Intangibility: meaning, definitions and examples
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intangibility
[ ɪnˈtæn.dʒə.bɪl.ɪ.ti ]
business concept
Intangibility refers to the quality of being unable to be touched or physically measured. In a business context, it describes assets or services that do not have a physical presence, such as brand reputation, customer service, or intellectual property. Intangible assets can significantly impact a company's value and market perception.
Synonyms
imperceptibility, insubstantiality, invisibility
Examples of usage
- The intangibility of software makes it difficult to price.
- Effective marketing enhances the intangibility of a brand's reputation.
- Investors often consider the intangibility of a company's resources.
Etymology
The term 'intangibility' originates from the Latin word 'intangibilis', which means 'not touchable'. This word broke down into 'in-', meaning 'not', and 'tangibilis', from 'tangere', meaning 'to touch'. The concept has evolved in the context of economics and business, particularly as the modern economy has shifted towards services and digital products. Around the late 20th century, intangible assets gained recognition as vital components of a company's overall worth. With the rise of the information age, businesses began to emphasize intangible factors like brand equity and customer relations alongside traditional tangible assets.