“An American company making lubricating compounds for heavy earth-moving equipment such as is used by highway builders has long had a reputation for the quality of its products. In other words, Zenith’s major rivals did not attempt to imitate Zenith. According to Foote, the television companies that did not survive were “undistinguishable in their capabilities and offerings, hence undistinguishable by consumers. ” “The augmented product of IBM is not only the computer but a whole set of accompanying services, including instruction, canned software programs, programming services, maintenance and repairs, guarantees and so on. Levitt repeatedly pointed out that customers rarely buy just a product. Usually, they buy a total proposition—an entire package of real and perceived values. In essence, it did not design its new operation with the “essential values” the customers really wanted and were willing to pay for.
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