Satisfaction and Loyalty in the Healthcare Sector - Research Proposal Example

Satisfaction and Loyalty in Healthcare Sector Name Institution Date Satisfaction and Loyalty in Healthcare Sector Introduction The Australian Council of Healthcare Standards has concerns on how to increase satisfaction and loyalty among patients of its member organizations. A key benefit that confirms the essence of the service industry is customer satisfaction. Subsequently, customer loyalty is followed after customers feel satisfied with the services they get from the service provider. According to Buxton (2012), healthcare providers were stated to be relatively new in marketing the services they provide to their patients at a level that is highly segmented and keeping their patients loyal to the network. To enhance a loyal relationship with customers, healthcare providers need to understand that customer satisfaction plays a key role. Across industries, there has been a high level of value that was created when the industries ensured customer satisfaction and enhanced loyalty among customers, stakeholders and employees, alike. To enhance customer satisfaction and loyalty, there are aspects of their healthcare services that need to be understood by the providers. Wong et al (2014) stated that customer loyalty is affected by brand preference and satisfaction. Factors such as waiting time, hospital facilities, patient security culture, hospital stay, service quality, hospital performance inter alia, affect the level of satisfaction and loyalty among customers (Abbas, 2011, Nketia and Hiemenz, 2009). The providers need to understand all factors that keep their patients calm when they come for the services. This study examines the special aspects of health services that related to satisfaction and loyalty. Problem statement A leading factor in ensuring the success of the service industry is the satisfaction that customers attain from the service. Subsequently, customer loyalty is attained. To achieve customer satisfaction and loyalty, there are related aspects that need to be investigated. These are aspects that contribute majorly to attainment of satisfaction and loyalty by customers in healthcare providers. The variation in these factors from patient to patient is minimal, because the overall goal of the patient is to get the required service which is relatively constant. Various variables exist and affect the level of satisfaction that consumers get from healthcare providers. These variables are all pointed to eh healthcare provider. However, customer attitude and behaviour also determines the level of satisfaction they attain from the provider. Despite this, it is the duty of the healthcare provider to ensure customer satisfaction is attained. To address these factors, the study shall use the following research questions: Research Questions What aspects of healthcare services should be considered when seeking to enhance customer satisfaction in the healthcare? How does the involvement of customers affect the level of satisfaction they attain from their healthcare providers? How best can the healthcare provider ensure all customers get the desired services, regardless of customer behaviour? The following hypotheses are used in this study: H1: Various aspects of healthcare services are important in enhancing customer satisfaction and loyalty. H2: Healthcare provider attitude towards their customers is more important in ensuring customer satisfaction and helps in eliminating any client issues. The study aims to investigate the aspects of healthcare that lead to customer satisfaction and loyalty. To attain this objective, the study shall use the following specific objectives: Specific objectives To investigate the importance of a great relationship between healthcare providers and its customers in ensuring satisfaction and loyalty. To explore how the level of service offered, including level of expertise, affects customer loyalty and satisfaction. To find out how best the healthcare provider can deal with various customers and still maintain the level of satisfaction at the best level possible. Importance and benefits of the study Studying the aspects of health services that are related to customer satisfaction and loyalty is important for healthcare providers because it helps them to understand how they can improve their services so as to satisfy their customers and retain them. The challenge with every industry is to have customers who keep coming. The challenge to the service provider is to understand what to do so as to keep the customers coming for the services. In addition, this study helps healthcare providers understand the various ways in which they can increase their market share in the heath sector. This study also acknowledges that there are challenges in handling some customers. Despite the differences in customers, the study provides an insight on how to handle the variances in customer behaviour and attain customer satisfaction. With this study, member organizations of ACHS shall understand how they can make their customer experience a key strategy to high performance in healthcare provision. Literature Review The rapid progress made in the healthcare industry has had serious implications on the level of competition among health care service providers. In addition to competitive pressure, there are different challenges that are faced by these providers. These include changing the cost structure and monitoring public interest. This has called for the need to reassess the strategies of healthcare provision. Among these strategies, Saeed et al (2013) stated that customer satisfaction is a key element in enhancing profitability and long term success and viability of the healthcare industry. Over the past years, research in customer satisfaction has been widely conducted across various industries. Recently, research on customer satisfaction in healthcare services has increased. Satisfaction increases with the experience that customers have with the care provider. This underlines the relationship that exists between satisfaction and customer loyalty. Majority of customers who visit healthcare providers are well educated on the level of services they should get. Through this, they are well aware of the various options that they can seek in case they do not get satisfied with the service they get from one provider. This implies that customers are very much involved in healthcare services and the providers should focus on the care and competence that they give to their customers. Reisburg (1996) further stated the importance of customer satisfaction by purporting that the success of businesses today is in considering everyone involved in the process of work as a customer. Further, there have been transparent efforts to ensure delivery of services that are customer oriented. Every practitioner in the health care sector should act by observing the clear goal of working to the best interest of the customer. It is the interest of the service provider to fight for its customers, and not against them. The customer determines how the organization determines its requirements, its customer performance and expectations as well as how it investigates the procedures that can be undertaken so as to get information on both current and future customers. In fact, ISO 9000 certification intended on enforcing organizations to meet or where possible, exceed the expectations of its customers and develop activities that will increase its focus on customers (Abbas, 2011). Patient satisfaction is important in measurement of the quality of services offered by healthcare service providers. It is also a critical determinant of the behavioural intention of customers. Abbas (2011) stated that to better understand how best the service provider meets or exceed the expectations of its clients; the patient perspective plays a key role. This underlines the key role that patient satisfaction plays in the delivery of healthcare services. Customer satisfaction has been shown to create customer loyalty. In many industries, customers who are most loyal to an organization are those who have experienced the services of the organization for many years. It is the satisfaction they get from this service that keeps them coming for more services. Bain & Co. (2008) stated the importance of customer loyalty in creating a competitive advantage. In the paper, it was stated that to attain full potential in care services, leverage points for customer loyalty must be identified. With the evolution of health care services, it is the companies that develop and enhance strategies for rebuilding customer loyalty that are highly positioned for success. Customer loyalty has various dimensions (Wong et al, 2014). It is also an important concept to be considered when setting up marketing strategies in service provision. A critical agenda for managers i the healthcare industry is to develop strategies that will increase the level of customer loyalty with the aim of fuelling growth and sustainability of the organization’s business. One important advantage of customer loyalty was stated by Wong et al (2014) to be increased revenues and reduced costs in acquiring and retaining customers. This is based on the fact that current customers will keep coming for the services offered. Various aspects of healthcare services have been stated to affect customer satisfaction and loyalty. Reisburg (1996) stated that an analysis of these aspects should start with the needs that customers have. These include the need to feel everything is in control, the need to feel that every action is channelled towards attainment of their goals, the desire for fair and appropriate treatment, a friendly and warm environment of service, the desire to be aware of what is happening in their environment, the desire to feel safe and secure, the need for recognition and a sense of belonging and identity with the organization (Reisburg, 1996). Understanding the needs and desires of customers helps in understanding the various dynamics in the behaviours of customers. Understanding the dynamics in the behaviours of customers helps in understanding how best the customers can be satisfied. This is the foundation of understanding the aspects of healthcare services that can affect customer loyalty and satisfaction. Once these needs and desires are understood, it is easy to understand what should be done so as to fulfil the desires of customers and make them be consistent visitors to the organization. Various variables of the healthcare services are known to affect customer loyalty and satisfaction. The quality of service offered and skills and behaviours of the physician impact on the satisfaction of customers (Saeed et al, 2013). Service quality has been stated to be a very important aspect influencing customer satisfaction. This is because in assessing the value attained for their money, customers evaluate the quality of service they receive. Two dimensions exist in evaluation of service quality. These include technical quality and functional quality. Technical quality refers to the quality of expertise offered while functional quality refers to the quality of operations within the organization. For any service to be considered effective and productive, its quality plays a key role. A positive relationship exists between these aspects. The skills and behaviours of physicians affect the quality of services offered. When the skills and behaviours of physicians are of high quality, the service quality is also increased. Further, there exists a positive relationship between the service quality and customer satisfaction. When the quality of services offered is high, customer satisfaction is guaranteed. In addition, this relationship trickles down to customer loyalty. It is the dream of every customer to get the services of a trusted supplier in terms of quality offered. Satisfaction comes from the customer’s perception and expectation. When the expectation of the customer is not fulfilled, the customer feels dissatisfied. If the perceived care offered to the customer falls short of the expectation, then dissatisfaction is the result. Service quality is further influenced by other factors. For instance, hospital facilities play a key role in the quality of services offered. The importance of facilities starts from the hospital parking. Parking that is easy to access is preferred by customers because of special circumstances such as emergencies. Other facilities like signage also impact on the customers. These are aspects that impact on perception of the customer to the healthcare service provider. Customers would not wish to waste too much time seeking direction on where to find what. Patients expect clear indication on where to go. In addition, facilities such as the equipment used in the healthcare organization also weigh in on the level of service offered to the customers. Equipment used should match up to the standards of the work expectation as well as customer expectation. Facilities within the healthcare provider influence the type of service they provide to the customers. The relationship that exists between these two factors is a positive relationship. When the facilities are highly standardized, the quality of services offered is high. Customers do not like to waste time. The amount of time spent by customers while waiting for services, or while being served determines how best their feeling and desires have been fulfilled. The relationship between the amount of time spent during service provision and the level of satisfaction is a negative relationship. When customers spent less time, they feel more satisfied than when they spend more time. In addition, the security of customers within the organization is a key factor in enhancing customer satisfaction and loyalty. Customers who feel safe and secure within the premises are more likely to come back to the organization for further services as compared to customers who feel less secure. The organization’s attitude to customer behaviour is another aspect to consider in promoting customer satisfaction and loyalty. Various dynamics exist in customer behaviours. Regardless of their behaviours and attitudes, it is their expectation that they get satisfied with the services offered for them to come back to the organization. Of importance, therefore, is the way the organization deals with their behaviours and attitudes. According to Ndubisi (2014), customer satisfaction greatly depends on the reliability of care, the reliability of information, pre-emptive handling of conflicts and the orientation of the customer. The ways customers are handled during misunderstandings determine their orientation to the organization. Subsequently, this affects the level of satisfaction they receive; and this is followed by how loyal they can be to the organization. All of the aspects of health services that affect customer satisfaction and loyalty revolve around enhancing the quality of services offered. Research Design Study type This study shall deploy a descriptive study type where the situation of the problem shall be painted with the view of understanding how best to solve it. A description of various factors that play a role in influencing the level of satisfaction and loyalty by customers shall be done. The aim of this description is to help understand the level of the variables between these aspects. A diagnostic shall be done so as to establish reasons for the outcomes of our findings. The descriptive approach will be used because it is a viable approach to the study. Research method A quantitative approach shall be used in this study. This shall be done using a survey on patients. The survey shall involve investigation of the factors that influence their satisfaction on services they get from healthcare providers. Samples of 10 patients from various regions shall be provided with questionnaires that will be used in the study. The approach is selected because it is broader and allows for accuracy and objectivity of results obtained. The techniques used in this method are also easy to replicate and elements of bias can be avoided. Sampling and Data collection The targeted population to be used during sampling includes patients who are within healthcare facilities, and individuals who have used healthcare facilities. These individuals shall be reached to through records obtained from member organizations of the ACHS. A sample shall consist of 10 people who have experienced the services of different healthcare providers. From six different organizations, the total sample size shall be 60. (N = 10 * 6). Data collection shall be done through communication. Information shall be communicated to through the questionnaires. Measurement design Measurement of data shall be done through a Likert scale running from 1-5 (1= strongly agree to 5= strongly disagree). The survey shall be done using questions that shall require the response to be issued between the above scales. The questions shall be based on facts derived from literature on factors influencing the level of satisfaction and loyalty of customers. Ethics statement Research shall be done with the highest level of professionalism and ethical integrity. An informed consent shall be received from participating members and information received shall be kept private and confidential. Data analysis plan Analysis of collected data shall be done by testing of hypotheses. Each of the hypotheses shall be tested using an analysis of variance so as to evaluate the extent of their variance from the actual findings. H1 shall be tested by analyzing the various aspects that shall be found to influence customer satisfaction and loyalty. H2 shall be analyzed by evaluating the response on how service provider attitude can influence the behaviours of customers. Statement of strategic outputs If the various aspects of healthcare services that shall be investigated influence customer satisfaction and loyalty, then healthcare providers should look into these aspects and improve on them. In addition, if their attitude affects the behaviours of customers, it should be used as a tool for handling the various customers that they serve during their day to day business activities. Appendix 1: Measurement Instrument Contact: ___________________________ Type of service received: _____________________________ Please circle your most appropriate selection. 1. When I feel satisfied by the service provider, I can come back again and again 1 2 3 4 5 Strongly Moderately Unsure Moderately Strongly Disagree Disagree Agree Agree 2. Fulfilment of my expectations greatly determines whether I get satisfied with the service rendered. 1 2 3 4 5 Strongly Moderately Unsure Moderately Strongly Disagree Disagree Agree Agree 3. The quality of service I receive is the first consideration for me to feel satisfied 1 2 3 4 5 Strongly Moderately Unsure Moderately Strongly Disagree Disagree Agree Agree 4. When I enter the organization, I begin to judge their services by the initial signs at the parking and signage within the organization 1 2 3 4 5 Strongly Moderately Unsure Moderately Strongly Disagree Disagree Agree Agree 5. Sometimes I feel irritated by the service I receive, but the way the provider handles the situation determines whether I can change my attitude towards the organization. 1 2 3 4 5 Strongly Moderately Unsure Moderately Strongly Disagree Disagree Agree Agree 6. The amount of time I spend on the queue influences my judgment on the kind of service I expect from the provider. 1 2 3 4 5 Strongly Moderately Unsure Moderately Strongly Disagree Disagree Agree Agree 7. An organization with highly professional and skilled physicians with highly equipped facilities is a great sign of high quality 1 2 3 4 5 Strongly Moderately Unsure Moderately Strongly Disagree Disagree Agree Agree References Abbas, A. (2011). “A Structural Model to Investigate Factors Affect Patient Satisfaction and Revisit Intention in Jordanian Hospitals.” International Journal of Artificial Life Research. 2(4): 43-56. Bain & Co. (2008). “Creating Value through Loyalty in Healthcare.” Healthcare Viewpoint. No. 10, pp. 1-6. Buxton, (2012). Building Patient Loyalty: What Healthcare Providers Can Learn From Other Industries. Retrieved on 2014-06-01 from: http://buxtonco.com/building-patient-loyalty-what-healthcare-providers-can-learn- from-other-industries/. Gage, et al, (2002). “The Measurement of Satisfaction With Healthcare: Implications For Practice from a Systematic review of the Literature.” Health technology Assessment, Vol 6: No. 32: 1-6. Nketiah, E. and Hiemenz, U., (2009). “Determinants of Consumer Satisfaction of Health Care in Ghana: Does Choice of Health Care Provider Matter?” Global Journal of Health Science. Vol. 1, No. 2. Pp. 50-61. Ndubisi, N. O. (2014). “Mindfulness, Reliability, Pre-Emptive Conflict Handling, Customer Orientation and Outcomes in Malaysia’s Healthcare Sector.” Journal of Business Research. 65, 537-46. Reisburg, M. (1996). “Customer Satisfaction in Health Care.” Perspectives on Admistration and Supervision. Vol. 6, No. 2, pp. 12-15. Saeed et al, (2013). “Factors Affecting Customer Satisfaction in Health Care Services in Pakistan.” Journal of Basic and Applied Scientific Research. 3(5): 947-952. Wong et al, (2014). “Examine the Effects of Customer Satisfaction on Customer Loyalty: An Empirical Study in the Healthcare Insurance Industry in Hong Kong.” British Journal of Economics, Management & Trade. 4(3): 372-399. Read More