1

BUS-620 (Marketing Management)

Final Report
Topic: Study of Customer Satisfaction in different Private
Hospitals
Section: 07
Summer 2019

Submitted To

Md. Humayun Kabir Chowdhury

School of Business & Economics
North South University

Submitted By
Anika Azam 1815250060
Alvee Musharrat Hridita 1825132660
Mahazabin Hossain 1815216060
Fariha Mahzabin Islam 1835113660
Moonea Zannat 1815114060

Date of Submission
26-08-2019
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NORTH SOUTH UNIVERSITY

TABLE OF CONTENTS

SL Topic Page
. No.
No
Letter of Transmittal 3
Acknowledgement 4
Executive Summary 5
1 Introduction 6
2 Purpose of the project 7
3.1 Methodology 7
3.2 Sampling Design 8
3.3 Questionnaire Design 8
3.4 Data Collection 8
4 Model Description-Expectancy Value Model / FISHBEIN Model 8-9
5 Brand Selection 9
6 Attribute Selection 10
7 Application of Expectancy Value Model 10-12
8 Attitude Toward Performing Behavior 12
9 Analysis and Findings 13
10 Recommendations 14-16

11 Bibliography 16

Appendix 17-20

LETTER OF TRANSMITTAL

26 August, 2019

Md. Humayun Kabir Chowdhury

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Department of Masters of Business Administration

North South University

Subject: Submission of Final Report.

We are very pleased to submit our final report that we have prepared on the topic “Study of
Customer Satisfaction in different Private Hospitals”. The report has been completed by the
knowledge that we have gathered from our BUS 620 course. This is a market research based
report for which we have to do survey.
We have tried to make this report as informative and comprehensive as we can and hence has
put all the relevant information. We have given effort to complete this report meaningfully and
correctly, as much as possible. Any sort of query or criticism is welcomed as it will help us to
enrich our knowledge.

Therefore, we would be obliged if you could accept this report.

Thanking you.

Yours obediently,

Anika Azam
Alvee Musharrat Hridita
Mahazabin Hossain

Fariha Mahzabin Islam

Moonea Zannat

ACKNOWLEDGEMENT
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First of all, we wish to express our gratitude to the Almighty Allah for giving us the strength to
complete this report within the stipulated time. We would like to give a special gratitude to our
course instructor, Md. Humayun Kabir Chowdhury , who have given us lessons regarding this
course and has explained us the contents so well that we could come up with topic by ourselves
and implement all that we have learned throughout this semester in this report.
We would also like to take the opportunity to thank to all those people who have completed the
survey for us as the main part of this report depends on the survey.

EXECUTIVE SUMMARY

This report provides an analysis and evaluation towards selection of consumer satisfaction in
different private hospital based on the expectancy-value model. Methods of analysis include
survey through questionnaires to obtain primary data from respondents & accordingly analyzing
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the weights of their belief, strength & attributes. All calculations can be found in the appendix.
This study focuses on knowing individual’s attitudes and the effect on those attitudes. The study
model includes four dimensions: the first dimension was the evaluation (importance) of the
attributes that consumers believe indispensable; the second dimension is the belief dimension in
how far these properties are available in the selected brands; the third-dimension measures
individual’s attitude towards these brands; the fourth dimension focuses on the effect of the
rating of these attributes on individual’s attitudes towards a brand. The research draws attention
to the ranking of Apollo as the market leader compared to the others particularly due to its high
satisfaction on different attributes Treatment Quality, Service, Treatment cost, location. The
report attempts to identify the Market leader, Market challenger, Market follower and Niche in
the medical industry based on the four brands selected & also suggests recommendations for
deficiency in performance of these hospitals.

1. INTRODUCTION:

The healthcare industry is termed as one of the most important sectors of the economy and
probably for this reason Mr. Maslow has placed health and well-being in his hierarchy of basic
human needs right after the most primary human need of food and shelter.   Medication is
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counted as a basic need for living and has a strong stable demand. Because of living standards
and the aging population this industry is likely to grow much faster than the country’s economy.
Hence we can see a strong correlation between income and healthcare spending. This happened
mainly due to the fact that the demand rises in response to a proportional rise in income.

Bangladesh has achieved remarkable progress in the health sector, particularly in reducing
maternal and infant/child mortality rates significantly. Life expectancy at birth increased
significantly from 44 years in 1970 to 72 years in 2016. Interestingly, Bangladesh has made
much improvement in the health sector with relatively low level of health expenditure. Since
Bangladesh has made spectacular progress towards achieving millennium development goals
(MDGs), the country is now looking forward to achieving sustainable development goals (SDGs)
and making significant improvement in the quality of life for the people by ensuring healthy life
and promoting well-being for all at all ages (SDG 3) in the coming years.There are different
categories of health care in Bangladesh, such as, primary health care (e.g., community clinic,
Union health center), secondary health care (e.g. certified physicians in Upazila/District heath
complexes) and tertiary health care services (e.g., specialist physicians). Health care services are
being provided by both public and private health service providers. Now-a-days, there are also
many NGOs that are contributing in providing health care services.

Considering all these things, we have decided to carry on our research on the Medical Sector of
Bangladesh. We have chosen the private healthcare sector of Bangladesh.

2. PURPOSE OF THE PROJECT:

The purpose of this project is stated below-

 To analyze which brand hospital,in the private sector, the consumers prefer.
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 To determine each individuals opinion regarding the brands different qualities.

 To determine the level of differences among consumer preferences.

 To mention what strategy a market leader, challenger and follower should follow based
on the examined results.

3. METHODOLOGY:
The research methodology used to collect data and develop a model was

Research design Fishbein model

Sampling technique Stratified Random Sampling
Sample size 30 respondents
Method of data collection Primary data & Secondary data
Instrument of data collection Questionnaire

We have opted for both Primary Research and Secondary Research. Along with theoretical
knowledge, we have prepared this report with our practical knowledge as well.

 Primary Research: As a mean of primary research, we have prepared questionnaires.

We have made direct contact with respondents’ through the questionnaires in order to
know about the consumers’ opinion regarding the selected attributes of our chosen
brands.
 Secondary Research: For our secondary research, we have gone through some articles
and journals in order to know about the medical industry of Bangladesh.

3.1. SAMPLING DESIGN:

The research study adopts stratified random sampling design. The population mainly includes
office going people and NSU MBA students. Three of our group members have randomly
selected some of their colleagues from their organization to carry on the survey. The rest of the
survey has been done randomly on the students who are currently doing MBA in NSU.

3.2 QUESTIONNAIRE DESIGN:

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The questionnaire has been examined several times before handing it over to the respondents’.
We have checked it repeatedly in order to ensure the appropriate using of words, format and
sequence of the questions. We have also consulted with our faculty member and took feedback
from him so that we can design a proper questionnaire.

3.3 DATA COLLECTION:

Data collection has been done both from primary and secondary sources.

4. MODEL DESCRIPTION- E XPECTANCY VALUE MODEL / FISHBEIN MODEL :

Fishbein model of consumer behavior (also called theory of planned behavior or theory of
reasoned action) attempts to explain the rationality of choice of the product by the consumer by
using measure of his or her overall attitude towards an object. This model helps to understand
consumer decision making process and suggest different ways to influence it.

Fishbein model (1967) considers a person’s attitude towards an object. It is a function of his or
her
belief that the object is associated with certain attributes and evaluative responses that is
connected to that belief. Attitude theories illustrates that consumer attitudes towards a product
will affect consumer behavior or action against these products. Marketers need to know the
attitude of consumers towards the products it markets, and then formulate strategies to influence
consumer attitudes. Market research or consumer research is one important activity to determine
consumer attitude towards an object.

Measurement of attitudes is one of the most popular attributes used by consumer researchers in
the model of the Multi Attribute Attitude Model of Fishbein, which consists of three models: the
attitude towards the object model, attitude towards behavior model, and the theory of Reasoned
Action. (Sumarwan, 2004).
Attitude towards the object model is very suitable for measuring attitudes towards the class of
services (or products) or a particular brand. According to this model of consumer attitudes
toward services or specific product brand, it is a function of the presence (or absence) and
evaluation of a conviction or certain properties.
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The formula of Fishbein model is:

n
A0 =∑ bi . ei
i=1

Here,
Ao = the attitude toward performing behavior

b i= the strength of belief

e i= the evaluation of the product

n= the number of beliefs

5. BRAND SELECTION:

Amidst all the private hospitals we have chosen-

1. United Hospital Limited

2. Apollo Hospitals Dhaka
3. Square Hospital
4. Labaid Specialized Hospital

These hospitals have been chosen upon discussion and approval of all the group members.
However there are some reasons behind choosing these hospitals. According to different articles,
these 4 brands are among the top 12 private sector hospitals in Bangladesh which are also much
famous and mostly chosen by the consumers when it comes to having a treatment from private
hospital. These hospitals are providing comprehensive health care with expert doctors, nurses,
technologies and the newest medical, surgical and diagnostic facilities. Most of their doctors are
well experienced and have graduated from top notch universities. For all these reasons, these
hospitals has been chosen by the group members among all the private hospitals in Bangladesh.

6. ATTRIBUTE SELECTION:

From the viewpoint of a patient, the mostly focused attributes are-

 Treatment Quality
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 Service of the hospital

 Treatment cost
 Location

Upon discussion we have come up with the conclusion that while deciding among the
alternatives, the consumers mostly look upon these attributes. As discussed earlier, we have used
the expectancy value model/ fishbein model to compare among the 4 hospitals (United Hospital
Limited, Apollo Hospitals Dhaka, Square Hospitals, Labaid Specialized Hospital) and this figure
out which hospital have the highest or lowest probability of being a patient’s first choice.
Altogether, 30 people responded to our survey on this. We have calculated all those data and put
them to expectancy model formula to find out which Hospital is the market leader.

7. APPLICATION OF EXPECTANCY VALUE MODEL:

As mentioned earlier we have chosen four brands (United Hospital Limited, Apollo Hospitals
Dhaka, Square Hospitals, Labaid Specialized Hospital) and we have selected four attributes
(treatment quality, service of the hospital, medical expense and location) in order to rate those
brands. We have did survey on 30 people to fulfill this research. All the data’s has been
calculated and we have put them into expectancy model formula to find out which hospital is the
market leader.

The expectancy value model is shown in the next page.

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Here,

n= 30 (number of total respondents)

Weights of the attributes are:

 Treatment Quality = 4
 Service of the hospital= 3
 Treatment Cost = 2
 Location =1

Evaluation Strength of Apollo Square Labaid

United Hospital
Criteria Beliefs Hospital Hospital Hospital
Treatment Quality 4 3.8 3.566666667 3.6 3.6

Service 3 3.766666667 3.7 3.6 3.433333333

Treatment Cost 2 2.366666667 2.4 2.766666667 3

Location 1 3.366666667 3.666666667 3.2 3.566666667

8. ATTITUDE TOWARD PERFORMING BEHAVIOR:

The attitude towards performing behavior has been calculated by multiplying each attributes with
the strengths of belief and then adding them up. For instance – In case of Apollo Hospitals we
have found out the value 34.6 in the following manner: -
4*(3.8) +3*(3.76) +2*(2.36) +1*(3.36) =34.56 i.e. 34.6

The value for the other hospitals has been found out in the same manner.

Brands Attitude toward performing behavior

Apollo Hospital 34.6
United Hospital 33.83333333

Square Hospital 33.93333333

Labaid Hospital 34.26666667

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9. ANALYSIS AND FINDINGS:

On the basis of questionnaires, the weighted average strength of belief for the four attributes are:

 Treatment Quality = 4
 Service of the hospital = 3
 Treatment cost = 2
 Location = 1

Treatment quality is the most important to people while making a choice among the hospitals.
Based on evaluation, the second most important attribute is the services provided by the hospital
and the weakest attribute is location for the four selected hospitals. Now, we have multiplied the
quality levels with strength and added them up for each hospital. On the basis of questionnaires,
the highest score is 34.6 for Apollo Hospital. As a result, using this judgment model, we would
choose Apollo Hospital. This model is called compensatory because a shortfall on one attribute
may be compensated by a good rating on another attribute. In the above calculation example,
Treatment Quality of Apollo Hospital is best in terms of others hospital. For other 3 hospitals
treatment quality is more or less the same. Then if we see the evolution for service then we can
see that Apollo Hospital and United Hospital provide almost same service. So we can say that
Apollo should improvise there service quality otherwise they may lose their best title from this
attributes. Now moving on to the next attribute which is treatment cost, we can observe that the
treatment cost for Apollo and United Hospital is almost similar but Labaid Hospital charges
highest amount of money from their patients. In case of the last attribute location, United
Hospital is located in a good place whereas Apollo has got less points compared to United
Hospital.

However, according to survey, in terms of treatment quality, service of the hospital, treatment
cost and location, Apollo Hospital is the Market Leader, LabAid Hospital is the Challenger,
Square Hospital is the Follower and United is the Nicher.
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10. RECOMMENDATIONS:

Apollo Hospitals Dhaka is the only 'JCI Accredited' 450-bed multi-disciplinary super-specialty
tertiary care hospital in Bangladesh. According to our research findings, Apollo Hospital is the
market leader and has a superior position over United Hospital, Square Hospital and Labaid
Hospital. Apollo is clearly on top of the list through their treatment quality and service. Despite
of treatment and this good service they are lacking behind because of treatment cost and location.
To cope up with this situation, they can focus on the following strategies:

1. Position Defense:

a. Cost Re-evaluation: Apollo hospital’s treatment cost is higher than others. They
can re-evaluate and minimize their fixed and variable costs and by doing it
without compromising the superior quality, they can attract more patients.
Depending on the situation, they can also consider lowering the profit margin to
adapt with the market and situation. However, they also need to keep in mind that
many customers consider price as an indicator of quality. They can also provide
special discounts based on loyalty programs and partnership agreements.

b. Medical Campaign: Apollo Hospital can launch some medical campaign of free
treatment for epidemic diseases (Dengue, Chikungunya etc.). They can also
launch free treatment service for poor and underprivileged people on a weekly
basis (example: free Friday clinic). This will attract people compassionately
towards Apollo Hospital.

c. Location based activity: Apollo hospital has a pretty good environment. But it is
placed on the edge of Dhaka. However, many people do not know that Apollo
hospital has an outlet at Road-16 on Dhanmondi where they provide diagnostic,
consultancy, cardiac ambulances and health check-up facilities. They also have 8
info centers throughout the country. They even holds health clinic events at
Chittagong Info Center. Apollo hospital should focus on their marketing for these
outlets to reach out to customers and create awareness among them regarding the
convenience of location. They can also offer free transport between their outlets
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to main branch if it is necessary for any specific treatment purpose. They should
also explore new branch locations in other major cities outside Dhaka (i.e:
Khulna, Sylhet, Rajshahi).

2. Flank Defense:
Apollo can attack Labaid Hospital, the closest competitor on weak attributes such as
Treatment Quality and Services etc.
3. Preemptive Defense:

Apollo Hospital can attack United Hospital, Square Hospital and Labaid hospital before
they attack Apollo Hospital.

Labaid Hospital:
Labaid is the closest competitor to the market leader, hence it is the challenger. Labaid can
capture market share from Apollo Hospital under adapter strategy. Labaid got the highest
score in medical expense attribute. This is their strength and they need to protect this. Among
all other attributes they need to improve Treatment Quality first. Because if the main service
customers are looking for is not available then other attributes do not matter. After that they
need to improve other attributes to change the overall attitude of customers.

Square Hospital:
Square Hospital is the market follower here according to data and calculation. So Square
Hospital got similar score like Labaid Hospital in terms of their treatment quality and
customer attitude towards their medical expense is also good. Square needs to protect these
two areas. In other attributes they got the lowest point comparing to others. Square needs to
improve in all other attributes like Location and Treatment cost. Hence Square can follow the
same recommendations that are applicable for Apollo Hospitals.

United Hospital:
United Hospital need to work on their strong attributes as well as their week ones. Their
weakest points are Treatment Quality and Treatment Cost. However, they should also try to
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strengthen their strong points which are Location Convenience and Service Quality which
can attract more market share and will help them to improve their overall market position.

11. BIBLIOGRAPHY

1. bdullah Ramdhani 1, D. T. (2012). Analysis of Consumer Attitude Using Fishbein Multi-

Attributes Approach. INTERNATIONAL JOURNAL OF BASIC AND APPLIED
SCIENCE.

2. HOSSAIN, S. (2016, APRIL 11). Bangladesh Healthcare Industry: The Thriving Industry that
is Growing Faster than the GDP.

3. Rahman, D. (2019, August 25). Meeting private sector healthcare challenges. The Financial
Express.

4. Staff Correspondent. (2015, March 08). APOLLO HOSPITALS LAUNCH OUT-PATIENT

SERVICE IN DHANMOND. The Daily Star .

5. Top Private Hospital In Bangladesh. (2019). Top Private Hospital In Bangladesh.

**Organization Website:

1. https://www.apollodhaka.com/our-profile/?
fbclid=IwAR0q_9iCStoaU18sauq7yJUvu2PzNg6QViqggwLY6A7oZOZpEpuLwVHDfNM
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APPENDIX

Questionnaire:
Dear respondent, we are students of North South University, conducting a research for our
Marketing Management course as part of the requirement for MBA degree completion. Your
response in the following questions is desired and it will be kept confidential. The questionnaire
will be destroyed as soon as the statistical data is recorded. Your participation is highly
appreciated.

Thanks in advance for your precious time.

 On a scale of 1-5 where 1= Strongly Disagree, 2= Disagree, 3= Neither Disagree nor

Agree 4= Agree, 5= Strongly Agree, please determine the following answer by circling
it:

1. Satisfied with the treatment quality of Apollo Hospital Dhaka:

STRONGLY AGREE NEITHER AGREE DISAGREE STRONGLY

AGREE NOR DISAGREE DISAGREE
5 4 3 2 1

2. Satisfied with the treatment quality of United Hospital Ltd:

STRONGLY AGREE NEITHER AGREE DISAGREE STRONGLY

AGREE NOR DISAGREE DISAGREE
5 4 3 2 1

3. Satisfied with the treatment quality of Square Hospital:

STRONGLY AGREE NEITHER AGREE DISAGREE STRONGLY

AGREE NOR DISAGREE DISAGREE
5 4 3 2 1
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3. Satisfied with the treatment quality of Labaid Specialized Hospital:

STRONGLY AGREE NEITHER AGREE DISAGREE STRONGLY

AGREE NOR DISAGREE DISAGREE
5 4 3 2 1

4. Satisfied with the service of Apollo Hospital Dhaka:

STRONGLY AGREE NEITHER AGREE DISAGREE STRONGLY

AGREE NOR DISAGREE DISAGREE
5 4 3 2 1

5. Satisfied with the service of United Hospital Ltd:

STRONGLY AGREE NEITHER AGREE DISAGREE STRONGLY

AGREE NOR DISAGREE DISAGREE
5 4 3 2 1

6. Satisfied with the service of Square Hospital:

STRONGLY AGREE NEITHER AGREE DISAGREE STRONGLY

AGREE NOR DISAGREE DISAGREE
5 4 3 2 1

7. Satisfied with the service of Labaid Specialized Hospital:

STRONGLY AGREE NEITHER AGREE DISAGREE STRONGLY

AGREE NOR DISAGREE DISAGREE
5 4 3 2 1

8. Treatment cost of Apollo Hospitals Dhaka is reasonable:

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STRONGLY AGREE NEITHER AGREE DISAGREE STRONGLY

AGREE NOR DISAGREE DISAGREE
5 4 3 2 1

9. Treatment cost of United Hospital Limited is reasonable:

STRONGLY AGREE NEITHER AGREE DISAGREE STRONGLY

AGREE NOR DISAGREE DISAGREE
5 4 3 2 1

10. Treatment cost of Square Hospitals Dhaka is reasonable:

STRONGLY AGREE NEITHER AGREE DISAGREE STRONGLY

AGREE NOR DISAGREE DISAGREE
5 4 3 2 1

11. Treatment cost of Labaid Specialized Hospital is reasonable:

STRONGLY AGREE NEITHER AGREE DISAGREE STRONGLY

AGREE NOR DISAGREE DISAGREE
5 4 3 2 1

12. The location of Apollo Hospitals Dhaka is convenient:

STRONGLY AGREE NEITHER AGREE DISAGREE STRONGLY

AGREE NOR DISAGREE DISAGREE
5 4 3 2 1

13. The location of Labaid Specialized Hospitals is convenient:

STRONGLY AGREE NEITHER AGREE DISAGREE STRONGLY

AGREE NOR DISAGREE DISAGREE
5 4 3 2 1
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14. The location of United Hospitals is convenient:

STRONGLY AGREE NEITHER AGREE DISAGREE STRONGLY

AGREE NOR DISAGREE DISAGREE
5 4 3 2 1

15. The location of Square Hospitals is convenient:

STRONGLY AGREE NEITHER AGREE DISAGREE STRONGLY

AGREE NOR DISAGREE DISAGREE
5 4 3 2 1

Thank you.