The strategic marketing reaction of conventional nonprofit hospitals to the market entry of alternative care provider organizations.
A study was conducted examining the competitive reaction of incumbent firms to the market entry of new form competition in the health care services industry. Specifically, the study addressed the relative impact of both objective and perceptual characteristics of the threat potential posed by the entrance of alternative care facilities (ACF's) into markets previously dominated by nonprofit hospital organizations. The results showed that incumbent hospitals tend to rely most extensively on limited, low-risk market differentiation when responding to the threat posed by ACF entrants. Objective characteristics reflective of the structural complexity of the threat were found to be less important in influencing incumbent reaction than were administrators' perceptions of new entrant threat.
Schul
P L
PL
Fogelman College of Business and Economics, Memphis State University, TN 38152.
Remington
S J
SJ
Planchon
J M
JM
D000554:Ambulatory Care Facilities / Q000600:supply & distribution; D000704:Analysis of Variance; D004465:Economic Competition / Q000458:organization & administration*; D006302:Health Services Research; D006738:Hospices / Q000600:supply & distribution; D006788:Hospitals, Voluntary / Q000191:economics*; D007373:Interinstitutional Relations; D008329:Managed Care Programs; D008389:Marketing of Health Services / Q000706:statistics & numerical data / Q000639:trends*; D011795:Surveys and Questionnaires; D014481:United States