Good: Health Maintenance Organization and Supplementary Product Elements

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Summary

The case describes a dentist who decides not to become an HMO provider due to low reimbursement rates and instead focuses on differentiating her practice on the basis of quality. She redesigns her entire practice and constructs a new office building to communicate high quality to her patients. Quality is difficult to evaluate in services with high credence attributes, and productivity and quality are closely related in high-contact, people-processing services. The core and supplementary product elements can be designed to create a consistent impression of service quality. Integrated service management is essential in a professional service firm. The case addresses all eight elements of the services marketing mix: product, price, promotion, place, people, process, physical evidence, and productivity. Beckett addresses the problem of people disliking going to the dentist by emphasizing superior quality and redesigning her practice. She educates patients about the service they are receiving and offers supplementary services to enhance service delivery. Personal dental care experiences may differ from those offered by Beckett’s practice. Advice for current or former dentists and Dr. Beckett includes focusing on quality, communicating it to patients, and offering supplementary services to enhance service delivery.

Table of Content

A dentist decides not to become a health maintenance organization (HMO) provider, because she feels she can’t provide good dental care for her patients at the reimbursement rates provided by the HMOs. With the help of a consultant, she decides to differentiate her practice on the basis of quality.

Because the dentist’s patients may be charged fees that are not covered by their insurance policies, she must convince them that her superior quality offsets the additional financial costs. She constructs a new office building and redesigns her entire practice to communicate high quality to her patients and to improve productivity through increased efficiency. Explain why quality is difficult to evaluate in services high in credence attributes < Describe how productivity and quality are related in a high-contact, people-processing service

< Discuss how the core and supplementary product elements can be designed to create a consistent impression of service quality < Understand the need for integrated service management (marketing, operations, and human resources) in a professional service firm < Which of the eight elements of the services marketing mix are addressed in this case? Give examples of each “P” you identify. Why do people dislike going to the dentist? Do you feel that Beckett has addressed the problem effectively? < How do Beckett and her staff educate patients about the service they are receiving? What else could they do? < What supplementary services are offered? How do they enhance service delivery? < Contrast your own dental care experiences with those offered by Beckett’s practice. What differences do you see? Based on your review of this case, what advice would you give (a) to your current or former dentist and (b) to Dr. Beckett?

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