Major Factors Affecting Demand For Any Market

855 Words Jul 23rd, 2015 4 Pages
Two of the major factors affecting demand for any market are (1) consumer tastes and preferences and (2) consumer expectations. The healthcare market is no exception to these two aspects. “People with low health literacy are more likely to report poor health, have an incomplete understanding of their health problems and treatment, and are at greater risk of hospitalization (Haun et al. 2015).” Health literacy could, if the consumer has an inadequate understanding, cause the miscommunication that leads to the consumer purchasing healthcare now rather than waiting for another option or a different time. Similarly, the consumer may misunderstand his/her healthcare options to believe that the healthcare needed must be purchased at that time because of the fear of a future price increase. On the contrary, a consumer with adequate levels of health literacy may understand the procedure and choose to wait until a later date when the price may drop, or they may understand that the options are not what is best for them and not purchase the healthcare.
Jolie Haun et al. (2015), researchers studying the correlation of low health literacy rates and high healthcare costs among veterans, said:
In this study, the estimated VA medical and pharmacy cost associated with veterans’ with marginal and inadequate health literacy for a three-year period, using mean values, was approximately $143 million dollars more than those with adequate health literacy. These data suggest 17.2 %…
Open Document