Used primarily as an intermediate in organic synthesis, particularly in the development of pharmaceuticals and fine chemicals. Its structure allows for functionalization at multiple sites, making it valuable in constructing complex molecules. The ketone group participates in reduction, condensation, and nucleophilic addition reactions, while the ester moiety enables transformations such as hydrolysis, transesterification, and amidation. It is also employed in fragrance synthesis due to the potential for generating cyclobutane-derived aroma compounds with unique olfactory properties. Its reactivity and stability under various reaction conditions make it suitable for use in multi-step synthetic routes.