A Study on the Structural Relationship between Quality of Medical Service, Perceived Risk, Reputation and Customer Satisfaction in Small and Medium Hospitals

Abstract

Purpose - This study attempted to construct and validate a structural model of the relationship between the quality of medical services, perceived risk, reputation and customer satisfaction, which is the main concept of the relationship between large hospitals as well as small and medium hospitals and medical consumers. Through this verification, the small and medium hospitals are to find the way for wise coping in competitive situation with large hospitals. Research design, data, and methodology - This research developed a hypothesis by constructing a structural equation that reaches the satisfaction and the relationship between reputation of perceived risk and perceived risk of service quality perceptions of customers of small and medium hospitals. Research data were collected through a questionnaire survey of respondents who had medical service experience from small and medium hospital. A total data of 252 respondents were used as the sample for the final analysis and analyzed using SPSS 23.0 and AMOS 23. Results - As a result, the relationship of quality of medical service, reputation, and customer satisfaction among small and medium hospitals was consistent with the results of precedent studies, and the perceived risk has a significant impact on reputation, so the greater the perceived risk, the higher the preference for reputable medical institutions as large hospitals. In addition, it was found that the direct route from perceived risk to customer satisfaction was not significant, and reputation was found to have a full mediating effect on perceived risk and customer satisfaction. Customers who use small and medium hospitals prefer to use reputable medical institutions if their perceived risk is high, which is different from risk perception when specific targets are specified. Conclusions - In terms of the effect from customer satisfaction, not only the path of perceived risk → reputation → customer satisfaction, but also the quality of service quality → reputation → customer satisfaction. These findings suggest that small and medium hospitals are appropriately responding to competition with large hospitals, rather than focusing on the perceived risks and reputation of customers in establishing and utilizing competitive strategies to create new customers and preserve existing customers.