The Three Product Levels: Framework for understanding product value

The Three Product Levels: Framework for understanding product value

The Three Product Levels framework, popularized by marketing theorists, explains that any product can be viewed through multiple layers: the core product, the actual product, and the augmented product. The core product represents the fundamental benefit or need that the customer seeks—essentially, the primary reason for purchase. It embodies the basic service or value that customers expect.

The actual product includes tangible features, design, brand identity, and quality that deliver the core benefit. This level represents the physical or visible manifestation of the product, differentiating it from competitors. It’s crucial because consumers evaluate options here based on appearance, functionality, and perceived value.

Finally, the augmented product encompasses additional services and benefits beyond the core and actual products, such as warranties, customer support, or free delivery. These extras enhance the customer experience, foster loyalty, and can justify premium pricing. Together, these three levels provide a comprehensive framework for understanding how products create customer value and competitive advantage.

👉 See the definition in Polish: The Three Product Levels: Trzy poziomy wartości produktu

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