What is Augmented Product? Types, Benefits, & Examples

What is an Augmented Product? Definition, Types, Importance, and Examples

What is an Augmented Product?

An augmented product is the addition of additional features to the actual product to provide extra value to consumers. It is also called extended product or product augmentation.

These additional features can be provided in the form of discounts, free delivery, warranties, refunds, and so on. The main objective of product augmentation is to attract more customers, provide a greater purchasing experience to consumers, and make the product different from the competitors.

Any additional features or add-ons companies offer with their actual products are considered parts of an augmented product. This augmentation further helps companies to stand different from competitors enabling them to enjoy a competitive advantage.

Product augmentation does not make modifications to existing products nor it increases the prices, it only adds extra features or benefits to the existing product that are free of cost to enhance customers’ experience.

Three Levels of Product

Core, actual, and augmented products are the three major levels of products in marketing. Before understanding the augmented product, it is essential to understand the other two versions of the products.

Core Product

The core product is the concept or idea. It is the pre-step companies took to develop a product. This includes the main benefit of the product. You first determine the fundamental purpose of your product. This will be the reason consumers buy your product.

Actual Product

An actual product is a physical product, that can be touched, which is ready to sell, and consumers can purchase and easily use it to satisfy their needs and wants.

This is where you have converted your core product into its recognizable form. This is done through packaging, designing, branding, etc.

Augmented Product

Related: Kotler’s 5 Levels of Product with Examples 

The actual product is enhanced with features and services to set it apart from comparable goods sold by rival companies. The add-ons don’t alter the product itself and may only slightly change the product’s price.

Augmentation aims to create a distinct image of the product, increase the perceived value of consumers, and give a reason to buy the product. So, it can be said that augmented or extended products are the combination of core and actual products.

Types of Augmented Products

There are different ways following which you can add additional features to your products. The most common ways of product augmentation include.

Warranty

Warranty is one of the most popular ways to augment a product. Companies offer warranties to assure customers that the product is of good quality and promise to fix or replace any defect that arises in the product within a specified period of time.

Warranty is usually offered to electronic appliances and gadgets like mobile, computers, generators, etc.

Free Delivery

Free delivery has become a very popular strategy to augment a product mostly because of electronic marketplaces. Some brands offer free delivery of their products, whereas, some offer free delivery only when customers buy a certain amount of products.

Discounts

Related: What is Actual Product?

A popular augmentation is offering discounts. Most companies offer discounts for their new products or to new customers. Often they set a fixed discount rate for purchasing a specified amount of products.

Free Trial

Free trial offers are mostly used by companies selling their products online. The free trial offer gives a chance consumers to use the product for a trial period so they can determine whether or not the product is right for them or not.

Free Samples

Many offline businesses offer free samples to their customers. Before buying products customers can test the product with free sample offers. This overcomes consumers’ anxiety about buying and increases the conversion rate of the business.

Free Installation & Configuration

Companies selling technical products can adopt this product augmentation technique to offer more value to consumers. A company that sells electronic devices could, for instance, send a professional to help a customer install a new TV or air conditioner.

In this way, consumers can rest easy knowing that having a certain product installed by a pro will lessen the likelihood of casualties or losses.

Free Updates

This strategy of product augmentation mostly can be done to software or digital products. A company that sells software can also offer free updates for its buyers.

Refunds

Today most companies have enabled a refund option by which if consumers are not satisfied with the product or if the product does not work on the seller’s commitment they can easily return the product and get a refund or they can also buy another product.

Importance of Augmented Product

Creating augmented products can benefit your company in various ways. Let’s look at some benefits of augmented products.

Attract Customers

One of the objectives of augmented products is to attract more customers. With augmentation, you can easily attract new as well as more customers by adding new benefits that will most appeal to consumers.

Increase in Profits

Product augmentation allows companies to attract new customers. Augmentation further gives a unique reason for consumers to buy the product.

It assures customers as this is the product they want showing the lack in competitors’ offers. Hence, customers get convinced, sales get an increase, and the profit of the firm too.

Competitive Advantage

Augmentation enables companies to design products and offer additional benefits relative to competitors. By outperforming competitors, you can get a competitive advantage through augmentation.

Builds Customer Loyalty

In the end, augmented products improve the customer experience and give them the impression that they are receiving something more. In order to make customers feel appreciated at all times, a company must constantly improve its current products.

Also Read: What are Marketing Philosophies?

A happy customer is more inclined to offer recommendations to others or buy things. Customers who are loyal to a brand may also decide to become lifelong consumers, thus enhancing the business’s reputation.

Examples of Augmented Product

All additional features you will get through a product are examples of augmented products. This can be a warranty, guarantee, discounts, free trials, free samples, refund options, free updates, free installation, free delivery, after-sale services, etc.

Similarly, let’s take an example of the company Starbucks and how it is augmenting its products. Starbucks is a coffee company and it sloganed “More Than Just Great Coffee”. In addition to exceptional coffee, you can also enjoy Starbucks’s augmented products like free wifi, a friendly environment, charging sockets, etc.

Read Next: What is a Marketing Concept?

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