What is the role of the augmented product in services?

• A. It reduces product cost
• B. It has no impact
• C. Augmented products provide additional services that differentiate and justify higher prices
• D. It replaces core product

Answer: (C)

In services, the augmented product is the bundle of extra services and benefits that surround the core service to create added value for the customer. These extras can include things like warranties, guarantees, after-sales support, convenient access, delivery or installation, personalization, and responsive customer service. By offering these additional elements, a service can differentiate itself from competitors that provide only the basic service, and customers are often willing to pay a higher price for the greater value and reduced risk these extras provide. So, the role of the augmented product is to provide additional services that differentiate and justify higher prices.