Product Levels: The Customer Value Hierarchy


product levels - the customer value hierarchy

Core Benefit: The service or benefit the customer is really buying. A hotel customer is buying rest and sleep.

Basic or Generic Product: The marketer must turn the core benefit into a basic product. Thus a hotel room includes a bed, bathroom, towels, desk, dresser and cabinet.

Expected Product: A set of attributes and conditions buyers normally expect when they purchase this product. Hotel guests minimally expect a clean bed, fresh towels, working lamps and a relative degree of quiet.

Augmented Product: At fourth levels, the marketer prepares an augmented product that exceeds customer expectations. In developed countries brand positioning and competition take place at this level.

Potential Product: It encompasses all possible augmentations and transformation the product or offering might undergo in the future. Companies search for new ways to satisfy customers and distinguish their offering.