Intangibility

Posted in Marketing and Strategy Terms, Total Reads: 546
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Definition: Intangibility

Intangibility can be defined as the inability to assess the value which is gained when a person engages in any activity using any tangible evidence. It can be used to describe services which do not have any tangible product that the customer can purchase, or that can be seen, tasted or touched.


A distinguishing characteristic of a service is that it is intangible and is not something physical that can be seen, touched or tasted. Services and products can be differentiated in the sense that services are intangible. Buying services are risky for the customer since it cannot be measured thus to ensure repeat customers, it is important to provide adequate tangible proof that the service is good. For Example-Teachers provide their teaching services which are intangible. We can't feel, touch, or taste the service of teaching as shown but it is possible to give tangible proof for the quality of service, like test scores.


Because of this intangibility of services, marketing them becomes a challenging task. Due to the increasing homogeneity in products which are often undifferentiated, the services provided are seen as a key Intangibility can be defined as the inability to assess the value which is gained when a person engages in any activity using any tangible evidence. It can be used to describe services which do not have any tangible product that the customer can purchase, or that can be seen, tasted or touched. in the mind of the consumers. For example, Pizza Hut and Domino’s offer similar products but are very different in terms of services and customer experience. While Pizza Hut boasts of fine dining, Domino’s focuses on take home and quick delivery. These services, such as having a polite and friendly staff, can distinguish one fast food place from another, both of which offer the same kind of food.

 

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