This kind of product can hardly be called intuitively understandable. Here is the relevant excerpt of the classical book «New foundations for classical mechanics» by David Hestenes.
Hestenes introduces the product as a mathematical abstraction, some positivistic notion, entirely justified by the principle «it just works» carefully avoiding the question of physical meaning of this construction. However, this product is not some thing artificial, an empirical observation; it can be easily deduced if one writes down formula for the product of two decomposed vectors (taking into account the following assumptions that are natural for Euclidean world: $x^2 = y^2 = 1$ and $x\wedge y = -x\wedge y$):
$$
(ax + by)(cx + dy) = acx^2 + adx\wedge y + bcy\wedge x + bdy^2 = (ac + bd) + (ad - bc)x\wedge y
$$
So, one has two equivalent entities of grade (Hestenes' term) one, namely vectors, that can be easily attributed physical meaning, as input and the product black-box produces single entity of grade zero and single entity of grade two. Can this operation itself be prescribed any physical or philosophical meaning? Elementary arithmetics tells us that some «law of grade conservation» holds, but what does this law describe? Are there other mathematical constructions qualitatively similar to this one in the sense described above?
P. S. Please do not mistake my question for some thing like «What is geometric algebra and why do we need it?». I am interested in knowing what this specific formula tells us about the World.

