Quick Tip — A Framework for Understanding Product Value
When I was learning about product design, one of my first ‘aha’ moments was when I realised that a product can be viewed not as a singular entity but as a combination of several levels that offer different values to customers.
This framework, developed by Philip Kotler, helps businesses understand these levels and the corresponding benefits they provide:
🔸 Core Benefit: This represents consumers’ fundamental needs or wants to satisfy using the product or service. A coffee shop provides a welcoming environment for people to enjoy coffee, socialise, and relax.
🔸 Generic Product: At the basic level, a product consists of only the necessary features to function. A coffee shop offers essential components for serving coffee, including a coffee bar, brewing equipment, coffee beans, and trained baristas. It also provides seating for customers.
🔸 Expected Product: Customers expect various coffee options (espresso, cappuccino, latte), a selection of pastries/snacks, friendly service, cleanliness, and a comfortable atmosphere.
🔸 Augmented Product: This includes additional services, benefits, or features accompanying the product. Coffee shops enhance the customer experience with free Wi-Fi, cosy seating, pleasant ambience, loyalty programs, and alternative milk options.
🔸 Potential Product: This represents the product’s full potential with all possible features and benefits. Coffee shops can explore future innovations such as sustainable practices, collaborations with local artists, community events/workshops, or unique brewing techniques/flavours.
By understanding these levels, businesses can tailor their offerings to meet customers’ expectations, enhance their experience, and explore new possibilities for innovation.
What was your unforgettable ‘aha’ moment with a product or service? Share your experiences below! 💡
For more information check out David Kolb Consultancy
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