Customer Value Hierarchy

Customer Value Hierarchy

Colgate needs to address five product levels. Each Product adds more customer value and the five constitute a customer value hierarchy are

{Core benefit, basic product, expected product, augmented product, potential product}

Core Benefit: It is the fundamental level in customer value hierarchy. It is the benefit or service the customer is really buying. In case of toothpaste, the customer is buying a medium for safety of teeth and mouth.

Basic Product: This is the second level in customer value hierarchy. The marketer must turn the core benefit into a basic product. In case of toothpaste, the marketer must provide toothpaste that provides germ free mouth for all without any side effects.

 Expected Product: This is the third level in customer value hierarchy. Here the marketer prepares an expected product, a set of attributes and conditions that customers normally expect when they purchase this product.

Augmented Product: At the fourth level, the marketer prepares an augmented product that exceeds customer expectations. To fight competition the marketer tries to offer an augmented or may an even better than expected product. Colgate is providing different variety of toothpastes like Colgate herbal for fresh mouth with Ayurvedic effect. now it added Colgate salt for those with cavity problem.

Potential Product: At the fifth level stands the potential product, which encompasses all the possible augmentations and transformations the product or offering might change in near future.