Erin Kim

Professor Kurt
MKTG4506
29 March 2021
“The Carrot Rewards Wellness App”
Case Questions

1. Which business model seems most promising to help Andreas achieve his goal of
improving the health of Canadian citizens? A B2B corporate health and wellness
program, a B2C wellness app, or a hybrid of both? Why?
Ultilizing a B2C wellness app would be most effective in improving the health of Canadian
citizens. A B2B corporate health and wellness programs tend to focus more on “sticks” than
“carrots”; as a result, they mainly only appeal to or motivate employees that are already
health-conscious. Other employees are usually less receptive to such programs, resulting in a low

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uptake rate. On the other hand, while B2C wellness apps also tend to have a low retention rate, a

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vast majority of citizens spend a substantial amount of time on their phones and apps. Thus,

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wellness apps are highly accessible to a wide audience. Moreover, users trust the information

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given from wellness apps, so there is a high potential impact apps can have on their users.
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2. Which behaviors should they focus on? Where can they have the most impact:
fitness, nutrition, mindfulness, or something totally different? Why? If Andreas
chooses a B2C model, which revenue model would be best: fee, freemium, or free?
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Andreas should focus on mindfulness, since a major part of achieving physical health is also
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achieving a healthy mindset. When users are more aware of their emotions and thoughts
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throughout the week, they can trace back to the problems or desires that lead to unhealthy
behaviors. In this way, they can identify and eradicate the root causes that are hindering their
physical and mental health. A healthy mindset is the proper foundation for a healthy body and
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will naturally lead to the user making more healhty decisions. If Andreas chooses to implement a
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B2C model, it is recommended that Andreas chooses a freemium model. This allows any user to
have at least some access to the app’s resources. Additionally, having that extra funding from
in-app purchases, can help ensure a certain level of content and interface quality; making the app
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as user-friendly as possible is important in drawing in new users and retaining current users. The
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freemium model also gives the user power in how committed they would like to be to the app. In
comparison to a fee model, it does not force the user to fully commit to an app from the
beginning without knowing much of the app’s features. On the other hand, a free model does not
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give enough incentive to the user to commit further to the app’s services and may result in lower
user retention.

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 3. What are the primary methods you would use to promote healthier behavior?
Would you use information and education, or incentives to change people’s
behaviors? Explain your answer.
I would rely on incentives to promote healthier behaviors because even if people are informed,
they may not be willing to act upon this knowledge until they are incentivized by a reward or
punishment. This does not just apply to financial incentives but also in-app incentives, such as
attaining specific “badges” for hitting certain milestones of using the app or achieving
mindfulness goals. In this way, users are motivated to continue using the app’s services and, thus,
more likely to use the app more consistently and for a longer period of time. Ideally, using a
combination of information and education and incentives would be most effective, as providing
the reasoning behind choosing a behavior as well as an impetus to cause it would have the
highest chance of success in users.

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