What is an Augmented Product? Enhancing Value in Consumer Choices
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Summary:
In the realm of marketing, the concept of an augmented product extends beyond the physical item, encompassing additional features or services introduced by the seller to distinguish it from competitors. This article thoroughly explores the augmented product, delving into its definition, significance, and real-world examples. From the core product to the augmented layers, we dissect how augmentation influences consumer choices, brand loyalty, and pricing strategies. Join us on a journey to understand the intricacies of augmented products and how businesses strategically enhance the consumer experience.
What is an augmented product?
Going beyond the tangible, an augmented product represents a strategic enhancement by the seller. It involves the incorporation of extra features or services, adding intangible benefits that go beyond the product itself. This augmentation serves the purpose of distinguishing the product from similar offerings in the market, providing consumers with added value and a compelling reason to choose it over alternatives.
The augmentation framework: core, actual, and augmented product
To comprehend augmented products, it’s crucial to understand the three layers within this framework: the core product, the actual product, and the augmented product.
Core product
The core product is not a physical entity but rather the essential benefit the consumer derives. For instance, purchasing a lipstick isn’t merely about obtaining a cosmetic item; it’s about gaining attractiveness. Similarly, a pair of sneakers contributes to the buyer’s health, and a new phone enhances communication efficiency.
Actual product
Contrastingly, the actual product is the tangible item available for purchase. It encompasses unique branding, design, and packaging. The actual product must fulfill the core-product expectations, delivering on the promised benefits and creating value for the consumer. For instance, a car should seamlessly function with all its features to fulfill the core product and satisfy customer expectations.
Augmented product
An augmented product transcends the physical and actual realms. It involves the addition of features or services that distinguish it from competitors, providing consumers with reasons to prefer it. It’s important to note that augmentation doesn’t alter the actual product; instead, it adds value to the overall consumer experience. Augmented products often carry a perceived value that justifies premium pricing, allowing sellers to position their offerings as superior choices in the market.
Effectively, augmentation doesn’t change the product being sold; it enhances the consumer experience, fostering brand loyalty and influencing purchasing decisions.
How an augmented product works
The augmentation process is integral to marketing professionals, who categorize every product into three versions: the core, the actual, and the augmented.
Strategic role of the core product
The core product serves as the foundation, representing the primary benefit to the consumer. It encapsulates the emotional and psychological value that the product brings, creating a connection with the consumer’s needs and desires. Successful marketing ensures that the core product is compelling and resonates with the target audience.
Fulfilling expectations with the actual product
The actual product, as the tangible manifestation, must align with the promises of the core product. This layer includes the unique features, design elements, and packaging that contribute to the overall consumer experience. Consistency between the core and actual product is paramount for building trust and meeting consumer expectations.
Adding distinctive value through augmentation
The augmented product is the realm of strategic differentiation. Here, sellers add features or services that set their product apart from competitors. These augmentations can take various forms, from complimentary services like free delivery to exclusive access or benefits. Augmentation doesn’t alter the actual product but enhances its perceived value, giving consumers compelling reasons to choose it over alternatives.
Successful augmentation results in a product that stands out, not only meeting but exceeding consumer expectations. This added value can contribute to increased customer satisfaction, loyalty, and positive brand associations.
Examples of augmented products
Companies adept at creating augmented products cultivate a positive buying experience, fostering customer loyalty and differentiation in a competitive market.
Apple TV+: A strategic augmentation
Apple Inc. strategically employed product augmentation with the launch of Apple TV+. In 2019, as a boost to sagging iPhone sales, the company offered a compelling augmentation for anyone purchasing an iPhone, iPad, Apple TV, iPod touch, or Mac: one year of Apple TV+ for free. This strategic move not only added value to the purchase but also increased awareness of the new product.
Discounts and freebies: Augmentation strategies
Augmentation isn’t limited to high-tech offerings. Everyday products utilize augmentation strategies, such as offering discount coupons for future purchases or providing refunds if customers are dissatisfied. For instance, a kitchen appliance purchase might come with a free recipe book, creating an augmented product that enhances the overall consumer experience.
More expensive purchases: Enhanced augmentation
Higher-value purchases often come with augmented offerings. Furniture stores may provide in-store financing options, while a cable company might offer a more convenient home installation schedule to attract new customers. Free trials, free delivery, and other additional services contribute to making the purchase more appealing and differentiated.
Service sells: Augmentation in retail
Brick-and-mortar retailers enhance their entire product range through augmentation. Good customer service, store ambiance, and in-store demonstrations serve as augmentations that contribute to a positive buying experience. For instance, a retail store selling cooking supplies might offer free cooking classes with each purchase, adding value beyond the physical product.
Online augmentation is equally crucial, with engaging websites providing information and support. Apple’s retail locations, for example, offer teaching and guidance on using their products, creating an augmented experience for customers.
Frequently asked questions
What are the challenges of product augmentation?
While product augmentation can enhance the consumer experience, it comes with challenges such as varying success in different industries, potential cost implications, and the need for effective marketing communication to convey the added value.
How does augmented product pricing work?
Augmented products may command premium prices due to the perceived value they offer. Consumers are willing to pay more for products that provide enhanced features or services beyond the core and actual offerings.
Can any product be augmented?
In theory, any product can be augmented. However, the effectiveness of augmentation depends on understanding consumer needs, strategic differentiation, and the ability to add value without significantly altering the actual product.
Key takeaways
- An augmented product goes beyond the core and actual forms, offering additional features or services.
- Effective augmentation enhances the overall consumer experience, fostering brand loyalty.
- Examples include discounts, freebies, and extra services that distinguish a product from competitors.
- Augmentation can justify premium pricing by adding perceived value to the consumer.
- Understanding the challenges and strategic considerations of product augmentation is crucial for successful implementation.
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