Core Actual and Augmented Product Examples
There are two types of value namely.
What is the core product, actual product, and augmented product?
The core product is defined as the benefit that the product brings to the customer. An example of the Core product of a car is Transportation. The actual product refers to the tangible object and relates to the physical quality and the design. An example of the Actual product of a car is Transportation. Augmented product refers to everything a product offers that is not directly related to its original purpose. It consists of the measures taken to help the consumer put the actual product to use or acquire the product.
The Three Levels of Product
A core value, actual product, and augmented products constitute the main reason why a consumer would buy a particular product. It answers the questions of what you are really buying and the main problem the product will solve.
Core Product Example
An example is a Car, and the core value of a car is transportation. Helps the buyer travel from Point A to point B is the core value that is being provided. The core value that a car may not provide by any other competitor that are in the marketplace like motorcycle, bicycle etc
There might be some other values that are provided by the competitors, but that might not be the core value, but secondary value.
Actual Product Example
For example, is buying a car that will make me look cool. It could be being environmentally friendly; then you can buy Tesla. That is a secondary value. Those are all different values that are being provided by a particular car.
Why do you choose one car over another?
There is a need to differentiate your product somehow from your competitors, and one of the ways you differentiate the product could be an element of economically.
The brand that is actually created in a particular car product is all the actual product that a consumer is buying.
Everything is the actual product, including the Honda logo that is in this car brand of this car. The actual product is what it is that you are buying physically. It could be a service not necessary to be tangible, but the core product is the core value you seek.
The actual product provides you with the core value and other features, such as an economical car but a Honda Brand. The brand that is actually created in a particular car product is all the actual product that a consumer is buying.
Augmented Product Example
But there are a bunch of competitors that are providing economical transportation solutions. Then there comes the actual product with specific cargo space, the number of people the car holds, etc.
At the same time, many competitors will provide the customers with a similar actual product.
What might happen is that many of the companies are providing you with the same core value, and the actual product is also very similar.
The only way for the companies to differentiate themselves is to go towards an augmented product that provides something beyond your products.
For example, you are buying a car with bank financing. Honda dealers may be providing financing, but Toyota does not offer financing.
Therefore, that means that the augmented product that got from Honda Dealer differentiated this product from a Toyota car and at the same time. That’s an augmented product.
The financing you got from the Honda is an augmented product. When the consumer buys a product, the consumer is buying the core value (transportation), the actual product, as well as buying an augmented product (financing). The companies could find out some ways to differentiate the products from each other.
Other Examples of Augmented Products
The Augmented product is everything “extra” a product offers, for example:
- The delivery.
- Customer service.
- The “buying experience.”
- Side products or services included.