1. Explain the core, actual, and augmented levels of this service.
2. Does this service have the potential to deliver customer value? Explain your answer.

With the magazine industry’s circulation and ad sales suffering, Time Inc. is offering a new Internet service, called Maghound that allows customers the “convenience of subscriptions with the flexibility of newsstand sales.” Instead of paying a fixed-term subscription fee for one magazine, customers pay a monthly fee for home delivery of a wanted publication plus with the added benefit of being able to go online when desired and change to a different publication. The Maghound new service is beginning with 300 consumer magazines, including Time’s popular titles, such as People, Fortune, and Sports Illustrated. Magazines from several other publishers are also available. Customer can get three magazines for about $5 a month, five magazines for $8, or seven magazines for $10, with each additional magazine costing another $1. Maghound lets a reader who enjoys golfing or fishing to read about that in the summer and then switch to winter sports, such as skiing, in the winter. Moreover, gone are the “renew now” nuisance offers and being locked into a subscription for a long time.