Comments on: Price positioning possibilities http://www.thinkinterval.com/2009/06/price-positioning-possibilities/ Smart Creative Fri, 30 Jul 2010 15:48:34 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Chris Bevolo http://www.thinkinterval.com/2009/06/price-positioning-possibilities/#comment-69 Chris Bevolo Mon, 29 Jun 2009 18:15:42 +0000 http://www.thinkinterval.com/?p=1326#comment-69 I think that's definitely a critical question, Chris. As a hospital, even if you can identify that you have the lowest costs, and can demonstrate it doesn't relate to lower quality, there will always be a perception for many that "you get what you pay for." In many industries, low-price positioning makes perfect sense (retailing, automotive, food, etc.). But it could be argued that if there's one place people would put aside cost savings to ensure even the perception of quality (let alone the reality), it would be with their health. I think that’s definitely a critical question, Chris. As a hospital, even if you can identify that you have the lowest costs, and can demonstrate it doesn’t relate to lower quality, there will always be a perception for many that “you get what you pay for.” In many industries, low-price positioning makes perfect sense (retailing, automotive, food, etc.). But it could be argued that if there’s one place people would put aside cost savings to ensure even the perception of quality (let alone the reality), it would be with their health.

]]> By: Chris Boyer http://www.thinkinterval.com/2009/06/price-positioning-possibilities/#comment-68 Chris Boyer Mon, 29 Jun 2009 16:31:12 +0000 http://www.thinkinterval.com/?p=1326#comment-68 Chris, this is an interesting concept - price positioning vs. value positioning. Currently, while there is a tremendous trend in consumerism in healthcare, it's been focused more on the transparency of quality and access. Although there is a strong role for price-based consumerism (particularly as more and more consumers are starting to assume more of the costs of their healthcare), the current managed-care model forces the consumer to be more focused on the insurance provider (i.e. which plan has a lower co-pay, while still providing me access to to the best doctors). I still suspect consumers will misunderstand a hospital's price-positioning strategy to be a reflection of value. I mean, is it the right message to promote "we offer the cheapest MRI's in town"? Chris, this is an interesting concept – price positioning vs. value positioning. Currently, while there is a tremendous trend in consumerism in healthcare, it’s been focused more on the transparency of quality and access.

Although there is a strong role for price-based consumerism (particularly as more and more consumers are starting to assume more of the costs of their healthcare), the current managed-care model forces the consumer to be more focused on the insurance provider (i.e. which plan has a lower co-pay, while still providing me access to to the best doctors).

I still suspect consumers will misunderstand a hospital’s price-positioning strategy to be a reflection of value. I mean, is it the right message to promote “we offer the cheapest MRI’s in town”?

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