Wednesday, 29 May 2013

Concept of Intangibility


The concept of intangibility revolves around the customers. Intangible services are those that cannot be measured. Service intangibility is present in every organization. Due to this, the customers find it hard to select which firm gives better service.

There are a number of clues that are joined by customers to measure the intangibility of service. If the market
positioning is strong then the service intangibility will be less. Customers do not know the service they will get. Their expectations are always high. In order to create value, company must come up to the expectations of the customers and delight them. Intangibility is considered one of the basic concepts of services.

Under this concept we understand that customers cannot really judge the quality of service because of its intangible nature. A few examples are given in this regard. Services can either be tangible or then become intangible. For instance before a customer purchases a golf course to provide service to the golfers, he/she can go and see the golf course. This is more like tangibility of an intangible service.
Once the purchase is made, the golfers coming to play their will get an intangible service. It is therefore very hard for customers to see what quality service they are being given.The customers find it difficult to understand intangibility since they cannot touch it or measure it.  This also makes more confusion in their minds about the service level they should expect from a certain firm. It becomes hard for customers to differentiate between different brands regarding the service level due to its intangible nature. 

A lot of concepts were introduced in this regard. Market strategies are made to make the intangible service tangible so the customers can measure it and compare. This paper will examine the concept of intangibility and a discussion will follow regarding the creation of value by overcoming intangibility


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