Friday 4 October 2013

Customer Value Heirarchy

CUSTOMER VALUE HIERARCHY 









In planning its market offering, the marketer needs to address five product levels. each Product adds more customer value and the five constitute a customer value hierarchy.

Core Benefit: It is the fundamental level in customer value hierarchy. It is the benefit or service the customer is really buying. In case of dahi, the customer is buying it to eat it or use it as an ingredient. 

Basic Product: This is the second level in customer value hierarchy. The marketer must turn the core benefit into a basic product. In case of soaps, the marketer must provide with basic taste that a curd would provide

Expected Product: This is the third level in customer value hierarchy. Here the marketer prepares an expected product, a set of attributes and conditions that customers normally expect when they purchase this product. In case of dahi, a customer expects good quality and nutrients.

Augmented Product : At the fourth level, the marketer prepares an augmented product that exceeds customer expectations. To fight competition the marketeer tries to offer an augmented or may an even better than expected product. In case of dahi the marketer can offer the option for healthy and fresh dahi instead of preservatives.

Potential Product : At the fifth level stands the potential product, which encompasses all the possible augmentations and transformations the product or offering might undergo in the future.

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