INTANGIBLE VALUE Meaning and
Definition
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Intangible value refers to a type of worth or benefit that is not easily quantifiable or measurable. It is a concept used in various fields, such as business, finance, and economics, to describe assets, benefits, or qualities that are not tangible or physical in nature.
In the business context, intangible value often refers to assets or attributes that cannot be easily valued or assigned a monetary value. These may include factors such as brand reputation, intellectual property, patents, copyrights, trademarks, customer loyalty, employee morale, or organizational culture. These intangible assets contribute to a company's overall value and competitiveness but are not reflected on financial statements like tangible assets (e.g., buildings, equipment).
Intangible value can also describe the benefits or qualities that are difficult to measure but still hold significance. For instance, in customer relations, it may refer to the emotional connection or trust a consumer has with a brand, which cannot be precisely determined but greatly influences consumer purchasing decisions.
The intangible value of an asset or quality is subjective and varies depending on individual perceptions or experiences. It is often important for businesses and investors to recognize and manage intangible value because it can significantly impact market positioning, profitability, and overall success.
Etymology of INTANGIBLE VALUE
The etymology of the word "intangible" can be traced back to the Latin word "intangibilis", which is a combination of the prefix "in-" meaning "not" or "un-" and the word "tangibilis" meaning "capable of being touched". This Latin term eventually made its way into English and came to be used to describe something that cannot be physically touched or grasped.
The word "value" has its origins in the Latin word "valere", meaning "to be strong, be worth", and later evolved into the Old French word "value" meaning "worth, value, price". The sense of measuring worth or importance has been carried over into the modern usage of the word.
Therefore, when these two words - "intangible" and "value" - are combined, they form the term "intangible value".
