product mix, product levels, product classification
Review the activity below or download the PDF student worksheet
Student Worksheet: How to Classify Product Levels
Student Discussion Activity
A product exists on different levels. In the simplest approach to this model, a product has three levels:
- Core product,
- Actual product and
- Augmented product.
Your task in this activity is to classify the offerings of a computer retailer into actual and augmented product levels.
Note: Their core product is the need to produce/store files, documents, and calculations.
List of products and services provided by the computer retailer…
- Finance available
- Personal advice
- A loyalty program
- Computer software
- Computer tables/chairs
- Repair service
- Internet site – for PC problems
- Warranty (free repair) period
- Help desk (website)
- Discount on future purchases
Student Discussion Questions
- Classify the above attributes into either actual or augmented product.
- Which aspects of the product design, do you think, provide greater value to consumers?
- Given this exercise is for a retailer; consider at what level (actual or augmented) can the retailer most effectively differentiate their store?
- Are there any risks associated with over-augmenting a product?