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educes risk and evaluation difficulty when the branded product/service is perceived as<br />

intangible.<br />

2. Literature Review and Hypotheses<br />

2.1. Intangibility<br />

2.1.1. Definition of Intangibility<br />

[Figure 1 about here]<br />

Lovelock (2001) recently identified nine basic differences between products and services<br />

with intangibility as one of the major distinguishing factors. Shostack (1977) illustrated the<br />

differences between tangible products and intangible services by suggesting that the former<br />

could be described precisely, be replicated exactly, be modified, and be duplicated while the<br />

latter were dynamic, evolving, and hard to quantify. Along the same lines, Berry (1980) defined<br />

intangibility as something impalpable. Adding another level of complexity, Bebko (2000)<br />

recently proposed that intangibility should include lack of physical evidence of the process<br />

instead of being defined exclusively as lack of physical attributes of the outcome.<br />

2.1.2. Dimensions of Intangibility<br />

Usually defined as inaccessible by the senses, subjective, and difficult to measure, most<br />

scholars agree that intangibility is one of the most distinguishing characteristics of services<br />

(Bateson 1979, Berry 1980, Lovelock 2001, Shostack 1977, Van Dierdonck 1992).<br />

Characterizing services as physically and mentally intangible, a number of researchers<br />

conceptualized intangibility as a two-dimensional construct (Bateson 1979; Berry 1980;<br />

McDougall and Snetsinger 1990). Among them, Dubé-Rioux, Regan and Schmitt (1990)<br />

proposed a two-dimensional intangibility construct composed of concreteness and specificity.<br />

Their findings revealed that services differed in their cognitive representations with abstract<br />

services represented by means of generic attributes and concrete services represented using more<br />

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