This is the problem with service, as explained by Theodore Levitt in The Marketing Imagination.
The most important thing to know about intangible products is that the customers usually don’t know what they’re getting until they don’t get it. Only then do they become aware of what they bargained for; only on dissatisfaction do they dwell. Satisfaction is, as it should be, mute. Its existence is affirmed only by its absence.
The button above is an affiliate link. If you purchase a book through my Bookshop.org link, I may earn a small commission—at no extra cost to you! Your purchase helps support independent bookstores. Thank you!”
The statement highlights a unique challenge with intangible products—services, experiences, or digital goods that cannot be physically touched or seen. Unlike tangible products, where customers can evaluate quality, features, and value before purchase, intangible products are often abstract and their value is realized only through use or experience.
What This Means
- Customers Don’t Know What They’re Getting Until They Don’t Get It:
Intangible products are often difficult to assess in advance. For example, when you buy a software subscription or hire a consultant, the true value or quality of the service becomes apparent only after you’ve used it. If the service meets expectations, customers may not actively think about it—it just works. However, if it fails to deliver, the shortcomings become glaringly obvious. - Dissatisfaction Stands Out More Than Satisfaction:
When customers are satisfied, they tend to remain silent because their expectations are met. Satisfaction is often taken for granted. On the other hand, dissatisfaction is loud and memorable. If the intangible product fails—whether it’s poor customer service, a buggy app, or an underwhelming experience—customers notice immediately and are more likely to voice their complaints. - Satisfaction is Mute, Its Absence is Loud:
The absence of satisfaction (i.e., dissatisfaction) is what draws attention. For example, if a streaming service buffers constantly, customers will notice and complain. But if it works seamlessly, they’re unlikely to praise it—it’s just doing what it’s supposed to do. This asymmetry means that businesses offering intangible products must work harder to ensure consistent quality, as failures are more impactful than successes. - Implications for Businesses:
Companies dealing with intangible products must focus on managing expectations, delivering consistent quality, and proactively addressing potential issues. Since dissatisfaction is more memorable, preventing negative experiences is crucial. Additionally, businesses should actively seek feedback to identify and rectify issues before they escalate.
In summary, the intangible nature of these products makes it harder for customers to evaluate them upfront, and their value is often realized only in hindsight—usually when something goes wrong. This dynamic places a greater emphasis on reliability, communication, and customer experience in the intangible product space.