UNIVERSITY OF ILLiislOiS LIBRARY AT URBmNA-CHAMPAIGN uOOKo I ACKS Digitized by the Internet Archive in 2011 with funding from University of Illinois Urbana-Champaign http://www.archive.org/details/consumerismbroad490andr e CofA Faculty Working Papers College of Commerce and Business Administration University of Illinois at Urbana-Champaign FACULTY WORKING PAPERS College of Commerce and Business Administration University of Illinois at Urb ana-Champaign CONSUMERISM AND THE BROADENED MARKETING CONCEPT Alan R. Andre as en Professor of Business Administration #490 Summary : As marketing moves into new broadened domains, it risks the criticism and public disfavor that dogs it in its traditional business milieu. This paper explores several alternative measures of consumer and practitioner satisfaction in one of these broadened domains, health care. It argues that evaluations of the outcomes and process of marketing are essential if marketing's past life cycle is not to repeat Itself in this new area. •VI- 1 .' ••'.i!- : '.')".l I.: Introduction Marketing is a major force in our society. By subtly matching hetero- geneous supplies and demands for products and services, it serves, as one marketing sage has put it, to deliver our "standard of living." During the 1930's and 1940's, there were many who questioned whether the marketing 2 process cost too much. With the second World War and the postwar boom, marketing flourished with only rare suggestions that it was less than a 3 wholesome force in society. But all that changed in the early 1960's. With the rise of Naderism, marketing again came into question, but this time on two different grounds. First, it was argued that marketing was not really delivering products and services of good quality; that consumers were much more dissatisfied than market data traditionally showed. The support given to Nader airi his imi- tators was offered as evidence that this level of profound dissatisfaction 4 did, indeed, exist. The second charge against marketing was that not only were its outcomes less than desirable for the society, but so too was its process . Many rose to argue that the advertisements that were selling toilet paper to adults or Farrah dolls to kids were turning society into manipulated mush. Others pointed out that the same system that provided credit and low cost, honestly promoted products to the white middle class also provided deceptively promoted products sold at exhorbitant costs and usurious interest rates to those who have the misfortune to be poor and/or members of racial minorities. My colleague, Peter Webb, has argued persixasively that this criticism of marketing was (a) inevitable and (b) desirable. The criticism was in- evitable as marketing became more and more visible as business' interface Mr-vtsf^^* ,>'>:^or' _/'-. 'I - '.JI is;-j,lGi{>. ,^9■^t'' n IV'T-K J Iji'-i 2 J :?c'aQ'TC -2- with a skeptical world. The growth in per capita spending power meant that more consumers spent more i;ime on the material dimensions of their lives. This forced them to active.'.y seek out more contact with advertising, sales- men, packages and the like to make purchase decisions. At the same time, the growing ubiquity of television and other media in our leisure lives meant that consumers were "forced" to have more passive contact with this same voice. These contact!}, I would argue, became not only more frequent but progressively more distasteful as increasingly well-educated consumers felt vague guilt about the growing inroads that both materialism and tele- vision made in their lives,. Marketing's increased visibility and its direct link with both forces made it a natural target for consumer anger. But the criticism thai: arose can be considered a very healthy sign, particularly when it is directed back at business. It can be the irritant, the flashing red light, that causes the business system to correct itself and the consumer's frustraf.ion to be released. However, as I have noted in another forum, business' present use of this self-corrective and frustration- relieving feedback mechaniiim is surprisingly low. Fifty-edght percent of all problems with products and services are never voiced to business. And, further, of those that; are voiced, fully 44 percent are never resolved to the consumer's complete satisfaction. This leaves both a substantial vocal group of unsatisfied complainers who will lead the chorus of anti- business criticisms and a tiecond non-vocal army which other researchers have described as a "frusti'ated and even possibly an alienated group of consumers . . . [i]n frustiation, . . . direct [ing] their anger toward the g system, viewing both busintiss and government in very negative terms." '■ present a distorted picture of ^^® JiXE££ °^ problfajce that actualJ.y exist .iiiice some types of complaints are more likely to he voiced thars others. -12" Our study sxiggests that or. bot.h coimtSj complaints data may be especially unsatisfactory in the medical field. First » we found tliat 77 percent of all mcciical and dental problerao were unvoiced. For such an jjaportant isBue to most consumers, this rate of voicijig Is exceedinjjiy low. Second, our research in general showed' that the kinds of problems that did get voiced were those where the problems were important and/or had a hi^h likel.Lhood of resolution. While medical problems are impor- tant, they were not very likely to be resolved satisfactorily. Our data showed thet consumerc v;ho did voice their jaedical and dental complaints felt that the ccKiplainta were satisfactorily resolved only 34.5 percent of the tiioe, (THils was the second lowest figure in the entire study,) This result laay well accurately reflect the considerable inapproachability the laedical profession has assiduously cultivated over the years. A third featiure of the types of problemn that were not voiced vas that they were wliat were called ".-judgment" probleas. These vrere the eases where ". ., .deficiencies [were] complicated or ambiguous, and therefore 25 relatively dlffi(;ult to perceive clearly fxnd state with assurances." It is, of course., just those tynpcts of problems with which aedical encounters abound. Consumers who are unsure of their grounds in a liighly sophisticated and arcane subjectt as laedjcine are underntandably reluctant to challenge, even indirectly, the usedical high priests, ^^^ Report?? of probleas. My own experience strongly argues for the use of date geneiated from consumers in surveys on the probleras they have 26 encountered \^th goods or services as the best measure of curative outcome. Such treasures overcome the ovfitreporting bias of simple satisfaction scales and the underreporting bias and distortions of consumer complaints data. -13- (discussed above). In our research, the rate at which Tuedical or dental care problems involving non-price issues were laentioned was fifteen per- cent. Given coiisunjer ignorance in this area, this figure is undoubtedly low and I would argue vigorously for consumer education in evaluatijng medical care. StJLil, survey reports of probieaas are at present probably our best measure of curative outcomes. Measures About Process We have already seen that a major defect of the health care marketing process in that consumers seldom liave adeners begin to adopt the perspectivee, particularly i.n preventive health care, tlwt change programs will only be raasimally ffuccessf u3 when they begin with consuff>er neede and wants. The product*-as~givcin approach of laost health care profp.sBionals naturally le^de to heavy emphasis on advertising and promotion to achieve behavior change. Kaedless to a&y^ this /approach snay be entirely appro- priate to riiany preventive health care. raarketiiT.g programs. But even here there is a danger. As ?foriarty notes: "Preventive health care behavior in some cases 'hap. only long run and uncertain outcoifies for the xndivid-oal. Advertising elates of a more healthy life associated with specific changes in behavior will have to be dncttmented. , , ."' Monitoriiig of the truthfulness of health care promotion therefore would also seem ianportant if the marketing process is not to receive a black e5'e in this nen; broadened context. And just as we shovtld be co'Acerned aiiout the product and promotion eleaentK of the health care sarkefcing mix, so should, we be concerned about price and dietribfation. As noted earlier f there is very little price competition in health eare^ In partj thio is because often the products are liot coapsrafcle. But this is not alvreiys the case, and if marketing is to be effectiv-e this elemeni: too rouBt becoioe more open and flexible. Finally, one should note th/- djj^ficulties business ruarketers have hat by not pajing heed to tha coi^cerns of vhat 1 have called ''disadvan- ■ f :> .' I \. * > ju i , -15-- 33 t-aged consumers." ' Adftouate heaith care is soen by ir^aiiy ^r a ^igjit of: &11 :mdividualB in na affif.e.8«i variabl&e. At tht- coi^sumer. lti!'el j, ve need to laiov a goad dcfel rjor« rbout how Indiviclualo fcvaiu&te medicRl cBrt. Ke need to know fheli" 'Know3ed.ge of the j-yfjtea aiict its. siternatives; x-»hat i:beir nx- pectatiorts ar& cf cacb iie<h fcacoiinter and wnal; they know of the he&3.1.}i sypLeai tiS K wTc'.oJ.e. Vie need to l:now v)n pP.Tcexvea probiesus and v.i}jo acta on theiii &ud vhy. We need t.o know what practitioners f.hink of mcxiuitijig aiid what their expectations are ni its periorHaacfe. And finally wc nsieo to know vshst will cliange the/ie vsiiahles. ±ii h iavorahle direction. Trife fieveloicijcnt of JuiitriEnentf. sue rel^ited methodologies to assess consoBTsr e.ud prf.ctitioner sstlsfactiouc-; vrJ.th he<h cere outcoraftt. and thf laari-jsting proceiis tlist brings irh&ih /should occupy ovt attention for nctvex&l yearfj, Cvxt^iiii.y these are critir^;] ieBuefi if marketing is to serve its fu3J pi.tQntiai in iJiiproviug the quality of lifo in this and aiM-ilui: hrofcde.nc'>3 doissirlna . -1'/- t:isfDJ3orRS 5:947. p. l.'i&.. 2, r&ul U-, 'i";tfv7srt-, J. Pr€'-ritir.ic I>0'Khurf;ts wDt h the ft.f;KislftX'.ce of Loyis yieltij lioe g> Dli.Lvi butlw^ Tliq HucuV (Rev: Yorl'/. Iventiet}! Centurv Timd,, l&SiOV ?,. Set, fc-r exatiiplej, llu^hford K. 'fcrr=iaj% ■'%\iiild You Vnut ^oui' Datsg'titer i:o Tfenry ts 'Jfafketing '/-Jan?'' Journsl .of; *fisr kei;^iipg^, Voj . 31 (Jau,u3r.v.> 3;&{v;), KufflbBi- 1, ^.p, a -5, ' " ^i. Mark Y,. 'Kauel, Tbo J'oli^ics^^fjf Cofcai/juer J^^^ttict ion.. 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