Augmented Product

What is an 'Augmented Product'

An augmented product is a commodity that has both the primary physical attributes and the non-physical attributes that are added to increase the product's value. Non-physical attributes of an augmented product may include a product warranty, service or installation and may increase the price of the basic product being purchased, allowing the company selling the good to provide the consumer with other services that make using the product easier.

BREAKING DOWN 'Augmented Product'

A consumer has a host of choices across a wide price range when purchasing a computer. In order to differentiate themselves from the competition, companies selling computers augment the basic computer - the actual product - with warranties, customer service hotlines and other add-ons to make their products stand out from competitors' offerings.

An augmented product allows a company to add services that are tailored to a consumer's individual needs. If a computer is equipped with better processing power, it is able to handle different power-intensive programs. If a consumer is using the computer to advance a business, then it is imperative for him to be able to have access that other consumers might not need. In terms of a computer care plan, this helps consumers if there is a defect or necessary repair.

The consumer then has the choice of buying a basic computer or an augmented product that has more bells and whistles. A company's success in selling an augmented product is heavily dependent on consumer perception of the value the add-ons bring, which makes marketing the product very important.

Augmented Product Role in Marketing Levels

Furthermore, in the marketing of a product, there are three distinct levels, the third of which is the augmented aspect. The first two levels include the core benefit and the actual product. The core customer benefit describes the value a product offers to consumers. The actual product — the computer, for example — includes everything from the product design and features to the brand name and packaging.

Included in an augmented product is also its ability to be procured from a location or how easy it is to be obtained when its use is needed. Aside from direct productive augmented product abilities, such as warranties and customer service, there are also complimentary items that can be supplied along with the product. In the case of the computer, this might include case covers, extra keyboards or tablet devices that assist in augmenting the product.