What Is an Augmented Product?
Augmented products are items enriched by sellers with additional features or services, setting them apart from similar offerings in the market. This enhancement involves incorporating intangible benefits or add-ons that extend beyond the product itself.
For instance, examples of augmented products include complimentary delivery, in-home service installation, free makeovers, or travel-sized samples offered by cosmetics companies to enhance the value of their products.
Key Takeaways:
- At minimum, every product can be categorized into three versions: the core, the actual, and the augmented.
- An augmented product integrates features and services that differentiate it from rivals’ offerings.
- Product augmentation does not alter the core product but adds value to the purchase.
- Augmented items may possess a perceived value that motivates consumers to buy, potentially enabling sellers to command premium prices.
How an Augmented Product Works
Marketing experts distinguish three versions of a product: the core, the actual, and the augmented.
Core Product
The core product represents the consumer benefit of the item, like how a lipstick enhances appearance or sneakers promote fitness.
Actual Product
The actual product is the tangible item for sale, encompassing branding, design, and packaging. It must meet consumer expectations tied to the core product, ensuring all features function seamlessly to deliver value.
Augmented Product
Augmented products include added features and services that differentiate them in the market without altering the core product. These enhancements can boost perceived value, motivating purchases and potentially justifying higher pricing.
Product augmentation enhances consumer experience and fosters brand loyalty without changing the product itself.
Examples of Augmented Products
Companies adept at creating augmented products cultivate positive buying experiences, fostering customer loyalty.
Apple TV
In an effort to boost its video streaming service and bolster sagging iPhone sales, Apple offered a year of Apple TV+ for free with the purchase of select devices, expanding the product’s appeal.
Discounts, freebies, and promotions play significant roles in augmenting product offerings:
Discounts and Freebies
Product augmentations such as discount coupons, refunds, or complimentary items like recipe books elevate the value proposition for consumers.
Higher-priced purchases often come with enhanced augmentation, like in-store financing, free trials, or convenient services like delivery scheduling. Such additions aim to attract and retain customers.
Service Sells
Retailers often enhance customer experience with services like exemplary customer service, product demonstrations, and generous return policies. These strategies aim to differentiate their offerings and foster brand loyalty.
Augmented products distinguish themselves in a competitive market by offering additional value compared to similar products, influencing consumer purchase decisions.