Question

In: Operations Management

what degree that physicians can control the demand for their services

what degree that physicians can control the demand for their services

Solutions

Expert Solution

For what I believe is that physicians have a low scope and power or degree to influence or control the demand for their services. You cannot control the factor that if the customer would fall sick and consult you anyhow but still as its a base of the business you still have an average command over the demand which is determined by these factors:

1. Customer factors: The demand is highly influenced by what customer percieves the physician to be. Many customer recommend a doctor only if a friend or a family member suggests them to do and go. Thus, this factor isn't in the hand of the physician to control. On the other hand, providing a good organisational environment which customer would like and having an experience and certificates for the same feild would attract them to reach or consult you.

2. Quality provided: This factor is in the hand of the physician that what kind of qualitative services are being provided to the customer. Is the customer is getting the value for the money he gave. Is the customwr satisfied with the checkup or how you could effectively improve it to make the customer come back again. This scope is in the hands.

3. Market Characteristics: At last, this scope is neither in the hands of the customer nor the physician. The market and economy factors also decide what the demand would be. If in the market, not many physicians are available, the customer's probability to reach you would increase, thus increasing the demand. And if there are no. of physicians in the market, the demand for reaching you would decrease.


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