Modeling consumer health plan choice behavior to improve customer value and health plan market share

(T)he ability of health-care providers and insurers to survive in today's h ighly competitive market requires that they thoroughly understand marketpla ce needs and use that information to deliver true customer value. The objec tive of the present study is to illustrate how choice-based conjoint analys is can be used to create health plans that optimize value for consumers and market share for managed cave organizations. The use of choice-based conjo int analysis takes the guesswork out of health plan design and promotion. B y offering insight into consumer reactions to the range of plan feature cho ices, the research program presented in this article can help to increase c onsumer satisfaction while aiding health plans to reach their objectives as well. The elimination of crises and ad hoc decision making raises the effe ctiveness and efficiency of managed cave programs. (C) 2000 Elsevier Scienc e Inc. All rights reserved.