Dr. Beckett's Dental Clinic

2060 Words9 Pages
Background of the Case Dr. Barbro Beckett, a dentist, who seeks to differentiate her services on the basis of quality. She was having all the technical knowledge related to dentistry, but has received no formal training on how to run a business. The lack of knowledge of running a business was no problem for her until factors such as rising cost due to labour laws, malpractice insurance, and constant up gradation of technology came into picture. Due to all these factors, the overhead expense of Dr. Beckett shoot up by 70% to 80%. Furthermore, there was a movement in the U.S. to reduce the health care costs to insurance companies, employers and patients through large health maintenance organizations (HMO’s) who sets prices by putting an upper limit on the amount that doctors and dentists could charge for various procedures. But, Dr. Beckett, to remain competitive wanted to offer the highest level of dental care rather than being a low-cost provider, and hence refused to become an HMO provider. Thus, quality was the main differentiating factor for Dr. Beckett and if the quality difference is not substantial, then patients would rather go to HMO dentist offering lower costs. Answers to Questions 1. Which are the seven elements of the service marketing mix are addressed in this case? Give examples of each ‘P’ you find? Dr. Beckett’s new Dental Office had all the amenities which need to be present in the modern Dental care clinics. The Components of service mix which are followed in the new dental care office is very much appealing and highly differentiating. Various components of service mix are mentioned below. 1. Product – Dr. Beckett’s clinic offered the complete range of dental care from simple teeth cleaning to complicated dental surgery and implants. 2. Price – Premium pricing strategy was followed by Dr. Becket. The clinic was charging more than
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