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Journal of Marketing Management

Vol. 27, Nos. 3–4, March 2011, 199–206

Value Marketing in the Health Care Industry
Adam Lindgreen, University of Birmingham, UK & IESEG School
of Management, France
Martin K. Hingley, Harper Adams University College, UK
Michael D.J. Antioco, EM LYON Business School, UK

Introduction
In business and industrial marketing, upstream and downstream alike, the creation of
value is paramount to any company’s survival (Kotler & Keller, 2008) and even more
so at a time where dramatic changes in business and industrial marketing’s context
are leading to fundamental changes in what companies should be analysing, creating,
and delivering (Doyle, 2000; Hunt, 2000). Value has been examined in the marketing
management literature (e.g. Albrecht, 1992; Alderson, 1957; J.C. Anderson & Narus,
1999; P. Anderson, 1982; Doyle, 2000; Drucker, 1973; Woodruff, 1997), as well
as the purchasing and supply management literature (e.g. Carr & Ittner, 1992;
Ellram, 1995; Van Weele, 2001; Wouters, Anderson, & Wynstra, 2005). Two more
or less distinct research streams can be identified within this literature (Lindgreen
& Wynstra, 2005). The first of these streams deals with the value of products and
services, whilst the second stream focuses on the value of buyer–seller relationships.
Despite its identified importance, value is a complex issue. In fact, the literature
remains scarce on studies examining how selling companies in reality analyse, create,
and deliver value to buying companies (Lindgreen, in press). This special issue seeks
to address this gap in the literature by examining various issues relating to the
different ‘facets’ of value that result from the crossing of the two research streams
with the three themes of analysis, creation, and delivery.

Structure and context of the special issue
The special issue addresses value marketing within a particular setting – that of
the health care industry (cf. Lindgreen, Antioco, Harness, & van der Sloot, 2009a;
Lindgreen, Antioco, Palmer, & van Heesch, 2009b). Competition in this industry
was previously limited. Over the past years, however, the health care industry in
many countries has changed dramatically, and market pressures have increased (Frost
& Sullivan, 2004; Pauly, 2005). At low cost, today’s health care providers must
offer good value to customers who are prepared to exercise their choice. Also, with
increasing development costs, changes in demographics and disease patterns with
Western populations living longer but suffering from higher levels of chronic diseases
ISSN 0267-257X print/ISSN 1472-1376 online
© 2011 Westburn Publishers Ltd.
DOI: 10.1080/0267257X.2011.545668
http://www.informaworld.com

and service quality perception. The study evaluates the impact of credibility and image on customers’ purchase intentions to buy OTC drugs from supermarket stores. As a result. a conceptual model is extended within the commitment–trust framework. The perceived innovativeness of the vendors turns out to be relevant in three out of four cultures. two articles (part two) consider value creation through alternative support networks. the first article. The study’s managerial implications are that the cultural values of the . the special issue consists of five parts. Pauly. create. two (part four) concern value from a societal viewpoint. This kind of retailer can offer ease of access and lower prices. Eleven articles were selected that illustrate various ways in which organisations have sought to analyse. The study develops existing models on service quality expectations and customer satisfaction in business exchange. and further challenges the importance of innovativeness in business-to-business health care relationships on customer service. the image projected. and Spain) and the Russian transition economy. More specifically. from the more conceptual discussions of value analysis. the authors consider that health care lacks empirical insight into reasons and motivations for monitoring the buyer–seller relationship. Volume 27 and changes in government policy and health care provision. two (part five) concern value from a network and supply-chain perspective. as in many other countries. Investigated are consumer attitudes concerning trust in the retailer. investigates how consumer value is developed in drug retailing. such market liberalisation does raise the question of the ability of retailers to deliver value to consumers. In the first part of the special issue. A set of research propositions is evaluated using data from three Western markets (Finland. A review of literature is made with reference to prior studies concerning credibility and image. and loyalty. value from a reputational point of view. ‘The role of credibility and perceived image of supermarket stores as valuable providers of OTC drugs’ by Gianluigi Guido. The second article. 2005). 2000. ‘The impact of perceived innovativeness on maintaining a buyer–seller relationship in health care markets: A cross-cultural study’ by Christine Falkenreck and Ralf Wagner. The authors find that expectations in products and services impact on perceived value for money in Russia and Germany only. and Daniela Frangipane. In Italy. The article challenges whether ‘service is at the heart of innovation’ in marketing or whether there are other impacts generating customer service in non-product-based sectors. & Orr. two articles (part three) concern value from a cultural point of view. focuses on the importance of how different countries and cultures comprehend innovation. Giovanni Pino. In this respect. but this may be traded off against the benefits of relationship engagement found with traditionally pharmacies. and specific discussions of value initiatives to discussions based on larger empirical samples from organisations. health-sector businesses must identify new areas of opportunity and reorientate their new product and service development activities (Friedman. Goes. in some way. Findings are that consumers are attracted to the utilitarian values inherent in supermarket purchase. creation and delivery. customer relationships. whereby cheap prices are attractive. recent legislative reforms have meant that supermarkets have entered the overthe-counter (OTC) drugs retailing sector. and deliver value through the six different facets discussed above. Three articles (part one of the special issue) discuss. Germany. However. and lastly.200 Journal of Marketing Management. The articles cover a spectrum. but study recommendations are made to supermarkets about their image and service facilities in order to enhance the ability to create further value for customers.

Implications for practitioners and commentators are made concerning the legitimacy of corporate reputation with regards to value. this time via the growing online medium. Mothers offer a rationalisation of health care received and of the environment and personal involved. Melewar. as well as that based on economic modelling. they contend a difference from prior studies. The authors argue that the Internet has revolutionised the service encounter. understand options for choice. ‘Exchanging value within individuals’ networks: Social support implications for health marketers’ by Haider Ali. the first article. Liu. and offer findings concerning social construction and validation. examines the value proposition through corporate reputation. investigates value created in patients’ social networks and discusses how value is exchanged on a personal basis within a specific cultural context. 1 Martin K. ‘Understanding the nature of value in the word-of-mouth referral equation for health care’. The authors conclude with a guide for practitioners.Lindgreen et al. non-professional opinion in health care. These groups are observed to provide information and user network support independent of health care professionals. and Natalia Yannopoulou. longitudinal investigation was used to track the development of online discussion groups concerning specific health care issues. The article debates the influences of the virtual network on the physical service encounter. Research is undertaken in the private sector Thai hospital industry. In the third part of the special issue. Empirical. The third article. and reduce information search anxiety and time. Martin J. Referral is used to confirm available information. entitled ‘Service value and virtual communities: Participation and utilisation of communal online space’ by Angus Laing. and this led further to a series of depth semi-structured interviews devised to understand user perspectives of the nature and functioning of online discussion groups. Through a qualitative and exploratory approach. whereby consumers are able to engage in multidirectional exchanges concerning health care rather than being in one-way receipt of information and advice from knowledge gatekeepers. T. and that the formation of virtual communities transcends the normal boundaries of geographic distance and status/authority. In this. Debbie Keeling. The article draws on theory concerning service encounters in order to provide a framework for consumer engaged and controlled virtual communities in support of their regular service consumption.C. which employ a single approach in researching corporate reputation. In the first article of the second part of the special issue. Hingley undertook the editorial role for this paper. In this article. continues the theme of alternative networks and value creation. The second article. The authors offer a model of corporate reputation based on multifaceted theoretical influences. The article makes a contribution concerning value attribution to the credence of source according to experience of key reference figures and direct personal communication. entitled ‘Value marketing through corporate reputation: An empirical investigation of Thai hospitals’ by Nopporn Srivoravilai. Value marketing in the health care industry customers are a strong influence on exchange values and use. the study considers the content of informal communications (word-ofmouth referrals) offered by mothers to other mothers who are potential patients of the same health care provider. 201 . and Terry Newholm. Angela Dobele and Adam Lindgreen1 investigate the importance and influence of trusted. as the authors contend that corporate reputation best communicates to consumers and the public the company’s commitment to a value offer.

Greece. Nadia Zainuddin. which influence what patients believe is the nature of the support they receive from their family and close network. emotional. This section’s second article. and Taiwan are the chosen countries for investigation. The investigation is of cardiac patients and their subsequent care and recuperation. the Middle East. particularly emotional support from network members. such as those found within multicultural communities. and Rebekah Russell-Bennett argue for a social marketing approach in the building of value. and although there may be some merit in marketing directly (generic) drugs to consumers. and the findings highlight rich areas for further research in other cultural contexts concerning the important influence of the creation of social capital. and data from 25 depth interviews are analysed to demonstrate how social marketing thinking has guided the identification of six themes that represent four dimensions of value (functional. ‘A social marketing approach to value creation in a well-women’s health service’. as opposed to the mainstream emphasis on treating illness. Adam Lindgreen. Jon Reast. altruistic). Research implications surround the issues of conflicts of loss of value created from key stakeholders engagements from suppliers (in this case manufacturer drug companies) and physicians. However. Hingley undertook the editorial role for this paper. The authors contribute to theory concerning value and social marketing and make recommendations for more socially supported decision making in public health care policy. which could be applied in similar communities with strong social networks. believing that the physician–patient relationship is undermined by this approach. The study focuses on the concept of ‘wellness’ (proactive and preventative health care services early detection). . social. In the first. ‘Developing a novel health and wellbeing service: The value of utilising the restorative benefits of nature in the UK’ by Paul Custance. there is not common agreement concerning DTC communications. This case is used to recommend information and resources to health marketers. organisation. In the second article ‘Prescription drug communication strategies: A comparative analysis of physician attitudes in Europe. and motivations. Volume 27 the cultural and social environment of support. This exploratory research was undertaken among an immigrant South Asian community in the UK. the United Arab Emirates. the physician’s role is the pivot of the network. sacrifice. The fourth part of the special issue consists of two articles. and society. while there is available research into health care from an economic approach to value. where they argue that there has been little prior research on consumer perception of value in the context of free state services.202 Journal of Marketing Management. Greek physicians were the most opposed. 2 Martin K. and Graham Spickett-Jones2 examine the influence of direct-to-consumer (DTC) advertising of prescription drugs and the influence of culture and context on the relative acceptability of this practice in different countries. is assessed and areas for further study identified. The research identifies culturally bound dimensions such as obligations. and the Far East’. Canvassed physicians are satisfied with physician-targeted communication strategies and see merit in engagement. and investigates where value for consumers can be added. The investigation uses an experiential investigation. The study uses Hofstede’s classification to select countries in order to conduct surveys of physicians and their attitudes to direct marketing communication and advertising of drugs to consumers. So. A societal marketing approach is used and outcomes are assessed for the individual. this article investigates a non-financial exchange. Josephine Previte. Dayananda Palihawadana.

There are two articles in the special issue’s fifth part. and improved recovery times. Modern health care provision has come to emphasise delivery of value for patients as consumers. the situation for participants (particularly in a 3 Adam Lindgreen undertook the editorial role for this paper. providing a network of rural community-based care facilities in the UK. Value marketing in the health care industry Martin Hingley. particularly tranquillity and peacefulness. ‘Understanding the UK hospital supply chain in an era of patient choice’ by Michael Bourlakis. where its expression may not be uniform. This article considers the influence of power of stakeholders in both a dyadic and a network interaction context and what bearing this has on value creation. investigates the UK hospital supply chain in light of recent government policy reform where patients will have greater choice of hospital for elective surgery. consistent. and Debbie Wilcox3 . Fintan Clear. often placing them at the centre of stakeholder networks. well-being. network linkages. The second article in the final section is ‘Value. As a result. particularly in regard to the benefits to health. and some would go further to argue for the development of the practice of active engagement in social and therapeutic horticulture and agriculture as a form of therapy. Power is seen to be derived from access to resources. power and health care services in the UK: A business-to-business service network approach’ by Judy Zolkiewski. This article reviews the progress of an approach to respite care that linked social provision to rural entrepreneurial activity. Specific recommendations are provided that will be of service to health-service managers. and where motivation for power is in appropriation of value. and that this influences the search for value by participants. researchers. The research method is action research.Lindgreen et al. The research also maps the various aspects of the hospital supply chain as it moves through different operational phases and highlights underlying challenges and complexities. This phenomenon is utilised in the development of a novel service (CaRE – Care and Rural Enterprise) against the background of ‘care farming’. The first. and charts development from what was envisaged initially as private-sector niche opportunities in health and recuperative care. with supply chains having to react to changes initiated by greater choice as patient demand becomes less predictable. or expressed from expected quarters. The findings show hospital managers anticipating some significant changes to the hospital supply chain and its workings as patient choice expands. Natural settings have been shown to be effective in assisting the restorative process. The hospital supply chain as discussed and mapped in this research is original work given there are no examples in the literature that provide holistic representations of hospital activity. evolving into social care in the rural environment. and are used to develop a map of the current hospital chain. Hence. and actor bonds and also a determining feature of atmosphere and environment of interaction. the hospital system should become far more competitive. The research method is qualitative and hospital managers are interviewed concerning their opinions on a range of issues. The study resulted in the initiation and development of the CaRE service. and Louise Patten. Views on the development of the hospital supply chain in different phases are derived. The article draws on business power and network theory and makes application to health care service provision concerning buyers and providers in networks. identifies the value that people place on many of the attributes of the countryside. Findings identify a turbulent environment of power. The empirical investigation is through application to the UK context of community health care. which has emerged in recent years. 203 . and policy makers.

. Vanessa Fonseca. & Ittner. Kirsti Dautzenberg. Fischer.D. Acknowledgements We take this opportunity to thank first all those who have contributed toward this special issue of Journal of Marketing Management. and Michael M. Hanf. Anderson.g. CA: Author. (2000). Susan Hart. (1982). Jon H. Antioco Special Issue Guest Editors References Albrecht. IL: Irwin. US medical imaging industry outlook. Volume 27 network rather than is normally understood from just a dyadic context) is complex and often confusing. we hope the selected articles will generate the kind of dialogue that is necessary to further understanding in this important area. & Narus. Lorraine Brown. – Adam Lindgreen. (1957). P. Marketing. Upper Saddle River. L.. NJ: Prentice Hall. We appreciate and are grateful for the authors’ desire to share their knowledge and experience with the journal’s readers – and for having their views put forward for possible challenge by their peers. Drucker. creating. The only thing that matters. where power bases lie and how they evolve) needs to be understood in a given context as much as efforts to understand bonds. Michael Beverland. François Maon. for giving us the opportunity to guest edit this special issue of Journal of Marketing Management. Management: Tasks. (1973). Sally Hibbert. We also extend special thanks to the editor. we warmly thank all of the authors who submitted their manuscripts for consideration in Journal of Marketing Management. & Orr.M. Chichester. J. Ivo A. Last but not least. Measuring the cost of ownership. practices.B. Goes. 317–330. 22–30. and Keith Walley. 8(4). Paul Custance. and we greatly appreciate the work of the reviewers who have taken time to provide timely feedback to the authors. Ross Brennan. . L. 7.C. Brian Revell. We are confident that the articles in this special issue contribute to a greater. Ellram. C. 6. Rob Lawson. Anderson. Alderson. 9. R. Homewood. ties. Sheena Leek. and activities. Journal of Cost Management. The reviewing was a double-blind process. J. Juliana Mansvelt. (1992). K. Activity-based costing and total cost of ownership: A critical linkage. Morten Raun Mørkbak. Hingley. Joëlle Vanhamme. The author recommends that the influence of network power (e. and delivering value. L. thereby helping the authors improve their manuscripts: Luís Kluwe Aguiar.D. 45(5). W. responsibilities. J. As well.. Sean Beer. more detailed understanding of value marketing in the health care industry. Christine Vallaster. (1992). Marketing behavior and executive action. (1999).H. Tove Christensen. The timing of medical technology acquisition: Strategic decision making in turbulent environments. (1995). 46(2). Carr. England: John Wiley. Wolfgang Chr. Business market management: Understanding. P. 15–26. John Guthrie. Frost & Sullivan (2004). and that this would enable practitioners to understand the underlying and changing conditions in which they act. Journal of Marketing. Friedman.204 Journal of Marketing Management.. Doyle. (2000). 42–51. Valérie Swaen.P. New York: Harper & Row. Johan Fischer.A. strategic planning and the theory of the firm. Martin K. Palo Alto. Journal of Healthcare Management. van der Lans. Andrea Insch. John Knight. Value-based marketing: Marketing strategies for corporate growth and shareholder value. Executive Excellence. Journal of Cost Management. P.

K. and The New Cultures of Food. and CSR. (2000). 182–197.Lindgreen et al. Marketing management (13th int..L. experiential marketing. A. M. UK E Adam_Lindgreen@hotmail. A. Journal of Business Ethics. and Journal of Marketing Management. M. Memorable Customer Experiences. He received his PhD from Cranfield University. Pauly. 139–153. Lindgreen. E mhingley@harper-adams. His research interests include business and industrial marketing. J.J. (2008). (2005). About the authors Dr. Value marketing in the health care industry Hunt. Anderson. Journal of the Academy of Marketing Science.J. Corresponding author: Professor Adam Lindgreen... R. among others. Lindgreen. J.ac. Van Weele. F. The adoption of total cost of ownership for sourcing decisions – A structural equations analysis. (2009b). 85. Industrial Marketing Management. He has published in British Food Journal. Journal of the Academy of Marketing Science. Antioco. Antioco is associate professor in marketing at EMLYON Business School. Competition and new technology.).com Dr. His most recent books are Managing Market Relationships. Palmer. 30(2). Purchasing and marketing of social and environmental sustainability for high-tech medical equipment. Industrial Marketing Management. Antioco. Journal of Marketing Management. and Wynstra..J. & Keller. D. Edgbaston. Journal of Product and Innovation Management. innovative products: Identifying and meeting business customers’ value needs. T. 1523–1535. B15 2TT. Tilburg University. Value in business and industrial marketing.. 445–462. M. Kotler. Lindgreen. European Journal of Marketing. 167–191.). Harness. Entrepreneurship and Regional Development. & van Heesch. Entrepreneurship and Regional Development. Journal of Business Ethics. Martin K. He is also a visiting faculty with TiasNimbas Business School. Michael D.. Organizations and Society. the leading university in the UK specialising in agri-business. Market Orientation. S. F. A general theory of competition. Lindgreen has published in Business Horizons. and Psychology and Marketing. His main 205 .C. London: Prentice Hall. (in press). (1997). (2009a). M.D. 25(2). & Wynstra. Wouters.V. His primary research interests focus on marketing and the applied areas of food industry marketing and supplychain relationship management. Purchasing and supply chain management (3rd ed. Lindgreen. Journal of Advertising.. ed. A. Value in business markets: What do we know? Where are we going? Industrial Marketing Management. High-tech. Industrial Marketing Management. A.B. Adam Lindgreen is professor of strategic marketing at University of Birmingham and Affiliated Professor at IESEG School of Management. 732–748. The Crisis of Food Brands.. (2005). Journal of Business and Industrial Marketing. Birmingham. Thousand Oaks. Customer value: The next source of competitive advantage. 24(3/4).. 24(6).. P.D. R. R. A. Health Affairs. He serves on the boards of many journals. International Journal of Management Reviews. London: Thomson Learning. University of Birmingham. Woodruff. (2005). Journal of Business and Industrial Marketing. 34(7). & van der Sloot.uk Dr. He has presented and published widely in these areas and serves on the editorial boards of several journals. Hingley is reader in marketing based at Harper Adams University College in Shropshire.D. among others. (2001). Accounting. CA: Sage. Dr.

Volume 27 research interests are new product development. cross-functional communication. organisational behaviour. Journal of Product Innovation Management. and decision-making. among others.206 Journal of Marketing Management. Journal of Business Ethics.com . and Journal of the Academy of Marketing Science. E antioco@em-lyon. His work features in European Journal of Marketing. Journal of Business and Industrial Marketing.

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