A product
may be a physical item or a service. It is a form of offering which is
perceived to create value for the customer. Business Dictionary offers several explanation on the definition, however here we are looking at the value disposition of both tangible and intangible qualities of a product over the priced paid.
People purchase things for various reasons, such as: specific function, price, design, and etc. Value is the perceived intrinsic and extrinsic return which could be derived by owning/consuming the product over the cost of having it. It is far from absolute, since value is often determined through comparison with other similar products and prior experience which creates expectations. A simple case would be, how valuable is a set lunch in McDonalds? Some people would consider it a value buy because they would have to pay more for the similar set at other hours without the discounts, especially in shopping malls where normal food are slightly more expensive and outside food are a little difficult to obtain. Another group would probably value the same lunch lesser when they compared the utility obtained from the McDonalds lunch compared to the cheaper ones at a restaurant next door. Here, the consumers are willing to travel further for a meal as long as they pay less, which makes the McDonalds meal less desirable.
Since user experience is a complex and near incalculable phenomenon, it is impossible to accurately predict user perception of a particular product. However, what makes a product more welcomed than its peer? What makes people buy iPhone, when it is much pricier? And what makes people buy knife and scissors, when they can afford a Swiss army knife which offers both in one package?
Google it with keywords like: Differentiation, Product advantage, niche. You may conjure some possible answers. Discuss it with your friends and think over it.
By identifying the advantage of your product over the competitors, you can find your own customer if you could match your product proposition to their needs. Remember, people who do not buy your product may be an untapped market or potential customer, or they may probably not be the ones you want to sell at all. After all, in a resource scarce world, we cannot sell one thing to everyone.
