Augmented Product:Overview With Examples | Unext


A competitive world requires developing a competitive product that will survive in the market. Every consumer evaluates the various alternative to his need to get the worth for his earnings. To attract the buyers, it is necessary to give them various add-ons over the core product that will enable the company to secure an edge over the substitutes.

When a product is improved with increased features or services distinct from the other products provided by its competitors, it is known as an augmented product concept. Various elements and features are required while crafting and developing a product. Let us understand the augmented product meaning as we approach different versions of the product level. 

  1. Actual Product
  2. What is an Augmented Product? 
  3. Core Product
  4. Examples of a product

1. Actual Product

It is a physical and tangible product. It is a product that the average person would imagine under the universal banner of the product. The actual product is sold after design, branding, and packaging. It is manufactured to provide for the needs of the customers. The actual product possesses the physical appearance, packaging, etc., that is paid for by the consumer. For example, a car that constitutes the doors, steering wheel, and many others is an actual product. 

Toothpaste, refrigerators, microwave, footwear, and various others are an example of the Actual Product. 

2. What is an Augmented Product? 

The product comes in a minimum of 3-versions: the core, actual, and augmented. Augmenting the product doesn’t substitute the actual product but instead increases the value to the consumers. The enhancements to the product don’t change the actual product and have the least influence on the cost of producing the product. 

It is a known fact that the augmented product provides a positive buying experience. It gives a chance to the companies to develop consumer loyalty toward the product. 

It is sometimes known as an extended product. Augmented product level includes various product attributes and features such as Brand name, warranties and guarantees, extended credit period, product return policies, and many others. These features also enable the company to reduce the post-purchase issues consumers face. 

3. Core Product

It is not a physical product. However, it is the product benefit provided to the consumer. It is an extremely important dimension within the product-developing framework. Core and the augmented product is not the product that a customer is willing to buy; instead, he is willing to purchase the product benefits obtained. 

If the product doesn’t satisfy the consumer’s basic need for which it is purchased, then the product loses its selling value. 

For example, when we purchase sunscreen cream, it is not the cream we purchase, but the benefits produced from the product are acquired. 

4. Examples of a product

  • Add-ons to the product: 

We get a laptop carry bag without extra costs when purchasing a laptop. We also get headphones with cell phones that many companies provide. This all can be considered the augmented product example. 

  • Warranties and guarantees: 

Many companies give warranties for 2, 3, or 5 years on many products such as television, music player, and several others. These products are augmented products as they serve the consumers with the need to provide them with warranties for replacing the faulty parts in the product in the future. 

  • Free Deliveries: 

Various food sellers give free delivery that is appealing to consumers. It influences the customer to purchase more to get free food home delivery. This increases sales and also keeps the customer happy. It becomes very convenient for consumers to order again under the same food restaurant banner since they are satisfied with the service. 

  • Free credit card and debit card along with accidental insurance: 

Banks provide free credit card and debit card facilities to account holders. These are the services that ease out the work of consumers. Therefore, it is considered an augmented product. Net-Banking can also be an example of an augmented product. 

  • Free SMS and Data: 

Telecom operator provides free value-added services along with prepaid services. These services include free SMS and free data. Also, services like free caller tune are provided by some popular telecom operators. All these services provided with the basic plan can be regarded as augmented products. 

  • Free services by Car Dealers: 

Car dealers provide free servicing of the cars to their consumers. There can 2 or 3-free services for the car while they sell the car. This free maintenance attracts customers greatly since they don’t need to pay extra for such a service for a limited period. They find this feature very convincing. 

  • Customer service sells the product: 

Customer satisfaction generated from proper consumer service is the strong augmentation that is added to the range of products. A hassle-free return policy attracts the consumer to prefer a particular retailer. Also, free cooking classes are offered to the customers cooking supplies.

5. What is the goal of Product Augmentation?

The primary goal of product augmentation is to help marketers stand out and distinguish themselves from the competition. In a generic marketplace, having the right product argumentation strategy is necessary to drive sales as desired by an organization.

Most often than not, it’s difficult to create products that are so unique that consumers buy them exclusively for the benefit of the actual product. However, an augmented product helps create a better consumer experience. In the long run, this helps enhance brand loyalty and create a positive buying experience for the customer.


Technological up-gradation has led to an increase in the demands of consumers. Augmented products are created to stand out in performance and gain customer satisfaction. Today, they can be seen in every industry. Hence, companies are required to design new augmented products to enhance market share and achieve business objectives. 

Interested in learning about Product Management from the best minds in the industry? Check out our Product Management Course. This 6-month-long program takes place online through live instructor-led sessions. It is the only program in India that offers the ‘Bring Your Own Product (BYOP)’ feature so that learners can build their product idea into a full-blown product and go through an entire Product Development lifecycle. Not only this, but this is the only program in India with a curriculum that conforms to the 5i Framework. Post completion, learners receive a joint certification from the Indian Institute of Management, Indore, and UNext. 


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