What Is An Augmented Product? Simple Overview With Examples (2021)


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 designing, 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 constitutes the doors, steering wheel, and many others, is, therefore, an actual product. 

Toothpaste, refrigerators, microwave, footwears, 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 towards 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 kinds of features also enable the company to reduce the post-purchase issues faced by the consumers. 

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: 

When we purchase a laptop, we get a laptop carry bag without incurring extra cost. We also get headphones with cellphones 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 the augmented product as they serve the consumers with the need to provide them 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 for getting free food home delivery. This increases sales and also keeps the customer happy. It becomes very convenient for the 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 the account holders. These are the services that ease out the work of consumers. Therefore, it is considered an augmented product. Net-Banking can also 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 operator. All these services provided with the basic plan can be regarded as the augmented product. 

  • Free services by Car Dealers: 

Car dealers provide free servicing of the cars to their consumers. There can 2 or 3-free services of the car while they sell the car. This free maintenance attracts the customers to a great extent since they don’t need to pay extra for such 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 return policy without any hassle attracts the consumer to prefer a particular retailer. Also, free cooking classes are offered to the customers on cooking supplies. 


Technological up-gradation as led to an increase in the demands of the 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 to learn all 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 Jigsaw Academy. 


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