Kernnutzens

Kernnutzens is a term used in German language economic and consumer research to describe the core portion of utility that a consumer derives from a good or service, abstracted from non-essential attributes. The word combines Kern (core) and Nutzen (utility). In this view, utility is decomposed into a core component, which must be satisfied for a product to be considered acceptable, and supplementary components, which add or detract from overall satisfaction but have diminishing marginal influence once the core is met.

The concept helps explain why firms should prioritize essential features in early development and why improvements in peripheral attributes yield lower returns once must-be attributes are fulfilled. It also emphasizes that different consumers may have different cores depending on needs, context, and culture.

Measurement and theory: Core utility is not directly observable; researchers often model it within utility functions or through frameworks like the Kano model, which classifies features as must-be, one-dimensional, or attractive. Conjoint analysis can estimate trade-offs between core and peripheral features. Example: a smartphone whose core utility includes reliable calling, long battery life, and fast performance; a high-end camera and premium design provide additional utility but may be valued only after core needs are met.

Applications: product design prioritization, feature roadmaps, pricing and premium strategies, and marketing messaging that highlights must-be attributes.

Limitations: The definition of what constitutes core utility varies across individuals, cultures, and contexts; there is no universal operational formula, and the concept may oversimplify interdependencies between features or dynamic shifts in expectations.

See also: Must-be attribute; Core competence; Utility theory; Kano model; Conjoint analysis.