Analysis of Price- and Services-Related Preferences for Nursing Homes in Japan Using a Nested Logit Model in Choice-Based Conjoint Analysis

Abstract

Nursing homes (NHs) play an important role in ensuring that older adults have a place to live. However, few quantitative studies have examined NH prices and services vis-à-vis users’ preferences. Therefore, in this study, we used a choice-based conjoint analysis to examine price- and services-related needs for NHs according to respondents’ age. The survey was conducted in Osaka, Japan, where 130 community-dwelling individuals were divided into two age groups: 40–50 s (n = 65)—comprising individuals whose parents or relatives were expected to need long-term care—and ≥ 60 (n = 65)—comprising individuals who were expected to need long-term care. Prior to analysis, we determined that a nested logit model was appropriate for this study. We examined the marginal effects of prices and services. The results showed that good healthcare had a positive and significant effect on the preferences of the 40–50 s group, whereas this effect was absent in the ≥ 60 group. In both groups, good life support had a significant positive effect on preference. However, the marginal effect of good life support was larger for the 40–50 s group because fewer people chose not to move into an NH, suggesting the need for a more detailed analysis of the 40–50 s group. This study’s results provide valuable insights regarding pre-purchase decision-making for NH selection, which is currently determined based on post-purchase activity.