Understanding the implications of consumer empowerment in health care — Renée Richardson Gosline

MIT Sloan Prof. Renée Richardson Gosline

From Huffington Post

The days of the passive patient and omnipotent Marcus Welby-like physician are long gone. Since the 1990s, consumer empowerment in health care has been increasing, most notably with the advent of direct-to-consumer advertising for prescription medicines. Then, the rise of digital media allowed consumers to search symptoms and create communities around common disease experiences. More recently, the ability to shop for health insurance through health care exchanges and obtain treatment at drug store clinics has led to a new age of consumer empowerment.

We’ve gone from a B-to-B model to a B-to-C model in health care. This shift in power to consumers has many implications when it comes to how we make decisions about our health care. Here are six ways that a behavioral lens can help us understand the implications of empowering consumers in health care:

1. Heuristics

Heuristics are very important. These mental shortcuts or “rules of thumb” allow us to make decisions efficiently. However, these judgments are subject to non-rational (or biased) influences in the marketplace. For example, a retail promotion like a drug store coupon can affect the price on which patients “anchor” their judgments about the appropriate cost of health care. And a retail clinic can affect the appeal of non-healthy alternatives with their location, like in the candy aisle. While this may not have been a big deal before, it is an important consideration in a B2C retail environment.

Read the full post at The Huffington Post.

Renée Richardson Gosline is an Assistant Professor of Marketing in the Management Science group at MIT’s Sloan School of Management. She teaches the MBA course in Branding.