Intangibility is used in marketing to describe the inability to assess the value gained from engaging in an activity using any tangible evidence.[1] It is often used to describe services where there is no tangible product that the customer can purchase, that can be seen or touched.[2]
Other key characteristics of services include perishability, inseparability and variability.
Marketing implications
When a customer is buying a service, he perceives a risk related to the purchase. In order to reassure the buyer and build his confidence, marketing strategists need to give tangible proofs of service quality.[3] Because of service intangibility, consumers are less likely to switch brands or try new ones.[4]
References
- ^ Palmer, Adrian (2000). Principles of Marketing. Oxford: Oxford University Press. p. 631.
- ^ Palmer, Adrian (2000). Principles of Marketing. Oxford: Oxford University Press. p. 220.
- ^ Flipo, Jean-Paul (1988). "On the Intangibility of Services". The Service Industries Journal: 287.
- ^ Tarn, David (2005). "Marketing-Based Tangibilsation for Services". The Service Industries Journal: 750.