" In a prosperous society, value is predominantly of an intangible nature." (Marketing Manager)
In our modern society, differentiating products and services from competition has become essential for firms. Consumers benefit from a large variety of products in their efforts to satisfy their needs and thus, intangible values, such as quality, customer service and style, have become key determinants of consumption choices. Firms providing superior intangible qualities will experience greater consumer satisfaction and consequently higher revenues. As a marketing manager, I would urge companies to enhance the intangible values of products and services in order to remain competitive.
The basic utility which stems from a product derives from its tangible (or palpable) value. Consumers would be unable to differentiate the products merely possessing this value since these products would remain highly similar, regardless of their providers.Ã¯Â¿Â½ Intangible qualities, on the other hand, distinguish products (and thereby consumer perception of companies as well) which enables consumers to refine their consumption choices.
The utility of a product, relative to that of its competitors, is therefore determined by the product's intangible value. Indeed, the intangible features can represent as much as 80% of the total market value, as illustrated by companies such as Google and Microsoft.Ã¯Â¿Â½ Especially firms operating in the service sector should dedicate most of their resources to enhance the intangible value since this is only the means by which they can compete with each other.
Since consumers often associate products with its producers, the intangible value also affects the consumer perception of the companies themselves. Companies offering high consumer service, fast delivery and a large assortment of products will generally benefit from a positive reputation in the eyes of consumers. High intangible value on products and services could therefore boost a company's brand image which could prove crucial...