Background
The medical schemes industry has been characterised by extreme uncertainty in recent
times. Industry turbulence can be attributed to a number of factors that have impacted
on the manner in which business is conducted. Amongst these the most significant is
the change in legislation that has occurred in the laws governing the administration of
medical schemes. The industry is characterised by an increasing number of schemes
competing for a finite number of profitable customers. In light of these changes, it
was thought prudent to investigate the consumer behaviour characteristics
surrounding this industry.
Objectives
The objective of the study was to determine the factors that influence consumers to
choose particular medical schemes over others. To this end it was hypothesised that
four factors, namely price, benefits offered, ancillary benefits and broker influence
played significant role in the decision making process of consumers .
Methods
Data was collected using a research questionnaire. This questionnaire was issued to
respondents who had recently purchased, or attempted to purchase medical cover.
Contact was made with the respondents via a snowball sampling method, using
insurance brokers as points of contact. The questionnaire was composed of a mixture
of open ended, dichotomous and disconfirmation scale type questions .
Results
Of the four factors that were hypothesised to significantly influence consumers in
their choice of medical schemes, it was found that two were proved correct. These
being, the benefits offered and the price of the offering respectively. The third
hypothesis, the effect of an ancillary benefits programme was found to influence the
consumer in their choice, however respondents did not regard the programmes as
vital. They did however indicate that they tried to purchase cover that included an
ancillary benefits programme. The final hypothesis was disproved as it was found that
consumers did not always follow the recommendations of the broker in choosing a medical scheme. They were however found to consult extensively with vanous
brokers regarding the types of cover that are available. The final choice between
medical schemes were however made by the consumer independently of the brokers
influence.
Conclusion
It is recommended that further research be conducted to ensure that consumer needs
harmonize with the medical schemes product offerings. The importance of the various
factors that compromise the purchasing process should be measured against each
other to determine the importance that consumers place on a specific factor. This
prevents medical schemes from placing emphasis on unwanted product features and
thereby wasting valuable resources. Further investigation into the topic should
encompass all aspects that are deemed relevant, as well as a cross tabulation between
the variable factors influencing consumer choice and consumers demographic
information. This would further aid the organisations to firstly create more efficient
market segments, and secondly to more effectively match product offerings with the
given segments. / Thesis (M.B.A.)-University of Natal,Durban, 2003.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:ukzn/oai:http://researchspace.ukzn.ac.za:10413/4139 |
| Date | January 2003 |
| Creators | Boodhun, Yudhistir Anund. |
| Contributors | Thomson, Elza. |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
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