Augmented Product

Definition

An augmented product refers to a core product enhanced with additional services and benefits to meet extra customer needs and increase the overall value of the product. The concept of an augmented product emphasizes not only providing basic product functions but also offering additional services, support, and experiences to enhance customer satisfaction and loyalty.

Origin

The concept of the augmented product originated from marketing theory, first introduced by Philip Kotler in the 1970s. He suggested that companies should go beyond the basic functions of a product to offer more added value to stand out in the competition.

Categories and Features

Augmented products can be categorized into various types, including after-sales service, customer support, product training, and extended warranties. These additional services are characterized by their ability to significantly enhance the customer experience and satisfaction. For example, providing 24/7 customer support can help customers get timely assistance when facing issues, thereby increasing the product's usage value.

Case Studies

Apple Inc. is a prime example of an augmented product strategy. In addition to offering high-quality electronic products, Apple enhances the overall value through AppleCare extended warranty services and customer support at Apple Stores. Another example is Amazon's Prime membership, which, besides fast delivery, offers additional services like video streaming and e-book lending, greatly enhancing user experience.

Common Issues

Common issues investors face when applying the augmented product concept include how to measure the value of additional services and how to ensure these services truly enhance customer satisfaction. A common misconception is that all additional services will have a positive impact; in reality, only those services that genuinely meet customer needs can effectively enhance product value.