motivation and decision on medical tourism service in thailand
TRANSCRIPT
The 14th International Conference on Business Innovation and Technology Management
1The 14th International Conference on Business Innovation and Technology Management
Natworadee Kanittinsuttitong ([email protected])College of Innovation Management
Rajamangala University of Technology Rattanakosin, Thailand
Motivation and Decision on Medical Tourism Service in Thailand
June 4th - 6th, 2015, Bangkok
The 14th International Conference on Business Innovation and Technology Management
TOPICS
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Research QuestionSummary ResultsMotivationTheoretical BackgroundTheoretical FrameworkMethodology and DataEmpirical ResultsDiscussion and Conclusion
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RESEARCH QUESTION
In order to gain the competitive advantages and compete in a global market, this research is to determine the motivations and the factors that affect the decide on service of a medical tourism in Thailand ?
Medical tourism is the situation that the travelers who travel to foreign countries to get medical service or healthcare and traveling together (E.Cohen, 2008)
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SUMMARY RESULTS
• The result shown that there are two different groups of medical tourist, medical
focused tourist and tourism focused tourist.
• 1. Medical focused tourists : Come to the country with the major purpose of
having necessary medical treatment, cosmetic surgery and others optimum
choice of treatment such sex-transplant, then taking their time on vacation.
Therefore, they focus mainly on factors associated with medical treatment and
service such as cost, quality and reputation of hospital and physician.
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SUMMARY RESULTS
• 2 Tourism focused tourists : Come for tourism and mostly having their health
check, dental care and wellness treatment. This kind of tourist emphasize on
those factors associated with tourism service such as attractive destination, the
convenience of hotel and travel, entertainment and leisure place.
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MOTIVATIONThe Significant of this study.• The medical tourism market in 2009 was approximately 35,000 million USD.• Thailand's on the top ranking of countries that have been popular over the world • In 2012, more than 3 million foreigners came to receive medical services in
hospital and other healthcare facilities ,which generated approximately 70,000 million baht to the nation.
These growing market are not only create massive of revenue into Thailand but also create a new career for Thai residences.
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MOTIVATIONThe Significant of this study.• Not only Thailand that focus on the
medical business but India, Singapore and Malaysia and many countries around the world also jump into this battle.
• We need to define & strengthen our competitive advantage in order to keep and extend our market share
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THEORETICAL BACKGROUND
• Factors that affect the rise of tourism consists of two main factors
• 1. Push factors : Good Economy, High Cost, Health Regulation, Long Waiting-time, Lack of Confidence.
• 2. Pull factors : Low Cost, Country/Physician Image & Reputation, Beautiful Landscaped, Great Care, Low-Regulation, Variety of Health Services.
I. PUSH- PULL FACTORS IN TOURISM
Push Factors Pull Factors
Concept of medical tourism was formed by three main theories;
D. Weaver and M. Oppemann, 2000
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• Factor Condition: beautiful landscapes, warm climate, low cost of living, politics calm, less restrictive health law, social and cultural services, kindness.
• Demand Condition : Medical need & Tourism need• Related and supporting Industries: tour agency, hotel,
airline, transportation, entertainment business, restaurant & leisure, embassy, other related business.
• Firm strategy, structure and rivalry : improvement of quality and medical standards , providing value added services , opening overseas branches, contracting business partnerships.
II. NATIONAL COMPETITIVE ADVANTAGE
Firm Strategy, Structure,
Rivalry
FactorConditions
Demand Conditions
Related & Supporting Industries
M. Porter, 1990
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• using the theory of Maslow's hierarchy of need as a
main theory
• (1) Basic Healthcare
• : Basic medical care such as health checkups, dental
care, immunization and preventive screening.
• : Primarily focus on tourism and select standard health
services that located in tourism area with affordable
price.
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III. HIERARCHY OF HEALTH CARE NEEDS
Opti
mum HealthHealth
Enhancement
Medically-necessary Treatment
Basic Healthcare1
2
3
4
P.Carrera and R.Vivien, 2012 adapted from Maslow’s Theory
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• (2) Medically-Necessary Treatment
• : required to obtain medical treatment, such surgery
• : Mainly focus on medical treatment and take a short
trip nearby hospital or choose travel destinations that
suitable for their recuperation.
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III. HIERARCHY OF HEALTH CARE NEEDS
Opti
mum HealthHealth
Enhancement
Medically-necessary Treatment
Basic Healthcare1
2
3
4
The 14th International Conference on Business Innovation and Technology Management
• (3) Health Enhancement
• : Additional medical service to fill, to modify, or to
surgery some of the body including sex-
reassignment surgery.
• : Mainly consider f medical services, while they will
arrange the tourism to be during or after receiving
medical treatment.
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III. HIERARCHY OF HEALTH CARE NEEDS
Opti
mum HealthHealth
Enhancement
Medically-necessary Treatment
Basic Healthcare1
2
3
4
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• (4) Optimum Health
• : A need to maintain in good health or to be in a
better health condition such spa, massage,
acupuncture, traditional medicine, detoxification,
and holistic healthcare treatment.
• : Primarily focus tourism and often use health care
services that located in tourist areas.
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III. HIERARCHY OF HEALTH CARE NEEDS
Opti
mum HealthHealth
Enhancement
Medically-necessary Treatment
Basic Healthcare1
2
3
4
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THEORETICAL FRAMEWORK
Hierarchy of Health Need
Factor Condition
Firm Strategy, Structure &Rivalry
Demand Condition
Related & Support Industry
MedicalFocus
TourismFocus
•Independent Variables = Diamond model (factor condition, demand condition, related & supporting industry ,firm strategy, structure and rivalry)•Dependent Variable = Type of Medical Tourist•Mediator Variable = Hierarchy of Health Care Needs
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METHODOLOGY AND DATA
• Firstly, researcher have collected qualitative compiled, analyzed and summarized. Secondly, quantitative research were collect throughout the country.
• Population of qualitative research are the administrator of private hospital, clinic, cosmetic surgery, dental clinic, wellness institution, spa house, holistic treatment providers, massage service and providers.
• Population of quantitative research are foreigners who have both healthcare service and tourism in Thailand. In this research, sample were collected from Bangkok, Chaingmai, Pattaya, and Samui and Phuket for both qualitative and quantitative research.
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METHODOLOGY AND DATA
Sample : Those located in Bangkok, and main tourist area such Chaingmai, Pattaya, Phuket, Samui Island, and Hua Hin.
Data Collection : In-depth interview by using various tools such personal meeting, telephone interview, and emailing. Quantitative research employ by using questionnaires as a research tool.
Research limitationConcept limitation• Medical tourist : healthcare service + tourism service • Exclude : expatriate, retirement, and exchange student or officersScope limitation, this research only limit in the nation of Thailand
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5.Lifestyle transformation4.Optimum
3.Surgery+Cosmetic
2.Medical/Illness
1.Basic Healthcare+Dental
RESULTS
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RESULTS
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Medical focus tourist
Opti
mum HealthHealth
Enhancement
Medically-necessary Treatment
Basic Healthcare
• Factor Condition: • medical treatment• Not too far distance• Affordable travel price• Climate that suitability for rehabilitation • available and legal• Demand Condition : Medical Demand• Affordable price• Reputation of the hospital• Expert of physician and therapist• Medical standards (JCI)• Speed of Service• Modern Technology• Excellent Care• Related and supporting Industries: • Medical Agency & Tour Agency• Hotel & Accommodation near by Hospital• Special Transportation (In some case)• Firm strategy, structure and rivalry :• Improvement of quality and medical standards ,• Providing value added services • Opening overseas branches• Contracting business partnerships.
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RESULTS
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Opti
mum HealthHealth
Enhancement
Medically-necessary Treatment
Basic Healthcare
• Factor Condition: • Good country image• Beautiful landscapes• Suitable Weather• Low cost of living• Politics calm• Cultural of services and hospitality• Kindness of Residence• Demand Condition : Tourism need• Tourism Destination• Special Purpose Tourism• Related and supporting Industries: • Tour agency• Convenience of Hotel & Accommodation• Affordable of traveling• Entertainment business• Restaurant & Leisure• Firm strategy, structure and rivalry • Differentiate & Unique •Special promotion & package• Marketing Event & Road Show
Tourism focus tourist
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VariableItems/Statements Factor
LoadingsCommonality Variance Cronbach’s
alpha
Country Factor1
C1: The beauty of the landscape and attractions. 0.8018 0.6429
0.5584 0.8568
C2: The warmth of the climate for relaxing. 0.7792 0.6072
C3: Appropriateness of the living cost. 0.6436 0.4142
C4: The stability and security in the country. 0.7914 0.6263
C5: The austerity of the law in the country. 0.7184 0.5161
C6: Thailand culture with services mind. 0.7384 0.5452
C7: Reputation of Thai food. 0.7465 0.5573
Country Factor2
C8: Distance of travel to Thailand.
0.82300.6773
0.6902 0.7708C9: The affordable cost for the trip.
0.80330.6453
C10: The ease of travel to Thailand.
0.86480.7479
Factor Loading and reliability
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VariableItems/Statements Factor
LoadingsCommonality Variance Cronbach’s
alpha
Healthcare Factor1
H1: The period of waiting for treatment shorter than home country.0.7206 0.5193
0.4636 0.7043
H2: Cost of medical service cheaper than home country.0.6322 0.3997
H3: Variety of health services, some of which are not available in home country.0.6508 0.4235
H4: Treatment is legal.0.6743 0.4547
H5 The confidentiality of the treatment.0.7216 0.5207
Healthcare Factor2
H6: The quality and standards of the service provider. 0.7717 0.5955
0.5876 0.7736
H7: Reputation and expertise of the service provider.0.8742 0.7642
H8: Modern of technology and medical equipment.0.7629 0.5820
H9: The quality of service is good and friendly.0.6820 0.4651
H10: The hospital/Clinic offers accommodation during their treatment.0.6972 0.4861
Healthcare Factor3
H11: The available of healthy food /Halal food.0.7483 0.5600
0.6771 0.8769
H12: Reference from world class or well-known person.0.8417 0.7085
H13: Results of treatment (Testimonial)0.8717 0.7599
H14: Advice from a doctor / Agency / acquaintances0.8325 0.6931
H15: After treatment service0.8151 0.6644
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VariableItems/Statements Factor
LoadingsCommonality Variance Cronbach’s
alpha
RelatedBusinessFactor
R1: The available of public transportation 0.6496 0.4220
0.5705 0.7476R2: The hospital/clinic has pick up service 0.8371 0.7007R3: The entertainment and recreation nearby hotel / hospital. 0.7320 0.5358R4: Hospital/Clinic is located near the tourist attraction 0.7896 0.6235
Marketing Factor
MKT1: International branches. 0.8451 0.7142
0.7392 0.8824MKT2: The contact with the hospital / doctor in home country. 0.8779 0.7707MKT3: The cooperation between the government and the health service. 0.8863 0.7855MKT4: International exhibition or trade fair 0.8285 0.6864
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Model testing: Linear and ordered probit regressionLinear OProbit
country1 0.9022 *** 1.6907 ***country2 0.4048 * 0.8169 **health1 -1.0796 *** -2.0395 ***health2 0.9138 *** 1.8399 ***Health3 -0.4517 ** -0.7421 *Relate 0.9672 *** 1.7304 ***Market 0.7756 *** 1.4498 ***Constant 1.6308 *** cut1 0.1871 cut2 1.8667 ***cut3 3.4263 ***N 220 220 RSS 84.4980 loglikelihood -206.9075 -196.3277 F-test 15.6099 *** Chi-square 91.9570 ***R2 0.3401 Psuedo-R2 0.1898
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DISCUSSION • Contribution:• - Business: Understand the motivation & decision of each customer groups.
So..Executive can make a strategic & marketing plan separately, effectively• - Academic Field: Establish new “Medical Tourism Model” which so new in academy• Industrial Gap:• - There are still gaps in medical tourism cluster that need to be fill-in such as transportation,
interpreter, and food service provider. • - Connection between medical providers and tourism providers not as good as it should.
Thus the opportunity was lose in many cases.• Further research:• - Each level of healthcare need can be separately study. • - There are many related potential market emerging in Thailand that should be more focus
and promote in Thailand such Retirement Tourism, Drug Cessation