Exam 10: The Payoff of IDIC: Using Mass Customization to Build Learning Relationships

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The three levels of customer needs that a "product-as-service" potentially meets, as described by the authors, are functional, emotional, and social.

1. Functional needs: This level of need refers to the basic requirements that a customer has for a product or service. In the case of a "product-as-service," it could be the need for a specific task or function to be fulfilled. For example, a customer may need transportation, and a car-sharing service meets this functional need by providing access to a vehicle when needed without the commitment of ownership.

2. Emotional needs: This level of need refers to the customer's desire for a certain feeling or experience from using a product or service. With a "product-as-service," the emotional need could be the desire for convenience, flexibility, or peace of mind. For instance, a subscription-based meal delivery service meets the emotional need for convenience by providing ready-to-eat meals without the hassle of grocery shopping and cooking.

3. Social needs: This level of need pertains to the customer's desire to fulfill social or status-related requirements through the use of a product or service. In the context of a "product-as-service," it could be the need for sustainability, community, or belonging. For example, a clothing rental service meets the social need for sustainability by offering a more environmentally friendly alternative to fast fashion, while also providing access to trendy and high-quality clothing for social events.

In summary, a "product-as-service" has the potential to meet the functional, emotional, and social needs of customers by providing a solution that addresses their basic requirements, desires for certain experiences, and fulfillment of social or status-related requirements.