For some consumers, a price that seems "too good to be true" may warn them away from the product or service. It cheapens the product, and makes consumers worry that they are not getting the same quality article they might if they paid a higher price. Many professionals have the same problem with bundling professional services such as plastic surgery with things like vacations. The article states, "Some plastic surgeons are skeptical of consulting with patients for such important surgery from a distance. 'Sometimes clients come here and having paid for traveling and holiday, a doctor might feel obliged to go through with the operation even if the person is not suited,' says Tom Ford of the Association for Plastic and Reconstructive Surgeons in Southern Africa" (Article). This could be dangerous or even deadly, and so, the practice could end up being far more costly than just dollars and cents. In addition, many consumers do not trust any price that is lower than the market, and they will not even investigate the product or service to find out if it is truly a bargain or a problem. Therefore, the doctors who participate in this program may be turning away some of their most profitable customers simply by not charging the going rate for their services.
4. Would a better strategy be to forget the safari and to charge higher than prices in the U.S. And spend heavily to promote South Africa's exceptional medical and surgical facilities? Why or why not?
For some people, the safari may be the deciding factor in choosing a physician in South Africa. The patient may want to experience a safari, and this is a way to accomplish...
However, in the long run, charging more for services and leaving out the travel incentive might be smarter. The plastic surgeons will reach a certain group of patients who want to save money and have fun at the same time, but they may lose many other groups of patients that do not trust cheaper alternatives, especially when it comes to their health and well being. Plastic surgery can be dangerous for some people, and some have died or been disfigured on the operating table. Since there are always dangers with surgery, it seems that the doctors would be more marketable and trustworthy if they stuck to professional plastic surgery at the going rates, and forgot the safari incentive. While it may bring in a few more patients, it could be far most costly in the end.
In conclusion, bundling services is a great marketing idea in many cases, but as this article shows, bundling goods and services can also backfire. If the product is priced too cheaply, some consumers may simply pass up the offer without investigating it, and that means these doctors may be losing some of their best customers without even trying.
References
Article on Plastic Surgery and South African Travel.
Anderson, K. (1997, February). Getting the message straight: Changes in telecommunications laws have opened up the telephone service marketplace. Black enterprise, 27, 205+.
Glanz, W. (2000, January 13). Merger boosts case legend. The Washington times, p. 9.
Sherwood, M.K. (1994). Difficulties in the measurement of service outputs. Monthly labor review, 117(3), 11+.
