Analyzing the Effect of Advertising on Hospital Choice and Selection: Advancing a New Truth for Hospital Selection and Its Implication for Other Service Providers

Consumerism has long-been an important driver in other industries across the globe, as industries have embraced the importance of meeting customer and consumer expectations (Bennett and Mandell, 1969; Oliver, 1980; Bolton and Drew, 1991; Peyrot, Cooper, and Schnapf, 1993; Taylor and Cronin, 1994). Firms have attempted to understand consumer expectations prior to the delivery of service or product purchase.

Within the last ten years, this consumerism movement has infiltrated into the field of global health care (Herzlinger, 2002; Grazman, & Leifer, 2007). Tenets of the consumer-driven health care include increased demands for high performance, flawless quality, data analytics to support outcomes, and enhanced service delivery. In response to these emerging demands, hospitals in many global markets have sought to advertise their programs and services, with the hopes of securing existing patients and garnering new patients.