In product development, value-added  refers to the act or process by which tangible product features or intangible  service attributes are bundled, combined or packaged with other features and  attributes to create a competitive advantage, reposition a product or  increase sales. By adding value to a product or service, businesses can  differentiate their offerings from competitors and attract new customers.  Standard value-added features include extended warranties, customer loyalty  programs and additional services such as installation or delivery. As a  result, businesses can develop a substantial competitive advantage and boost  their bottom line by carefully considering which value-added features will  benefit their target market.