Augmented Product

Definition

The augmented product refers to the additional benefits, services, and support that are provided to customers beyond the core product or service offering. It encompasses the entire customer experience and perceived value that extends beyond the basic, tangible product.

5 Must Know Facts For Your Next Test

1. The augmented product is a key component of the product-service continuum, which ranges from pure physical goods to pure services.
2. Augmented products can include warranties, customer support, delivery, installation, training, and other value-added services that enhance the customer's experience.
3. Developing a strong augmented product can help businesses differentiate themselves from competitors, increase customer loyalty, and justify premium pricing.
4. The augmented product is crucial in service-dominant industries, where the core product may be intangible, and the augmented elements are what truly drive customer satisfaction and value.
5. Continuously improving the augmented product based on customer feedback and evolving needs is essential for maintaining a competitive edge and delivering exceptional customer experiences.

Review Questions

• Explain how the augmented product relates to the product-service continuum and the customer's perceived value.
  • The augmented product represents the expanded offering beyond the core physical product or service. It encompasses the additional benefits, features, and support that enhance the customer's overall experience and perceived value. As products and services become more intangible and experience-based, the augmented product plays a crucial role in differentiating offerings, meeting evolving customer needs, and justifying premium pricing. The augmented product is a key component of the product-service continuum, which ranges from pure physical goods to pure services, with the augmented elements becoming increasingly important as the offering becomes more service-dominant.
• Describe the role of the augmented product in service-dominant industries and how it can drive customer satisfaction and loyalty.
  • In service-dominant industries, where the core product may be intangible, the augmented product becomes the primary driver of customer value and satisfaction. The augmented product, which includes warranties, customer support, delivery, installation, training, and other value-added services, is what truly shapes the customer's experience and perception of the offering. By developing a strong augmented product, businesses in service-dominant industries can differentiate themselves from competitors, increase customer loyalty, and justify premium pricing. Continuously improving the augmented product based on customer feedback and evolving needs is essential for maintaining a competitive edge and delivering exceptional customer experiences.
• Analyze how the augmented product can be leveraged to create a sustainable competitive advantage for a business.
  • The augmented product can be a powerful tool for creating a sustainable competitive advantage. By offering a comprehensive suite of additional benefits, services, and support beyond the core product or service, businesses can differentiate themselves from competitors and provide greater value to customers. The augmented product can include features such as warranties, customer support, delivery, installation, training, and other value-added services that enhance the customer's overall experience and perceived value. Continuously improving the augmented product based on customer feedback and evolving needs can help businesses maintain a competitive edge and deliver exceptional customer experiences. This, in turn, can lead to increased customer loyalty, higher willingness to pay premium prices, and a stronger brand reputation, all of which contribute to a sustainable competitive advantage in the market.

Related terms

Core Product: The core product is the fundamental good or service that fulfills the customer's primary need or want.

Actual Product: The actual product includes the packaging, features, brand name, and other attributes that customers can physically see and experience.

Customer Experience:

The customer experience encompasses all the interactions, emotions, and perceptions a customer has with a brand or product throughout their journey.