The concept of a core product originates from Philip Kotler, in his 1967 book – Marketing Management: Analysis, Planning and Control.
In a competitive market, product-based success requires that customers obtain significant value from the core product.
[citation needed] As mentioned, the core product directly affects customers' interest level.
International marketing research conducted by the University of Southern California found that customers and professionals usually emphasize service characteristics such as heterogeneous products (variation in standards among providers, frequently even among different locations of the same firm) and inseparability from consumption.
He states: “Competition is determined not so much by what companies produce, but by what they add to their product in the form of packaging, services, advertising, advice, delivery (financing) arrangements and other things that can be of value to consumers”.
To beat the competition, product companies focus on factors to which consumers attach extra value, such as packaging, advertisements, service and payment terms.