Analysis and implications of the consumer decision process for choosing a health insurance

Abstract ________________________________________ Since the Dutch health insurance market changed a few years ago, companies have to cope with new market characteristics. The main goal of the implementation of a standard base health insurance was to increase competition on the health insurance market. Now, more then two years later, it is interesting to see how both consumers and companies have adapted to the new situation. This thesis is a research on both the consumer decision process for choosing a health insurance and also an analysis of how Dutch health insurers deal with the given situation. Research is done by questionnaire under students and an interview with the largest health insurer in The Netherlands. Goal of this research is to analyse the consumer decision process and to learn in which way this process differs from other decision processes. Next to that, the study tries to learn which strategies health insurance companies apply in order to reach their targets and to assess how they adapt to the characteristics of both the market as well as the consumers. Results of the questionnaire show that the consumer decision process for choosing a health insurance is in line with theoretical expectations. While criteria for making a choice differ from mobile phone operators and health insurances, there seems to be a consistency among respondents. The respondents seem to have little knowledge about health insurance products and a large number of them is not the decision maker, but lets someone else decide (and pay) for them. Secondly, results of the interview show that health insurance companies apply all major theoretical strategies around pricing, segmentation and marketing. Insurers seem to be well aware of the characteristics of the market and the consumer decision process and have well adapted their strategy accordingly. Analysis of questionnaire and interview results shows that there are still possibilities for insurers in terms of reaching less informed consumers better and targeting decision makers better.