Case study of Medi-Cult: Customer Oriented Pricing for a Radical Innovation
University Student
University of the People
Abstract
When innovations are made, companies sometimes struggle with pricing. The innovations may or may not meet the consumers desires. Medi-cult developed In Vitro Maturation (IVM) technique of making women pregnant. However, the success rate is low. Furthermore, the women are reluctant to repeat the process once the first trial fails. It is also expensive. A major threat to Medi-Cult is the stiff competition by other pharmaceutical companies. Good pricing criteria should be adopted to compete effectively while improving on meeting consumers’ demands.
Customer-Oriented Pricing
Introduction
The case
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For instance, the IVF technique involves use of hormonal stimulation using the follicle stimulating hormone (FSH). Looking at the pregnancy outcomes following IVM, you find that implantation rate is about 18% and live birth rates ranges from 15.9% to 33% per cycle (Chang et al, 2014). This item of information shows that the value delivered by the technique does not meet the customers’ expectations. This is a typical example of Price > Cost > Perceived Value as explained by Winer and Dhar (2011 p.251). Medi-Cult’s competitors include the large scale pharmaceutical companies like Wyeth who supply the hormones, FSH, used in IVF technique and Medi-Cult company which supply Cell culture media just like IVM.
Question 1: What are the sources of economic value for IVM vs. IVF?
Economic value refers to the maximum amount that a consumer is willing to pay for a product in a free market economy (Investopedia, 2017). Therefore, women will be willing to pay for IVM services unlike IVF because of various reasons. First, IVM method does not involve the use of hormones which are known for causing side effects like nausea and in some cases this treatment will require extra medical attention. This implies that the cost of IVM process is lower compared to IVF hence lower price for consumers.
Additionally, IMV technique is faster because the time required for egg maturation is reduced from 30 days in IVF to 2 days for
Grounds: The use of In Vitro Gametogenesis will help many families who dream of procreating but are physically incapable of doing so. IVG would allow a sperm cell or an egg to be created out of stem cells. This would enable women with fertility issues, cancer survivors with reproductive issues, women beyond
Pozgar and Santucci in their book titled Legal and Ethical Issues for Health Professionals covers artificial insemination, test tube babies and sterilization but no where did they dare to touch the in vitro process, I reviewed several books regarding the law and ethics in healthcare and none of the authors really ventured to give an opinion which led me straight to the ethics committee of the reproduction where we could obtain this information in its entirety. Not taking anything away from the other authors, there is not a lot of information available because of so many new procedures being introduced. The one thing that was consistent was the bill of patient’s
As stated earlier, Christians must evaluate the different methods of medical technology in order to identify the moral and ethical ramifications of certain medical procedures. I believe that any procedure that forces a couple to decide what is to be done with “leftover” embryos should not be used. However, there are some procedures such as IUI and IVF that utilize
When IVF first became popular Van Blerkom says, “ My First Reaction was, ‘You’ve got to be kidding’” (qtd. in Cheng). Scientists are now going to try to create a chapter method of IVF so many more people would be able to enjoy a test tube baby that would not cost the $60,000 incubator cost ( Cheng). In her article titled, Shoebox Lab + $265= one test-tube baby, Maria Cheg writes that this new method would help over half the people who need infertility help (Cheng). While Cheng believes more IVF would be beneficial to he world (Cheg), Baird says that we will
IVF stands for invetro fertilization, which means that a woman’s eggs are placed in a Petri dish and fertilized with sperm. Then the embryo is examined and carefully watched for a few days to make sure that it is forming correctly. After waiting for examination process the embryo is inserted into the woman’s uterus. Large sums of these embryos are made because many times the IVF treatment is not successful, and then the woman can continue to try and have a successful pregnancy. However, when IVF is successful and the embryos are no longer needed the woman can choose to continue to have the embryos frozen or donate them to stem cell research. The majority of embryonic stem cells are donated stem cells from IVF donations according to biologist Sally Morgan. But, there is still that other percentage that comes from aborted babies. People may say that by allowing stem cell research it encourages abortion. The fetuses from aborted babies that are donated to embryonic research are helping find cures for the incurable diseases.
The side against embryonic stem cell research claims that the current method of obtain stem cells is immoral because it requires the destruction of an embryo. People object to the research because it is based around eliminating the most basic form of human life. It says that one’s life would be more valuable than another 's. Most embryos used for research are the extra embryos that are created through in vitro fertilization(IVF). While most embryos made through IVF are used to help couples who can not become pregnant it is common practice to make more embryos than needed, the extra embryos are commonly donated to stem cell research. At the start of the research scientist said that IVF embryos would provide a more than sufficient quantity of stem cells. However private firms
Some scientists also fail to see any benefits of this technology and believe that germ-line engineering fails to be necessary. They “are adamant that germ-line engineering is being pushed ahead with ‘false arguments’” (Regalado). Through in vitro fertilization, people fertilize several embryos in order to choose a healthy embryo that lacks the disease-causing gene. This process eliminates disease from the offspring without altering the genes of all future generations, and this form of fertilization is understood and accepted with no chance of unknown, negative effects. Many scientists agree that germ-line engineering, in which this technology is used to alter embryos and pass changes to offspring and all future generations, is unethical
One anti-ESC argument is the ethical concerns that have been linked to the routinely used methods for inner cell mass isolation (ICM) that required some destruction of an embryo. One rebuttal to this argument is the fact that 400,000 frozen embryos are already existed and stored in United States and statistics show that actually the number is higher and higher every year. These embryos are collected from couples that reach to the point where they don’t want to have another baby. The choices the couples have at this point regarding these extra embryos are four choices: keep them in a storage for a fee, discard the embryos, donate the embryos to other couples, or donate them to science. Many couples don’t like to donate their embryos to another couple and let them raise their children. Other couples would like to keep their embryos, but they don’t have the money to pay the fee. Therefore, it is concluded to either discard the embryos, which is a waste of great resources, or donate them to science and benefit from their potentials. "Deciding the Fate of Frozen Embryos" is a survey has been done by the Journal of Fertility and Sterility and showed that 66% of fertility patients that decided to not have any more children would have liked to donate their embryos to research.
That isn’t the usual case with the women getting IVF. Most women get this treatment because they can’t have a child without it. For example, Bernita Malloy, a federal prosecutor in Atlanta would not have been able to have a child without 25 eggs and three in-vitro cycles. She spent about $45,000 on only three cycles. Imagine if we had limited her to only two eggs per cycle. It would have taken her up to 12 cycles and about $180,000 to have one child. And still, even with this treatment some women never successfully have a
The main issues that lie within the political side of IVF are the expenses of carrying out the procedure. The recent rising infertility issues have created an intense debate about who or what area should pay for prohibitively expensive in vitro fertilization treatments (Cohn, 2011). As it is known the economy is in a current downturn, and with the recent deficit budget one of the expense cuts was in IVF funding. It is difficult to justify continuing to provide hundreds of millions of dollars where many families do not use IVF due to expense issues. This could lead to an increase in the price of IVF meaning even more families are unable to conceive. Not only this, the federal government only placed IVF related laboratories in certain parts of Australia. This includes Canberra, Melbourne, Sydney, Newcastle, Perth and Brisbane and few more. Couples may have to travel a long distance to get to these laboratories, unless availability for IVF
The principles of ethics can assist in finding a middle ground on reproductive technologies by forcing the healthcare provider to consider first the patient and their well-being above all else, yet keeping in consideration the benefits and morality of the care they are giving. More often than not, there are more than two sides to every argument, especially when it comes to the latest reproductive technologies. “To obtain justifiable resolutions of these
Reproductive cloning is also a very expensive procedure. In the case of In Vitro Fertilisation in humans, not all the embryos are implanted back into the female. The embryos that are not implanted are destroyed therefore the ethical issue of abortion is raised (Murnaghan, 2014). Reproductive cloning has unethical aspects for many individuals therefore most countries have put laws in place preventing people from practicing reproductive cloning.
To begin with, I will provide the basic medical facts involving IVF to give a solid understanding of what goes into the whole process and what facts involving this process cause the questioning of the ethical and moral issues. Infertility affects about 4.9 million couples in the United States, or one in every twelve. Approximately one-third of infertility cases can be traced to causes in the female (Encarta). However, a small proportion of infertile
This article describes how and why there has been an increase in demand even though there are ethical issues. The article states, “‘People want it. It’s legal,’ said Dr. Michael Feinman, medical director of HRC Fertility offices in Westlake Village and Encino. ‘In a competitive market, it’s obviously a way to acquire other patients’” (“Lab Methods”).
IVF has many benefits for couples who have tried to conceive a child of their own and have little or no success. IVF takes nature into the laboratory and gives a helping hand with the fertilization of the egg. Many times this is attempted because of the egg not being able to fall into the fallopian tube