customer value hierarchy

Customer value hierarchy 

It is a system of worth that businesses across the country, both large and small, have turned to as a means of determining customer satisfaction. The marketers needs to address five product levels. Each level adds more customer value, and the five constitute a customer-value hierarchy.

1. Core benefit.
   It is the service or benefit the consumer is really buying. A woman buying lipstick is buying beauty. A hotel guest is buying rest and sleep. It is the utility attached with the product.
2. Basic product:
   It comprises of offering to a customer. It includes mandatory requirements in a product. Thus a hotel room includes a bed, bathroom, towels, desk, and closet
3.  Expected product:
   It comprises of attributes and conditions that customers expect when they purchase a product. For example if bed, bathroom, fan are the basic product, then clean bed sheet, neat and clean bathroom are the expected products
4. Augmented product:
   It is added benefits and services that satisfy customers beyond their expectations. They delight customers by exceeding their expectations. For example, beautiful wall hanging, lovely balcony, Television set etc. in a hotel.
5. Potential product
   At the fifth level stands the potential product that the marketer need to search for the future operation. For example high speed internet, telephone line etc.