Use the Following to Answer Question(s): Third-Party Payers

question 41

Multiple Choice

Use the following to answer question(s) : Third-Party Payers

-(Exhibit: Third-Party Payers) When the price of $20 per visit becomes available to the consumer because of insurance:

• A) health-care costs become $180 million, of which $60 million is paid by consumers and $120 million is paid by insurance.
• B) health-care costs become $180 million, of which $120 million is paid by consumers and $60 million is paid by insurance.
• C) the new quantity of physician office visits is 1 million visits per week.
• D) both A and C are true.

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Definitions:

Niche-Market Approach

A marketing strategy that targets a specific, well-defined segment of the market.

Market Segmentation

A strategy whereby a firm divides the total market into groups of people who have relatively similar product needs.

Market Positioning

The process of establishing the image or identity of a brand or product so that consumers perceive it in a certain way relative to competitors.