An Empirical Study on the Use of Promotion in Hospitals

The role of marketing and marketing communication in hospitals has grown in the last decade. The need for hospitals to make careful decisions about their marketing communication efforts is mandated, given the changes taking place in the hospital industry. The purpose of this dissertation was to conduct empirical research to determine whether for-profit and non-profit hospitals perceive and utilize promotion as a marketing strategy element. The two steps taken included: identifying important factors considered by hospital administrators and marketing staff in the development of communication messages designed for patients, hospital staff and medical staff; and testing the factors developed and studying the attitudes of hospital personnel toward promotion using a national sample of hospitals. In phase 1, focus group interviews were conducted in a surrogate for-profit hospital and a surrogate non-profit hospital. In phase 2, an original mail questionnaire was used to collect data from a sample of 80 hospitals. A total of 38 hospitals participated, providing 114 usable responses. Test statistics included content analysis, Chi-Square, Pearson correlation coefficient and Analysis of Variance. The results of the focus group study indicated the practice of marketing in hospitals is in its early growth stages and marketing is viewed as nothing more than advertising and public relations. The results of the mail survey indicated that respondents in small for-profit hospitals with 20 to 30 years of experience as professionals, with key decision making authority, are favorably disposed to marketing and marketing communication. It was also found that respondents in large non-profit hospitals are very positive towards marketing. In contrast, respondents in medium and large for-profit hospitals, who are not directly involved in decision making, tend to be less positive towards marketing. The study serves as a basis for future research which may involve, (1) a larger sample frame, (2) hospitals in inner-city and rural areas, (3) investigation of the association between hospital ownership and hospital efficiency, and (4) development of a profile of respondents by title held, in hospitals