Theoretical Construct of the Three Levels of an Offer

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Theoretical construct of the three levels of an offer “It is widely recognised that the purchase of a product is influenced by more than the core product.” (Colgate & Alexander, 2002). In marketing, products are seen to have three levels; the core product, the actual product and the augmented product. The core product is the most basic level and is the central need of a customer when looking to buy a product, this level of product “addresses the question: what is the buyer really buying?” (Kotler et al., 2010). Woods (2008) asserts that when a product is consumed, the individual consuming it undertakes a behavioural change, and within this change the benefits received make up the core product. Levitt (1983) explains this as the core product being made up of the fundamental needs or wants a consumer sets to satisfy by acquiring or using a specific product. The actual product is the next level, this is the tangible part of a commercial product (Wood, 2008) and can be divided into characteristics such as “ quality level, features, styling, brand name and packaging.” (Kotler et al., 2010). This level consists of the basic physical product bought by the consumer in order to obtain benefits (Crane, 2011). The final level is the augmented product, which is made up of additional service and benefits to the customer, this may include things such as warranty, after-sale service, installation and delivery and credit (Kotler et al., 2010). Kotler (1972; in Colgate & Alexander, 2002), described the augmented product as “the tangible product along with the whole cluster of services that accompany it”. According to Gronroos (1994) well-handled products provide customers with added benefits that are not part of the core and actual product. By adding extra benefits to a product it is believed more value is added and thus higher sales and more market share can be obtained (Kotler et

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