The Impact of Online and Offline Information Sources on Automobile Choice Behavior

The Internet has significantly impacted the information search behavior of consumers. Many consumers regularly consult Internet sources for information on product categories, brands, manufacturers, and retailers, particularly when making a purchase decision about major durable goods. Automobiles are one example of such goods. The Internet has become a major source for information on automobile brands, attributes, and dealers. While much research has been done on the impact of the Internet on automobile information search behavior and search costs, there is limited work on the relationship between Internet use and the ultimate automobile choice. This type of relationship may have interesting managerial implications for both manufacturers of automobiles and firms that provide information on automobiles. This paper attempts to address this gap. It examines whether Internet use is associated with different choice patterns for automobiles. Using discrete choice analysis on automobile choice data, we explore whether there will be differences in the salience of specific information types for online versus offline consumers. We find that Internet users rely more on ratings while non-Internet users rely more on recommendations when making automobile choices. Our findings have several useful managerial implications for information provision, both online and offline.     

The recognition and valuing of patient knowledge: a way forward

The health care that patients receive, particularly in acute care settings, is mainly based in biomedical knowledge. The scientific method of investigating health conditions has directly contributed to the development of this knowledge. This has made a significant contribution to increased survival rates, reduced recovery periods and extending the duration of life. The influence of consumerism on health‐care management has led to an expectation of increased patient involvement when making decisions about their treatment options. This assumes that the provision of information helps improve patients' understanding of the diagnosed health condition and assists them to make ‘good’ decisions. Accordingly, there is a greater focus on providing information to patients. The information provided to patients mostly involves explanation about the biomedical aspects of their health condition. However, patients also desire information about how the health condition will affect their everyday life. We call the understanding of the implications of this information ‘everyday knowledge’. Provision of this information can assist patients by helping them realize their expectations and providing reassurance to both patients and their significant others. Unfortunately, everyday knowledge that assists patients to understand and manage their daily life has not been as systematically researched or examined. While biomedical knowledge has been extensively developed and promoted through funding regimes, everyday knowledge has not benefited from the same support. The interactions in health‐care settings are influential in the generation and use of knowledge. Practises that encourage sensitivity by health professionals to each patient's situation need to be identified and implemented. An increased focus on the inclusion of everyday knowledge alongside biomedical knowledge is likely to enhance the relevance of the information that patients currently receive.     

Health Information on the Internet

Electronic Health (e-Health) increasingly strives to provide health information and services to healthcare stakeholders via the Internet, and to actively involve patients in their care. One major chance for these participatory healthcare and patient-centered approaches that integrate patients in healthcare are the phenomena and ideas associated with providing information and healthcare on the Internet. This paper examines the existing body of knowledge on online health information and explores the current state of research through a review of literature as well as past and current research projects. The fundamental categories of the analysis represent the stakeholders in the healthcare sector, the connecting information flows, the information-transferring technological applications, as well as the categories of the TEMPEST model. Based on these findings, causes and future research fields are discussed. The technological category has the largest share of all categories. Based on these findings, causes and future research fields are discussed.     

Value co‐creation in online healthcare communities: The impact of patients’ reference frames on cure and care

The gradual transition of health care toward businesses during the past 50 years has converted passive patients into active customers. In our digital society, patients increasingly use online health communities to satisfy complex needs that healthcare professionals leave unmet, including the creation of cure‐oriented (i.e., functional) and care‐oriented (i.e., emotion) value. This research investigates patients’ reference frames (self versus other) as an information processing mechanism and their impact on value creation in online communities. The analysis of 1,687 online postings of a leading healthcare platform shows that self‐referencing is typical for information obtained through an individualistic, patient–doctor encounter; other‐referencing emerges when patients focus on the needs of their peers. Information gathered through the patient–doctor encounter and processed with a self‐referencing frame accordingly enhances cure‐related value, but limits care‐oriented value co‐creation. Other‐referencing does exactly the opposite: it creates a barrier to cure‐related value, but stimulates care‐related value. A patient's experience with the community largely moderates the impact of both self‐ and other‐referencing on cure‐ and care‐related value. These findings show that online health communities can identify and address unmet patient needs, but healthcare professionals still play a critical role in terms of ensuring information quality in online health communities.     

Social media's contribution to customer satisfaction with services

An important recent initiative in the effective transmission of healthcare services is the establishment of the patient-centered medicine (PCM) philosophy as a mechanism for enhancing customer satisfaction. Although the goals of PCM are important, there is less understanding of the means by which service providers can promote this philosophy.

This study examines the relationship between customers’ attitude toward and use of social media, PCM, and their satisfaction with healthcare services. Data were collected from a large, urban-based pediatric office in the northeast. The sample consisted of 234 respondents who were classified as ‘e-Patients’ – that is, they reported having access to the Internet and going online for health information. A three-stage regression analysis, conducted to establish the path coefficients for each stage in the model, shows that customers’ (patients’) attitude toward social media can be an effective method to enhance PCM and, ultimately, satisfaction. The findings contribute to theory in services by exploring the challenges of managing service delivery at the interface between customer satisfaction and the role and usefulness of adopting and effectively using social media.     

SME Internet use and strategic flexibility: the moderating effect of IT market orientation

Abstract

One of the most important topics in the marketing literature has been the concept of market orientation. However, questions remain as to the dynamics of how market orientation translates into intermediate capabilities. This study explores relationships among different types of Internet usage, IT market orientation (the extent to which IT is aligned to manage customer and competitor information and internal activities), and strategic flexibility (firm capability to respond to the need for change). Specifically, use of the Internet for communication with relevant stakeholders, owing to its market-sensing potential, should be positively and significantly related to strategic flexibility for SMEs with more IT market-oriented alignment. The market-sensing potential of Internet communication to impact strategic flexibility positively for SMEs is likely to be lost under low IT market-oriented-alignment conditions. In contrast, IT market orientation should not moderate the relationship between Internet use for transactions with relevant stakeholders and strategic flexibility, given that the typical order taking and processing is a static, routine function for SMEs. Results supported hypothesised relationships. By delineating the type of Internet usage and required IT alignment that contribute to leveraging the Internet effectively, findings hold implications for future research by clarifying boundary conditions for Internet effects. Specifying how and when Internet use promotes strategic flexibility, an important enabler of competitive advantage, helps small business owner/managers better utilise their limited resources.     

Is the Internet a primary source for consumer information search?: Group comparison for channel choices

A recent report estimates that 79% of American Internet consumers have searched online for health information [Fox, S., 2005. Health Information Online. Pew Internet & American Life Project, Washington, DC]. Currently, little information exists about consumers’ usage of the Internet as a channel of health information. As more consumers are relying on the Internet as a medical and health information search medium, relevant implicative research that provides insights into consumers’ online information searching behavior should be conducted. The present research attempted to reveal factors that drive consumers to adopt the Internet as their main channel of health information. Specifically, multiple facets, such as consumers’ psychological factors (i.e., personal characteristics) and perceived quality dimensions, were explored. Two Internet user groups were selected by their primary channel when searching for health information. Structural equation modeling was utilized to compare the two groups and identified significant differences of personal characteristics and perceived quality.     

Paperless healthcare: Progress and challenges of an IT-enabled healthcare system

For most Americans, a trip to the doctor's office or a hospital stay necessitates that medical personnel search through paper charts and records as care is administered. This remains the status quo, despite the increasingly large role that electronic communication plays in other aspects of our business and personal lives. The elevated use of information technology (IT) in healthcare settings—primarily via utilization of electronic health records (EHRs), which allow information to be readily communicated and shared among healthcare providers—has been advocated as a means of improving quality of care and helping to control healthcare costs over the long term. Yet, hastened implementation of healthcare IT will require considerable cost incursion in the near term, and will present various other challenges that must be addressed. Herein, we examine the merits and benefits of healthcare IT, as well as the costs and other challenges that may serve as obstacles to its wider implementation and use. We conclude with a set of recommendations designed to increase the likelihood that extensive expansion in the use of healthcare IT will yield the desired benefits.     

Consumer-Driven Healthcare: Information,Incentives, Enrollment,and Implications for National Health Expenditures

We highlight the importance of information for consumerdriven healthcare (CDHC), describe barriers, display data on adoption rates and product features, and use a new health modeling approach to investigate the potential impact on national healthcare expenditures. We conclude with an assessment of the prospects for CDHC as a revolution of information, competition, and market orientation; and we discuss potential pitfalls, including concern regarding vulnerable populations. While the jury is out on the ultimate effects, enrollment in CDHC programs— while still small—is growing rapidly; utilization and costs for subscribers appear to be moderating; and creative benefit structures emphasize health promotion alongside previously unseen cost consciousness. JEL Classification I11     

Information search in health care decision-making: a study of word-of-mouth and internet information users

This paper investigates how individual consumers may differ in their information search behavior in health care decision-making. Results indicate that most consumers still use word-of-mouth as a primary information source for health care decisions. However, usage of the Internet is increasing. The results of this study indicate that consumers who are most likely to use the Internet for health care information are single, younger, and less educated, whereas consumers who are most likely to use word-of-mouth are middle-aged, married, with higher income and higher education. Surprisingly, no significant gender difference was found in information search behavior for health care decision-making. The results also suggest that consumers with the highest tendency to use word-of-mouth are also the lowest users of the Internet in health care decision-making. Implications of these findings are discussed.     

Energy,Insurance, and Health: Viewpoints of a Microeconomist

Abstract

This contribution reviews developments in the microeconomic analysis applied to three fields that are rarely considered in combination – energy, insurance, and health – focusing on four themes. First, it finds that stocks are crucial not only in energy but also motivate (in the guise of assets) demand for insurance coverage, as well as healthcare services designed to maintain one’s stock of health. Second, however, the three fields strongly diverge in terms of their industry structure. While oil and, until recently, electricity are vertically integrated, healthcare has been the leading example of a cottage industry, with private insurance in between. Third, the structure of innovation also differs. In energy and private insurance, process and organizational innovation prevail; in healthcare, it is product innovation, meaning new characteristics at higher cost, facilitated by health insurance. Finally, government regulation impinges on all three industries.     

The nature of value created by UK online grocery retailers

The UK retail environment is extremely competitive, forcing retailers to constantly develop and enhance both their offerings and their formats. Probably the most significant changes taking place are coming from not the products being sold themselves, but rather when, how and where they are being sold. For example, new technologies such as the Internet, CD‐Roms, electronic kiosks and digital television are opening up new opportunities for retailers through remote purchasing and delivery. While a number of large retailers have made heavy investments into electronic retailing, such as Arcadia, Marks & Spencer, Tesco and Sainsbury, it is uncertain how they are going to use this technology to gain competitive or market advantages. Given the media attention which technologies such as the Internet has attracted, there is the danger that businesses may adopt an unfocussed use. This report identifies and evaluates the ways in which major UK grocery retailers are using the Internet to create value for their users over and above that which is offered by bricks and mortar stores. Web sites of three grocery retailers were evaluated via preselected criteria in order to assess how they created value for their customers. Applying Holbrook’s typology of consumer value, the findings of the research suggest that each of the retailers surveyed are similar in terms of the nature of the value they have created for consumers online, these being value‐as‐convenience and value‐as excellence.     

International Web Development

Abstract

Throughout the world, use of the Internet is growing exponentially and bringing mankind closer together. The Internet has become a powerful force in people's lives bringing information from around the globe to the tip of one's fingertips, changing the way the world purchases products and services, and creating new means of communication and media. The possibilities created by the Internet would seem limitless. Unique to each region of the world though is the degree to which the Internet has been adopted and is being utilized. The progression of Internet development has been shown to occur in three stages: acquisition of Web literacy, Web use as an information medium, and Web use for purchasing goods and services. In each of the following geographical regions, North America, South America, Africa, Europe, Middle East, Asia and Oceania, countries can be described as existing in one of these stages. A sampling of the countries within each region analyzes how and to what degree the people of that nation utilize the Internet and who provides the services offered, what services are offered, and obstacles presented in offering those services. Furthermore, the role the Internet plays in commerce, and the extent to which the government of that country has taken in regards to its polices in either regulating and/or promoting the Internet is examined. The factors have been shown to be important in Web development. Today the United States is at the forefront of Internet use and technology; however, it will not be long before that position is challenged by Japan and other countries in Europe and Asia as the Internet becomes more pervasive across the globe.     

Information technology and consumer behavior in travel and tourism: Insights from travel planning using the internet

Sustaining business success hinges upon a firm׳s ability to understand and capitalize on consumer behavior trends. Synthesizing information from a variety of sources, this paper discusses the nature of use of the Internet by American travelers. In general, the adoption of the Internet has reached a level of saturation and some traditional channels such as online travel agencies (OTAs) continue to dominate travel planning. While traditional means of Internet use for travel planning appears to be widespread across all customer segments, higher-order Internet uses (i.e., social media) are now prevalent among some segments, particularly among travelers of Generation Y. Also, there seems to be an important bifurcation in the traveler population in that the traditional online consumers remain unchanged with their pattern of use of online tools while sizable groups are adopting emergent information sources and transaction channels. This article details the particulars of these trends and offers managerial implications and future research directions.     

Healthcare Ethics: A Patient-Centered Decision Model

A common financial model used in business decisions is the cost/benefit comparison. The costs of a proposed project are compared with the benefits, and if the benefits outweigh the costs, the project is accepted; if the costs exceed the benefits, the project is rejected. This model is applicable when tangible costs and benefits can be reasonably measured in monetary units. However, it is difficult to consider intangible factors in this model because intangible factors cannot be readily quantified in money. While some might argue that the financial model should not apply to healthcare decisions, the fact is that costs do enter into the picture. People may decide to forego needed healthcare because they cannot afford it. Healthcare providers may make choices based in part on the costs of diagnosis and treatment, rather than solely on medical information and what is best for the patient. Should financial issues enter into healthcare decisions – decisions about human health and well being? If so, how should the costs and benefits be measured and evaluated? What are some ethical issues and dilemmas involved in such decisions? This paper addresses ethical dilemmas and financial issues in healthcare. A healthcare decision model, which considers medical information, financial information, as well as ethical and other intangible factors, is proposed.     

Therapy,Enhancement, and Medicine: Challenges for the Doctor–Patient Relationship and Patient Safety

There are ethical guidelines that form the foundation of the traditional doctor–patient relationship in medicine. Health care providers are under special obligations to their patients. These include obligations to disclose information, to propose alternative treatments that allow patients to make decisions based on their own values, and to have special concern for patients’ best interests. Furthermore, patients know that these obligations exist and so come to their physicians with a significant level of trust. In this sense, therapeutic medicine significantly differs from straightforward business practices such as the buying and selling of houses, cars, cell phones, etc. However, we argue that this relationship differs when medicine is used for enhancement rather than therapy. When patients seek enhancements they are not as vulnerable as when they are ill. And in an enhancement setting, physicians have little role outside of medical risks to discuss motivation and alternatives. Therefore, we conclude that a more reasonable alternative may be for doctors and patients to use ethical norms associated more with straightforward business practices, specifically sales. We believe that full disclosure of this different set of norms will benefit both physicians and patients.     

Accounting and Medicine: An Exploratory Investigation into Physicians’ Attitudes Toward the Use of Standard Cost-Accounting Methods in Medicine

Research studies demonstrate wide variation in how physicians diagnose and treat patients with similar medical conditions and suggest that at least some of the variation reflects inefficiencies and unnecessary medical costs. Health care researchers are actively examining ways to reduce variations in practice through standardization of medicine to reduce the cost of treatment and ensure the quality of outcomes. The most widely accepted form of this standardization is Evidence Based Best Practices (EBBP). Furthermore, financial health care providers such as hospitals and managed care organizations are investigating methods to tie resource usage to medical protocols in their efforts to monitor and control health care costs. Such proposals are contentious because they report on physicians’ medical practice behaviors (such as the number of tests ordered, use of specific therapies, etc.) and such reports could potentially be used to influence their clinical behaviors. The intent of this exploratory study was to examine physicians’ perceptions about linking a standard costing system to EBBP guidelines. The authors interviewed nine practicing physicians asking each physician to respond to the question, ‘As a physician working in a hospital environment, what are your reactions to and concerns with combining standard costing techniques with EBBP?’ The interviews were in-depth and free form in nature. The physicians’ responses were recorded and analyzed using Grounded Theory Methodology. Using this methodology the field data was categorized into two major themes. The most important theme centered on ethics and the second theme was concerned with the implementation and use of a standard cost system in regard to EBBP. If physicians’ worries about ethical dilemmas and implementation issues are not resolved, then it is likely that doctors would be unwilling to participate in any efforts to develop or use a standard cost-reporting system in medicine. While this study was exploratory in nature, it should provide future guidance to accountants, health care researchers and health care providers about physicians’ issues with the use of standard costing methods in medicine.     

Business Buyer Relationship Management Through Seamless Internet Integration

Abstract

There is a growing need to look specifically at Internet integration into business relationship management tactics, beyond sustaining current customers. The Internet enables active implementation of a business buyer relationship management (BBRM) orientation through the facilitation of information sharing and buyer connectivity across various buying conditions. Using Internet tools, the goal of merely sustaining present buyers now appears insufficient. BBRM takes into account that these tools must be effectively utilized across a variety of buying situations including how sellers and buyers come together, stay together and inevitably remake their business relationships endure. BBRM makes effective use of Internet technologies despite various buying situations to enable seller-buyer relationship formation, maintenance and long-term continuation.     

Internet banking loyalty: evaluating the role of trust,satisfaction, perceived risk and frequency of use

This paper analyses the role of satisfaction, trust, frequency of use and perceived risk as antecedents of consumer loyalty to banking websites. While the literature usually focuses on the direct effects of these variables, special attention is paid here to evaluate their moderating effects on the relationship between satisfaction and loyalty. The results from a sample of 254 Spanish users of Internet banking services show that while satisfaction correlates positively with loyalty, the effect is significantly less intense with high levels of perceived risk. The results are similar for trust, which correlates more positively with high levels of perceived risk, but also when Internet banking is used less frequently. Managerial implications from these results are provided.