Product Design Flashcards
(28 cards)
product
Anything that can be offered to a
market to satisfy a want or need,
including physical goods, services,
experiences, events, persons, places,
properties, organizations, information,
and ideas.
The customer will judge the offering’s benefits on three essential elements
The customer will judge the offering’s benefits on three
essential elements:
Product Features and Quality
Service Mix
Price
product features and qualities
This refers to the characteristics, functionality, and performance of the product. Customers look for how well a product solves their problem or satisfies their need.
✅ Key Focus: Design, durability, ease of use, reliability.
Example:
iPhone – Customers are drawn to its high-resolution camera, sleek design, user-friendly interface, and fast performance. Apple ensures premium build quality, which is a huge reason for customer loyalty.
Service mix
This includes all the supporting services that come along with the core product – before, during, and after the purchase. A strong service mix improves customer satisfaction and loyalty.
✅ Key Focus: Delivery, installation, customer support, warranty, maintenance.
Example:
Amazon – Apart from offering products, Amazon has a great service mix:
Fast and reliable delivery
Easy returns and refunds
Customer support available 24/7
This makes the entire shopping experience smooth and convenient.
price
Price is what the customer pays in exchange for the benefits received. It includes not just the money but also the perceived value. Customers often compare price with the value they feel they’re getting.
✅ Key Focus: Affordability, perceived value, discounts, financing options.
Example:
Redmi smartphones – They are known for offering high specs at a budget price. Customers feel they are getting more for what they pay, making it a value-for-money offering.
Product Levels: The Customer Value Hierarchy
Core benefit
Basic product
Expected product
Augmented product
Potential product
core benefit
The fundamental need or solution the customer is really buying.
This is not the physical product, but the essential benefit it delivers.
Example:
A hotel room → The core benefit is rest and sleep.
A phone → The core benefit is communication.
basic product
The actual item or service that delivers the core benefit.
This includes the tangible features like design, components, and packaging.
Example:
Hotel room → Bed, bathroom, towel, fan/AC.
Phone → Screen, battery, speakers, charger.
Expected Product
Expected Product
👉 The set of attributes or conditions that the customer normally expects.
These are standard expectations based on market norms.
Example:
Hotel room → Clean sheets, working lights, basic hygiene, Wi-Fi.
Phone → Good camera, smooth interface, decent storage.
Augmented product
Augmented Product
👉 Extra features and services that exceed customer expectations and differentiate the offering.
This is where brands add competitive advantage.
Example:
Hotel room → Free breakfast, 24/7 concierge, luxury toiletries.
Phone → Cloud backup, face unlock, bundled OTT subscriptions.
potenitial product
Potential Product
👉 All possible future enhancements and transformations the product could undergo.
This is about innovation and evolution.
Example:
Hotel → Personalized AI-based room service, virtual check-ins.
Phone → Foldable design, holographic display, health monitoring.
product classification
Based on Durability and Tangibility
Non Durable Goods
Durable Goods
Services
Based of User
Business
Product
Consumer
Product
Based on Durability and Tangibility
- Non-Durable Goods
👉 Consumed quickly and have a short lifespan (usually one or a few uses).
👉 They are tangible — you can touch and feel them.
Toothpaste
Soap
Food items (like bread, chips, milk)
Stationery (like pens or notebooks)
Durable Goods
👉 Long-lasting products that survive many uses over a longer time period.
👉 Also tangible, and usually involve higher customer involvement before purchase.
Washing machine
Smartphone
Furniture
Car
Services
👉 Intangible, cannot be touched or stored.
👉 They are consumed at the time they are delivered.
Examples:
Haircut
Tuition class
Taxi ride
Banking services
Based on user
Business Product
A product used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other consumers.
Consumer product
Product bought to satisfy an individual’s personal wants
Convenience Product
Definition:
A relatively inexpensive item that requires little shopping effort and is purchased frequently and immediately.
Example:
Toothpaste – People buy it regularly without much thought or comparison.
shopping product
Definition:
A product that requires comparison shopping because it is usually more expensive and found in fewer stores.
Example:
Smartphone – Consumers compare brands, features, and prices before buying.
speciality product
Definition:
A particular item for which consumers make a special purchasing effort and are unwilling to accept substitutes.
Example:
Rolex watch – Buyers seek the brand specifically and will not settle for alternatives.
Unsought products
Definition:
A product unknown to the potential buyer or a known product that the buyer does not actively seek out.
Example:
Life insurance – Often not actively sought unless promoted or recommended.
product item
A specific version of a product that can be identified as a distinct offering in a company’s product catalog.
➡️ It has its own brand, size, price, or appearance that distinguishes it from other items.
Example:
Colgate Total Toothpaste (100g) is a product item.
It is different from Colgate Max Fresh or a 200g pack.
product line
Definition:
A group of closely related product items that serve a similar function or are sold to the same customer group.
➡️ These products often share branding, marketing, and may be priced similarly.
Example:
Colgate’s Toothpaste Line – Includes Colgate Total, Max Fresh, Herbal, etc.
All are variations of toothpaste under one category.
product mix
Product Mix (Product Assortment)
Definition:
The total set of all product lines and items that a company offers to the market.
➡️ It shows the company’s product variety, breadth, and diversity.
Example:
Colgate-Palmolive’s Product Mix includes:
Oral care, personal care, home care, and pet food.
Each line targets different consumer needs under the same brand umbrella.
product mix width
Definition:
Product Mix Width refers to the number of different product lines a company offers. A wider product mix helps a company:
Diversify Risk → If one product line fails, others can still generate revenue.
Capitalize on Established Reputation → A trusted brand name can help sell new products.
🧀 Example of Product Mix Width in Amul
Amul has 5 major product lines, which means its Product Mix Width = 5:
1️⃣ Milk & Dairy Products → Amul Gold, Amul Taaza, Amul Butter, Amul Cheese
2️⃣ Ice Creams → Amul Kulfi, Amul Frostik, Amul Choco Bar
3️⃣ Beverages → Amul Kool, Amul Lassi, Amul Masti Buttermilk
4️⃣ Chocolates → Amul Dark Chocolate, Amul Fruit & Nut
5️⃣ Pouch & Fresh Products → Amul Dahi, Amul Paneer, Amul Fresh Cream
product mix length
Definition:
Product Mix Length refers to the total number of product items a company offers across all its product lines. A longer product mix means more variety, helping companies serve a wider range of customers and increase sales opportunities.
👉 Example: If a company has 5 product lines and each line has 4 products, then the Product Mix Length = 5 × 4 = 20 items.
product mix depth
Definition:
Product Mix Depth refers to the number of variations a company offers for each product in a product line. These variations can include different flavors, sizes, colors, ingredients, or features.
A deeper product mix helps businesses:
✔ Attract buyers with different preferences → Offers choices to meet individual needs.
✔ Increase sales and profits → More options lead to higher purchases.
✔ Capitalize on economies of scale → Producing similar products reduces costs.
✔ Even out seasonal sales patterns → Keeps sales steady throughout the year.
✔ Improve customer loyalty → Customers stay with the brand due to multiple choices.
