

    Journal of Health Care Marketing
    |August 7, 1989
    PubMed
    Summary
    This summary is machine-generated.

    This study introduces a framework for health care market segmentation using a priori and clustering methods. It reveals marketing implications for hospitals and related organizations by segmenting the hospital market.

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    Area of Science:

    • Health Care Marketing
    • Market Segmentation
    • Organizational Studies

    Background:

    • Effective market segmentation is crucial for strategic decision-making in the complex institutional health care sector.
    • Existing segmentation approaches may not fully capture the nuances of health care markets.
    • A robust framework is needed to guide segmentation strategies in this domain.

    Purpose of the Study:

    • To present a conceptual framework for a priori and clustering-based market segmentation approaches.
    • To evaluate these approaches within the context of institutional health care markets.
    • To identify marketing implications for various health care stakeholders.

    Main Methods:

    • Conceptual framework development for segmentation.
    • Empirical study involving segmentation of the hospital market.
    • Utilized three state-of-being variables and organizational decision-making variables.
    • Employed the Thurstone Case V procedure for sophisticated analysis.

    Main Results:

    • The study successfully segmented the hospital market based on specified variables.
    • The Thurstone Case V procedure provided a sophisticated analytical outcome.
    • Identified distinct segments within the institutional health care market.

    Conclusions:

    • The proposed segmentation framework is effective for institutional health care markets.
    • Segmentation yields significant marketing implications for hospitals, health care organizations, suppliers, and donor publics.
    • The study highlights the importance of considering both state-of-being and decision-making variables in health care market segmentation.