• Xiamen Angel Dental Hospital: Pricing Strategy for Dentures

Authors: Chien-Hung Chen & Chih-Yuan Wang

Pages: 211-234


Publish date: 2022/04/01

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Xiamen Angel Dental Hospital is a for-profit Class II dental hospital in Xiamen city and is run by the Abc Dental Group. Patients in this hospital have exhibited pronounced forms of behavior regarding their selection of dentures. Most of patients preferred cheaper dentures, and only a few chose high-end alternatives. This case study highlighted the issue of persuading patients to choose high-end dentures. During a site visiting, an executive discovered that dentists used different approaches to explain the alternatives with the aid of a price list. By applying behavioral pricing theory to the issue at hand, the executive decided to emphasize the end-benefit for the patient, rather than the characteristics of the denture. By redesigning the denture price list and using the Decoy effect, patients became more willing to choose high-end dentures.

The core issue of this case is how to guide customers’ preferences by means of behavioral pricing.

Keywords: Behavioral pricing, Prospect theory, Decoy effect, Visual preference heuristic


Chien-Hung Chen & Chih-Yuan Wang (2022), "Xiamen Angel Dental Hospital: Pricing Strategy for Dentures," Management Review, 41(2), 211-234. https://doi.org/10.6656/MR.202204_41(2).ENG211