Business Studies · Ch 10 — Marketing
Products
10.5.1
Products
A product, from the customer’s point of view, is a bundle of utilities. A buyer does not purchase a product for its physical form alone; they buy it for what it does for them — the benefit it provides. Every purchase is driven by the satisfaction of a need, and that satisfaction comes in three forms:
- (i) Functional benefits – the basic, practical utility (e.g., a motorcycle provides transportation).
- (ii) Psychological benefits – feelings of prestige, esteem, or self-worth (e.g., owning a particular motorcycle makes the buyer feel proud).
- (iii) Social benefits – acceptance or recognition from a group (e.g., riding a certain bike wins approval from friends or peers).
When planning a product, a marketer must consider all three layers of benefit, not just the physical item.