Section 302, Team 5: Emily Millette, Manuel Ortiz, Melody Qiao, Chad Tyler

Evaluative Research Changes Our Focus From Dietary Restrictions To Leftovers Research Objective: Determine whether Blue Apron could effectively meet the needs of a new segment and what segment the company should target Thirteen one-on-one interviews were conducted Initial segment focus on Dietary Restrictions Changed focus toward consumers that valued leftovers Internet research to further evaluate leftover option

Survey to Test if More People Would Subscribe to Blue Apron if it Offered a “Leftover Option” Combined questions based on a Likert Scale, Demographics, and a Conjoint Analysis How likely are you to subscribe with or without a leftover option became a key metric in testing our hypothesis Demographics allow us to look for interesting correlations Conjoint allows us to estimate the respondent’s WTP for the new “Leftover Option”

Survey Supports Hypothesis that Leftovers Increase Number of Subscribers # of RespondentsDeflatorAdjusted Value Slightly Likely1410%1.4 Moderately Likely930%2.7 Extremely Likely480%3.2 Total To be considered a new subscriber a respondent: 1.Had to rate their likelihood to subscribe to Blue Apron with the “Leftover Option” higher than the likelihood without it 2.Had to rate their likelihood of subscribing to Blue Apron with the “Leftover Option” as at least slightly likely 3.Could not be a current Blue Apron subscriber Of the 80 respondents: 9 were currently subscribed to a meal delivery service 27 were potential new subscribers if Blue Apron offered a “Leftover Option” Blue Apron could expect 7.3 new subscribers

An Interesting Correlation Between New Subscribers and Gender/Marital Status Correlations between most demographics and new subscribers were not statistically significant. Women in general had a positive correlation toward becoming subscribers if the “Leftover Option” was added. Men in general, and specifically married men, had a negative correlation toward becoming subscribers if the “Leftover Option” was added. # of RespondentsCorrelation Female Stat Sig (P<.01) Single Married Male Stat Sig (P<.01) Single Married Stat Sig (P<.05) Total80

Conjoint Analysis Designed to Test the Importance of Leftovers, Cook Time and Price Attributes and Levels: Price $10.00 $12.50 $15.00 Leftovers Leftovers for 1 meal No Leftovers Cook Time 30 Minutes 60 Minutes 6 profiles were created for our survey Leftovers No Leftovers 30 Minutes60 Minutes30 Minutes60 Minutes $10.00 XX $12.50X X $15.00 XX ProfileLeftoversPriceCook Time 1Yes$ Minutes 2No$ Minutes 3Yes$ Minutes 4No$ Minutes 5Yes$ Minutes 6No$ Minutes

Conjoint Analysis Shows Potential New Subscribers Are Willing to Pay an Additional $5.97 for Leftovers Regressions used to determine partworth for Price, Cook Time, and Leftovers for each respondent Price and Leftover partworth compared to determine additional WTP Additional WTP for Leftover Option: Potential subscribers: $5.97 All respondents: $4.97 Another Conjoint Analysis with higher price levels would be needed to determine exact price # of RespondentsExtra WTP Potential Subscribers27 $ 5.97 Other Respondents53 $ 4.97