Using the product or service that you have selected for your assignment, respond to all of the below prompts:
Discuss one factor that has shifted demand OR supply of your product or service within the last year.
PART A PLEASE RESPOND TO CLASSMATE DISCUSSION WHETHER YOU AGREE OR NOT & A DETAILED WHY:
Product / Service Selected: innovationOchsner (iO)
innovationOchsner (iO) is a think tank, innovation lab, and healthcare technology company at the forefront of transforming health care. The mission of iO is to reimagine and revolutionize the experience and delivery of healthcare in a way that improves health, decreases costs, and enhances patient and caregiver experiences (Ochsner, 1).
Is it an inferior, normal, or luxury product, or service? I would not classify iO as a luxury service since it is not an additional exorbitant cost compared to standard of care. However, since it is a complement to normal care, it would likely be classified as a normal or superior service.
What are its substitutes and complements, if any? innovationOchsner is a complement to normal, standard of care, medical services.
In what ways does your product or service provide utility to your customers? The services provided by iO are meant to be used with regular medical care to improve health outcomes, decrease the cost of medical services, and enhance the patient and caregiver experiences.
An example of the utility that iO provides include digital medicine programs related to chronic diseases, such as hypertension and diabetes. The iO hypertension digital medicine program reported impressive clinical outcomes. In particular, at 90 days, 71% of digital-medicine vs. 31% of usual-care patients had achieved target blood pressure control (Milani, 3).
Name one strong utility feature and one weak utility feature of the product or service.
Possession utility is a strong utility feature of iO because it is designed to provide a more precise and useful way to improve healthcare. By enrolling in iO trials or possessing services provided by iO, a patient will have access to better manage their medical conditions.
Time utility is a weak utility feature. Most of the services provided by iO require a time commitment, which may hinder patients from utilizing.
As described in the lecture, discuss one factor that has shifted demand OR supply of your product or service within the last year. Technological innovation has increased the number of services that iO provides. As the initial trials proved to be successful, additional trials were created and added to the services offered by iO.
PART B PLEASE RESPOND TO CLASSMATE DISCUSSION WHETHER YOU AGREE OR NOT & A DETAILED WHY:
The service that I have selected for my assignments is elective procedures such as total joint replacement. In the United States, this service would be considered a “normal service”; It is covered by most insurances, and the average American has access to the procedure. In the UK, however, the service might be considered a luxury. This is not to suggest that that standard of living is lower in the UK. Far from it. However, healthcare is very different in the UK and health insurance doesn’t function like it does here in the states. As a result, UK citizens who wish to take advantage of our offerings would expect to pay out of pocket for a service that would be almost free to the average American. The costs for total joints can run into the tens of thousands of dollars. With this in mind, would there be any demand for such a service? Why would any UK citizen have the slightest interest in paying for an elective procedure that they can get for almost free from their local healthcare system? The local healthcare system, the NHS, is clearly a competitor here and a viable substitute for our service. However, the NHS has been losing funding and has become overburdened in recent years (1). In fact, it’s not uncommon for non-emergent surgeries to be delayed for many months (2). All things considered, it’s not hard to imagine a market of well-heeled Britons looking for timely relief from joint pain and immobility, who are willing to pay for a responsive, top-tier experience. Our service would provide place utility and time utility to potential customers (3). The American surgical experience in the middle of London, and “yes, sir, we can perform the operation tomorrow if you’d like. Shall we send a car around to pick you up?” Of the two, time utility would be the strongest differentiator, since that this biggest barrier to the NHS offerings.
Unsurprisingly, the global pandemic has had more impact on demand for elective total joint replacement than anything in recent memory. The need was, of course, still present during that time. However the state government banned non-emergent procedures for about two months. Because of the insurance modifier, price does not play a significant role in demand in the US. However, it may be of significant consideration in the UK market. As per our lecture notes this week, it will be very important to position ourselves strategically with pricing in a way that allows for profit margins while still attracting the largest number of customers (4). Since pricing strategy is outside the scope of our experience in healthcare, we may need consider consulting outside experts initially to help with the analysis.