IDEAS home Printed from https://ideas.repec.org/a/eee/touman/v35y2013icp32-40.html
   My bibliography  Save this article

The impact of psychological distance on Chinese customers when selecting an international healthcare service country

Author

Listed:
  • Zhang, Jun
  • Seo, Sangyun
  • Lee, Hoonyoung

Abstract

This paper investigates how the factors of psychological and geographical distances in conjunction with medical competence influence potential Chinese customers when they select a destination country for international healthcare services. We also explore how the severity of the customer's illness affects his/her choice. In this study data is collected with reference to the Chinese perceptions of the United States of America (USA), Republic of Korea (Korea), Thailand, Singapore, and India. The sample comprises of 1292 potential Chinese customers, and is analyzed using McFadden's conditional logit model. The results indicate that medical competency is the most important determinant of destination choice. In addition, customers contemplating treatment for major diseases tend to choose healthcare services from economically more developed countries, such as the USA, in spite of the differences in language, economic condition, and political system. However, respondents considering treatment for relatively minor diseases are more likely to select countries, such as Korea, for which there is a small psychological distance. Along with suggestions for future research, the implications for international healthcare are discussed.

Suggested Citation

  • Zhang, Jun & Seo, Sangyun & Lee, Hoonyoung, 2013. "The impact of psychological distance on Chinese customers when selecting an international healthcare service country," Tourism Management, Elsevier, vol. 35(C), pages 32-40.
  • Handle: RePEc:eee:touman:v:35:y:2013:i:c:p:32-40
    DOI: 10.1016/j.tourman.2012.05.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0261517712000957
    Download Restriction: no

    File URL: https://libkey.io/10.1016/j.tourman.2012.05.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Williams, Simon J. & Calnan, Michael, 1991. "Convergence and divergence: Assessing criteria of consumer satisfaction across general practice, dental and hospital care settings," Social Science & Medicine, Elsevier, vol. 33(6), pages 707-716, January.
    2. Shawna O'Grady & Henry W Lane, 1996. "The Psychic Distance Paradox," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(2), pages 309-333, June.
    3. Burns, Lawton R. & Wholey, Douglas R., 1992. "The impact of physician characteristics in conditional choice models for hospital care," Journal of Health Economics, Elsevier, vol. 11(1), pages 43-62, May.
    4. Heung, Vincent C.S. & Kucukusta, Deniz & Song, Haiyan, 2011. "Medical tourism development in Hong Kong: An assessment of the barriers," Tourism Management, Elsevier, vol. 32(5), pages 995-1005.
    5. Harry G Barkema & Freek Vermeulen, 1997. "What Differences in the Cultural Backgrounds of Partners Are Detrimental for International Joint Ventures?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(4), pages 845-864, December.
    6. Douglas Dow & Amal Karunaratna, 2006. "Developing a multidimensional instrument to measure psychic distance stimuli," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(5), pages 578-602, September.
    7. Yu, Ji Yun & Ko, Tae Gyou, 2012. "A cross-cultural study of perceptions of medical tourism among Chinese, Japanese and Korean tourists in Korea," Tourism Management, Elsevier, vol. 33(1), pages 80-88.
    8. Desislava Dikova & Arjen van Witteloostuijn, 2007. "Foreign direct investment mode choice: entry and establishment modes in transition economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(6), pages 1013-1033, November.
    9. W. J. Henisz, 2000. "The Institutional Environment for Economic Growth," Economics and Politics, Wiley Blackwell, vol. 12(1), pages 1-31, March.
    10. Choi, Kui-Son & Cho, Woo-Hyun & Lee, Sunhee & Lee, Hanjoon & Kim, Chankon, 2004. "The relationships among quality, value, satisfaction and behavioral intention in health care provider choice: A South Korean study," Journal of Business Research, Elsevier, vol. 57(8), pages 913-921, August.
    11. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    12. Stock, Robert, 1983. "Distance and the utilization of health facilities in rural Nigeria," Social Science & Medicine, Elsevier, vol. 17(9), pages 563-570, January.
    13. Moghimehfar, Farhad & Nasr-Esfahani, Mohammad Hossein, 2011. "Decisive factors in medical tourism destination choice: A case study of Isfahan, Iran and fertility treatments," Tourism Management, Elsevier, vol. 32(6), pages 1431-1434.
    14. Drogendijk, Rian & Slangen, Arjen, 2006. "Hofstede, Schwartz, or managerial perceptions? The effects of different cultural distance measures on establishment mode choices by multinational enterprises," International Business Review, Elsevier, vol. 15(4), pages 361-380, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jaapar, Mustaffa & Musa, Ghazali & Moghavvemi, Sedigheh & Saub, Roslan, 2017. "Dental tourism: Examining tourist profiles, motivation and satisfaction," Tourism Management, Elsevier, vol. 61(C), pages 538-552.
    2. Shaohua Yang & Salmi Mohd Isa & T. Ramayah, 2021. "Uncertainty Avoidance as a Moderating Factor to the Self-Congruity Concept: The Development of a Conceptual Framework," SAGE Open, , vol. 11(1), pages 21582440211, March.
    3. Laura Kemppainen & Veera Koskinen & Harley Bergroth & Eetu Marttila & Teemu Kemppainen, 2021. "Health and Wellness–Related Travel: A Scoping Study of the Literature in 2010-2018," SAGE Open, , vol. 11(2), pages 21582440211, May.
    4. Yang, Yang & Liu, Hongbo & Li, Xiang (Robert) & Harrill, Rich, 2018. "A shrinking world for tourists? Examining the changing role of distance factors in understanding destination choices," Journal of Business Research, Elsevier, vol. 92(C), pages 350-359.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Weber, Clarissa E. & Chahabadi, Dominik & Maurer, Indre, 2020. "Antecedents and performance effect of managerial misperception of institutional differences," Journal of World Business, Elsevier, vol. 55(1).
    2. Drogendijk, Rian & Martín Martín, Oscar, 2015. "Relevant dimensions and contextual weights of distance in international business decisions: Evidence from Spanish and Chinese outward FDI," International Business Review, Elsevier, vol. 24(1), pages 133-147.
    3. Goudarz Azar & Rian Drogendijk, 2019. "Ex-post Performance Implications of Divergence of Managers’ Perceptions of ‘Distance’ From ‘Reality’ in International Business," Management International Review, Springer, vol. 59(1), pages 67-92, February.
    4. Prime, Nathalie & Obadia, Claude & Vida, Irena, 2009. "Psychic distance in exporter-importer relationships: A grounded theory approach," International Business Review, Elsevier, vol. 18(2), pages 184-198, April.
    5. Avloniti, Anthi & Filippaios, Fragkiskos, 2014. "Unbundling the differences between Psychic and Cultural Distance: An empirical examination of the existing measures," International Business Review, Elsevier, vol. 23(3), pages 660-674.
    6. Trąpczyński, Piotr & Halaszovich, Tilo F. & Piaskowska, Dorota, 2020. "The role of perceived institutional distance in foreign ownership level decisions of new MNEs," Journal of Business Research, Elsevier, vol. 108(C), pages 435-449.
    7. Cristina López-Duarte & Marta M. Vidal-Suárez & Belén González-Díaz & Nuno Rosa Reis, 2016. "Understanding the relevance of national culture in international business research: a quantitative analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 108(3), pages 1553-1590, September.
    8. de Jong, Gjalt & van Dut, Vo & Jindra, Björn & Marek, Philipp, 2015. "Does country context distance determine subsidiary decision-making autonomy? Theory and evidence from European transition economies," International Business Review, Elsevier, vol. 24(5), pages 874-889.
    9. Dovev Lavie & Stewart R. Miller, 2008. "Alliance Portfolio Internationalization and Firm Performance," Organization Science, INFORMS, vol. 19(4), pages 623-646, August.
    10. Slangen, Arjen H.L. & van Tulder, Rob J.M., 2009. "Cultural distance, political risk, or governance quality? Towards a more accurate conceptualization and measurement of external uncertainty in foreign entry mode research," International Business Review, Elsevier, vol. 18(3), pages 276-291, June.
    11. Kraus, Sascha & Ambos, Tina C. & Eggers, Felix & Cesinger, Beate, 2015. "Distance and perceptions of risk in internationalization decisions," Journal of Business Research, Elsevier, vol. 68(7), pages 1501-1505.
    12. Kotler, Philip & Manrai, Lalita A. & Lascu, Dana-Nicoleta & Manrai, Ajay K., 2019. "Influence of country and company characteristics on international business decisions: A review, conceptual model, and propositions," International Business Review, Elsevier, vol. 28(3), pages 482-498.
    13. Irina Surdu & Kamel Mellahi & Keith Glaister & Giulio Nardella, 2017. "Why Wait? The Speed of Foreign Market Re-Entry after Initial Entry and Exit," John H Dunning Centre for International Business Discussion Papers jhd-dp2017-05, Henley Business School, University of Reading.
    14. Magnusson, Peter & Baack, Daniel W. & Zdravkovic, Srdan & Staub, Karin M. & Amine, Lyn S., 2008. "Meta-analysis of cultural differences: Another slice at the apple," International Business Review, Elsevier, vol. 17(5), pages 520-532, October.
    15. Håkanson, Lars & Ambos, Björn & Schuster, Anja & Leicht-Deobald, Ulrich, 2016. "The psychology of psychic distance: Antecedents of asymmetric perceptions," Journal of World Business, Elsevier, vol. 51(2), pages 308-318.
    16. Håkanson, Lars & Ambos, Björn, 2010. "The antecedents of psychic distance," Journal of International Management, Elsevier, vol. 16(3), pages 195-210, September.
    17. Ellis, Paul D., 2007. "Paths to foreign markets: Does distance to market affect firm internationalisation?," International Business Review, Elsevier, vol. 16(5), pages 573-593, October.
    18. Cathrin Söllner & Dirk Fornahl, 2021. "Unleashing Inventive Power - Solving cognitive, social and geographic distance issues with cultural proximity," Bremen Papers on Economics & Innovation 2103, University of Bremen, Faculty of Business Studies and Economics.
    19. Richardson, Christopher, 2014. "Firm internationalisation within the Muslim world," Journal of World Business, Elsevier, vol. 49(3), pages 386-395.
    20. Hendrik Klier & Christian Schwens & Florian B. Zapkau & Desislava Dikova, 2017. "Which Resources Matter How and Where? A Meta-Analysis on Firms’ Foreign Establishment Mode Choice," Journal of Management Studies, Wiley Blackwell, vol. 54(3), pages 304-339, May.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:touman:v:35:y:2013:i:c:p:32-40. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/tourism-management .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.