The impact of psychological distance on Chinese customers when selecting an international healthcare service country

This paper investigates how the factors of psychological and geographical distances in conjunction with medical competence influence potential Chinese customers when they select a destination country for international healthcare services. We also explore how the severity of the customerʹs illness affects his/her choice. In this study data is collected with reference to the Chinese perceptions of the United States of America (USA), Republic of Korea (Korea), Thailand, Singapore, and India. The sample comprises of 1292 potential Chinese customers, and is analyzed using McFaddenʹs conditional logit model. The results indicate that medical competency is the most important determinant of destination choice. In addition, customers contemplating treatment for major diseases tend to choose healthcare services from economically more developed countries, such as the USA, in spite of the differences in language, economic condition, and political system. However, respondents considering treatment for relatively minor diseases are more likely to select countries, such as Korea, for which there is a small psychological distance. Along with suggestions for future research, the implications for international healthcare are discussed.