When Cody Went to the Physician with a Sore Elbow

question 17

Multiple Choice

When Cody went to the physician with a sore elbow, after hearing Cody's symptoms and examining the elbow manually, Cody's physician had two options: (1) prescribe an anti-inflammatory drug and advise Cody to abstain from vigorous physical activity for a period; or (2) advise Cody to undergo a magnetic resonance imaging (MRI) exam, a costly diagnostic procedure. Which of the following physicians is more likely to recommend option 2?

• A)A physician who is compensated under a conventional health insurance plan.
• B)A physician who is part of an HMO.
• C)A physician who is concerned about the marginal cost of an MRI.
• D)All physicians would recommend option 2.

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Definitions:

Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.

Product Innovation

The development of new or significantly improved goods or services to meet consumer needs or market demands.

Functionality

The range of operations that can be performed by a product, system, or service, especially according to user requirements and needs.

Strategic Positioning

The process of establishing and maintaining a sustainable competitive advantage in the market.