Understanding Product Levels and Value

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The document discusses levels of customer value from a core benefit to a potential product. It explains that a core benefit is what a customer is really buying, like rest and sleep for a hot…

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  • Product Levels: The Customer Value Hierarchy

Product levels; The customer value hierarchy.

1. Core benefit. Service/benefit/attribute the customer is really buying. A hotel

guest is buying rest & sleep.

2. Basic product. The marketer has to turn the core benefit into a basic

product. Thus a hotel room includes all the related items.

3. Expected product. A set of attributes & conditions buyers normally expect

when they purchase this product/service. As in the same hotel example, a clean

bed, fresh towels & working lamp.

4. Augmented product. Any feature/attribute that exceeds the customer’s

expectations such as a complimentary breakfast in our above mentioned example.

5. Potential product. It encompasses all the possible augmentations &

transformations the product or offering might undergo in [Link] we find the

new ways of satisfying needs.

Product levels; The customer value hierarchy.
1. Core benefit. Service/benefit/attribute  the customer is really buying. A ho

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