The effects of service quality, perceived value, satisfaction and trust on foreign patients' loyalty of medical tourism in Malaysia hospitals

Medical tourism is one of the fastest-growing tourism sectors in the world, thus significantly contributing to economic development in many countries. Previous studies have estimated that the worldwide medical-tourism industry generates nearly USD 60 billion per year, with a growth rate of about 20...

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Format: Thesis
Language:English
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Online Access:http://dspace.unimap.edu.my:80/xmlui/bitstream/123456789/78013/1/Page%201-24.pdf
http://dspace.unimap.edu.my:80/xmlui/bitstream/123456789/78013/2/Full%20text.pdf
http://dspace.unimap.edu.my:80/xmlui/bitstream/123456789/78013/4/Ahmad%20Ibrahim.pdf
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Summary:Medical tourism is one of the fastest-growing tourism sectors in the world, thus significantly contributing to economic development in many countries. Previous studies have estimated that the worldwide medical-tourism industry generates nearly USD 60 billion per year, with a growth rate of about 20% annually. In Malaysia, the medical tourism industry is considered as one of the most important components of the economy because of its great prospects. Foreign patients are an important target market for medical tourism service hospitals. In Malaysia, medical tourism is facing a very competitive environment, specifically from Asian countries like Thailand and Singapore. Many studies have shown that maintaining foreign patients’ loyalty is a very challenging task for marketers nowadays. Therefore, the objective of this study is to investigate the moderated mediation effects of service quality on patients’ loyalty to medical tourism in Malaysia. Hence, this study examines the moderating effect of perceived value and trust. Perceived value moderates the relationship between service quality and satisfaction, whereas trust moderates the relationship between satisfaction and foreign patients’ loyalty. In addition, satisfaction is a mediator between service quality and foreign patients’ loyalty. A quantitative approach was adopted, whereby 640 questionnaires were distributed to foreign patients in Malaysia. Out of this number, 389 responses were finally found usable for analysis, which shows a 60% response rate. Data were analysed using Partial Least Squares-Structural Equation Modelling (PLS-SEM). Overall, the findings show significant relationships between service quality and satisfaction and foreign patients’ loyalty. Also, satisfaction is significantly related to foreign patients’ loyalty in Malaysia. In addition, satisfaction mediates the relationship between service quality and foreign patients’ loyalty. This study could contribute to knowledge on perceived value as a moderator between service quality and satisfaction as well as trust as a moderating variable between satisfaction and foreign patients’ loyalty to Malaysian medical tourism. In addition, this study contributes to theory by validating the attributes of the Theory of “Self-Regulation of Attitudes, Intentions and Behaviours” regarding patients s’ intention to stay longer in order to create a solid relationship with Malaysian hospitals.