
Accounting & Auditing | Advertising |
Barbers | Broadcasting |
Business Outsourcing | Cafes |
Catering | Childcare |
Cleaning Services | Cloud Computing |
Cloud Storage | Concerts |
Conferences | Consulting |
Cultural Events | Data Services |
Design | Digital Publishing |
Education | Engineering Services |
Events | Festivals |
Financial Services | Flights |
Gyms | Healthcare |
Hospitality | Hotels |
IT Platforms | IT Services |
In-Game Items | Marketing Services |
Media | Mobile Apps |
Movies | Museums |
Nightclubs | Payment Services |
Performing Arts | Personal Services |
Podcasts | Professional Services |
Recreation Facilities | Restaurants |
Security Services | Social Media |
Software | Spas |
Sports Events | Streaming Media |
Streaming Music | Telecom Services |
Theme Parks | Tours |
Training | Transportation |
Travel | Utilities |
Video Games | Virtual Items |
What Qualifies as an Intangible Good?
An intangible good is value offered on a market that is mostly nonphysical. This means that most of the value provided by the product, service or experience is has no physical form. For example, if you stay at a hotel they may give you physical things such as a toothbrush but most of the value they are providing you isn't a physical product. The following are more detailed examples of intangible goods:Consumer Services
Services such as restaurants that primarily serve individual customers as opposed to businesses. Economists tend to view full serve restaurants as intangible goods but take-out food or fast food as a tangible product. In theory, if most of the cost of a restaurant is related to things like service, environment and ambiance than it is an intangible good. However, if most of the value derives from the food itself, it is more of a tangible product.Knowledge Products
Knowledge such as an electronic document that gives advice on how to be a good public speaker.Education
Education such as a class that teaches computer programming.Information & Data
Information designed to be consumed by people and data designed to be consumed by machine. For example, a navigation app that provides realtime directions.Media
Digital media such as photographs, video and content.Software
Software such as a sales automation platform. Software includes both applications used by people and systems that automate things.Art, Film & Music
Digital media that has artistic value such as a music video.Professional Services
Professional services such as legal advice from a lawyer.Personal Services
Personal services such as a personal trainer.Club Goods
Club goods provide access to major capital for a fee. For example, a theme park that provides access to a wide range of attractions and performances.Consulting
Consulting services that produce intangible work products such as knowledge and software.Business Services
Services that produce value for a business such as a cloud computing platform that provides a business with computing power.Events
Events such as a musical performance.Entertainment
Entertainment such as a theme park.Travel
Travel experiences such as a tour of a historical attraction.Culture Goods
Cultural experiences such as a traditional festival.Digital Goods
Digital goods are products and services that are delivered with computers and networks such as an online video game or an in-game purchase of a virtual item.Communication Services
Communication services such as a long distance phone call.Risk Products
Risk related services such as insurance.Financial Services
Financial services such as an electronic money transfer.Public Goods
Public goods such as a park enjoyed by residents of an area.Product Intangibles
Intangible value is the primary type of value created by a modern developed nation. Even physical products are mostly priced based on their intangible qualities such as brand, usability and customer experience. Examples of this are easy to identify ... a luxury handbag that offers social status or a smartphone that's easy to use. In this context, the view that services are intangible and products are tangible is perhaps outdated. For example, a restaurant is viewed as intangible because its service and atmosphere is considered more valuable than the food. However, a handbag is still viewed as a tangible product even if most of its value may be tied up in brand image and its power as a symbol of social status.Summary
Intangible goods are products and services that offer nonphysical value. These are mostly services that offer a process or experience. It is also possible for products to be intangible such as an ebook that you download or an in-game item. In advanced economies, intangible goods are typically a larger part of GDP than tangible products. Massive industries such as information technology, education, healthcare, government services, hospitality, travel, transportation, professional services, personal services and outsourcing are all mostly intangible.
Notes
It is incorrect to say that intangible goods are completely nonphysical or that tangible goods are completely physical. The distinction between the two is really about where most of the value comes from. In practice, this is based on traditional categories that aren't particularly accurate whereby products that are mostly priced based on brand, usability or experience are still viewed as fully tangible.Overview: Intangible Goods | ||
Type | ||
Definition | Products and services that offer mostly nonphysical value. | |
Related Concepts |