Customer-Value Hierarchy

Assignment 3 for Marketing Management

1. REMEMBER THIS : 5 PRODUCT LEVELS Jean Daisy C. de Guzman V60 Marketing Management Professor Bond De Ungria www.jeandeguzman.blogspot.com

2. The Customer-Value Hierarchy: 5 Product Levels [email protected] www.jeandeguzman.blogspot.com Concept 2

3. I have named my blog “for the love of cupcakes” for a reason.. [email protected] www.jeandeguzman.blogspot.com I love sweet things, cupcakes in particular, with a passion!

4. Allow me to take you to a journey of how my favorite things come to life… [email protected] www.jeandeguzman.blogspot.com

5. Desserts are passionately made for the SATISFACTION of diners… [email protected] www.jeandeguzman.blogspot.com Similar to how desserts are made, p roducts undergo 5 levels of development to ensure customer satisfaction

6. Level 1: Core Benefit [email protected] www.jeandeguzman.blogspot.com -the fundamental need or want that consumers satisfy by consuming the product or service -similarly, desserts also need a CORE ingredient

7. Level 2: B asic Product [email protected] www.jeandeguzman.blogspot.com - a version of the product containing only those attributes or characteristics absolutely necessary for it to function -before an apple can become a dessert, it will need B AKING

8. Level 3: E xpected Product [email protected] www.jeandeguzman.blogspot.com - the set of attributes or characteristics that buyers normally expect and agree to when they purchase a product -after baking, what we can expect to see is an apple pie that looks and tastes pie E XCELLENT

9. Level 4: A ugmented Product [email protected] www.jeandeguzman.blogspot.com - inclusion of additional features, benefits, attributes or related services that serve to differentiate the product from its competitors -what can set our pie apart is if we serve it A LA MODE

10. Level 5: Potential Product [email protected] www.jeandeguzman.blogspot.com - all the augmentations and transformations a product might undergo in the future -Why stop at a pie w hen you can make a CUPCAKE ?

11. The Customer-Value Hierarchy: 5 Product Levels [email protected] www.jeandeguzman.blogspot.com Concept 2

12. T he Customer-Value Hierarchy is similar to a Cupcake’s Journey [email protected] www.jeandeguzman.blogspot.com 5 PRODUCT LEVELS CUPCAKE JOURNEY Core Product Core Ingredient B asic Product B aking E xpected Product E xcellent Look & Taste A ugmented Product A la Mode Potential Product Apple Pie Ala Mode CUPCAKE