1.The Role of Arbitrary Coherence in Healthcare Marketing
In a fast-changing healthcare world, good marketing and proper service delivery would depend on understanding patient behavior. Among several psychological constructs, arbitrary coherence would have major ramifications in this regard. Coined by the behavioral economist Dan Ariely, the concept refers to the fact that once a particular price or value gets anchored in the minds of consumers, all further decisions are affected by it, even if the original anchor was arbitrary. That is especially true in marketing health care, where first impressions and perceived values often count a great deal for patients’ preferences and decisions.
Understanding Arbitrary Coherence
Arbitrary coherence is based on the fact that an initial price or value that we have contact with might create an impression on our future perception of it when, in fact, the original value had no basis in reality. Once the anchor has been set, subsequent decisions will be based upon that reference, leading to a coherent, albeit arbitrary, pattern in consumer behavior.
For instance, suppose a patient is exposed to a high price for a medical procedure; they are likely to view subsequent prices for such procedures as reasonable, even if they are much lower than the anchor.
On the contrary, if the patient first sees a low price for a treatment, they may consider higher prices in the future as excessive, regardless of the value or need for the treatment.
Because decisions in health are often made over complicated and crucial choices, the implications of arbitrary coherence on the preferences and behaviors of the patients are tremendous.
Arbitrary Coherence and Its Impact on Healthcare Marketing
Arbitrary coherence is just one of many elements of behavioral economics increasingly becoming relevant to the healthcare marketing landscape. By understanding how initial pricing or value perceptions help drive patient behavior, healthcare marketers will be better equipped to frame messaging and pricing strategies in concert with patient expectations.
1. Pricing Strategies and Patient Perception
Prices for provided services are often not clearly published by healthcare providers. Because this is a lack of complete transparency, the initial price is many times used as an indicator of what patients may continue to experience within that market. This is true for many elective procedures, non-covered pharmaceuticals, and health services. Healthcare providers can use initial prices or introductory pricing in such a strategic way as to create a positive anchor in the minds of patients.
For instance, a teaser price utilized for a new service or treatment will serve as an anchor and future pricing by that very standard will be perceived as more manageable. This proves to be quite useful in highly competitive markets where the patient has a great deal of choices regarding their care.
2. Influencing Treatment Choices
Arbitrary coherence also influences patient choice between treatment options. For example, if a patient is anchored to a higher-order treatment option, then subsequent, lower-cost options may be perceived as being lower quality, even if they lead to equivalent clinical outcomes. Health marketers can turn this to their advantage by leading with value and benefit of a high-end treatment, establishing a strong anchor that will bias future choices.
On the other hand, presenting options starting with the lowest cost may make higher-cost treatments appear gratuitously expensive and, hence, desired less by the patients. Understanding this dynamic provides health providers with ways to present options in a manner that appeals to patient preference yet promotes better choices.
3. Improved Brand Loyalty
Their first experiences and perceived value that the patients will get might be an influencing factor in brand loyalty in health care. Arbitrary coherence proposes that if the patients had a positive experience initially, through pricing, quality care, or customer service, they are very likely to view the brand experience coherently. In doing so, an arbitrary coherent perception might be created that leads to long-term loyalty.
This is where healthcare marketers can leverage a well-considered positive first experience as an anchor that creates biases for future behavior. This calls for personalized care, clear communication, and competitive pricing policies to meet the expectations of the patients from the very beginning.
Practical Applications in Healthcare Marketing
As one considers how to effectively apply arbitrary-coherence in healthcare marketing, the following practical applications need to be contemplated by the providers and marketers:
1. Strategic Pricing
Pricing a new service or product: When introducing new services or products, it is worth considering initially setting a price that will serve as a positive anchor for future pricing decisions. It should be indicative of the value of the service yet competitive enough to attract first-time users.
2. Sequential presentation of options
Present treatment options in order, to create a valuable anchor. For example, presenting the high-value, premium service first has a way of making other options seem more affordable or moderate, guiding patient preferences to the most appropriate care.
3. Consistent Messaging Across Channels
The messaging, therefore, has to be consistently reflected across all marketing channels, from advertising to website content through patient consultations to follow-up communications. Consistency helps to maintain the anchor and reinforces the perceived value of services provided.
4. Testimonials and Reviews by Patients
Patient testimonials and reviews can be a powerful anchor to help mold the perceptions of prospective patients. Communicating positive messages about pricing, value, and outcomes sets a strong initial impression that helps the future decisions of the patients.
5. Listen and Adjust
Continuously monitor patient feedback and market responses to make adjustments in pricing or messaging as may be appropriate. That’s how health-care providers will keep their anchor strong and maintain long-term effects on influencing patient preferences.
Challenges and Considerations
While arbitrariness of coherence can be very effective, one needs to approach it in an ethical manner that takes into consideration the best interest of the patients. Anchoring too low devalues the service, while anchoring too high may alienate the patients and further reduce access.
Besides, random coherence may not work among all categories of patients. Level of income, education, and culture will affect perception and decision-making behavior among clients. Healthcare marketers have no choice but to contextualize these variations and render their approaches pragmatic with a bias toward equity.
Conclusion
Arbitrary coherence is a potent concept that plays a leading role in shaping the preference and behavioral trends of patients in the health sector. In this regard, Newristics can help healthcare marketers apply the principle to more effectively influence patient decisions, enhance brand loyalty, and thereby further improve the overall patient experience.
Anchoring pricing correctly, presenting treatment options in the right way, and consistent messaging give healthcare providers a clear storyline that guides patients’ behaviors in a direction that will meet both patient needs and organizational goals.