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Consumers often think that a product is simply the physical item that he or she buys. In order to actively explore
the nature of a product further, let’s consider it as three different products – the CORE product,
the ACTUAL product, and finally the AUGMENTED product. This concept is known as the Three Levels of a
The CORE product is is what most advertising and marketing professionals agree is the most important
dimension of all three. The core product dimension is an exceptionally important dimension within the product-
planning framework. By way of definition, the core product conveys the underlying benefit(s), which consumers
and business users are actually seeking from every product they buy. NOT the tangible physical product. You
can’t touch it. That’s because the core product is the BENEFIT of the product that makes it valuable to you. So
with the car example, the benefit is convenience. the ease at which you can go where you like, when you want to.
Another core benefit is speed since you can travel around relatively quickly.
In hotel the core product is :
- Comfortable Room
- The Service
- The Atmosphere

The ACTUAL product is the one which is manufactured after a decision has been taken on what your core
product is going to be. Thus, from the above example, if your core product is a status symbol, your actual product
will be a very high quality product with high pricing. On the other hand if the product is a convenience product,
the production would be on the basis of Value for money. Actual products are quantifiable in nature and have
properties like color, branding, quality etc. this product is the tangible, physical product. You can get some use
out of it. Again with the car, it is the vehicle that you test drive, buy and then collect. You can touch it. The actual
product is what the average person would think of under the generic banner of product. just like in a hotel, you
go to a hotel to look for real products, for example, want to find a room with a double bed
Another example in Hotel :
- Pick up guest in airport by CAR
- The room can be double or single bed
- The room provide for bath tab or not
- Wake up call service

The AUGMENTED product is the non-physical part of the product. It usually consists of lots of added value.
augmented product is a product developed from the two products above. for example in hotels, in their restaurants
they display traditional performances to attract customers. augmented products do not necessarily have to make
a profit, but can produce something that gives a profit.
Example in hotel :
- The restaurant show a traditional dance
- Kecak dance in Uluwatu Tample
- Kids club in hotel
- Honeymoon set up