As a measure of product performance on the Customer Buying Hierarchy, the term refers to the characteristics of the product that affect the way it is used by the customer. Function includes all of the features of a product. For the customer of a channel of distribution, function includes the product selection or choice offered the customer along with the physical surroundings where the product is presented for sale. For the customer purchasing a manufactured product, functions affect the operating capability of the product, the environment in which the product can function, or the capability of the product's operator.

Example 1:

Sports Authority carries an extensive selection of brands at the competitive prices typically offered by megastores. But it also carries brand names and professional service more common at small specialty stores and pro shops.
(Year 1996- SIC 5941)

Explanation: Sports Authority offers its customers the Function benefit of choice of both mass market and higher-end specialty brand names.

Example 2:

The nation's largest long-haul trucking company switched its fleet from Cummins engines to Detroit Diesel. The new engines by Detroit Diesel achieved reduced emissions without sacrificing efficiency.
(Year 1991-SIC 3519)

Explanation: Detroit Diesel engines offered the Function benefit of reduced emissions, which the Cummins engines did not have. This benefit extended the environment in which the product can operate.

Example 3:

Acer's Aspire PCs have soft shapes, cool curves, and dark, rich colors.
(Year 1996-SIC 3571)

Explanation: These Function benefits enhance the style of the computers and add to the environments in which the products can be placed.

Example 4:

In response to lower prices from Cub Foods, Kroger began enlarging stores and adding some restaurants, service meat counters, pharmacies and liquor stores.
(Year 1985-SIC 5411)

Explanation: Kroger introduced Function benefits of ambience and wider product selection in order to offset the lower prices of Cub Foods.

Example 5:

Taco Bell remodeled its stores. Research showed that customers did not find the old brick restaurants particularly inviting. Now Taco Bell looks like other fast-food emporiums.
(Year 1986-SIC 5812)

Explanation: The remodeling by Taco Bell was a Function benefit that changed the physical ambience of the location where the product was presented for sale.