Organizational buying behavior in e-health service system in China: A case study on Chinese distributors

Abstract: Currently, the world faces a huge problem that the population age structure is changing since the oldest people segment grow at a quicker speed than the rest of the age segments in many countries. According to statics and prediction, the Chinese population is aging at a dramatically fast speed. Dementia is a progressive, disabling, chronic disease affecting 5% of all persons above 65 and more than 40% of people over 90. In order to reduce the burden of carers who are responsible to look after the elderly people with dementia, an e-health service system, as an assistive tool, provides a possibility for them. The high demand and low supply indicates that there is a need to spend time in conducting a study about the Chinese distributors buying behavior when they purchase an e-health service system for the first time.

The purpose of this study is to explore the Chinese distributors buying behavior when they purchase a e-health service system for elderly people with dementia. From the research problem, it afterwards develops three research questions about the buying process, buying center, and factors influencing the buying process and the buying center.

The research approach of this thesis is deductive and qualitative and a multi-case study strategy has been chosen. In this study, both state-owned and private-owned distributors have been evaluated. Among the four organizations, three of them are located in the mainland China while one is located in Hong Kong. The persons who have rich working experience in purchasing sectors or persons possess lots of relevant information of organizational purchasing in health care industry are selected as interviewees.

Empirical data from four cases were analyzed by within-case analysis and cross-case analysis. As a result, the findings indicate that generally speaking most Chinese distributors implement the seven-step buying process suggested by Jobber and Lancaster (2006). It is of great importance to examine the buying center to find out and reach to the key persons for a first-time purchase. The Chinese distributors organizational buying behavior when they purchase the e-health service system for people with dementia is diversified due to the huge areas and regions within the country and different kinds of ownerships.