Document 6506294

Confidential
How to expand "products" and services
that you offer to increase revenue via
optimal price point
Date : 14 Sept 2012
City
City
International
International
Hospital,
Hospital,
HoHo
Chi
Chi
Minh
Minh
City,
City,
Vietnam
Vietnam
Confidential
CONSULTANCY AND SINGLE BED FEE SURVEY OF PRIVATE HOSPITAL
City International Hospital, Ho Chi Minh City, Vietnam
Confidential
CONSULTANCY AND SINGLE BED FEE SURVEY OF HOSPITAL
City International Hospital, Ho Chi Minh City, Vietnam
Confidential
Price Sensitivity Meter
The Price Sensitivity Meter (PSM) is
a market technique for determining
consumer p
price preferences.
p
It was
introduced in 1976 by Dutch
economist Peter van Westendorp.
The technique has been used by a
wide variety of researchers in the
market research industry
industry.
City International Hospital, Ho Chi Minh City, Vietnam
Confidential
Research Design
 Methodology: Quantitative research, Face to face interview
 Target consumers & sample size
 Upper class consumers; Male & female; 30 and above years old
 Business owners, entrepreneurs, professionals, office manager or
above;; housewives which her head of household must qualified
q
for occupation as mentioned above
 Who make decision in the family relating to family healthcare
matters
 Sample size:




Total of 400 consumers
200 male & 200 female
200 age 30-40 and 200 age 40 and above
150 class A+, 150 class A, 50 class B+, 50 class B
Spread across the city (100 for each location)
5
City International Hospital, Ho Chi Minh City, Vietnam
Confidential
The price sensitivity model
 Pricing in this study is evaluated using the Price
Sensitivity model called Van Westendorp model
 In this model,, 4 questions
q
are asked





At which price do you think OPD consultation
is :
CHEAP BUT QUALITY IS STILL OK
EXPENSIVE BUT STILL ACCEPTABLE
TOO EXPENSIVE THAT WILL NEVER USE
TOO CHEAP THAT DOUBT ABOUT
QUALITY
6
City International Hospital, Ho Chi Minh City, Vietnam
Confidential
Outcome of the price sensitivity model enable:
•
•
•
To identify the optimal price point where
there is the least % of the target consumers
consider the new product is too expensive or
too cheap
To evaluate at a certain price point, what is
the % of the target consumers might
consider it too cheap, too expensive…
To identify the price range (lower end and
higher end) that the price of the new product
should not fall lower or higher
City International Hospital, Ho Chi Minh City, Vietnam
Confidential
Van Westendorp Price sensitivity model
% Not cheap = 100% - % cheap
% not expensive = 100% - % expensive
Too cheap
Cheap
Expensive
Too expensive
Not cheap
Not expensive
100
90
80
70
60
50
40
PME
IPP
OPP
PMC
30
20
10
17,500 - 17,999
1
đ
15
5,000 – 15,499
đ
12
2,000 – 12,499
đ
9,500 - 9,999 đ
9
7,000 – 7,499 đ
7
4,,500 - 4,999 đ
Under 2,500 đ
0
RANGE OF ACCEPTABLE PRICES.
8
City International Hospital, Ho Chi Minh City, Vietnam
Van Westendorp Price sensitivity model
NOT EXPENSIVE
Confidential
TOO CHEAP
The indifference price
point (IPP) is the point at
which an equal number of
NOT CHEAP respondents believe the test
product is expensive as
believe it is cheap
The point of marginal
cheapness (PMC) is the
point at which an equal
number of respondents believe
the product is not cheap as
believe it is too cheap
The p
point of marginal
g
expensiveness (PME) is
the point at which an equal
TOO
number of respondents
EXPENSIVE believe the test product is
too expensive as believe it is
not expensive
The optimal
p
p
price p
point
(OPP) is the point at which an
equal number of respondents
believe the test product is too
expensive as believe it is too
cheap
9
City International Hospital, Ho Chi Minh City, Vietnam
Confidential
Expected fee for consultancy at foreign hospital

Consultancy fee per one visit to foreign private hospital is around 7-9 USD
Too cheap
%
Cheap
Expensive
Too expensive
Not cheap
Not expensive
100
The indifference price
point (IPP)
90
80
70
60
50
The point of marginal
cheapness (PMC)
The point of marginal
expensiveness (PME)
40
30
20
The optimal price
point
i t (OPP)
10
Base: n=400, HCMC, Male/ female , 30-60, Class A+B
MORE THAN
M
50USD
40-50 USD
30-40 USD
20-30 USD
10-20 USD
9-10 USD
8-9 USD
7-8 USD
6-7 USD
5-6 USD
4-5 USD
3-4 USD
2-3 USD
1-2 USD
UN
NDER 1 USD
0
BEST RANGE: US$ 7-9
Q17: Price for one consultancy fee per one visit to foreign private hospital
10
City International Hospital, Ho Chi Minh City, Vietnam
Confidential
Ying
g Yang
g element
City International Hospital, Ho Chi Minh City, Vietnam
Confidential
City International Hospital, Ho Chi Minh City, Vietnam
S
September 13 & 14, 2012 ●
b
3&
20 2 Melia
li Hotel ●
l Hanoi, Vietnam
i i
Mr. Seang Teak Tan
Chief Executive Officer, City International Hospital
seangteak.tan@yahoo.com