Abstract

Regarding the hospital as a special enterprise whose output is information, this article shows that the demand
curve of the hospital rotates in a clockwise direction. That means the elasticity of the curve becomes lesser,
which is useful for the hospital to implement the second-degree price discrimination. The reason is that the
distribution of the unit price that the consumer willing to pay becomes more dispersed when the information
outcome contains personal brand and enterprise brand. The combination of the personal brand (specialist brand,
etc.) and product brand (drugs made-by-the-hospital, etc.) is the base of the hospital’s brand. This article
analyzes the relationship among the three brands under a unified framework from the aspect of the product
popularity. This article shows that the high product popularity cannot change into the actual sales revenue until
the hospital obtains high product popularity by reflecting the consumer’s single profit point. Therefore, this
article suggested the enterprise to focus on the single category of their products to get the consumers’ vote (i.e.
currency).

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