Abstract

Intangibility is one of the distinctive characteristics of service. However, the literature also highlights “tangibles” as one of the basic service quality dimensions. Investigates the importance of tangibles and intangibles in perceptions of service quality as assessed by both customers and service providers. Selects four service industries to reflect a range from high to low levels of tangible components and degree of intangibility in both service process and output. Based on 400 telephone interviews with consumers, shows that the level of tangible components has a positive impact on the perceived importance of the tangible dimension in service quality. However, the second phase of this research, involving a qualitative study with managers in the studied industries, shows that the tangibles dimension is relatively neglected in service industries with high tangible involvement. Presents a model of tangibility and intangibility to aid managers in understanding customers’ perceptions, and to stimulate further research.

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