Level of product
Among every product selling in the market, products are divided into three levels. From the first level to the third level, they are “core customer value”, “actual product” and “augmented product”.
Core customer value
Core customer value is the goods and services which the customers are buying at the time (Lucas, 2014). When making the buying decision, most of the consumers also think will there be any benefit after buying the products. On the other hand, we can say that customer value is the difference between benefits and cost (McLaughlin, N.D.). Normally, customers always like to choose to buy the products which have higher customer value.
Actual product
Actual product is tangible and physical parts including brand name, service features, design, packaging, style and the level of quality (Lucas, 2014).
Augmented product
Augmented product is an extra and additional services and benefits when purchasing a product, for example delivery and credit, installation, warranty, service and support (Lucas, 2014).
Product classification
Through the consumers’ buying behaviour and the product classification, marketers can clearly know what efforts and ways that they should focus on (Dye, N.D.). Besides, those three levels of products can influence to the products classification. Consumer products are classified into several types, including convenience products, shopping products, speciality products and unsought products. Electric goods we sell are related to computer, for example internet cables, laptops, keyboard, mouse, disk drive, monitor and floppy disk. They are related to different types of products.
Convenience products
Convenience product, for example internet cable and the case of the computer, is the product which the customers always buy immediately, without thinking, planning with maximal comparison and the buying effort. This type of product is mainly low priced and placed in many shops for the customers to find it easier and buy. (Lucas, 2014).
Shopping products
Shopping product, which includes RAM, hard-drive, CPU, monitor, mouse and keyboard, involves the detail buying decisions by the customers through the process of purchasing and selecting. The detail buying decisions usually include the comparison on price, style, quality, suitability and value. This kind of product has higher prices than others less frequently purchased by the customers and distributed through fewer outlets but it has greater sales support. (Lucas, 2014)
Specialty products
Specialty product, for example some well-known brand computers and laptops, has unique characteristics and strong brand identification for special purchase effort made by a significant group of buyers. This type of product has high price and it is distributed through even fewer outlets than shopping products.
Thus new products/line extensions will be based on Allround brand, each one with a unique target market, delivering different value proposition to the respective customer.
For instance, Primark 's products offer customers clothing as a base product, of witch actual benefits are being to be cheap and trendy, and they may have some return policy as augmented benefit in case of defects. Each product may be realised following a new product development process to improve its success rate (Harris and Schaefer, 2015, p.43-47).
Customer value is defined as "the perceived benefit of a product, used by customers to determine whether or not to buy the product" (Lussier, 2006). I do believe that most customer's focus on creating customer value. It is an aspect needed in order to sell anything. A customer would not buy something if she or he did not see the benefit in buying it, therefore, organizations strive to create customer value because they need the customer to see a benefit and to buy the product.
1.Product: The product or service must be developed for the target market. In the airlines the product is not a physical item but services rendered. These services are not limited to but often include: Safety, timeliness (on-time arrivals and departures), convenience, in-flight services, and carrier’s image.
Product is/are the products or services you offer and are they unique and different, superior in quality and easier to use. In my own opinion, the product or service is one the most important aspects of a successful business. If you have an item that the customer really wants they will drive out of their way to purchase it. They are usually willing to pay a higher price if the quality justifies it. When a local popular hamburger place open up in Phoenix, people drove long distances and sat in long lines just to bite into one of their juicy hamburgers.
Product: the item, good or service that is being provided that delivers benefits to those who consume it; includes quality, packaging, design and brand
• A product with many different features provides customers with opportunities to chat, play games, send and receive pictures, change ring tones, receive information about travel and sporting events, obtain billing information - and soon view video clips and send video messages.
Specialty product can be defined as products and services with unique characteristics or brand identification for which a specific category of consumer who are willing to make a special purchase effort. Specialty products are products that are not purchased on a regular basis and consumers do extensive research before purchasing these items which are typically expensive at the same time unique in nature which mean they are not easily being substituted.
Pricing. Our product is priced lower than our competitors in our industry. Even though our competitors have a different kind of product compared to us.
Many scholars believe that customer satisfaction has a crucial role in the success of a business, and is pivotal in increasing the overall profitability of the business (Kotier, 1991). Customer value is gained through the experience they receive from the goods or purchases they have obtained from a certain business. Customer value has various definitions and concepts, Holbrook (1999) stated that it is a kind of “interactive, mutual, and preferred experience”; but simply said, “the term customer value has many meanings.”
The benefits from a product offering is the monetary value of the economic, functional, psychological, and social benefits a customer expects from the product. (Kotler & Keller, 2007) The total cost is the monetary worth a consumer may incur when evaluating, owning, using, and during product disposal. In other words, the total cost acquired during the life cycle of the product from evaluating to product disposal is the supposed cost of the product. Thus, the customer perceived value is the difference between the cost he will incur and the benefits the customer would gain from owning the product. The marketer’s objective is to take full advantage of the customer perceived value by increasing social, functional, psychological, and economic value and in turn decreasing the costs. One main challenge in introducing a value perception with consumers exists when a brand or product does not stand out in comparison to its competition. Distinction from other brands is a significant marketing emphasis. Additionally, if a company does not use market research, or if they obtain incorrect market research, they run the risk of making false expectations regarding what communications will affect
Product. Companies that follow this approach try to create a consumer product or service that is supposed to be unique or better than that of the competitor 's. Uniqueness or some upgrades in the product were believed
1.2 Product Levels [IMAGE] If we have a brief look at Kotler's five-product levels theory, there are five products levels in regards with the quality and the expectation of the customers and each level adds more value to the customer (Kotler 11th edition, 2003).[1] 1. At the beginning is the core benefit, the fundamental service or benefit that the customer really buying. The most fundamental level is the core benefits; what the customer really buys. In British Airways customers buying flight tickets to satisfy their basic need which is to flight from one destination to another. 2.
Customer Value Proposition Functional benefits - based on a product attribute that provides the customer with functional utility. The goal is to select functional benefits that have the greatest impact with customers and support a strong position relative to competitors. The phone capability of an iPhone, the cross platform data transfer of iCloud, iPad lightness and powerful abilities : games, movies, office work etc. Emotional benefits - provide customers with a positive feeling when they purchase or use a particular brand. They add richness and depth to the experience of owning and using the brand.
“Product: The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user 's needs and wants. The scope of a product