service branding: from developing service brands to value

International Research Symposium in Service Management ISSN 1694-0938

Le Meridien Hotel, Mauritius, 24-27 August 2010 1

Service Branding: From Developing Service Brands To Value Creation In The Hospitality & Tourism Industry In Kenya

Joan J. W. Gathungu

Kenya Utalii College

P.O. Box 31052

Nairobi.

254-0722-342300

[email protected] / [email protected]

&

Auralia Wamuyu Karoki

Jomo Kenyatta University of Agriculture & Technology.

P.O. Box 62000

Nairobi.

254-0722-775364

[email protected]



SERVICE BRANDING: FROM DEVELOPING SERVICE BRANDS TO VALUE

CREATION IN THE HOSPITALITY & TOURISM INDUSTRY IN KENYA

Paper type: Exploratory

The new economy is characterized by focus on service delivery, trade in knowledge based

industry and innovation. This heralds a critical time for the service industry, due to the

increased proliferation of service brands, increasingly shorter service life cycles. And the

global nature of this phenomenon. Despite this rapid move into prominence of knowledge,

ideas and services, the branding of services has grown at a very slow pace. This is despite the

fact that the new economy is embedded on the realization of value for the consumer.

Branding of goods continues to grow very rapidly despite the fact that trade on services is

growing more at the marketplace.

Many organizations today face challenges in service branding due to: services in most cases

attract population segments and not the mass market; services need to convince their

consumers of their relevance in the market as far as customers’ needs, desires, competitor

activity is concerned since services offered tend to be largely alike; service firms need to

focus on growing revenues earned from the market and not on growing market share; most

service firms are unable to engage in effective internal marketing thus overlooking their

biggest brand ambassadors and being unable to effectively convince the market.

In addition, developing a service brand is only an initial step. The resources committed into

the process are enormous and need to be monitored to ensure a return on investment. The

development of a service brand must thus guarantee the firm of the creation of value to the

firm, previously non-existent. Value may be created in the areas of: relationship building,

visibility, goodwill in the brand, positioning and relevance.

Despite these challenges, there is need to engage in vigorous and effective service branding

for the firm. This is because each time the consumer encounters the service is a moment of

truth for the firm. As such, the firm needs to constantly deliver a consistent and reliable

message to its consumers throughout.

The purpose of this study therefore is to determine the number of service firms that have

engaged in successful service branding and if service branding adds value to an organization.

The specific objectives include: to identify successful service brands in the hospitality and

tourism industry in Kenya; to assess how service branding impacts on the overall value of an



organization; to establish the existence and development of brand extensions from the

organizational brand; to identify challenges in the new economy that affect service branding

in the hospitality and tourism industry; and to identify a model that successful firms employ

in service branding.

Both primary and secondary data shall be used in the study. Primary data will be collected

using questionnaires and in-depth interviews from industry marketing managers. Data will be

analyzed using SPSS where descriptive statistics will be derived to explain the trends and

relationships in the hospitality and tourism industry. Upon data analysis, three models shall be

developed: one on qualities of a successful service brand, secondly on initiatives firms may

employ to overcome challenges inherent in the service branding process and thirdly initiatives

firms may adopt to realize more successful service branding that’s beneficial to them. The

study shall benefit players in the hospitality and tourism industry.

Key words: New Economy; Service branding; Value creation



LITERATURE REVIEW

Introduction

Most of the empirical and theoretical literature in existence regarding branding borders on

products.

Aaker (1996) describes a brand as a ‘‘mental box’’ where customers file information relating

to the brand and accumulate evaluations of the brand. Although branding has played a role in

commercial trade for centuries, brand management rose to prominence in building

competitive advantage during the twentieth century (Aaker, 1991).

The practice of branding has endured for centuries as a method for distinguishing the goods

of one producer from another, exemplified by the rancher’s symbol burned in to the hides of

livestock, the medieval silversmith’s trademark on the base of a candlestick, or the sixteenth-

century distiller’s name burned on a whiskey barrel(Farquhar,1989). These are examples of

brands as defined by the American Marketing Association (2008) as: ‘‘A name, term, design,

symbol, or any other feature that identifies one seller’s good or service as distinct from those

of other sellers.’ Brands distinguish the firm’s offer from competitors’ products in the market

place by linking the product with an abstract representation (e.g., name, term, design, or

symbol) in the minds of customers.

Building on Aaker’s work, Keller (1993) develops the behavioral concept of customer-based

brand equity (CBBE), which he defines as ‘‘the differential effect of brand knowledge on

consumer response to the marketing of the brand’’ (p. 8). Although conceptualizations of

brands and brand equity vary, differences in definitions do not distinguish product branding

from services branding or B2B brands from consumer brands (De Chernatony & Segal-Horn,

2003; Webster & Keller, 2004).

The purpose of brand management is to generate brand equity through meaningful

differentiation by linking the brand to an abstract concept (e.g., name, term, design, or

symbol) in ways that increase the brand knowledge held by customers. Hence, two

foundational assumptions of brand management are that (1) customers have the ability to

perceive differences and (2) they will have differential responses to differentiated offerings.

These assumptions immediately raise questions for brands in the B2B services context. First,

how are brands perceived when the customer is an organization rather than an individual?

Second, how do brands differentiate intangible offers that customers often consider as



commodities? In the business environment, effective business-to-business (B2B) relationships

are essential to the survival and success of the enterprise; however, acquiring and maintaining

profitable relationships is becoming increasingly difficult. (Davis, Golicic and Marquardt,

2009)

Upon examining existing academic definitions of ‘brand’, a ‘two factor’ approach forms the

broad basis for many definitions with writers such as De Chernatony and Mc William (1990)

and Caldwell and Freire (2004) suggesting brand definitions based on ‘emotional’ and

‘rational’ factors. This approach is summarized by Pringle and Thompson (1999), arguing

that there are two main constituents to a brand’s authority: its rational or performance benefits

and its emotional or image ones. Louro and Cunha (2001) embrace these and add ‘strategic’

and ‘relational’ dimensions in arguing that brands are multidimensional. De Chernatony and

Riley (1998), in investigating definitions, ultimately suggest that a brand is ‘a

multidimensional construct whereby managers augment products or services with values and

this facilitates the process by which consumers confidently recognize and appreciate these

values’.

Some practitioners believe that branding is not so widely used in services marketing as in the

marketing of more tangible items.

Although there is extensive literature on services marketing not much of it addresses the

issues of branding services. A significant amount of literature on services deals with

measuring or delivering customer satisfaction (Carman,2000); Gongroos,1983; Parasuraman

et al 1988,1991 1994; Spreng and Mackoy,1996;Jones and Suh, 2000); More literature

relates to what type of organization and personnel support the delivery of high quality

services(Carlzon 1987;Gongroos 1990;Lovelock, 1992; Davis, 1989; Wyckoff, 1991)

There is also literature on, success in services (Sin and Tse, 2000; Berry, 1999; Keaveney,

1995; Martilla and James, 1977, Schlesinger and Heskett, 1991).There also exists literature on

general branding of services directly or indirectly, Dobree and Page (1990) onkvisit and Shaw

(1989).

Service brands attach more often to the parent firm than to an individual service (Berry,

2000). The quality of the service, the people standing behind the service and the value of the

supplier/customer relationship determine the strength of a service brand (Berry, 2000;

McDonald, De Chernatony, &Harris, 2001).



The importance placed on branding in marketing is linked to the need to build up a stable core

of sales through brand loyalty, which has been described as “A motivated, difficult –to-

change habit of purchasing the same item or service”. Other authors express surprise that

brand loyalty should be less important for marketers of services. Cowell (1984) highlights the

intangibility of services and that problem in distinguishing one from another as giving

powerful reasons for attempting to build strong brands with which customers can identify.

This is especially true in the hospitality and tourism industry that is dependent on the service

providers and brand perceptions.

However, George and Berry (1981) also point to the heterogeneity which is a characteristic of

the service industry and should warn against making sweeping assumptions about the whole

area. Just because branding is not well developed in one part of the service sector such as

television rental or education, health, entertainment, and other areas does not necessarily

mean that this is uniformly the case. It is also necessary to take into consideration the

changing role of branding in certain sectors. In the hotel industry, for example although

branding was once regarded as insignificant, it now forms an important part of the offering to

customers. ‘Holiday Inns’ is now just one of the many strongly branded offerings. In

addition, Mariott, Stakis and even travel lodge are all clearly branded. In Kenya, emergent

brands such as Serena and Sarova amongst others are distinguishable. However, the strength

of these brands remains unexamined in attainment of benefits of effective service branding.

If branding is important in services marketing, then it is important to consider ways to create

successful brands.

Background to the study

Kapferer(1992) reports that branding culture in not strongly embedded in service firms. He

touches on the issues of intangibility and invisibility of service.

De Charnatony and McDonald (1998) like Levy feel that FMCG mode of branding can be

used with modifications to build service brands. They contend with other authors who think

branding efforts in the services industry do not match the rapid growth of the services

industry.

Literature is also available on branding labour-intensive services by Berry and Lampo (2004)

who recognize that branding plays a special role for labour-intensive services because strong

brands increase customers’ trust of an intangible, variable offering that is difficult to evaluate

prior to purchase. A strong brand is the surrogate when there is no dress to try on, no



automobile to test-drive, no bananas to scrutinize. The more consequential, complex and

variable the service, the more customers need brand reassurance.

The authors note that emotional connections require values alignment between brand and

customers. The strongest brands are those that reflect the core values the target market holds

dear. Touching customers emotionally through authentic, innovative, caring, generous service

experiences elevates a brand beyond price, features and benefits to a higher level of meaning

– and customer commitment. Advertising can set the stage but customers are well attuned to

commercial overstatement and generally require experiential proof that a company genuinely

cares about them as human beings.

Bergstrom and Blumenthal (2003) argue that the brand should be inextricably linked to

corporate and social responsibility of an organization and therefore offers something ‘of

substance’ to help stakeholders differentiate between organisations. Doyle (1989) believes

simply that branding ‘makes the consumer’s choice process more effective’ and this alone

could be argued to offer a rationale for branding’s applicability to HE. De Chernatony and

Riley (2000) suggest that ideally consumers choose to have a relationship with a brand if they

trust it to deliver specific promises.

Research also shows that strong service brands earn higher prices with customers’ willingness

to pay more for an excellent service. This finding applies across all services but shows the

strongest pattern for interactive, customized services such as hairstyling. The extent to which

employees’ behavior drives brand preference for these services; the price premiums strong

brands support and the price discounts weak brands necessitate are noteworthy. (Berry &

Lampo (2004)

Empirical evidence supports the influence of a seller’s reputation on the development of

buyer–seller relationships and on buyer trust (Doney & Cannon, 1997). Buyer trust is the glue

for the effective buyer–seller collaboration that is critical for B2B service firms (Selnes &

Sallis, 2003). Strong relationships and mutual trust are key antecedents to performance,

commitment, and satisfaction, which, in turn, influence customer perceptions of overall

service quality and brand image (Berry, 2000; Singh, 2000; Zeithaml, Berry, & Parasuraman,

1996). Adopting a strong customer orientation (Aaker, 1996; Wiedman, 2005) and an

emphasis on creating customer-valued innovation enhance a B2B service firm’s brand image

(Cohen & Levinthal, 1990).



Research by (Williams, 2006) focuses on experiential marketing, a relatively new marketing

orientation and provides a contrast to traditional marketing. Whereas traditional marketing

frameworks view consumers as rational decision-makers focused on the functional features

and benefits of products, experiential marketing views consumers as emotional beings,

focused on achieving pleasurable experiences. It is argued that as the science of marketing

evolves, experiential marketing will become the dominant tool of the future (Williams, 2006).

From the reviewed literature, it is evident that most studies in existence in services marketing

address different aspects of the service. There is a sizeable literature on branding of service in

general, business to business services, branding intensive services branding as well as

different aspects of the 7 ps.

This paper attempts to follow up on the research in existence on service brands but lays

emphasis on branding of services in the tourism and hospitality industry in Kenya. The

primary investigation of branding of services in the tourism and hospitability industry in

Kenya will serve the purpose of helping clarify not only underpinning conceptual

assumptions but practical implementation in the services sector.

Research design and methodology

The research design utilised entailed a survey design that employed questionnaires and

interviews involving the listed firms.

Identification of Firms

Profile of the Respondents

A total of 35 respondents; all managers in various dockets handling marketing and

communication matters in the hospitality and tourism industry firms’ were targeted. A total of

23 managers from the hospitality and tourism industry responded.

They held the following positions in their respective Organizations.



Table 1: Ranks Held by Managers Interviewed

Position Frequency

Front Office Manager 3

Health Club Manager 3

Operations Manager 2

Hotel Manager 6

Foods and Beverages Manager 2

Sales and Marketing Manager 1

Chief Naturalist 2

Banqueting Manager 1

Unspecified 3

Total 23

FINDINGS

The listed firms were then subjected to a process of analysis that led to the development of

conclusions useful in service branding as detailed below:

Market Served

Out of the organizations interviewed, 48% serve the mass market whereas 52% serve a niche

market.

Figure 1: Nature of the Market Served

market served

48%52%

0%0%

Mass

Niche

Market Segment Served

Out of the organizations interviewed, majority engaged in provision of conference services,

closely followed by corporate clients. A few engaged in hosting weddings, outside catering,

top class celebrities and other specific segments of business.



Figure 2: Specific Market Segments Served

0

2

4

6

8

10

12

14

Local

touris

ts

Intern

ation

al tou

rists

Corpora

te

confe

rences

Host w

eddin

gs

Offer o

utside

cater

ing

Sportin

g grou

ps

Tour a

nd Trav

el co

mpanie

s

gove

rnmen

tsNGOs

Top cl

ass ce

lebriti

es

churc

hes

Honey

moo

ners

Busine

ss tra

veler

s

Type of Market segment served

Engagement in Service Branding

Studies reveal that service brands assure customers of a consistent, uniform level of service

quality, thus reducing decision-making uncertainty and providing a point of competitive

differentiation for service providers (Berry, 2000). Out of the firms interviewed, 83% of the

firms engage in regular branding. The other 17% do not engage in service branding.

Figure 3: Frequency of Firms Engaged in Service Branding

Firms engaged in Service Branding

83%

17%

Yes

No

Presence of value addition

Where it is employed, service branding increase brand value, customer relations and quality.

Firms implement branding activities such as employee training and technical support to



assure consistent service delivery outcomes. Service process branding activities focus on

recruiting employees whose values align with the organizational culture and who possess a

commitment to behaving in ways that support the brand.

Out of the firms interviewed 19 testified to experiencing the benefit of value addition from

service branding. A further 4 firms did not enjoy any value addition from service branding.

Figure 4: Realization of Value Addition from Service Branding

02468

101214161820

Yes No

Presence of Value addition in Service Branding

Forms of value addition

Branding services can contribute to corporate reputation which has several benefits according

to various studies. More reputable firms can charge a premium, which will in turn attract

investors (Fombrun and Shanley, 1990). A positive reputation will attract employees and

promote lower employee turnover (Markham, 1972), improve customer attitudes (Brown,

1995; Yoon, Guffey, and Kijewski, 1993), lower a client’s perceived risk (Ewing, Caruana,

and Loy, 1999), increase the propensity to joint venture (Dollinger, Golden and Saxton, 1997)

and create higher credibility (Herbig, Milewicz and Golden, 1994).

Most of the firms interviewed realize value addition in easier identification by the market. A

significant number attest to improved company image. Other benefits realized from service

branding are identified by the different firms as: competitive advantage, increased customer

loyalty, sustained revenues, quality assurance, unique service provision, menu engineering,

high standards, easier marketing and friendly environment.



Table 2: Forms of Value Addition Realized by Firms from Service Branding

Value Addition Form Realized Frequency

Better positioning 1

Get competitive advantage 3

Increased consumer loyalty 4

Sustained revenues 4

Quality Assurance 2

Improves company image 6

Unique service provision 3

Menu Engineering 1

Easy identification 7

High Standards 2

Easier marketing of hotel 4

Friendly environment 1

None 2

Firms Rated as successful brands

Levy (1996) notes that successful service brands can be developed based on the principle of

fast moving goods (FMCG) branding. These principles are product definition clear product

benefit, identifications, brand differentiation, consumer motivations and measurement of

product strength.

In addition, Doyle(1989) has identified four possible dimensions of creating successful

brands, namely: (1)Prioritize quality-evidence suggests that prioritizing quality improves

margins, by helping to create a competitive edge, thus increasing market share which in turn

leads to large economies of scale. (2) Offer superior service- Doyle highlights research which

demonstrates high rates of branding levels being useful in changing consumers’ perceptions

regarding the level of service in an organization among customers dissatisfied with service.

(3) Get there first-Being the first in the consumers mind is all important-prior to entrance of

large numbers of competitors. (4) Be different- the important of differentiation particularly in

mature markets is well recognized. In the services sector effective control of differentiation is

important.

All these means point to ways of creating a strong differential advantage which can then

become closely associated with the brand itself.



A variety of firms were identified as enjoying successful brands in the market. These were

mostly service oriented firms. They were identified from the local Kenyan market as well as

from international markets. Safaricom, a Kenyan mobile phone services provider was voted to

be the most successful brand by the various hospitality managers. Hotels such as

Intercontinental, Serena and Sarova were also rated quite highly but were not the leading

brands in Kenya. No tourism related firm was listed in the top firms, yet the study was carried

out amongst hospitality and tourism managers.

Figure 5: Successful Service Brands Rating



1

2

3

4

5

6

7

Firms considered to have successful brands



Why the Brands are considered successful

The brands considered highly successful were rated on a number of factors. The most

important was their ability to meet needs of a wide range of customers. Other highly

important factors included: their popularity in the market and their being well known in the

market. Other important factors included: the consistency in the service offered, degree of

innovation, quality products, high profitability, good customer service, availability of

products, easy identification in the market, global recognition amongst other factors.

Table 3: Factors Making these Firms Enjoy Successful Service Brands

Factor Frequency

Consistency in service offered 4

Innovative 3

Strategic Management 1

Well known and utilized daily 6

Quality products 3

High profitability 4

Good customer service 4

Availability of products 4

Meet needs of a wide range of customers 8

Popular in market 6

Easy to identify the brands 4

Get international awards 1

Worldwide recognition 4

Engage in corporate social responsibility 2

Informal approval from peers 1

Does a lot of advertising 3

Presence of good structures for business growth 2

Customer’s Recognition of Firms’ Brand

For service firms, brand management aims to associate the brand with attributes valued by

customers. When executives successfully identify areas of customer-desired value, integrate

these values into the brand’s value proposition, and effectively communicate the brand’s

value proposition, customers are more likely to consider and purchase the brand (Keller,

1998; Romaniuk, 2001).



Unlike branding for tangible goods, the value delivery system for service brands actively

involves customers. Thus, quality perceptions consist of what customers receive (the

technical outcomes) and how they receive the service (the service process) (de Chernatony

&Segal-Horn, 2003).

Out of those interviewed, 91% positively responded that customers were able to recognize a

service brand. Only a paltry 9% of customers were unable to identify different service brands.

Figure 6: Recognition of Service Brands

Recognition of Service Brand

91%

9%

Yes

No

Elements Most Recognized in Service Brands

Out of those interviewed, quality of service was the most significant element of a successful

service brand. This was followed by the presence of excellent facilities and friendly services.

Of importance too were other factors: personalized customers service, conistent standards,

highly trained staff, homely environment and many other elements.

Figure 7: Elements Most Recognizable in Service Brands



0

2

4

6

8

10

12

14

16

Quality

of se

rvice

Person

alised

custo

mer ser

vice

Excelle

nt fac

ilities

Memora

ble se

rvice

Consis

tent st

andar

ds

Friend

ly ser

vices

Highly

traine

d staf

f

Custom

er Loy

alty p

rogram

mes

Conve

nient

locati

on

High se

curity

Good r

eliab

le int

ernet

conn

ectivi

ty

Eficien

cy in

opera

tion

Privacy

Attenti

on to

detai

l

Homely

envir

onmen

t

Unique

prod

ucts

Elements of Firm most Recognised

Challenges Encountered in Developing the Service Brand

A number of challenges affect firms that engage in service branding. These include: there are

great variations in the levels of perceived risk and associated consumer involvement both

within different kinds of goods and within services. For example, there might be greater

differences in branding implementation between brief one-off service encounters (e.g. buying

a McDonald’s hamburger) and extended service encounters (e.g. receiving hospital

treatment), than between the former and routine product purchases.



As Parasuraman (1987) remarked, there are two facets to service transactions: the end result

and the manner in which the service is performed. In some services such as life assurance and

pension funds, the outcome is removed in time. This may make it difficult for consumers to

evaluate the quality of the service and to differentiate amongst competing offerings (George,

1990) – hence the rather high degree of risk. The consumer evaluation of such services is

strongly influenced by the initial stages of the process of delivery, in particular the nature of

consumer– employee interactions and the extent to which the consumer feels the promises

will be fulfilled (e.g. Bitner, 1995; Grönroos, 1990b; Parasuraman, 1987.Branding this kind

of service entails a relationship not only between the marketer and the consumer, but also the

employees delivering the service (or the service’s promises) and the consumer. Even for some

more intangible’ services such as flying, each encounter tests the organization’s ability to

keep its promises (‘the moment of truth’). As such, the staffs delivering a service are

perceived by consumers as part of the product (Knisely, 1979), personifying the brand itself

(Bateson, 1995).

Employees must share the company’s ideologies and beliefs, if they are to communicate and

deliver the brand’s values and its promises (Parasuraman, 1987) For this to happen, a further

relationship must be established, through internal marketing (e.g. Berry, 1980; Greene, Walls

and Schrest, 1994), between the firm and the employees, thus completing the triangle of

service relationships (Hoyt and Beverlyn, 1987). The core of this relationship triangle is the

brand, establishing a favourable consumer perception, building corporate culture and

providing motivation and service delivery standards for staff, thus enabling promises to be

kept (Bitner, 1995). To this end, some stress the importance of the company as the brand (e.g.

Dobree and Page, 1990), since part of what is sold with a service is the overall stature and

imaginary of the organization (Knisely, 1979), and consumers tend to perceive all services

offered by a company as components of a single brand (Berry, Lefkowith and Clark, 1988).

For this reason, Knisely (1979) and Berry, Lefkowith and Clark (1988) argue that some

services do not lend themselves to individual product branding. Particularly in the case of

financial and professional services, for which it may be more difficult to make a priori quality

judgments, the corporate brand name, its reputation and the firm’s size are used by customers

as proxies for quality when selecting between brands (e.g. Boyd, Leonard and White, 1994;

Kotler and Bloom, 1984; Weigelt and Camerer,1988). Al these challenges face firms in the

Kenyan hospitality and tourism sector.

Out of the challenges facing service branding, high compettion was singled out as the most

important. This was followed in importance by: inconstistency in adherence to standards, high



staff turnover, and lack of popularity since hotel is a stand-alone unit, demotivated staff and

varying levels of education of staff.

Table 5: Challenges Faced by Service Brands Face

Challenge Frequency

Inconsistency in advertising campaigns 4

Inconsistency in adherence to standards 3

Varying levels of education of staff 2

High staff turnover 3

Lack of market research 1

Centralisation of operations 1

Demotivated staff 2

High competition 7

Lack of popularity because it is not a chain hotel 3

Customers ability to differentiate brand from competing brands 1

Adapting to management changes 1

Far distance from conservation area 1

Problem in segmenting domestic and international market 1

High cost of advertising 1

Lack of clear marketing plan 1

Lack of cooperation from community 1

Insecurity 1

Means to enhance Service Brand

Out of the managers interviewed, it was identified that the most effective way to enhance a

service brand is through continuous and regular advertising. Training of staff regularly was

also identified as a very important method. Other important methods include: effective

analysis and feedback from guests, market research, diversification of products as per

customers needs, word of mouth marketing, better remuneration of staff amongst others.

Figure 8: Means to Enhance Success in Service Branding



0

1

2

3

4

5

6

7

8

9

10

Contin

uous

and i

ncrea

sed ad

vertis

ing

Contin

uous

Trainin

g of s

taff

Effecti

ve fe

edba

ck fro

m custo

mers

Increa

sed vi

sibilit

y

Better

polic

ies

Better

remun

eratio

n of s

taff

More m

arket

resear

ch

Diversi

fy Prod

ucts a

s per

custo

mer ne

eds

Have s

taff re

tentio

n prog

rammes

More co

rporat

e soc

ial re

sponsi

bility

Develo

p a w

inning

bran

d ide

ntity

Word

of m

outh

marketi

ng

Increa

se fin

ancin

g

Simple

and e

ffecti

ve w

ording

of ad

verts

Impro

ve im

age t

hroug

h draw

ing an

d pict

ures

Methods to improve service Brand

Conclusion and Final remarks

The concept of the experience economy era was formulated by Pine and Gilmore (1998) who

advocated providing special experiences and unforgettable memories as the key to

competitiveness. Schmitt (1999) was another early advocate, suggesting that experiences



could engage the consumers’ senses, sight, sound, touch and feeling in an unforgettable way.

But experiential marketing does not just mean having an experiential offering. The experience

must also be deliberately marketed in an experiential way (Petkus, 2004). In order to promote

tourism experiences, marketers have to think beyond traditional advertising techniques. As

well as communicating the obvious, marketing campaigns need to bring brands to life by

dazzling consumer senses, touching their hearts and stimulating their minds (Widdis, 2001).

Powerful brands build a company’s reputation positively and research has shown that this has

added benefits to an organization. Managers and academics intuitively believe that whether or

not a company is seen as reputable will affect its market performance, and studies

demonstrate the wide-ranging benefits from having a good reputation. More reputable firms

can charge a premium, which will in turn attract investors (Fombrun and Shanley, 1990). A

positive reputation will attract employees and promote lower employee turnover (Markham,

1972), improve customer attitudes (Brown, 1995; Yoon, Guffey, and Kijewski, 1993), lower a

client’s perceived risk (Ewing, Caruana, and Loy, 1999), increase the propensity to joint

venture (Dollinger, Golden and Saxton, 1997) and create higher credibility (Herbig, Milewicz

and Golden, 1994).



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