Question

At which level of a product does a company need to exceed customer expectations and build a distinct brand image to face competition?

1.Potential product
2.Basic product
3.Augmented product
4.Core benefit
A) 1 and 2
B) 2 and 3
C) 3 and 4
D) 1 and 4

Answer 1

A company must exceed expecations and build a distinct brand image at the 'Augmented product' level to stand out. Intangible aspects and advertising play crucial roles in differentiating products and influencing customer preferences. The correct answer is (C) 3 and 4 - Augmented product and Core benefit.

Step-by-step explanation:

To face competition and build a distinct brand image, a company needs to exceed customer expectations at the level of an Augmented product. Differentiation of products is imperative to stand out in a crowded marketplace. A firm can achieve this through various means such as the physical aspects of the product, location from which it is sold, intangible aspects like guarantees or services, and importantly, the perceptions formed by advertising and brand reputation.

Intangible aspects such as satisfaction guarantees, high-quality reputation, and additional services like free delivery are crucial in differentiating products and shaping customer preferences. This goes beyond the Basic product, which merely fulfills the initial need, or the Core benefit, which is the fundamental service or advantage the product provides. To truly differentiate and resonate with customers, companies often focus on the Augmented product level, where these extra features and services can set them apart.

The correct answer to the question is therefore (C) 3 and 4 - Augmented product and Core benefit.