Final Exam Fall 2017 BA 306 Kaiser Permanente: Searching for a Better Way to Del

Question

Final Exam Fall 2017 BA 306 Kaiser Permanente: Searching for a Better Way to Deliver Healthcare From the window of her office on the 27th floor of Kaiser Permanente's headquarters building, Christine Paige looked out over a sweeping view of Lake Merritt in the heart of Oakland, Calitfornia. The lake's placid waters stood in stark contrast to the tumultuous healthcare industry hat Paige had to contend with every day in her role as Kaiser Permanento's Senior Vice President of Marketing. Founded in 1945 by industrialist Henry J. Kaiser and Dr. Sidney Garfield, Kaiser Permanente was originally established to meet the need for atfordable healthcare for Kaiser's steelworkers and shipbuiders. Kaiser Permanente had grown to become one of the nation's largest not-for- profit health plans, with approximately $50 billion in revenue, employing more than 180,000 staff and 17,000 physicians-and serving more than nine million members in California and eight other states and the District of Columbia. As the health insurance field grew more competitive, Kaiser Permanente management was becoming concerned that the organization was not fielding the most compelling marketing programs. They understood that the organization was viewed by many non-subscribers as a lower-qualitylower-value healthcare option. Specifically, in 2003, 75 percent of non-members would not even consider Kaiser Permanente for their healthcare coverage. This attitude stood in stark contrast to the fact that Kaiser Permanente members were far more satisfied with their care than those in competitive organizations It became clear that there was a need for a marketing communications effort to reverse the negative perceptions of Kaiser Permanente. The organization's advertising in the 1990s and early 2000s touted its highly qualified, caring physicians; but such claims were very similar to competitor messaging and failed to convey the innovativeness inherent in the Kaiser Permanente healthcare model. Such earlier marketing and advertising also did nothing to counter the periodic negative publicity about Kaiser Permanente's medical services. Although the marketing and advertising from that earlier era did not differentiate the Kaiser Permanente brand, it did help bolster internal morale among selected employees such as Kaiser Permanente physicians who were spotlighted in the ads Given those challenges and the uncertainties, Paige needed to provide management with her and her team's recommendations about the optimal next Permanente. moves for marketing Kaiser Your goals is to generate a research proposal. The research has to be clearly supporting informing the decision that Christine Paige has to make. Tasks: Problem Definition (30 points): 1. What kind of research will help management? Identify one market research problem and formulate the main question of the study 2. Generate research objectives

Explanation / Answer

1)What kind of research will help the management? Identify one key market research problem and formulate the main question of the study

A market research targeted towards the prospective customers (not the existing customers) to determine what makes them ignore Kaiser and select other medicare providers would be of utmost importance to Kaiser management.

Hence we move on to the first and most important step of market research i.e Problem definition which in this case would be “Why a prospective customer does not consider Kaiser for their healthcare needs”

Now we already have numerous secondary research reports which will help us understand the current customer preferences and trends, hence we would deploy the primary research method to gain insights.

Amongst the primary methods we would deploy 2 a) Surveys/Questionnaire and b) Interviews

2) Generate research objectives.

Research objectives i.e what we need to get answers for at the end of the research would be

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