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82 Marketing: the Basics
levels to the product, the more value the customer receives. The first level is called the core benefit level. At this level, customers purchase a product because of the functional benefit the product offers. For example, a person buys a television because they need information to make informed decisions and desire entertainment in an accessible manner. A television satisfies these requirements by transmitting content in the form of images.
Most products offer more than functional benefits. Customers evaluate how the product fares in delivering the core benefit. When a customer evaluates the expected product level, they take into account how the product’s attributes, features, quality, styling and packaging deliver the core benefit. Returning to our example about televisions, the customer takes into account such features as: size and shape of screen – flat screen or curved; picture quality – plasma, LCD or cathode-ray tube; sound and name of manufacturer.
After considering the core benefits and the ability of the product’s features to deliver those benefits, products that offer auxiliary benefits offer an even higher level of value. At the augmented product level, customers consider the value they receive from a vendor’s after-sales support, warranty, promise of free delivery or installation, credit availability and technical support.
Augmented benefit level
Expected
Core benefit level
benefit level
figure 5.1
Model of customer hierarchy