This chemical is primarily used as a chromogenic substrate in biochemical assays, particularly for detecting the activity of enzymes like β-N-acetylglucosaminidase. When the enzyme acts on it, the compound is cleaved, producing an insoluble blue or purple precipitate. This makes it valuable in histochemistry and microbiology for visualizing enzyme activity in tissues or microbial cultures. It is also employed in diagnostic kits to identify specific enzymatic pathways or to study cellular processes related to glycosidase activity. Its sensitivity and specificity make it a useful tool in research and clinical diagnostics.