enhancing quality brand of tourism products using new it application … rios morales, luci… ·...

2012 Cambridge Business & Economics Conference ISBN : 9780974211428

ENHANCING QUALITY BRAND OF TOURISM PRODUCTS USING NEW IT

APPLICATION TOOLS

Ruth Rios-Morales1, Lucia Aiello and Claudia Cacia

ABSTRACT

A prominent feature in the recent trends of the tourism industry is emerging in the global

landscape. The new online application tools of Web 2.0 such as Site Web, social media and social

networks are shifting the fundamentals in the way tourists are gaining information about destinations

and services. This development significantly influences the strategic decision process of

tourism firms and of international tourism organizations. Tourist actors must respond to this

change by using marketing strategies tailored to the needs and wants of this new trend. The

purpose of this paper is to analyze new determinant factors influencing quality brand of a tourism

destination and product. Through the identification of those determinant factors emerges a

contribution to theory development. A holistic quality brand model which incorporates

technological tools in the implementation of brand quality in a tourism product or service is

developed. Our conclusions suggest that firms in the tourism industry ought to understand the

dimensions and the potential of Web 2.0 applications on marketing practice and business in

general.

Keywords: Tourism, Web 2.0, social media, social networks, quality brand

1 Corresponding author: Ruth Rios-Morales (PhD), Les Roches-Gruyere, University of Applied Sciences Switzerland, Rue de l’Ondine 20, CH 1630 Bulle, Switzerland. Tel. 00 41 26 919 7878, Fax 00 41 26 919 7879 e-mail: [email protected].

June 27-28, 2012Cambridge, UK

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mailto:[email protected]


INTRODUCTION

The process of globalization and the advent of innovation and communication technologies

are changing the business environment of the tourism industry. The global interconnectedness

has opened a world of opportunities, but has also brought many challenges to the industry’s

actors. There are two most important opportunities for tourism operators: the rapid increase of

the demand in the international market (Papatheodorou, 1999; Divisekera, 2003; Song et al.,

2000 & 2003; Lim et al., 2002; Seetaram, 2010) and the “reduced distance" with potential

customers. Although distances between service providers and their customers have been

shorten due to the new technological advances; consumers nowadays have become more

sophisticated and demanding (Kotler, 2002; Gabaix & Laibson, 2006; Mills & Law, 2004;

Cova & Pace 2006; Compete, 2006; Cooper, 2008; Pantano, 2010). Consumers have access to more

choice; implementing more meticulous research concerning destinations and by seeking more

guarantees from suppliers (Bolton & Drew, 1991; Murray, 1991; Haub & Trifts, 2000; Teas &

Agarwal, 2000; Detlor et al, 2003; Chang & Burke, 2007; Chen & Xie, 2008; Wang, 2008;

Arussy, 2009)

Competition in the tourism industry has become more complex, influencing the strategic

decision making process of tourism operators. The incorporation of IT tools represent

opportunities for distribution to overcome traditional network limitations, but also a challenge

for operators (Marcuseen, 2001; Biella & Biella, 2004; Chen & Xie, 2008; Wang, 2008).

Enduring competitiveness in this business environment for tourism operators goes beyond the

implementation of effective communication with customers. The effects of branding on

consumer choice have become increasingly more important to study as technology has

provided consumers with a constant stream of information. Information comes from an

unlimited number of sources while narrowing the competitive advantage gap between

corporations of varying sizes and their brands (Duncan, 2002; Kitchen, 2005; Arussy, 2009).

In a market where the internet has become an important platform, tourism products or services

must be presented in their full gamut (Scott &Laws, 2006). Branding plays a vital role in the

implementation of an integrated policy in the processes of tourism products and services.

Quality brand is also an important element in international positioning of a product or service

and has been widely recognized as a source of competitive advantage in the tourism industry

(Laws, 2000). Identifying new determinant factors influencing quality brand in the tourism


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industry is key to the design of strategic destination and product. The remainder of this paper

is organized as follows: the next section presents related literature of the role of brand in the

positioning policy. The subsequent section evaluates practical tools based on theories and

scientific literature related to quality brand and its reinforcing role in international positioning.

Then, is Web 2.0 presented as an important element to enhance quality brand. In the

subsequent section, new determinant factors and a holistic quality brand model which

incorporates technological tools in the implementation of brand quality in a tourism product

or service is presented. The last section presents the conclusions of this study.

BRAND POSITIONING POLICY

There is an affluent and diverse scholarly research conducted in the topic of brand.

Researchers from the marketing, communications and psychology streams have explored this

topic (Banerjee, 2008; Hung, 2008; Koubaa, 2008). A brand can be defined as a psychological

construction of images and relationships which are responsible for product/service

identification and product/service differentiation; which influences customer’s purchase

decisions (Esch, 2004). Branding has an important role in the development of a product or

service in the service sector. A brand enables consumers to visualize and understand the

intangible aspects of the service including the principles of the people who provide the

services. Branding is an effective technique in international marketing in the service sector

(Buhalis & Costa, 2006). However, a brand gets into a different dimension when adding the

international perspective (Bell, 2000). Customers in other country markets may have different

preferences and tastes than in the home markets; therefore, the same messages may come

across differently. Nonetheless, customers are developing a taste for globalized products and

their preferences are becoming more standardized (Kotler et al., 2002; Kapferer, 2004).

Regarding tourism, brand is difficult to develop and manage as many consumer touch points

are not within the controls of the destination marketing organization (Pike, 2007). However,

placing a branding policy is crucial in the implementation of an international tourism product

or service. To optimize this process it is indispensable to implement a planned strategy aiming

to match three components: identity, image and personality. The construction and use of the

strategy implies deep knowledge of those specific concepts. Both identity and image are

based on values, while personality is associated with the brand (Gunn, 1972; Goodrich, 1978;

Bernsterin, 1984; Abratt & Shee, 1989; Gartner, 1993; Fill, 1999; Siano, 2001; Wei, 2002;


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Schults, 2003; Aiello et al., 2009). Identity reflects the view of the marketer or owner;

believes and intends that the service should represent to consumers. While image represents

what customers, users, and the like believe or perceive about the service or what it represents

to them at a given point in time (Schults, 2003; Wei, 2002; Abratt & Shee, 1989). Image exist

exclusively in individuals who are perceived through a series of clues (visual) perception that

leads them to judge subjectively what the organization as well as a destination or a hotel chain

is (Bernsterin, 1984). Image has been verified to be a pivotal factor in travellers' decision

process and destination/hotel chain selection (Gunn, 1972; Gartner, 1993; Goodrich, 1978;

Woodside & Lysonski, 1989; Um & Crompton, 1990). The image that travellers hold about a

destination would be significantly influenced by several information sources. As a result, an

accurate assessment of image is key to designing an elective marketing and positioning

strategy (Reilly, 1990). This position allows affirming that there is often a big difference

between what the organization/tourism product believes or feels about the service and

consumer experiences. On the other hand, personality has in its nature a strong immaterial

component that has to be made explicit through the visual elements, in order to communicate

to the outside and to become perceivable (Siano, 2001). Personality can be considered as the

result of the interpretation of the qualities of the organization/ tourism product, achieved

through a process of self-evaluation (Fill, 1999). By implementing a high-quality

communication policy and brand strategy it is possible to observe the connection between the

tourism product perception and its personality. Therefore, we refer to a communication that

can translate the elements of personality in those visible and perceptible outside elements that

constitute identity. Then, tourism firms must allow recipients to understand their identity by

transmitting visual elements to be perceived by customers; identity can only be created and

transmitted by the firms themselves and should be used to differentiate themselves from

others. Optimizing the relationship between identity and personality, certainly results in the

reduction of the gap between personality and image. However; an excellent brand strategy

policy implies the absolute integration of personality, image and identity; a lack of any of

these three elements would hinder the establishment of a brand (see Figure 1). Positioning a

tourism product or service effectively in the market requires the development of an effective

branding strategy.

Insert Figure 1 about here


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USING QUALITY BRAND TO REINFORCE INTERNATIONAL POSITION

Branding in the services sector is a challenging task due to the lack of physicality until the

service has been performed (Beckwith 1997). A firm that operates in the tourism sector ought

to be supported by policies tailored to ensure that quality is perceived externally as excellent.

These policies should aim toward consumers’ satisfaction; which can be obtained trough the

implementation of price value and absolute quality. The latest is the actual perform of the

service in the marketplace and in relation to other competitive services. Nevertheless, quality

is measure by the customer and it is out of the control of the marketers (Schulz, 2003). For

this reason, perceived quality becomes a vital element in the international positioning of a

tourism product; customer expectations and satisfaction are determinant elements in the

success of a firm.

Doyle (1998) emphasises the importance of going beyond customer expectations through the

provision of an augmented level of added values, which are “difficult for competitors to

imitate” and upholding customer loyalty. Thus, quality brand would make the consumer

perceive that a product or service has superior values and benefits than other products or

services in the market (Lambkin et al., 1994). Customers receive tourism products in their

complexity and integration, these include: means of transport, accommodation, cultural

activities, catering and any other activity carried out related to the tourist destination. Tourists

expect satisfaction in the entire tourist experience not merely with the individual components

of the tourism product. In accordance with the concept of multi-product destination branding

(Scott & Laws, 2006), quality brand should encompass the full gamut of tourism products and

services.

Policies of quality brand are an important element in the positioning policy of tourism

products or services. Figure 2 identifies all the necessary components for the implementation

of brand quality and essential policies in the development of a trademark in the tourism

industry. Increasing quality in each “field destinations” would create customer satisfaction

and customer loyalty. However, each activity on the services chain should be monitored and

control. Monitoring is an important element for achieving quality brand objectives which

includes: customer satisfaction, loyalty, increasing numbers of tourists, increase of

internationalization, increased profitability, and increased infrastructure, development of

individual products, increased performance, and increased training. Attaining these objectives


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will enable tourism suppliers to provide a quality brand service or product at a highly

competitive price. Quality brand is the source of competitive advantage which is widely

recognized in the tourism industry (Laws, 2000).


THE ROLE OF WEB TO IN QUALITY BRAND

The Internet represents an embedded high-quality system capable of influencing prices,

consumer preferences, behavior and brands (Singer, 2002). Technology plays a significant

role in the tourism industry, both as a facilitator of growth, and as an enabling factor to

increase and ensure positive experiences for the tourist (Stipanuk, 2001). If we focus on

technologies for ICT, this relationship becomes even more pronounced; in fact the diffusion

of ICT in tourism has affected both communication and distribution (Martini, 2000). The

Internet and computer network have been added to the business model as a support,

communication and sales tools of tourism products (Franch, 1999). A complex product such

as tourism can be represented on a website where its multi-media and hyper-textual potential

can be fully exploited. Tourists who have visited a website to obtain information or to make

reservations online can also be put on an e-mail list, and subsequently, be sent additional

offers or information by means of more traditional media. This process enables the creating of

a lasting relationship with the customer (Go, 1992). At the same time, the advent and

development of automated reservation systems, such as CRS (Computer Reservation System),

and later, GDS (Global Distribution System) have rendered the supply of tourism services

global (Sheldon, 1997; Furini, 2001; Benjamin & Wigand, 1995); thus, completely changing

the structure of distribution channel (Werthner & Klein, 2007). Considering the above,

technologies provide an incentive to generate relationships between businesses, allowing the

creation of expanded network which can pool information about the market; this also enables

supply and demand needs to overlap (Fesenmaier, 1999; Boardman, 2005). Consequently, it

cannot be ignored that effective strategy for using the Internet are key element in achieving

competitive advantage (Detlor et al., 2003). Steady growth that characterizes the digital

segment of travel, one of the most significant on the Web, is in constant growth. Tourists

effectuate the purchase prior to the experience itself, so the information search is a critical

factor in the purchasing process (Steinfield et al., 2001; Hoffman, 1996). In the light of these

considerations, it is evident that the potential success of e-commerce for tourism products is


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linked to the ability to manage information exchange processes and to particular forms of

interactive communication (Camisani Calzolari, 2008). However, the Internet is not just a new

communication tool on which to transfer contents previously conveyed by other media, but

demands new, appropriate communication and customer relation strategies, because of its

contextual product distribution function (see Figure 3).


In today’s business environment the Internet is a point of synergy between communication

and distribution; planning and developing strategies need to consider the role of the Internet.

As we observe in Figure 3, teleshopping and promotional TV/radio messages have a purely

communicative role, while, sales assistance and automatic distributors have a purely

distribution function; the Internet performs both tasks. Through the different tools,

predominance in the objectives is pursued; e.g. the main objective of teleshopping is to

provide the customer with terms and information of the product, sales becomes a secondary

objective. Clearly, the sale process will be perfected later through telephone contact with the

potential customer. Conversely, an employee is mainly focused on product selling but

everything he does or says affects the purchase decision, as does the idea that the actual or

potential customer has about the "seller" - as representative of company - but also about the

product, brand etc. The development and refinement of new technologies and elements to

support and protect the potential and current supply market make the internet perfectly able to

represent an instrument of communication and distribution. The main difference between the

Internet and other "tool" is that communication and distribution are integrated (see Figure 3).

Other valuable features the Internet offers to consumers are: easy access and a platform for

dialogue at any given time. The Internet is an important tool in the demand and supply

dynamics (Atkinson & Coffrey, 2002; Pantano, 2010), while Web 2.0 has become an

important component of modern marketing.

The Internet is also a tool for comparing competitors in real time: this is the case of “theme”

search engines such as www.prontohotel.it, www.booking.com. The advantage of new

technologies is to achieve an integration of key marketing levers in the face of greater

flexibility and lower costs which translate into increased efficiency and effectiveness for the

company. Undoubtedly, the opportunity for integration is not the only advantage given by the

Internet which also contributes to reaching higher levels of integration. The map in Figure 4, June 27-28, 2012Cambridge, UK

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illustrates ways and means that enable the integration between distribution and

communication processes. Figure 4 also shows the scale of integration defined from the first

rectangle representing the area of “no integration” where traditional media are placed to the

area of “total integration” referring to portals for e-commerce. In that light, we can suggest

that the Internet as a point of synergy, enabling firms to move into a field of higher

effectiveness and efficiency, the new technologies create a process of integration with the

benefit of more efficient and effective policies that tend to raise the perceived value of

tourism product offering and accordingly, to create new sources of competitive advantage.


The role of the Internet as point of synergy is illustrated in the Figure 5, where four areas have

been identified. The first is the "interaction/sharing" area. In this area, we find tools that

enable the interaction and sharing only of operational policies. For instance, trade fairs enable

different tools to share space and costs to advertise your products, but their primary aim is not

to implement actual integration. The second area, which of "no synergy", is characterized by

the lack of interaction and sharing of two levers – an example is advertising in newspapers.

The third area of "integration" refers to any tool which, while allowing for integration

between communication and distribution, does not guarantee operational interaction and

sharing. This is a complex situation, because integration does not obviate operational

interaction and sharing. The last area is defined as "full synergy", the internet serves as point

of synergy between the two operational policies: operational sharing and operational policies

integration. In this area, the Internet is the "perfect" amalgamation between distribution and

communication. The tools (e-mail, chat, wiki) represent a mode used by different firms in the

tourism chain.


NEW DETERMINANT FACTORS OF QUALITY BRAND IN THE TOURISM

INDUSTRY

The growing importance of Web 2.0 applications in the tourism industry is changing the

determinant factors influencing quality brand of a tourism destination and product. Although a

number of studies have acknowledged the positive ways in which technological applications


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are contributing to the rapid change of customer behaviour (García-Crespo et al., 2008), there

is only few studies that have appraised the technological factors influencing quality brand of a

tourism product or service (Constantinides & Fountain, 2008). According to the concept of

multi-product destination branding (Scott & Laws, 2006), quality brand should encompass the

full gamut of tourism products and services. Quality brand policy is an important element for

the international positioning of a touristic product or service. Quality brand has been widely

recognized as a source of competitive advantage in tourism (Laws, 2000).

In this highly competitive business environment where consumers’ expectations are raising

continually, brand quality ought to incorporate the use of different e-business mechanisms.

This may require that e-retailers need to go beyond the bottom-line profit thinking in order to

differentiate themselves from competitors and to gain competitive advantage based on e-

satisfaction, e-loyalty and trust. Building trusting relationships with customers is key to long-

term effective communication. Evidences indicate that customers’ reviews posted in different

forums or online communities such as Web-blogs and podcasts are much more powerful as

marketing tools than expert product reviews (Gillin, 2007); the influence of blogs and

podcasts is increasing because of the rapid expansion of the audiences and contributors

(Constantinides & Fountain 2008).

Implementing a brand quality strategy in this highly technological environment is a complex

process. It involves the management of a number of elements that develop awareness and

customer loyalty (Nykiel, 2006). Quality brand of an international tourism product would

encompass a supportive strategy that optimizes the quality of the tourism product or service.

The development of brand quality would also require the optimization in the relationship

between identity, personality and image. As we observe in Figure 6, developing brand quality

is a process that starts with the integration of identity, personality and image. Image is key to

what we would like to communicate. Identity represents the brand / product category (e.g.

number of stars for a hotel), while, personality is the nature of the product/service itself. The

implementation of quality product/service where monitoring would make possible to attain is

achieving quality brand objectives need to be implemented. Developing brand quality would

also support the international positioning of a tourism product or service (see Figure 6). The

internet is undoubtedly a fitting arena for tourism businesses to develop value-added services

for customers (McKinsey, 2007). Social media, ‘social shopping’ and other online platforms

where consumers contact other consumers to exchange information (i.e. Buzzillions, June 27-28, 2012Cambridge, UK

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Crowdstorm, Ebay, Neighborhoods, Kaboodle, ShopMedia, Stylehive, TheNext, Trusted

Opinion, Viewpoints, Wishpot, Friendster, Tripadvisor) is a new determinant factor to be

considered in brand quality.

The use of appropriate e-business tools would increase an added value of a tourism product or

service by providing customers with superior customer value delivery (García-Crespo et al.,

2008). ICT applications for instance have been acknowledged to have influential effect on the

consumption of tourism products (Karger & Quan, 2005). Marketing research indicates that

social network sites (SNSs) are growing in popularity worldwide (comScore, 2007).

Information across SNSs has been confirmed to be a useful tool use by tourists to reduce risk

and uncertainty (Urban, 2003). Inevitable, building quality brand in the tourism sector would

necessitate deep understanding of e-business tools.


CONCLUSIONS

The international tourism literature has identified the importance of technological tools in the

implementation of brand quality in a tourism product or service, but little is been said about

the new determinant factors and their integration in the structure of quality brand. This study

attempts to identify these new determinates related to the technological activities in the

tourism sector. By using practical tools based on theories and scientific literature, we have

analysed different elements influencing “quality brand” in the tourism sector. From this

analysis emerges a holistic quality brand model which incorporates e-business tools to

advance understanding of a complex process in today’s business environment. The paper has

also important implications for a firm’s international positioning strategy and attempts to

contribute to theory development.

The growing popularity among consumers of the use of Web 2.0 applications raises

responsiveness for further close examinations of this topic. Further studies may appraise

empirically our model. It is essential for marketers to look at IT tools as strategic tools. Firms

in the tourism industry ought to understand the dimensions and the potential of Web 2.0 on

marketing practice and business in general. Understanding the sources of customer value and


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consumer motivation in using these applications are the first steps to enhance user experience,

meeting customer information needs and helping customers become satisfied will be the keys

to future success. Further studies may also analyze the use of mobile applications to set

dynamic and durable firm-customer relationship. Finally, we trust that this paper provides a

contribution that leads to a better understanding of consumer behaviour and customer

consumption experience in an online social shopping context.

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http://www.mckinseyquarterly.com/Marketing/How_businesses_are_using_Web_20_A_%20McKinsey_Global_Survey_1913_abstract


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Personality.What tourist product/Brand is

ImageHow tourist product is perceive

IdentityHow the tourist product is visible outside/identifiers

BRAND


FIGURES

Figure 1: The Brand as integration of image, personality and identity

Source: Aiello & Cacia (2009).


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Fields Destination Process Objective Control

Hospitality

Accessibility

Cultural infrastructures

Economic infrastructures

Transport

Breakdown of the individual activities of the facilities to be monitored. (reception, night passing, and others)

customer satisfactionloyaltyInternationalizationIncreased flows in terms of additions and Attendance

Questionnaires customer:Increase in the number of facilities;Increase in national and international flows;Return Customers;Increase in performanceBreakdown of individual

activities to access the destination track (the tourist information offices, markings, and others)

customer satisfactionloyaltyInternationalizationIncreased flows of visitors

Increase in the number of infrastructure and service

Increase in performance

Breakdown of the individual activities of the cultural infrastructure to be monitored (Museums, theatres, and others)

customer satisfactionloyaltyInternationalizationIncrease in visitors Presence of national and international visitors

Breakdown of the individual activities of the economic infrastructure to be monitored (banking offices, and others)

customer satisfactionloyaltyInternationalization local actors satisfaction

Increase in number of infrastructureIncrease in service usersIncrease in performance Increase in performance

Breakdown of the individual activities of transport companies to track. (transportation, signage, information, ticketing, and others)

customer satisfactionloyaltyInternationalizationIncreased flows of passengers

Questionnaires customerIncrease in number of infrastructureIncrease in national and international flows Return CustomersIncrease in performance

Increase in number of activitiesIncreased number of the structures and cultural infrastructureIncreased the flow of visitorsReturn CustomersIncrease in performance


Figure 2: Step for a Quality Brand

Source: Aiello & Cacia (2009).


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Figure 3: Communication and distribution: the internet role

Source: Singer et al., (2010).

Figure 4: Map of vehicles-means of distribution and communication



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Figure 5: Internet as Point of synergy


Figure 6: Adding Value to Quality Brand

Use of e-business tools: e-satisfaction, e-loyalty & trust

Implementation of Quality tourism product/service Policy

Integration of image-identity-personality Tourism

product/service

Quality Brand

___________________Source: our elaboration


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