Info Gulp

What Is an Augmented Product?


Last Updated:
Info Gulp employs strict editorial principles to provide accurate, clear and actionable information. Learn more about our Editorial Policy.

    Highlights

  • Every product exists in three versions: core, actual, and augmented, where the augmented version adds distinguishing features and services
  • Product augmentation enhances consumer experience and perceived value without changing the core or actual product
  • Effective augmentation can lead to brand loyalty and allow sellers to charge premium prices
  • Examples include free deliveries, discounts, and customer service perks that make products stand out in competitive markets
Table of Contents

What Is an Augmented Product?

Let me explain what an augmented product really is. It's a version of a product that the seller has enhanced with extra features or services to set it apart from what competitors offer, ultimately improving your experience as a consumer.

When we talk about augmenting a product, we're including intangible benefits or add-ons that extend beyond the product itself. Think of things like free delivery or in-home installation for services. Cosmetics brands often throw in free makeovers or travel-size samples to augment their products.

Key Takeaways

You should know that every product comes in at least three versions: the core, the actual, and the augmented. The augmented one adds features and services that distinguish it from similar products sold by others.

Augmentation doesn't alter the actual product, but it adds value to your purchase. This perceived value can give you a reason to choose it and might let the seller charge a premium price.

How an Augmented Product Works

In marketing, professionals see every product in at least three versions: core, actual, and augmented. I'll break this down for you.

Core Product

The core product isn't a physical thing—it's the benefit it provides to you. For instance, a lipstick makes you attractive, sneakers improve your health, and a new phone helps you communicate better.

Actual Product

The actual product is the tangible item you're buying, complete with its unique branding, design, and packaging. It has to deliver on the core benefits you expect. Take a car: it must work seamlessly with all its features to create real value for you.

Augmented Product

The augmented product layers on features and services that make it different from competitors' offerings. These additions don't change the product itself and might not add much to production costs, but they create perceived value that motivates you to buy. This can also justify a higher price for the seller.

Important Note

Remember, augmentation doesn't change the product being sold. However, it adds value to your experience as a consumer and can build brand loyalty.

Examples of Augmented Products

Companies that master augmented products create positive buying experiences and build loyal customers. Let me give you some examples.

Apple TV

Apple launched its video and TV streaming service in 2019. To promote it and boost iPhone sales, they offered an augmentation: anyone buying an iPhone, iPad, Apple TV, iPod touch, or Mac got one year of Apple TV+ for free, as stated on their website.

Discounts and Freebies

A discount coupon for a future purchase counts as augmentation, just like a refund offer if you're not satisfied. A free recipe book with a kitchen appliance like a crockpot turns it into an augmented product. For pricier items, you often get more, such as in-store financing for furniture, free trials, or delivery.

Service Sells

Good customer service and a welcoming store atmosphere augment a retailer's entire product line. Things like generous return policies or in-store demos add value. A cooking supplies store might offer free classes with purchases. Apple provides teaching and guidance in their stores. Even an engaging website or online support team augments products. When you have many options, an augmented product stands out from the rest.

Other articles for you

What Is Zacks Investment Research?
What Is Zacks Investment Research?

Zacks Investment Research is a company providing independent financial data, analysis, and tools focused on earnings estimates and stock ratings to aid investment decisions.

What Are Terms of Trade (TOT)?
What Are Terms of Trade (TOT)?

Terms of trade (TOT) measures a country's economic health by comparing export to import prices, indicating trade benefits when exports earn more than imports cost.

What Is a Named Perils Insurance Policy?
What Is a Named Perils Insurance Policy?

A named perils insurance policy covers only specific hazards listed in the policy, offering a cheaper alternative to broader coverage options.

What Is a Loophole?
What Is a Loophole?

A loophole is a legal technicality allowing avoidance of laws without violation, often in taxes, politics, and finance.

Understanding the Information Ratio
Understanding the Information Ratio

The information ratio measures a fund manager's ability to generate consistent excess returns over a benchmark relative to the volatility of those returns.

What Is War Risk Insurance?
What Is War Risk Insurance?

War risk insurance protects against financial losses from wars, invasions, terrorism, and other political upheavals, often excluded from standard policies.

What Is His Majesty's Revenue and Customs (HMRC)?
What Is His Majesty's Revenue and Customs (HMRC)?

HMRC is the UK's tax authority responsible for collecting taxes, administering benefits, and enforcing related laws.

What Is a Whitewash Resolution?
What Is a Whitewash Resolution?

A whitewash resolution is a shareholder-approved condition where a target company pledges financial assistance to an acquirer while ensuring its solvency for at least 12 months.

What Is Schedule 13D?
What Is Schedule 13D?

Schedule 13D is an SEC form required for disclosing significant ownership in public companies to ensure transparency.

What Is Adjustable Life Insurance?
What Is Adjustable Life Insurance?

Adjustable life insurance offers flexibility to modify premiums, cash value, and death benefits in a permanent policy with a savings component.

Follow Us

Share



by using this website you agree to our Cookies Policy

Copyright © Info Gulp 2025