Destination Branding in Indian Medical Tourism – An Empirical Study

Abstract

Destination branding has been critically viewed as the success formula of medical tourism business with firms realising that acquiring new customers is far more expensive than maintaining the existing ones. It focuses on keeping the medical customers loyal, though, there is little in agreement on which antecedents could be used to achieve this aim. In response, this thesis develops a model of destination branding based on a review of the literature to empirically investigate in one single model: (1) the effect of destination source credibility on place attachment and perceived value; (2) medical tourism service quality on place attachment and perceived value; (3) destination image on place attachment and perceived value; (4) the ultimate effect of both place attachment and perceived value on customer loyalty. In particular, this thesis seeks to investigate the moderating role of the perceived price reasonableness variable on study constructs (destination image, medical tourism service quality, destination source credibility, perceived value and place attachment). Furthermore, it presents and discusses empirical findings from a survey of 1205 medical tourists at various hospitals examined from their perspectives as end users using structural equation modelling (AMOS 23.0). The findings of this thesis largely support the hypothesised relationships proposed in the theoretical model. Specifically, the results revealed that destination image, medical tourism service quality and destination source credibility are crucial in affecting perceived value and place attachments. The results also provide substantial evidence of the relationship between perceived value and place attachments, which, in turn, are crucial determinants of customer loyalty. This study contributes significantly to the very limited literature available by arriving at medical travellers' price-dependent decisions in the international medical tourism industry. This thesis contributes to theoretical and practical knowledge by providing for the first-time evidence about relationships between destination images, medical tourism service quality, destination source credibility, and analysing how perceived value and place attachments can be associated. The inclusion of a perceived price reasonableness construct is suggested to contribute additionally to the body of medical tourism destination branding literature and provide a complete model within a medical service provider context. Findings imply the need for service firms in general, and medical service providers in particular, to strategically lever on the key antecedents of customer loyalty including perceived value and place attachments, in pursuit of a more competitive advantage, and long-term profit.