Imagine walking into a vibrant market where every stall boasts—a better way to live, an easier path to health, and a solution to every pain. Yet, each stall offers only a small glimpse of what lies beneath, leaving you to rely on subtle cues and intuition to make a choice. In the world of healthcare, consumers navigate a similar landscape: faced with a multitude of options, they must weigh factors like trust, social influence, and perceived risk, all while making decisions that impact their well-being. Aligning your operations with the patient experience is essential for creating a truly consumer-centric healthcare offering.
We’ve combed through recent available research on consumer decision-making in healthcare to reveal opportunities that can drive measurable improvement and differentiation SMEs in the space. Various ideas, beyond the obvious one of cost, are shared as the explanation for why people make certain decisions. Is it the tangible aspects of the service, the facilities the equipment, or is it the intangibles such as the provider’s expertise, attentiveness, or even responsiveness? As you would expect, the truth is more nuanced than one might immediately assume.
In healthcare, as in any other business, knowing why people choose one provider over another is essential for operators aiming to position their business for success. Whether you’re launching a new clinic, developing an app, or offering specialized services, understanding the factors influencing consumer choices can help you improve your positioning, messaging, and overall strategy.
Psychological Drivers
Though not as apparent as the tangible aspects of quality and modernity, people’s decisions in healthcare are significantly shaped by psychological factors. A study on tobacco and alcohol consumers in India revealed that three key factors—subjective norms, perceived behavioral control, and perceived product risk—play an essential role in forming a positive purchase intention.
What Will Other People Think of Me
The study suggests psychological drivers play a crucial role in how people decide on healthcare services, as in any other situation. Subjective norms, for instance, reflect the influence of family, friends, and broader societal expectations; when someone’s social circle views a healthcare service favourably, they are more inclined to follow suit. The way you frame your service should consider how to integrate and address the social perspectives or context.
Can I, Actually Do This
Similarly, perceived behavioral control speaks to the level of confidence individuals have in navigating and benefiting from a service—be it the ease of purchasing a policy or accessing care. Easy-to-understand processes and guidelines are vital to make people confident in their decisions. Provide solutions that reduce barriers to accessing the service you provide to make it easy for people to obtain.
What Could Go Wrong
Adding to these factors, perceived product risk encompasses the concerns people hold regarding the cost, effectiveness, and overall reliability of the provider. Regularly share your patient success stories and expert insights to reduce risk perception. Where possible give your clients a clear breakdown of the related costs. Being able to anticipate the different possibilities helps reduce uncertainty making it easier to make a decision.
Transparent Communication
Transparency on cost and process helps reduce uncertainty
Healthcare decisions are deeply personal and often influenced by beliefs and social norms. Transparency can lead to improved experience and quality of service for people with access to more personalized or digitally enabled healthcare. According to McKinsey, changes in consumer expectations have resulted in business model shifts toward tools that make healthcare more accessible through solutions like price aggregation and facility locators. Some start-ups offer consumers tools to provide them access to information they need to make informed decisions or make government programs more accessible. McKinsey’s study suggests health coverage, cost and provider expertise as key areas to prioritize transparency to reduce consumer uncertainty.
Information transparency plays a pivotal role in enhancing consumer satisfaction by shedding light on every step of the process. By introducing clear, accessible information—even in the more mundane aspects such as filling a prescription or renewing a policy—healthcare providers can build trust and alleviate common anxieties. This openness not only simplifies the consumer journey but also creates opportunities to improve the overall experience, ensuring that individuals feel informed and confident in their decisions.
People, Facilities & Equipment
In addition to psychological and transparency factors, the tangible aspects of your service play a critical role in influencing people’s choices. In healthcare, tangible elements—such as modern, well-equipped facilities, visible certifications, and real-life success stories—serve as concrete proof of quality and reliability. When potential patients see high-resolution images of state-of-the-art equipment, pristine environments, or clear displays of awards and certifications, they’re reassured that your service is committed to excellence. These tangible signals build trust by showing that you invest in quality care, which is especially important in a market where consumers are making decisions that affect their well-being. Emphasizing real patient testimonials and before-and-after case studies further differentiates your offerings, helping healthcare entrepreneurs position their brand as both credible and empathetic.
Trust and Reliability Matter
source: McKinsey Consumer decision making in healthcare: The role of information transparency (2020)
Consumers in healthcare are making decisions that deeply affect their well-being. It’s no surprise that trust is often a key criterion. Studies by McKinsey show that trust in a healthcare provider—built through quality care, professional credentials, and positive patient testimonials—is a major driver of consumer choice. A 2020 McKinsey survey indicates that, second to positive personal experience, people cited proof or evidence of good health outcomes as the most important factor in giving them the confidence that they would receive quality care.
Reliability is a crucial factor that significantly influences people’s decisions and is integral to the perceived quality of healthcare services. A Malaysian university study of 2022 also shows respondents valued the reliability of healthcare services, noting that accurate hospital billing and the ease of accessing medical records during their frequent visits contribute substantially to their overall satisfaction. Emphasizing reliability in your healthcare processes and messaging not only reinforces your commitment to quality care but also meets consumers’ expectations for a seamless, trustworthy service experience.
Affordability and Value Perception
source: McKinsey Consumer decision making in healthcare: The role of information transparency (2020)
No surprises here, cost is a significant consideration for everyone, particularly where economic factors impact access to care. A University of Johannesburg study of 2020, showed net household income to be a significant determinant of healthcare provider selection.
People are more likely to choose a provider that offers clear value for money, whether through competitive pricing, flexible payment options, or cost-effective treatment plans. The same Mckinsey study, highlighted earlier, also saw coverage being the most cited driver behind choice of provider, with over 78% of respondents ranking it as the highest priority. The study goes on to suggest that many consumers seek information on insurance coverage as a proxy for understanding service cost; before even researching the provider’s reputation.
Simplicity is Still A Priority
Imagine you’re a contestant on Deal or No Deal, only instead of a row of briefcases, you stand before a series of closed doors hiding unknown health outcomes. With only a few hints about what’s on the other side and minimal information on the probabilities, you must decide whether to stick with your current briefcase or take the banker’s offer. Every decision is a balancing act between risk and reward—however, making a decision need not feel like being on a game show. The challenge is to transform uncertainty into confidence, enabling people to make more informed decisions about their desired healthcare outcomes.
For entrepreneurs in the healthcare space, focus on building trust, offering clear value, and ensuring accessibility. Remember, consumers want more than just a service—they want someone who understands their needs and delivers consistently.
Be transparent about your value proposition, and continuously refine your approach based on real data. By understanding and applying these key factors, you can create a robust marketing strategy that resonates with patients and drives sustainable growth in your business. Happy strategizing!
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