IABFU Consumer Behaviour Case Study

Case Study Background Some health markers can only be detected through a urine sample. This involves a person collecting a sample of their urine in a container and taking that container to a collection point (e.g., a pathology lab). The contents of the container can then be analysed by a medical laboratory, with the results subsequently provided to the person’s doctor. While the traditional approach for collecting urine samples can provide critical information for diagnosing or tracking medical conditions, urine samples tend to only be collected occasionally, which limits the ability to track changes in certain health markers over time. Moreover, the process of collecting a urine sample can make some people uncomfortable. Product Withings, a consumer electronics company that specialises in creating health tracking devices for consumers, has recently announced a new product: the U-Scan. The U-Scan product features three components: – U-Scan (device). – U-Scan (disposable cartridges). – App. U-Scan (device). The U-Scan is a 90mm pebble-shaped device that sits in a user’s toilet like a toilet freshener. The U-Scan detects when a user is urinating and, when they are detected to be doing so, can collect a small sample of urine for analysis. Analysis occurs through disposable cartridges (more information below). After analysis has been completed, any remaining urine from the sample is expelled from the device back into the toilet. The U-Scan consequently allows urine samples to be collected in a hands-free manner. The U-Scan can distinguish between different users of the toilet, ensuring that any information it collects is specific to each user. Put differently: it can track health markers for a single user, even if the toilet is used by several people. U-Scan (disposable cartridges). U-Scan’s analysis occurs through disposable cartridges that are inserted into the device. At launch, two different types of disposable cartridge will be available for purchase: – Nutri Balance, which analyses nutrition and hydration information. – Cycle Sync, which analyses hormones related to the menstrual cycle. Each cartridge, which can take more than 100 samples, is designed to last for up to 3 months. To replace a cartridge, the U-Scan device is removed from the toilet and cleaned, and the front panel of the device is unscrewed. The old cartridge is then replaced with a new one. While the device is open, the battery (which also lasts for approx. 3 months) can also be recharged. Once the U-Scan has been recharged, the front panel is re-screwed into place and the device is returned to the toilet. The U-Scan can only hold one cartridge at a time. App Data collected from the U-Scan is synced with an app installed on the user’s phone, allowing them to receive customised information and advice on health markers collected through their urine, including sleep, nutrition, hydration, and menstruation. Users are also able to track specific health markers, such as Vitamin C (for the Nutri Balance) and Luteinizing Hormone (for the Cycle Sync). Positioning The U-Scan is positioned as “a wellness assistant designed for women”. Pricing and availability The U-Scan is scheduled to launch in the second half of 2023. A starter kit, which will include the U-Scan device and one disposable cartridge, is expected to retail at USD$499.95 (AUD$780), with replacement disposable cartridges available as part of a monthly subscription plan (USD$29.95 per month, equivalent to AUD$47 per month) or as standalone cartridges. Question 1. Part A – 20 marks There are a set of innovation characteristics that influence consumers’ adoption behaviour. Drawing on the information presented in the case study, evaluate how the U-Scan performs on each of these characteristics compared to a traditional urine analysis. Use this evaluation to determine which characteristic(s) of the U-Scan may enhance consumer adoption behaviour. In your answer, also outline which characteristics might limit consumers’ adoption behaviour. Please type your answer below. Part B – 10 marks Design a strategy aimed at increasing consumers’ adoption behaviour with respect to the UScan. In your answer, be sure to justify how and why this strategy will address the characteristic(s) you identified in your response to Question 1 Part A. Please type your answer below. Question 2. Background David Jones is an upmarket Australian retailer. David Jones has negotiated an exclusive 2week retail window during which they will be the only Australian retailer selling the U-Scan. David Jones consequently wants to feature the U-Scan (and their exclusive retail rights) in their next product catalogue. An example of a David Jones catalogue is presented in Appendix A. Part A – 20 marks Use your knowledge of heuristics, motivational direction, and motivational drive to design a feature product display for the U-Scan to appear in the David Jones catalogue. To design your feature, please follow these steps: 1. Choose ONE of the images in Appendix B. Each image is the same size as the feature product display, so the image you select will form the background to your feature product display. 2. Create your feature product display in Appendix B (rather than pasting the image here). 3. To create your feature product display, reposition and write in the text box sitting on top of the Appendix B image you have selected. You may copy and paste this text box to create more blocks of text as needed. Be careful with where you position the text box(es) – you don’t want text covering key parts of the image! 4. You may paste other images/logos onto your feature product display if you wish, but this is not mandatory and should only be done sparingly. 5. Once you have created your feature product display, delete the other images in Appendix B so that the markers can easily identify which image you have selected for your ad. You will be marked on how well your feature product display utilises heuristics, motivational direction, and motivational drive, as well as how well your text complements your chosen image. Part B – 20 marks Justify the various components you incorporated into the feature product display you created as part of Question 2 Part A, including: – The heuristic(s) you used. – How you activated motivational direction and motivational drive. – The image(s) you selected. – Any other product information you featured. – Any other marketing technique(s) you used. Please type your answer below. Question 3. Background The U-Scan involves an activity (analysing urine) that some consumers may find disgusting or embarrassing. Moreover, users must clean and handle the U-Scan every three months to recharge its battery and replace the disposable cartridge, which, given that it will have been sitting in the toilet for that length of time, may be confronting to some. Marketing strategy and justification – 20 marks Develop a strategy that could be introduced to reduce the likelihood that buyers of the UScan will experience post-purchase regret. As part of your answer, explain how and why this strategy will reduce the likelihood that buyers will experience post-purchase regret. Please type your answer below. Question 4. Background On its website, Withings states that the U-Scan: “…aims to unlock the wealth of health information to be found via regular at-home urine analysis. It is a versatile cartridge-based platform able to detect, measure, and track multiple parameters found in urine.” Elsewhere on its website, Withings notes that the U-Scan, the U-Scan cartridges, and the associated app: “…will not be medical devices, and will not be aimed to deliver a diagnostic, to cure or to control diseases. The data are only given for information and will not replace results from test conducted in a medical laboratory.” Ethical analysis – 10 marks Use utilitarianism and Kant’s categorical imperative to separately evaluate the ethicality of providing consumers with health indicators that are not diagnostic (that is, indicators that cannot diagnose health issues or conditions). Drawing on this evaluation, outline which ethical framework you agree with and why. Please type your answer below. Appendix A: Example of two pages from a recent David Jones catalogue Source: David Jones Appendix B: Background images that can be selected for your feature product display Image descriptions: • Image 1: A stream of liquid hitting the U-Scan. • Image 2: U-Scan positioned in a toilet. • Image 3: The U-Scan app, showing results for the U-Scan Nutri Balance cartridge. • Image 4: The U-Scan app, showing results for the U-Scan Cycle Sync cartridge. Source: Withings [Edit/reformat, reposition, and copy this text box to add text to your catalogue design] [Edit/reformat, reposition, and copy this text box to add text to your catalogue design] [Edit/reformat, reposition, and copy this text box to add text to your catalogue design] [Edit/reformat, reposition, and copy this text box to add text to your catalogue design] – END OF ASSESSMENT –