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HEALTHCARE CHANNEL CONSUMER INSIGHTS
Supermarkets, Pharmacy & General Practitioners
Dr Gary MortimerAdvertising, Marketing & Public Relations
A TALE OF TWO CONSUMERS
Heterogeneity in the way consumers categorise products and services – Snack Food
Influenced by the individual needs, personal traits, values and goals – Blood Donation
Consumers base their choices on information from external sources and prior experiences stored in memory.
◦ Intrinsic – prior experience◦ Extrinsic – advertising, blogs, etc
WHY ARE CONSUMERS DIFFERENT?
(Blanchard, DeSarbo, Atalay & Harmancioglu; 2011)
Different from retailing or general services
Consumer healthcare demand ‘participation’ – co-production, co-creation. ◦ Seeking information rather than making a purchase
Thus, consumers can enhance/detract their own desired satisfaction and loyalty.
◦ Consumer inputs include; frequency of visits, knowledge, age...
CONSUMER HEALTHCARE CONTEXT
Bitner, Faranda, Hubbert & Zeithaml, 1997)
THE MAIN CHANNEL PLAYERS
• State of Play.◦ Concentrated market ◦ Discounter entrance ◦ SKU rationalisation ◦ Price Wars ◦ Private label ◦ They own everything... and want more
SUPERMARKETS
(Kate Carnell, (2011) Challenges and Opportunities Australian Regional Food Conference, AFGC)
• Price and Convenience in consumer healthcare
For the supermarket - medicines are a top priority◦ Growth of many grocery categories has plateaued
Woolworths/Coles are looking to healthcare products as a source of growth in the coming years*
◦ And they’re investing considerable resources in making it work Advanced modeling techniques to evaluate potential strategic
approaches*
SUPERMARKETS
(* Reference TBC - Woolworths presentation)
PROVIDE REAL OPPORTUNITY◦ Have money to spend ◦ Are focused on health and lifestyle ◦ Care about quality ◦ Are looking for new products
AFFLUENT 55+
Kate Carnell, (2011) Challenges and Opportunities Australian Regional Food Conference, AFGC
Customers are noticing these improvements 85% of Coles shoppers think medicines are easy
to find within their supermarket* In fact, both Coles and Woolworths are now
beating pharmacy on the feature ‘it’s easy to find the product you want’*
SUPERMARKETS
(* TNS Shopper research, 2011)
SUPERMARKETS
Supermarkets acknowledge ‘trust & legitimacy’ is the challenge
Talking steps to improve consumer access to information
Increased use of Smart Phone Apps, information at POS.
(*Kate Carnell, CEO, AFGC 2011; GS1 Australia)
Low involvement products Vs. High involvement products
• Pharmacy shoppers tend to have more complex presentations– They consider a greater number of symptoms on each
purchase occasion than grocery shoppers*
PHARMACY
(* TNS Shopper research, 2011)
• Quality advice and improved access to consumer healthcare
PHARMACY55
34
24
23
16
14
9
3
46
50
39
36
18
16
17
5
Sore throat
Cough
Runny nose
Nasal/sinus congestion
Flu and fever related achesand pain
Chest congestion
Fever/temperature
Other
Total Grocery
Pharmacy
66
18
15
14
9
6
4
3
1
6
44
27
26
21
6
3
5
12
1
7
Headaches/migraine
Back ache/joint pain
Muscle pain/sports injury
Cold/flu related
Feminine pain
Toothache
Stomachache
Fever
Cuts and bruises
OtherTotal Grocery
Pharmacy
39
20
12
10
9
7
7
6
4
1
15
28
32
0
28
8
16
28
28
12
4
4
Burning sensation in the chest
Burning sensation in the stomach
Constipation
Heavy stomach
Nausea or vomiting
Discomfort in the stomach
Feeling of trapped wind
Stomach cramps
Diarrhoea
Feeling that something is blocked in the chest
OtherTotal Grocery
Pharmacy
Heartburn & Indigestion
Cough and Cold
Pain Relief
(TNS Shopper research, 2011)
Consumer Decision Making Process: Quality Advice and Trust
PHARMACY
INFORMATIONWilling to provide consumers with unbiased, accurate and reliable information
BENEVOLENCECaring for and acting in the interest of consumer welfare
INTEGRITYTreating consumers fairly with equity and honesty
TRUSTPURCHASE
LIKELIHOODACTUAL
PURCHASE
(Wallace M.S. Yee, Ruth M.W. Yeung, Joe Morris, (2005)
Providing information and advice was the most important factor to build trust.
35% consumers engaged with Pharmacy to seek healthcare advice
166 respondents◦ 68% advice for self◦ 17% advice for children
Consumers want;◦ Advice on non-prescription medicines◦ Pharmacist advice on how to use medicines◦ Receive printed information about health related issues◦ Receive written instructions
PHARMACY
Health CheckPurchase Medicinal ProductHealthcare AdviceOther
(Chapman, C., Marritt, J. & van der Bosch, D., 2009 – The Nature, Extent and Impact of Triage provided by Community Pharmacies in Victoria)(Mott, K., et al, Consumer Experiences, Needs and Expectations of Community Pharmacy – Final Report.
Why do shoppers visit Pharmacy instead of Supermarket?
Access to quality healthcare advice
Value for money◦40% cited pharmacy as having better value for money
PHARMACY
So is it all about price?
* TNS Shopper research, 2011
Is it all about ‘Price’?
Brand name
Product strength or efficacy
Number of symptoms the product relievesProduct speed
Type of active ingredient
Price
53
32
28
18
17
16
16
13
11
10
9
7
3
2
55
30
20
24
15
17
18
23
22
9
13
14
5
3
Pharmacy
Grocery
* TNS Shopper research, 2011
Value is about the consumers’ judgement about an entity’s overall excellence or superiority in providing desired benefits....
When purchasing from a Pharmacist, Price is the 6th attribute considered.
VALUE
(Arnould, E.J., Price, L. L. & Zinkham, G. M., 2004)
•Judgements of Value
Extrinsic – price, brand name, packaging size, colour and prior use – and these are easily replicated
Intrinsic – Inherent within the product or service (subjective) – very hard to replicate
Degree of professionalism from staffLevel of service and responsivenessAccuracy of information and adviceExtent of customer relationship with retailerTrust and integrity
Reasons for consumers engaging with pharmacy, rather than GP, for healthcare advice.◦ 57% to purchase OTC◦ 18% pharmacy close and convenient◦ Other reasons; minor ailments, unable to get
appointment with GP, didn’t want to “bother” GP with minor ailment
PHARMACY
(Chapman, C., Marritt, J. & van der Bosch, D., 2009 – The Nature, Extent and Impact of Triage provided by Community Pharmacies in Victoria)
GP’s vital role in consumer healthcare Factors that encourage consumers to bypass
supermarkets and pharmacy and engage with GP’s for their healthcare needs;◦ Increased complexity of illness◦ Spread or worsening conditions◦ Exacerbating factors◦ New/other health related matters◦ Adoption of new medicines
GENERAL PRACTITIONERS
(Chapman, C., Marritt, J. & van der Bosch, D., 2009 – The Nature, Extent and Impact of Triage provided by Community Pharmacies in Victoria)
• Providers of specialist knowledge for complex consumer healthcare needs
Patient influences on Satisfaction and Loyalty for GP Services
◦ Frequency of visits – the more visitations, the higher the satisfaction and loyalty (trust)
◦ Older patients more likely to visit, hence, higher levels of satisfaction and loyalty
◦ Lower satisfaction and loyalty with younger patients, suggests an opportunity to segment and understand
◦ Provision of information increases loyalty and satisfaction.
GENERAL PRACTITIONERS
(Rundle-Thiele, S. & Russell-Bennett, R. 2011)
Each player plays a specific role in consumer healthcare
Each channel supports and complements one another ...but they all need to improve in what they do.
◦ Enhanced pharmacist primary care would alleviate GP workload – minor ailments
◦ Notional financial savings to governments were projected to be up to $260 million (2007/2008 – Medicare benefits paid)
◦ Improved training of PCA’s would increase consumers levels of trust
◦ Greater access to product information in the supermarket will improve consumer confidence to make choices
“...community pharmacies were not being used by customers as substitutes for GP visits...” (Chapman, C., et al, 2009)
ARE ALL PLAYERS NECCESSARY?
(ASMI Minor Ailments Report, 2009; National Minor Ailments Scheme, Llywodraeth Cymru Welsh Government)(Chapman, C., Marritt, J. & van der Bosch, D., 2009 – The Nature, Extent and Impact of Triage provided by Community Pharmacies in Victoria)
WHAT ARE CONSUMERS SEEKING FROM CHANNEL MEMBERS
Grocery Shoppers Pharmacy Shoppers General Practitioners
Convenience Competent/helpful staff Expert specialist advice
Close to where they work or live
More choice and variety Strong/long term relationships
Habitual/routine shoppers Trust pharmacist or pharmacies – access to healthcare advice
Very high levels of trust
Buy now for later use – top up shop
Buy now for immediate use Prescriptions
Supermarket (non-scheduled) medicines provide low price and convenience
Community pharmacy is regularly used by consumers for quality advice about healthcare matters
Consumers do not consider pharmacy as an alternative to GP’s
91% of consumers were ‘very satisfied’ with their interaction with pharmacy for primary health care advice
THE FUTURE: DRIVING CONSUMER HEALTHCARE
(ASMI Minor Ailments Report, 2009; National Minor Ailments Scheme, Llywodraeth Cymru Welsh Government)(Chapman, C., Marriott, J. & van der Bosch, D., 2009 – The Nature, Extent and Impact of Triage provided by Community Pharmacies in Victoria)
Enhance pharmacist primary care
◦ A model where patient, minor ailments are addressed by pharmacy in the first instance
◦ Pharmacy refers to GP’s for primary care
THE FUTURE: DRIVING CONSUMER HEALTHCARE
(ASMI Minor Ailments Report, 2009; National Minor Ailments Scheme, Llywodraeth Cymru Welsh Government)
A disjointed, adversarial approach is dangerous. Such an approach will drive consumers to make
discreet choices amongst channel players Consumers will benefit from an collaborative
approach to healthcare
◦ GP visit + non-prescription OTC◦ Initial pharmacist consult + referralto GP◦ POP/digital information strategic for all Health Care
Providers
THE FUTURE: BARRIERS TO EFFECTIVE CONSUMER HEALTHCARE
Things to consider...
Visits and advice sort from pharmacy often made on behalf of others, e.g. elderly parents, children
First point of contact (50%) Pharmacy Assistants – hence training and competency vital
Consumers may ‘self-diagnose’ – then use pharmacy/supermarket to merely purchase medicinal products – hence consumer education vital in self selection outlets
THE FUTURE: BARRIERS TO EFFECTIVE CONSUMER HEALTHCARE
(Chapman, C., Marriott, J. & van der Bosch, D., 2009 – The Nature, Extent and Impact of Triage provided by Community Pharmacies in Victoria)
• We can establish that consumers heterogeneous in choice behaviour
• Consumers engage with all main channel members for their healthcare needs
• Each channel member provides various levels of ‘value’ for consumers
• Quality advice is an important antecedent in a consumers’ perception of value.
• Consumer education and information will reduce barriers to the adoption of future models of consumer healthcare
In closing...