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Kristin Lovallo, May 2021
A Vice President of Purchasing recently participated in a SIMALTO study with us and commented, “Purchasing new equipment or services for our facilities is always a collaborative decision. We have to give weight to the physicians, the surgeons, and other clinical leaders, but at the end of the day, if there’s not a clear advantage in benefits and costs, it’ll be very difficult for me to sign that check.”
A Vice President of Purchasing recently participated in a SIMALTO study with us and commented, “Purchasing new equipment or services for our facilities is always a collaborative decision. We have to give weight to the physicians, the surgeons, and other clinical leaders, but at the end of the day, if there’s not a clear advantage in benefits and costs, it’ll be very difficult for me to sign that check.”
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It is therefore no surprise that medical purchasing decisions require a multifaceted approach. Between various stakeholders, cost-benefit analyses, and existing manufacturer contracts, institutions must consider a multitude of factors prior to committing to a new acquisition. It’s about providing value for the price, while ensuring a new purchase will meet the needs and requirements of the end-users. As medical technology continues to advance, and therapy areas become even more saturated with a broader range of offerings, manufacturers are facing a more competitive landscape than ever before.
With the COVID-19 crisis, health system margins have been impacted by the reduction in elective services, leading to further cost-cutting measures. As economic decision-makers tighten the screws, HCPs are becoming increasingly budget-conscious. Now more than ever, they are tasked to articulate the value as they advocate for new devices or systems.
So, how do we address these factors effectively when evaluating new products for our clients via primary market research?
Research Partnership’s answer is SIMALTO, also known as Simultaneous Multi-Attribute Level Trade-Off. It’s a trade-off technique that replicates real-world decision-making behavior. Respondents are given a budget and forced to spend that money to configure the product or system that best meets their needs, instead of going for an offering with all the bells and whistles that will likely get turned down by decision-makers.
In SIMALTO, price is treated as a constraint, and not a variable – this is how we’re able to imitate this real-life decision making component.
Ensure your asset offers optimised benefits at a realistic cost by following our top 8 tips to conducting SIMALTO research.
1. Think of SIMALTO in the context of configuring a new car
The best analogy for SIMALTO is to think about designing your own product or service. Let’s say you’re in the market to purchase a new car. You head to the car website, select your preferred model, and are given the option to start adding various features – maybe a sunroof, snow tires, navigation system, leather seats and so on.
Imagine your total budget for this new purchase is $50,000. As you begin to add those new components, you realise the total cost is now closer to $75,000. So, you need to make decisions – what’s most important to you? What components give you the most value? What is a nice to have and can be removed in replacement of something you really need? What would make your driving experience truly better?
This is the exact thinking our respondents take on when participating in a SIMALTO exercise.
2. Evaluating if SIMALTO is the appropriate approach
Imagine your company would like to expand its portfolio and offer a next-generation surgical tool. Does your team already have an idea of what types of features to include, even if not yet confirmed? Alternatively, are the potential features for this new device solidified? If yes to either of these questions, then this is a great first step in moving towards SIMALTO research.
If a needs assessment has not yet been conducted, and your team requires further exploration into current offerings, pain points, and potential solutions to these pain points, we recommend first collecting this information in order to help inform your potential SIMALTO inputs.
3. Deciding between SIMALTO and Traditional Conjoint
Conjoint will always have its place in market research, and in some cases, it may be the most appropriate methodology for your needs. There are, however, many compelling benefits that are offered by SIMALTO that cannot be achieved with conjoint.
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